Gold coast pretty sad

[younginvestor]

http://www.somersoft.com/forums/showthread.php?t=67321

[eri]

from the thread above

this bit's the warning for those planning on living in their "investment"

I think we bought JUST as the market was beginning to slow. If we'd paid $357,000 for our place (before it was reduced), then we'd have bought our particular property at its top price on that market. VERY glad we didn't.

I AM worried however, because we simply have absolutely NO intention of living here for the next 20 YEARS! I know we'd make money in that time. Of course! Even 10 years. 5 probably. But we don't want to be here. We're hideously unhappy and want OUT ASAP, but can't because of the market.

We can't afford to buy another property and rent this one out. So we're stuck. And it sucks! Hence this thread. lol

[sparxNZ]

The Gold Coast does look pretty bad at the moment - at least for the short term anyway.
There was an item on the news a few weeks ago showing properties in the $2-6M bracket selling for less than half what they were worth in 07, most only 5 years old and many selling around 20% below replacement value.
Could be good buying if you've got a few million you want to gamble in the medium term

Cheers
Matt

[donna]

Other areas in Aus are holding up well. There would be a swag of Kiwis with IPs in QLD as a result of the push to buy there not that long ago. What's affecting Gold Coast - that isn't impacting on other centres/cities etc?

Cheers,

Donna

[Anomaly14]

Massive amount of rain in Qld lately. Lots of flooding. Seems like a lot of people are moving to Melbourne. Better culture, way of life etc. I heard Melbourne will overtake Sydney soon in terms of higher population.

[eri]

when i was in melbourne it was the number 2 city and looked as it if was going to be overtaken for that title by brisbane

so many victorians were north to queensland they used to call them mexicans

amazing the turn around since then and most of it seems to be immigration

sydney just got too full and there wasn't enough of anything to attract immigrants to brisbane so they moved to melbourne which already had established migrant communities

to a degree melbourne is a little more future proofed in regards to global warming than the rest of the country due to being down in the south wet corner of the country

[sparxNZ]

What's affecting Gold Coast - that isn't impacting on other centres/cities etc?

I think it is because the Gold Coast relies almost exclusively on tourism in it's local economy and many of the high end properties which have halved in value belonged to speculators, business people and folks associated with the finance sector.
All these parts of the economy got smashed in the GFC and most still have not recovered.
The government here boasts about how Australia never had a recession but the reality is that the whole economy is being supported by agriculture and mining at the moment, everything else is struggling.
I guess that explains why the Gold Coast hits such extreme highs and lows - I have friends trying to sell their properties in Brisbane and the Sunshine Coast at the moment and they are finding it very hard so I suppose there is truth in the notion that the Gold Coast is somewhat of a canary in the coal mine.

[whitt]

to a degree melbourne is a little more future proofed in regards to global warming than the rest of the country due to being down in the south wet corner of the country

I assume you mean South west corner.
As Victoria area is frequently under water restrictions.

[Jumpin]

I'm not sure I saw the sad part. The investor bought a property that is still worth almost as much as he paid for it. Wait a year or 2 and it may be much sadder.

[One]

Her problem is she's on a low income, bought a ppor and wishes she could afford a better one.

Prices going up wouldn't solve that problem. If anything it'd make it worse.

[67910241]

Aussie Auction clearance rates imploding?

http://www.rs.realestate.com.au/cgi-bin/rsearch?a=ars

Melbourne well on its way down to below 50%, Sydney already there, WA and QLD looking totally destroyed.

Is it just looking bad to me, or is the Aussie RE market demand really getting "hammered" right now?

[Davo36]

Those are still pretty healthy clearance rates as far as I can see.

Most real estate businesses in NZ would sell way less than 50% of their properties taken to auction on auction day.

[67910241]

Most real estate businesses in NZ would sell way less than 50% of their properties taken to auction on auction day.

True, but it's only Sydney and Melbourne are now about the 50% mark. The rest of them seem to be 30% and below. Auckland's actually probably still better than 60% right now.

The one thing I forgot about is the fact it's already December, but it's still a big drop from the 70-80% rates for Melbourne earlier this year.