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Rocket Salad

Housing Bubble thread.

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59 minutes ago, Rocket Salad said:

What happens when he wants a family? 40k won't go far.

 

4 minutes ago, Merv said:

Not much when you have a drug habit and sex life to maintain.

Having the family will put paid to the 2nd vice.

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He doesn't have a house. So there goes 20k/yr of his 40k.

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When I'm home, I notice how expensive shit is there - whether it be petrol or peas.

 Is that 40k before or after tax?? Back when I was the 'new' Parliament House, I left mid 1989 on $39,000. How can people be on $40k, almost 30 years later,  and live??

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12 hours ago, Ex-Hasbeen said:

Having the family will put paid to the 2nd vice.

Doesn't seem to have affected our deputy PM

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Currently doing the weekly open home circuit and getting a bit tired of agents justifying prices of shitholes based on the suburb median price... 

Are medians the best indicator of values or what else should we be considering? Any comebacks for these greasy high school drop outs when they make such claims?

 

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Guy behind me thought he would DIY selling his house since there seems to be a bit of demand for our suburb and limited supply. 

Whacked it on the local Facebook page and got what he was after ($1.5 mil)  in under a week. And while he agrees an agent might have got him a bit more  it would have been lost in fees anyway. 

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It's 100% legal to sell your own house. 

He was smart if all he wanted was 1.5. But he could have got 1.8 with a good agent. 

I sold my last place. Knew what I wanted. Got it in 3 days. Wasn't greedy. Just wanted sold and move on. 

I have a qualified agent so knew a bit more than most. Saved 30k. Which is what I might have got extra with an agent. 

Id never suggest people auction their own house. 

Pin actual fact, if you are in no rush to sell, done auction. Put.a Price on and wait. 

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19 hours ago, pieman said:

Currently doing the weekly open home circuit and getting a bit tired of agents justifying prices of shitholes based on the suburb median price... 

Are medians the best indicator of values or what else should we be considering? Any comebacks for these greasy high school drop outs when they make such claims?

 

After 4 maybe 5 years of looking, I'm FKing glad it's now over for us. We knew the market and made an offer we were confident in. 

We might have paid $8k more than we needed to, but over the period of the loan & the fact we now have our weekends back & no longer spend hours trolling the net is worth the money. I made about $8k selling all my Ironman gear off so I'm happy. 

When it came to our place we had a price range of offers between $379 & $399k. First offer we got an offer of $387 with out conditions & a $10k deposit paid the next day.  We took it a said thank you very much. 

Could we have got $399 I doubt it, we might have got $390ish if we waited. That would have meant more open inspection more worrying and more mortgage payments on house we won't be living in. 

I look a it this way $8k too much for the new house, $5k less on our place. Real Estate agent fees $10k = $22k 

$22k (+extra mortgage of course) we have got a new house that both my wife & I love, in an area we wanted. It ticks all the boxes for us, it suits our life style, closer to the city, public transport. There is only three of us so we got a smaller place. No swimming pool to run & solar panels etc. I will also be able to walk to work.  The money we save not pay $1300 electricity bills & driving to in from work. 

It was a no brainer. 

I also hated the snotty nose Real Estate agents & probably missed out on a few houses because I let my ego get the better of me. 

We also spent a lot of time trying to find an agent to sell this house. The worse guy came in to do an evaluation on our house. Seen all my bikes in the lounge room & started going off about cyclist not paying rego & using the roads....... Then he got upset when I asked him to leave. 

 

 

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I watched The Big Short last night. It was a bit hard to follow because I was drunk and maybe because I'm a bit dumb.

Anyway since it's a slow news day here is today's doom and gloom story on the housing bubble.

http://www.news.com.au/finance/economy/australian-economy/ten-myths-making-australians-complacent-about-looming-economic-armageddon/news-story/af3d79eda0006e0f7005295a3103ec87

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3 hours ago, Rocket Salad said:

I watched The Big Short last night. It was a bit hard to follow because I was drunk and maybe because I'm a bit dumb.

Anyway since it's a slow news day here is today's doom and gloom story on the housing bubble.

http://www.news.com.au/finance/economy/australian-economy/ten-myths-making-australians-complacent-about-looming-economic-armageddon/news-story/af3d79eda0006e0f7005295a3103ec87

The book is better and scarily easier to understand.  

