Australian Property Market - Is it a good time to Buy?

[LeMans2011]

Let me start by apologising for bringing my Sinkieness over... the Sinkie obsession with properties.

No, i have not migrated... but yes, this is one of my considerations as my siblings are over there and i am contemplating moving over so that we can look after over aging parents together. My siblings are conservative people living in the outskirts of Melbourne and the only thing they would advise me is to move to a place near them eg. Glen Waverly, Narre Warren area, Lysterfield, etc

I get the sense the Aussie property market is starting to recover? I thought it might be a good time to buy? My options are limited since i am currently a foreigner:
1) Purchase new property with FIRB approvals
2) Purchase resale property with FIRB pre-existing approvals (as far as i know - Santuary Cove, Hope Island)
3) Purchase resale property through my siblings / nieces who are PR

I would decide later whether to really migrate or not... i know it sounds a bit crazy to buy a property if i don't plan to migrate but i thought the timing now is good.

So.. these are my questions:
1) Is my reading of the Aussie property market correct?
2) Which other locations (resale) have pre-existing FIRB approvals, apart from Hope Island and Sanctuary Cove?
3) Is it true that people living at Gold Coast are mostly snobs?
4) How expensive are the body corporate fees in Gold Coast area?
5) Is it true that much of these Gold Coast area gets flooded easily?

As you can see my primary interest is a retirement at Gold Coast... and let my toddler grow up there.

 

[Ash007]

Don't know about Melbourne or Queensland but if you are buying, its a good time to buy in Sydney as a home owner. Sydney properties are still way over valued, especially in the inner west areas. You need at least 1mil or more. Interest rates looks like it might be holding or dropping. Don't let articles like house prices are recovering fool you. Buy what you can afford and buy when you need it.

 

[LeMans2011]

Don't know about Melbourne or Queensland but if you are buying, its a good time to buy in Sydney as a home owner. Sydney properties are still way over valued, especially in the inner west areas. You need at least 1mil or more. Interest rates looks like it might be holding or dropping. Don't let articles like house prices are recovering fool you. Buy what you can afford and buy when you need it.

Thanks... so it is still very high. How high is it now compared to the last peak?
And buy as "homeowner" and not investor for potential gains is what you mean.

 

[Ash007]

Yes, buy as homeowner not as investor. House prices won't rise as fast or as high as before. If anything it will be flat. Inner west you will be looking at bexley, campsie hurtsville area. For half the price at 500K go west, which I did. The point is that in Sydney, house prices are high, but rentals are high as well. If you buy something affordable, the monthly mortgage is the same as the rental. I think the other cities are the same as well. But its not as acute as problem compared to Sydney. Its high compared to average median salary. If you are retired and have the dole go for it.

Thanks... so it is still very high. How high is it now compared to the last peak?
And buy as "homeowner" and not investor for potential gains is what you mean.

 

[axe168]

Always get the local perspective when buying a house or investing – not from your aunties or uncles or fellow countrymen with HDB mentality. Coz at the end of the day, you will be selling to Australians !
The locals :
a) Do not like to pay body corporate. Additional cost to the house owners or investors. Unlike Sg, body corporate rules in Australia are extremely difficult to comply i.e. Neighbours party all weekends, pets, car parking issues & peeing in lift etc.
b) Always conduct a Council search before buying property in Brisbane. Flooding zone will have to pay 3 - 5 times insurance rate & higher council rates.
c) Prefer a house. There is a big different between a house (SG term : Bungalow), Townhouse (SG Term : Semi-D or Terrace), Units & Apt (SG term : Cluster Condo or HDBs). A House will have a full ownership whereas the rest not.
d) Some HDB countrymen prefer to buy a medium/ low social economic area, in a cluster housing and place a security guards or install full windows grilles and assuming it is safe. Well, it is not.

Hey, I can meet you up for retirement in 10yrs time

 

[Ash007]

You sure or not, I've been seeing all this article about 600K 2 bedroom apartments being good investment recently leh.

Always get the local perspective when buying a house or investing – not from your aunties or uncles or fellow countrymen with HDB mentality. Coz at the end of the day, you will be selling to Australians !
The locals :
a) Do not like to pay body corporate. Additional cost to the house owners or investors. Unlike Sg, body corporate rules in Australia are extremely difficult to comply i.e. Neighbours party all weekends, pets, car parking issues & peeing in lift etc.
b) Always conduct a Council search before buying property in Brisbane. Flooding zone will have to pay 3 - 5 times insurance rate & higher council rates.
c) Prefer a house. There is a big different between a house (SG term : Bungalow), Townhouse (SG Term : Semi-D or Terrace), Units & Apt (SG term : Cluster Condo or HDBs). A House will have a full ownership whereas the rest not.
d) Some HDB countrymen prefer to buy a medium/ low social economic area, in a cluster housing and place a security guards or install full windows grilles and assuming it is safe. Well, it is not.

Hey, I can meet you up for retirement in 10yrs time

 

[axe168]

You sure or not, I've been seeing all this article about 600K 2 bedroom apartments being good investment recently leh.

Bro, Sydney is diff from Bris lah. Sydney is like Sg, house is bloody expensive, hence ppl go for apartments. Also traffic jams may be a factor for them to consider closer to work place.

 

[valiant20]

Come and join me in keysborough!

http://www.somerfield.com.au/

Just kidding.. Now seems like a pretty good time as interest rates are quite low (lowest I think? since I first came over in 2001). Reckon they're unlikely to lower more.

Let me start by apologising for bringing my Sinkieness over... the Sinkie obsession with properties.

