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I see multiple factors affecting Perth property house prices. Some of these are tied together but here's a general list...imo of courseWhat do you see driving down Perth property? Banks tightening lending?
80s?
What do you see driving down Perth property? Banks tightening lending?
I wouldn't have thought that wages would decrease significantly enough to effect house prices, considering current rates. If rates start heading up then I would agree.
I feel property will stand pat and not move all that much, the far out suburbs may see negative growth, but I hope/do not expect declines in the 20% range. That would be catastrophic. Although personally it would afford a heap of opportunity.
I think it's exactly that. Wages not increasing leads to negative sentiment in the property market. If wages aren't increasing, house prices aren't increasing so what's the point in owning an investment property? If house prices aren't increasing, people sell. More properties on the market equals longer time on the market leading to discounted sales and decreasing property pricesI wouldn't have thought that wages would decrease significantly enough to effect house prices, considering current rates. If rates start heading up then I would agree.
I feel property will stand pat and not move all that much, the far out suburbs may see negative growth, but I hope/do not expect declines in the 20% range. That would be catastrophic. Although personally it would afford a heap of opportunity.
In the last 3 months, 22% of the homes sold in Cottesloe have sold for less than what they were previously purchased for. Other suburbs considered to be "blue chip" are also having higher rates of loss making sales
Subiaco is over 11%
Claremont is over 15%
Perth is over 23%
South Perth is over 10%
Vic Park is also over 10%
Historically these suburbs have all been around the 2 to 5% mark.
Each to their own, I don't see see house prices in Cottesloe dropping a further 20% on top of the above losses. I guess it is possible though.
According to the CBA app 12 month growth figures of:
I am surprised at the percent of loss making sales, I would have thought that if most of the purchasers in those types of areas would have been able to hold out and wait for some capital growth considering the low holding costs.
- Cottesloe was 0%
- Subiaco was 1%
- Claremont was -6%
- Perth was 22%
- South Perth was 3%
- Vic Park was 1%
Where do you see the increase in prices coming from?Each to their own, I don't see see house prices in Cottesloe dropping a further 20% on top of the above losses. I guess it is possible though.
According to the CBA app 12 month growth figures of:
I am surprised at the percent of loss making sales, I would have thought that if most of the purchasers in those types of areas would have been able to hold out and wait for some capital growth considering the low holding costs.
- Cottesloe was 0%
- Subiaco was 1%
- Claremont was -6%
- Perth was 22%
- South Perth was 3%
- Vic Park was 1%
I wouldn't mind that. I've been meaning to increase my investments in blue chips, ETF, LIC (for long term hold) for a while but didn't want to enter those positions while the market was on a high. Today was surprising, I was expecting some more pain with DJI taking a hit over night and even Shanghai Composite continuing to get smashed. I think I will wait a week or so and see if this stablises.4.3%. Will be below 5,000 for the first time in a whie
I wouldn't have thought that wages would decrease significantly enough to effect house prices, considering current rates. If rates start heading up then I would agree.
I feel property will stand pat and not move all that much, the far out suburbs may see negative growth, but I hope/do not expect declines in the 20% range. That would be catastrophic. Although personally it would afford a heap of opportunity.
Some wages have dropped 95%
Is there enough of these 95%ers to influence the property market? I have no doubt that a sea of people with wages decreasing by 95% would see all markets being smashed.
$400,000 pa? Would have to have been a $12,000,000 house. Not a lot of them around Perthin the western suburbs there would be plenty.
One guy in iron ore was offered a job at $400k pa but had to turn it down because his interest bill was bigger than that. I dare say that household budget will end in tears.
I can see FIFO workers getting 40% hair cuts and that is the lucky 50% as the other 50% will lose their jobs and go back to driving buses or taxis on $50k pa.
Not too mention the 30% devaluation on the $ being a hidden pay cut on top of that.
It is not a bad thing but it will take some readjusting including asset value expectations.
in the western suburbs there would be plenty.
One guy in iron ore was offered a job at $400k pa but had to turn it down because his interest bill was bigger than that. I dare say that household budget will end in tears.
I can see FIFO workers getting 40% hair cuts and that is the lucky 50% as the other 50% will lose their jobs and go back to driving buses or taxis on $50k pa.
Not too mention the 30% devaluation on the $ being a hidden pay cut on top of that.
It is not a bad thing but it will take some readjusting including asset value expectations.
$400,000 pa? Would have to have been a $12,000,000 house. Not a lot of them around Perth
I also assume the interest cost were not on a family home alone.
Commercial property etc.
Mayne Phama (MYX) announced a new CFO two weeks ago and also appointed a guy who specialises in mergers and acquisitions to the board as well. One to keep an eye on over the next 12 months.