Rents have risen quite rapidly the last few years and it is once again becoming more viable option to purchase. However credit is still tight. I have seen some great cashfow property deals in Qld recently and I am sure we will see a lot more vendor financing in the future.

‘Please remove me from your mailing list as you don’t answer your emails.

Not sure on the east coast, at least you guys have the population to justify current prices albeit a bit high.
Perth however is in EXTREME trouble. Massive house prices that are way overpriced. No one is buying, the only people with money and doing well are fly in fly outs and they are not stupid enough to buy overpriced perth property. FHB’s have fled and cant afford to buy anyway. Perth is teetering on collapse and Perth is not in a boom. Just ask the thousands of workers and factories with no work as its all being outsourced to China.

It seems to me that although there is some tightening in the market around properties in the “average” price range (ie $450-650k), there are some awsome bargains available at both the high and low end of the market right now. I have bought several apartments in some of the cheaper, high growth areas and prices are going up (although not at the rate they did in 2009/2010).
I think the high end of the market has also come down quite a lot over the last 6-8 months and people are buying !

i am a realestate agent in the outer east of mellbourne the market here has come back around 10%in the last few months and i am expecting a little more to come .
there is still demand in estaablished homes ,but new home enquirey is very slow.
first home buyers have all but gone as well .
the good news is that i have now noticed buider willing to be more negotiable
i have 20 sq house and land packages for $330,000 in good locations this is 30k less than what they were selling at.
As good developed land is in short supply i dont see much more of a price drop

Real estate prices in Narrogin, Western Australia at the low end of the market have dropped over the last 2 years by up to 30% with no relief in sight. Quality of tenants is also not there as a poor series of 4 farming seasons has seen a drop in employment and prospects. Farmers are in serious trouble in much of the wheatbelt if there is no rain soon and a bumper crop to cover recent borrowings and erosion of equity. Some farmers may never recover and there may be a sad loss to our farming community of decades of experience by bank mortgagee auction.

City people just don’t seem to ‘get’ that poor farming seasons and resultant lack of spending has a dramatic effect on what everyone else has to spend.

Homeswest has created many new dwellings in town, so that has taken up some of the rental market, although they are toughening up on family income levels and forcing some tenants even slightly over the income guidelines to vacate. About an even split then in that market.

Expect this and similar markets to remain static at least for a further 12 months, possibly 24.

I totally agree with “malay” regarding the stimulus package.
However I disagree with the opening statement.

I am close to retirement & bought another property last Xmas at a 50,000 discount in my own suburb at Lake Macquarie with great rent return.

I am looking for another to add to my portfolio & there are more coming on the market every week. My problem is choosing the one.

Honestly if you are an investor or thinking about it start digging ’cause there is gold out there for the taking.

When the media says things are bad’ to me that’s a sign to get active & when the media says things are hot its to late.

Hi jon.

Firstly – love your daily pick-me-up e-mails; thanks.

I wanted to let you know that because of you (and because of Property Investing too, to be honest) I have bought 4 residential properties this year.

I got over my procrastination and took the plunge.

They are out there, you just have to search.

Cheers,

Gerry.

Very interesting..Thanks for the info Jon.

Are there still any smaller lenders willing to give you a loan if you have assets. The big banks have vitually stopped lending since January if you cannot substantiate your income. Yhis also includes SMSF’s.

If you have had a good experience or a good broker let me know as I would like to buy a property or two.

Thanks

I know CBD of melbourne over built ,but what about Travancore 1.5 kms north of The melbourne kids hospital is it worth a look at …. pedro

Thanks for your updates, Knowledge source. I guess Real Estate will continue as it has been up and up rolling here and there, unless of course there is some unexpected /unforeseen reason for it to be arrowing downwards? ( Someone mentioned Japan). Anyone know how the areas in Queensland that were affected by the major flooding getting on ?
Best to keep a positive outlook and not be too concern or focus on any negative or doomsday predictions that may well affect the skyrocketing values of real estate especially in Melbourne. (e.g:earthquake warnings like: “… University of Melbourne geologists have uncovered evidence that parts of South-eastern Australia recently stirred from their geological slumber and are in an active mountain building phase…” Source: Australians ‘complacent’ to earthquakes ABC Science Friday, 27 March 2009 ).

Hi Jon!
I am a buyer at this point in time until I run out of borrowing power –I’m almost there- however.

I have some concerns with the political innuendo in our country and the fighting all over the world for the so called DEMOCRACY. Adding to that, the uncertainty of when is work coming up, and the inflated prices that real estate agents put on housing to collect a greater commission aggravated by the threat of raising interest rates from the ARB topped up by bank’s greediness creates a market just for some. The majority of citizens are on just above the minimum wage salary driving such potential buyers to rent instead. Rents are more attractive than paying interest rates, water rates, council rates, power, insurances, fuel, as well as those goodies that a working person and family needs to be provided with to enjoy some time besides working.

So yes, I am buying to sell to provide for my retirement, but scared of the future. Meanwhile, I am trying to be positive (it’s hard) believing in medium term (not more than 5 years) property investment benefit.

Dan, sorry to inform you but real estate DOES go DOWN. My neighbour in Perth in a prime suburb had her house on the market for 2.9 million about one and a half years ago and there were no takers. It was reduced to 2.19 m after a year and was then sold for 2.09 m after being on the market for such a long time.
Japan is quite different to Australia. For starters, the country is much, much smaller so there is a shortage of land there. Similarly, in Singapore, there is a scarcity of land there and a reasonably nice apartment will set you back over a milion.