AFF Member Real Estate Discussion

[cove]

I don’t disagree with you @drron.
In New Zealand prices are dropping now even though interest rates are being cut.
Perth real estate is being chased by eastern states buyers.
Riverfront properties are going to mainly Indian and Chinese buyers.
Bank of mum and dad must be getting stretched now.

 

[burmans]

I don’t disagree with you @drron.
In New Zealand prices are dropping now even though interest rates are being cut.
Perth real estate is being chased by eastern states buyers.
Riverfront properties are going to mainly Indian and Chinese buyers.
Bank of mum and dad must be getting stretched now.

NZ prices have already dropped significantly (over 20% in many case) mainly due to changes in tax laws (in the process of being reversed mainly). And surprise, surprise the market didn’t fall out of the rental market despite many predictions it would, in fact just recently read that landlords are currently unable to increase rents and renters seem to have regained some power in the market. Admittedly NZ is in recession!
Additionally while prices have yet to stabilise recent reports are that first home buyers are out looking again so probably not long until they will.

 

[serfty]

It’s funny (not) that there’s been a lot of coverage of rent increases post COVID but zero mention that’s off the back of massive rent reductions during COVID (Uni students, casual and professionals all went home).

It's recovered and gone beyond.

In Capital cities:

• In December 2019 the national median house rent was $446 per week, down 0.7% YoY
• In September 2024 the national median house rent was $650 per week, up 5.8% YoY

https://www.domain.com.au/research/rental-report/december-2019/

https://www.domain.com.au/research/rental-report/september-2024/

 

[cove]

Tonight we are housing around 160 folks in our social housing business. We had thought that we could get up to 400 but red tape and NIMBYs have slowed our progress. The change in values in WA has made acquisitions more difficult.
Separately we invested in Aspen Group who have had success in renovating a pile of Buckeridge flats that had drifted into disrepair following his death.
Mrscove is alarmed at the renovation fees and exit fees from land lease communities. Some of those contracted fees need to be reviewed and possible legislation is needed to prevent older folks from taking a hit from signing onerous contracts. I was thinking an exit fee of 15% would not cripple this industry. It would possibly make it fairer.

 

[lovestotravel]

We do not consider Victoria as being a State where we can consider buying more real estate. Land taxes are going to continue to rise to put a bandaid over the financial mess that continues to grow. We do have a 3,000 square metre office/warehouse and an apartment in Southbank but nothing more.

I was speaking to my commercial agent this week and he is even saying commercial real estate is now going down the same as residential here in VIC.

 

[cove]

I have a family member based in Melbourne and between him and Macro Business reports on Victoria the downside may run for some years.
He has invested in Perth after selling some places in Melbourne.
The whole Australian housing market is now overpriced but that doesn’t mean that there will be a big pull back nationally.
It would take a full blown recession to trigger a reset of Australian house prices.