No, i have not migrated... but yes, this is one of my considerations as my siblings are over there and i am contemplating moving over so that we can look after over aging parents together. My siblings are conservative people living in the outskirts of Melbourne and the only thing they would advise me is to move to a place near them eg. Glen Waverly, Narre Warren area, Lysterfield, etc

I get the sense the Aussie property market is starting to recover? I thought it might be a good time to buy? My options are limited since i am currently a foreigner:
1) Purchase new property with FIRB approvals
2) Purchase resale property with FIRB pre-existing approvals (as far as i know - Santuary Cove, Hope Island)
3) Purchase resale property through my siblings / nieces who are PR

I would decide later whether to really migrate or not... i know it sounds a bit crazy to buy a property if i don't plan to migrate but i thought the timing now is good.

So.. these are my questions:
1) Is my reading of the Aussie property market correct?
2) Which other locations (resale) have pre-existing FIRB approvals, apart from Hope Island and Sanctuary Cove?
3) Is it true that people living at Gold Coast are mostly snobs?
4) How expensive are the body corporate fees in Gold Coast area?
5) Is it true that much of these Gold Coast area gets flooded easily?

As you can see my primary interest is a retirement at Gold Coast... and let my toddler grow up there.

 

[Ash007]

Bro that is the point to get landed property in Sydney rather then apartments, in 10-20 years time when all houses, regardless of good or bad location reach at least 1mil. Cheapest house you can buy in SYdney is around 200K, imagine when that reach 1mil. Huat AH!.

Bro, Sydney is diff from Bris lah. Sydney is like Sg, house is bloody expensive, hence ppl go for apartments. Also traffic jams may be a factor for them to consider closer to work place.

 

[axe168]

Haha.. Huat ah ! Yes, I predict in about 5-7yrs time, avg house price will reach $1 mil due to increase in population and limited land around the area.

Btw, my place already exceeded 1mil mark, hehe.. I am a million dollar man with a million debt. lol !

Bro that is the point to get landed property in Sydney rather then apartments, in 10-20 years time when all houses, regardless of good or bad location reach at least 1mil. Cheapest house you can buy in SYdney is around 200K, imagine when that reach 1mil. Huat AH!.

 

[Ash007]

It'll be 10mil then.

Haha.. Huat ah ! Yes, I predict in about 5-7yrs time, avg house price will reach $1 mil due to increase in population and limited land around the area.

Btw, my place already exceeded 1mil mark, hehe.. I am a millionaire with a million debt. lol !

 

[axe168]

Bro, bo lah.. based on history.... if avg property is 1mil, mine will be approx 3mil.
Under favourable condition, the max to be 5mil.

Cannot hit the 10mil mark lah, unless I wait for 15-30yrs :-)

Once property hits para 1 above, I will sell and move to an avg house... then retire !! hehe.. Next 10yrs plan, starting from now :-)

It'll be 10mil then.

 

[Ash007]

You cannot wait that long?

Bro, bo lah.. based on history.... if avg property is 1mil, mine will be approx 3mil.
Under favourable condition, the max to be 5mil.

Cannot hit the 10mil mark lah, unless I wait for 15-30yrs :-)

Once property hits para 1 above, I will sell and move to an avg house... then retire !! hehe.. Next 10yrs plan, starting from now :-)

 

[axe168]

Bro, I'm not into the rat race thingy leh..

In Australia, I have learned to unsinkified and enjoy my life to the fullest

Cannot wait that long lah. As long as I have a fully paid house plus AUD$2 mil cash.. I think should be enough for retirement - when I reach 51 in 10yrs time.

Worst scenario, I shall retire when I'm 55.

Huat ah !!

You cannot wait that long?

 

[Ash007]

Same, hope I get lucky like you. Still long haul for me.

Bro, I'm not into the rat race thingy leh..

In Australia, I have learned to unsinkified and enjoy my life to the fullest

Cannot wait that long lah. As long as I have a fully paid house plus AUD$2 mil cash.. I think should be enough for retirement - when I reach 51 in 10yrs time.

Worst scenario, I shall retire when I'm 55.

Huat ah !!

 

[axe168]

Bro, my experience revealed it is almost impossible to depend on our salary to retire, unless you have a salary like our Sg Mini-stars.. Otherwise, you will be wise to invest your CPF money into stocks or real estate for a better growth or at least beat the inflation.

I started my chicken brothel in Bris, now collecting decent pimp money. Soon, I'll be selling some chickens to re-invest into a higher growth vehicle. I have a mate here - M'sian guru.. constantly challenging me for higher ROE or ROI.. NB, I have to continue to bring at least 20% return. Ah bo, he'll laugh at me again :(

Same, hope I get lucky like you. Still long haul for me.

 

[Ash007]

Your chicken from where one? Got discount or not if I go there?

Bro, my experience revealed it is almost impossible to depend on our salary to retire, unless you have a salary like our Sg Mini-stars.. Otherwise, you will be wise to invest your CPF money into stocks or real estate for a better growth or at least beat the inflation.

I started my chicken brothel in Bris, now collecting decent pimp money. Soon, I'll be selling some chickens to re-invest into a higher growth vehicle. I have a mate here - M'sian guru.. constantly challenging me for higher ROE or ROI.. NB, I have to continue to bring at least 20% return. Ah bo, he'll laugh at me again :(

 

[axe168]

Your chicken from where one? Got discount or not if I go there?

Bro, I charge exorbitant fee to the locals. Not for sinkies lah.. No diff for a $40 chicken in Geylang Lorong 16. Lol !

 

[Ash007]

No Geylang lorong 16 here lah!

Bro, I charge exorbitant fee to the locals. Not for sinkies lah.. No diff for a $40 chicken in Geylang Lorong 16. Lol !

 

[axe168]

No Geylang lorong 16 here lah!

Heaps in Sydney lah..

http://www.business.com.au/business-directory/licensed-brothels/nsw/sydney/