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I'm not so sure about the Qld bubble. I sold my joint for 8XX 4 years ago in Red Hill. Checking the market, prices are 680-880 and a bunch of auctions. Mine was  a 3 and 2 with 2 LUG on 10.5 perches. It's about the same now. Flat is a better descriptor.

 

I have a few agents that I get offers from still and places like West end are getting 25% discounts on release as unsold .

 

It's not so much a bubble but an oversupply I'm certain areas. Everything else is pretty ordinary. Considering interest, a cash account would see you with more money.

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It’s been 11 months I think since we sold our joint and it just sold again last week ( getting divorced) is the word on the street.

any way almost 200k less I’ve been told definitely slowed a bit wouldn’t say burst though 

another 10 years probably be worth 800 more 😂😂

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I asked it years ago. What do people consider the bubble burst?

75% drop?

50% drop?

10% drop?

for me a bubble bursting is 50? Drop in prices. 

At the moment it’s not even 5%. It’s called a correction. 

What I am finding more interesting is the lack of people in cafes and restaurants compared to what it used to be. Places that were always busy or packed are now 50% empty. No reservations needed anymore. Etc...  

people are certainly overcommitted financially and are saving cash 

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18 minutes ago, Peter said:

What I am finding more interesting is the lack of people in cafes and restaurants compared to what it used to be. Places that were always busy or packed are now 50% empty. No reservations needed anymore. Etc...  

people are certainly overcommitted financially and are saving cash

Just wait till interest rates go up. They'll be spruiking outside the cafes just to sell coffee. The avocado industry will collapse.

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On 29/05/2018 at 3:42 AM, Mike Honcho said:

I'm not so sure about the Qld bubble. I sold my joint for 8XX 4 years ago in Red Hill. Checking the market, prices are 680-880 and a bunch of auctions. Mine was  a 3 and 2 with 2 LUG on 10.5 perches. It's about the same now. Flat is a better descriptor.

 

I have a few agents that I get offers from still and places like West end are getting 25% discounts on release as unsold .

 

It's not so much a bubble but an oversupply I'm certain areas. Everything else is pretty ordinary. Considering interest, a cash account would see you with more money.

Brisbane has definitely been flat and so it needed to be after the crazy price increases previously. (you didnt mention when you bought yours or what for?). Brisbane prices are flat or small increases but Sydney has fallen for the first time in ages but still nowhere near bubble as Peter says..

As you mentioned, unit oversupply in Brisbane is a massive issue and developers will be struggling to make much on them as there is so much choice there. I wouldnt want to have an older unit that I was wanting to sell as you can buy new for a similar price (plus get first home owners grants if you are a virgin buyer)

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Id be happy for Sydney to fall a bit more. 

Where we would like to be is currently about $3-400 k difference in value from where we are, so if it all slides back a bit proportionately that difference should close and it may be more achievable.  

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11 minutes ago, roxii said:

Id be happy for Sydney to fall a bit more. 

Where we would like to be is currently about $3-400 k difference in value from where we are, so if it all slides back a bit proportionately that difference should close and it may be more achievable.  

Were'nt you trying to convince the family to move to Qld a while back?

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20 minutes ago, KieranR said:

Were'nt you trying to convince the family to move to Qld a while back?

Yeah, about that. 

Appatently if I go I will only need a studio apartment. 😮

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27 minutes ago, Rocket Salad said:

Stop believing the newspapers. Do your wn research. 

And answer my question. What percent do you believe said the bubble has burst?

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If you think it’s 5% then you are finally right after 4 years. The bubble has burst. 

If you think 50% then you’ll be waiting a long time. 

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On 30/05/2018 at 7:38 AM, Ex-Hasbeen said:

 The avocado industry will collapse.

And here I am about to plant half an acre of avocados this Spring, will have to settle with the 25% increase in prices in our area since we bought 8 months ago (at least in large land blocks with houses established).  Loving all the talk of Melbourne's second airport going in half an hour away, keep it going.

Not sure oversupply is such a thing, houses are going up, going for sale and selling pretty quick here with lots of them accepting a commute back to Cranbourne or Dandenong.  Plenty of people screaming out for rentals that just don't exist.  

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