Aussie Real Estate

[Irish in Oz]

A mate of mine in Sydney has been complaining about house prices in Sydney.
My place is north of there area known as Central Coast, so I went looking at prices and found a neighbours place across the road on the market so based on that my property has increased in value by approximately 30% in 3.5 years.
Only 1 of my 4 kids have bought a house I think the others will find it very difficult.

[GSXKING]

It's a lunatic asylum the banks are just lending money like no bodies business on way overpriced real estate. There is only one way now though, as soon as interest rates start increasing another GFC like crash as everyone tries to sell their overpriced home because they can't and never could truly service the debt. IMHO.

Rant over, thanks Jeff 

[Mick_J]

When I bought my first house interest rates were 15%, I'm glad I didn't buy too high as a lot of my mates soon had to rent their houses out and move back into RAF quarters as they couldn't sell and couldn't afford to pay for their new houses, rates (if not prices) are much better for buyers now.
When it was 15% I had no savings, now it's .25% and I have, life's a bitch sometimes.

[Irish in Oz]

Oz has never had the luxury of the low interest rates in UK.

[Kiwifruit]

Talking about this on the radio yesterday. Banks don't want to lend money, tough to get a mortgage. Not too long ago they were saying top up the house mortgage if you need a new car, holiday, boat etc, couldn't get it out the door fast enough. How times have changed. I suspect the banks can smell a storm coming. House prices are extreme here.

[Roo]

Talking about this on the radio yesterday. Banks don't want to lend money, tough to get a mortgage. Not too long ago they were saying top up the house mortgage if you need a new car, holiday, boat etc, couldn't get it out the door fast enough. How times have changed. I suspect the banks can smell a storm coming. House prices are extreme here.

Yeah mate. we're hopefully moving in the new year.... Been rural for the last 7 yrs and agents are lining up to list.  Double the price we paid !!!    But hey you have to buy another one.

[grog]

Houses just mad here. Rentals also, locals getting forced out, just too much to afford. Mates Mum, 2 weeks ago, house valued $650k, real estate said try 800. Unseen buyer gave her 1.2 mill. Must come to a crunch somewhere. I had hand written offer in letterbox, offered crazy price. Id like the money but nowhere else i want to live or pay exorbitant price for another house. Extra value just means more council rates , insurance etc. 

[GSXKING]

My Mum and Dad (in their 80's) bought their house in Holland Park in 1972 for $17,500 (7km's from Brisbane City) then a complete renovation 1982 for $33k.

Recently a neighbour 4 doors up the street sold for $810,000 WTF 

[Eric GSX1400K3]

Average Wages in 1972 were like 3-4 k per year, so it's all relative.  My mum and dad built a split level home in a semi-rural area in Vic in 1984, cost around 35k if I recall correctly, including 2 acres of land.  They sold up in 2019 for close to a mil.

Can't see my kids, let alone me achieving that sort of return.

[grog]

My Dad passed 2009. Biggest house, 26 acres. No one wanted acreage. Tried for 12 mths. Sold for 660. For sale today, offers around 3 mill. Dont always win with real estate.

[Snapey]

1976 I paid $44,000, today heading toward 2mil.

[Kiwifruit]

That would have been plenty back in the day Pete and if you sold and bought the place next door you'd get no change. 
Lots of folk here selling up and trading down. Many moving to the South Island, generally housing is cheaper.

[Tony Nitrous]

Lots of folk here selling up and trading down.

Similar here.

I bough several acres away from the city a while back and sold my city family home in the price boom. Just finishing building a new house and sheds / workshop now.

I've met several folk here in our small town that moved here in the last 2 years. Cashing in on the citys price hikes, early retirement, escaping lockdowns, finding work locally or working from home etc.

It's a mixed blessing for smaller towns, their prices will rise too and it makes it harder for locals, but the town and its facilities overall benefit from the input.

I've heard talk of decentralisation for ages, how we need rural infrastructure and incentives. Covid with its lockdowns, property prices etc and waaay more folk working from home (anywhere) has done more than any politician could. You don't need a $1m place near a capital city if you are working from home. There's a huge number of folk in CBD's that have now found out their desks don't need to be there.

City and coastal prices are a bit silly here, but a lot of folk are using it to fund something elsewhere, both those working and retired.

Interesting topic. Both of my kids are buying / bought, one last year, one about too, both in capital citys. It's still do-able but I don't envy them. The numbers they pay are alarming, but then again I never had their wages at a similar age.

Interesting topic, swings and roundabout.


As a side note. My place sold to a cash buyer in the first few days. It turns out it was a family's "Self Managed Super fund" They had lumped their pension funds together and were buying as a rental property. I'm told this isn't unusual. They had a queue of folk trying to rent it at $800 a week !

[VladTepes]

Living the dream Tony! 

[Yetiman]

Agree 100% house prices are nuts in Aust; and many people are selling up and moving to small towns ect problem with that is ( catch-22 ) as they say!, It's hurting the locals in those towns as the house prices are starting to get so expensive in the small towns now and with the jobs not paying as much in these areas the locals can't afford to buy in there own home town, And also rentals are rare and hard to come by in some of these towns too..!! I own 5acres and house in Bowral-NSW I rented t out and moved down to Wagga-Wagga Area almost 9yrs ago, Houses in the town I live were around 70-80k 5yrs ago and now there starting around 300k from the influx of so many people moving this way, In Wagga When I moved here houses were around 100-200k now nothing under 500-600k+++ If interest rates go up which they inevitably will and houses get repossessed it will bring the rest of the market down down down...