Is it a bad thing if house prices crash?

[stui magpie]

Speaking of housing prices, my daughter is back from europe and looking at apartments to rent.

I've been amazed that people can look to rent out apartments that have no heating and/or cooling and no laundry.

A couple of the places are apartment buildings with a communal laundry. WTAF?

[ronrat]

[stui magpie]

^

She got an apartment in Ivanhoe, or a flat in a block of flats. Bit 60's but it's work for her.

In regard to the main topic, housing prices, this is a pretty good article that shows the growth in housing prices hasn't been a straight line.

https://www.theage.com.au/business/banking-and-finance/the-graph-that-puts-falling-home-prices-in-perspective-20181204-p50k33.html

Fair indication that, barring some serious event, it aint gonna drop too far anytime soon.

[Skids]

Well, it's going to get interesting here in the West I reckon.
BIG BOOM is ready to kick off....

This is WA’s chance to get mining boom right.

Here’s hoping third time’s a charm. After royally screwing up the first two modern resources booms — first the one that saw house prices go berserk (2003 to 2008), then the one that made coffee prices go berserk (2010 to 2014), WA has a chance to get this one right.

It is going to be a lot easier this time, for a few reasons.

First, at $75 billion, the outlay, while huge, is more modest than last time when Chevron single-handedly spent that much on its two money-pit LNG projects.

Second, the State’s infrastructure is much better prepared. There’s no chance of three-star hotels commanding $450 a night.

Third, a broke WA Government is busy selling copies of Big Issue rather than competing with private industry building a stadium, Elizabeth Quay and several massive hospitals.

Fourth, industry has no time for the build-it-at-any-cost mentality that prevailed when execs got drunk on iron ore prices of $180 a tonne and $120-a-barrel oil.

https://thewest.com.au/news/wa/this-is-was-chance-to-get-mining-boom-right-ng-b881035966z

[K]

[stui magpie]

She was looking at high $200's per week. The place she got has it's own laundry spot in the bathroom

[stui magpie]

Speaking of house prices, this joint in my street sold back in April for $860k

https://www.realestate.com.au/sold/property-house-vic-watsonia-127912494

This week the new owners demolished it.

Now this joint had been very nicely renovated, very neat and tidy inside, yet it was basically bought for land value. It's a dodgy shaped block so it will be interesting to see how they configure whatever they build there.

One thing it tells me is not to waste money trying to do up my house. My block is smaller but it's a regular rectangle and has a park next door. You could clear my block and fit 4 x 2 story townhouses on it, overlooking the park. So when I eventually do want to sell I could be sitting on a very nice little earner.

[Skids]

Didn't know about this...

First home super saver scheme

Quite a good idea, surprised it wasn't spoken about much, or was it?

The First home super saver (FHSS) scheme was introduced by the Australian Government in the Federal Budget 2017–18 to reduce pressure on housing affordability.

The FHSS scheme allows you to save money for your first home inside your superannuation fund. This will help first home buyers save faster with the concessional tax treatment of super.

https://www.ato.gov.au/Individuals/Super/Super-housing-measures/First-Home-Super-Saver-Scheme/

[think positive]

That is good info, I’ll get my kids on to that, thanks

[think positive]

[stui magpie]

Yeah, my block is 777 square metres, a long skinny block with the park along the long fence.

You could whack in 4 x 2 storey townhouses, the front one facing the road and the other 3 facing into the park with the driveway behind, rip down the park fence and put a low fence instead to enhance the view and access.

One retirement option is to do a deal with a developer and sell the property at a discount on the condition I get ownership of the front townhouse.

Block up in Toc is a corner block, 843 m2 and easy walk to the shops, pubs, foreshore and river. Lots of development up there but it's all on the outskirts of town, too far to walk to stuff. If the town keeps going ahead I may have a second goldmine in a few years. If not, I have a good holiday house.

[stui magpie]

Just watched a piece on 7 news which makes sense in why house prices are dropping.

Since the royal commission into banking started, banks have tightened up there mortgage lending processes, meaning around 50% of applications are being rejected.

Less buyers equals less demand in a sellers market meaning prices drop and investors bail out.

So net result, housing prices go down but first home buyers are in a worse position than before.

[think positive]

After spending a few weeks house hunting for my eldest, and checking out rental markets etc, it seems there is s bit of a housing buying boom, timing is everything. We noticed so many houses for rent, people are taking advantage of a scared population, no stamp duty for first home buyers under $600k people with stable jobs are buying, plus renters who lost their jobs have gone home to mum. We had to get a new tenant during lockdown, she was great at first, now paying in bits and pieces, but at least she is paying. It’s hard, if you drop the rent you still have a mortgage to pay, we don’t owe much on ours, but I can see some people struggling. And freezing it means the Interest piles up. It really is a renters dream right now, that along with the new renter regulations. Most are common sense and should have been there already, some, well, it doesn’t inspire people to get a rental for sure. Watching shows like house hunting here there and everywhere, it’s surprising the difference state to state. Melbourne and Sydney so much more expensive. The day after my eldest paid the deposit they had an offer $15k higher, but it was too late, thankfully. There is a heap of very similar spec homes for sale in the area, I mean almost identical, shitty living spaces, this one is a Simmons’s, still an economy home but much better living, and it’s not a stepford home. There was one better but it was really well done, nice spa area and everything, someone wanted it to live in, it would have gone passed what we would pay so we left it. meanwhile hubby is planning ripping tiles up and laying the flooring we have here, and I’m ordering security doors and cameras! It won’t be her forever home, but it’s a good step into the market. She had 20% deposit, and her $25k pay rise means she can pay it faster. So long time renters have you thought of buying now? Taking advantage of a shitty situation? (The seller has moved back to China, so don’t smash us for it!! Property back into Aussie hands, where it should be!)

We love the area we built our beach house in, but it’s too small for a permanent home for us. I want a gym and somewhere for my studio gear. We have looked at farms, looked at places on the esplanade, we have a walk through of one booked. Actually talking about selling our houses, keeping the rental as a Melbourne base for now, scary. But exciting. I’d love to move somewhere warmer, but I couldn’t leave my kids. Is this retirement? Semi? We would get a workshop here, unless we get a farm. Who has done it? A Sea or country change? Regrets? I love it here, it’s peaceful, slower, calmer.

[5 from the wing on debut]

Twenty years ago I moved to a 20 acre property in the northeast of Melbourne. The suburbs have moved out and are only about 1km away now. Over that time there have been quite a few suburban residents move here and after a lot of initial excitement and work, they realise that it’s constant work and expense living on a property this size then normally leave after a year or two. Spring means hours each week mowing and weeding. Summer means watering plants constantly and making sure they aren’t eaten by kangaroos and rabbits. My dog has been bitten by snakes, a brown and a tiger, but survived both times after $10k vet bills. The cat has also been bitten twice and survived. Last summer it brought two young tiger snakes into the house. Just as well I was there. Unsealed roads mean my car normally looks like I have just driven across the Nullarbor. Despite all that I would struggle to live in the suburbs again.

[stui magpie]

^

Do you have a gun?

Roos and rabbits are good eating, cats are good target practice