Great time to invest in Aus

[aint_bc]

I would like to introduce and talk about the opportunities right now in Australia residential properties investment and my experience in Australia properties investment. Also how New Zealander in NZ or oversea can own an investment properties in Australia. Invest NZ vs Australia? Anyone who plan to start their first investment or building up their existent portfolio, please drop in your value questions and inquires. I am more than happy to discuss this opportunity with you.

[outspoken]

Caveat emptor buddy

aint bc means you aint Blue Chip?
What kind of property spruiker are you then?
Tell us more?

[muppet]

Hi aint_bc

Welcome to PropertyTalk.

You said:

I would like to introduce and talk about the opportunities right now in Australia residential properties investment and my experience in Australia properties investment.

Carry on then, I am all ears or eyes.

Regards

[spurner]

Home prices dip as rates bite

Home prices dip as rates bite

Eli Greenblat
April 26, 2008

Interest rate rises and fears of a slowing economy dull buyers' appetites for homes.

The median price for a detached home in Melbourne in the March quarter was $432,500, a slide of 8.4% from the December quarter median of $472,250.

The sharp fall will raise the hopes of many people who have been locked out of the housing market in the nation's housing affordability crisis.

The National Australia Bank yesterday lifted its variable mortgage interest rates by 0.1 percentage points, raising its standard variable home loan rate to 9.46%. On Thursday, the ANZ bank decided to raise rates by 0.1 percentage points.

Real estate agents and property experts had tipped a cooler market this year after Melbourne's median price surged 23.4% in 2007 to $485,000.

The Reserve Bank's decision to lift official interest rates four times since August, combined with higher petrol and food prices, has capped consumer spending power.

"There is some nervousness among consumers and many are waiting to see more stable conditions in terms of interest rates," said Chris Lamont, chief executive of policy at the Housing Industry Association of Australia.

"Certainly you are seeing properties and transactions not at 2007 or 2006 levels, and it's fair to say that with existing housing stock it's going to be a fairly cautious road for the next three to six months."

Melbourne's most popular suburbs, located in the inner-city, remained resilient despite the general price decline. Kensington's median price rose 5.5%, Toorak rose 8.2%, Prahran gained 9.3% and Port Melbourne was up 10.7%. Brighton was the odd one out, with its median price falling 4%.

Buyers' advocate Christopher Koren, of Morrell & Koren, said the property market was mirroring sharemarket downturns.

"There has always been an expectation that since the stockmarket had a severe correction, that based on past history, for example 1988, it was going to happen again in the property market in Melbourne," he said.

"It's a correction and it may even correct a little bit more."

Data from the Real Estate Institute of Victoria has revealed that all the gains made by Melbourne property since mid-2007 were wiped out by March this year. It was the largest fall in a three-month period since the third quarter of 1993 when house prices slid 10.9%.

"The first three months of 2008 has seen the residential property market return to a stable and sustainable level," said REIV chief executive Enzo Raimondo. "I don't think we will see these reductions each quarter, but we will certainly see a much more stable property market." Apartments in metropolitan Melbourne were not spared, with the median price for a unit dropping to $370,000 from $385,000 in the December quarter, a fall of 3.9%.

Mr Raimondo said the March quarter typically recorded a fall in property prices due to the limited number of auctions caused by the Christmas-New Year holidays and a number of long weekends. However, that decline was traditionally capped at 2 to 3%.

Within the metropolitan area, Mr Raimondo said it appeared that the greatest impact was in the more expensive suburbs of Melbourne. "This is highlighted by the fact that most of the suburbs with the highest growth rates for the quarter are not in the inner city," he said.

Despite purchase prices falling, rents are still rising. CommSec chief equities economist Craig James said rents were increasing at the fastest pace in almost 18 years, boosting inflation and putting pressure on interest rates.

"The fundamental problem is a lack of investment, with investors still not moving into the property market despite the sharp falls seen in the sharemarket," he said.

http://tinyurl.com/6c4c3b

[mlkmnz]

"The fundamental problem is a lack of investment, with investors still not moving into the property market despite the sharp falls seen in the sharemarket," he said.

Yeah but Spurner, if Kiwis take advantage of all these opportunities in Australia, then that will increase their investor pool, and everything will be tickity boo.

[emmajane6]

inflation here (aus) is 4.2% and affordability is totally unrealistic. surely it is also headed for a correction in the market? i would not be investing here at the moment unless i could get a bargain in brisbane.

[powerbroker50]

The market in Australia will remain strong. It is just that the buying madness has left the market. Properties have held up well in inner city areas. Once rates drop the market will quickly rise again. Therefore it is a great time to invest in Australia.

[mlkmnz]

^ So effectively, the same as NZ.

[emmajane6]

but nz is better cause no cgt, stamp duty

[powerbroker50]

However in Australia Melbourne alone has a population of 3.7 million people. With over 1000 people moving there each week. In other words it is a major metropolis. Vancancy levels are under .5% in areas 8km to the city. NZ is experiencing negative growth. I beliieve that long term capital gain will be stronger in Australia.

[mlkmnz]

What negative growth is NZ facing - population? The market is Australia is just as overinflated as NZ, and apart from its size, there's no real difference.

[OllyN]

Hmmmm?

Average Melbourne house price down 8.4pc

Posted Sat Apr 26, 2008 9:05am AEST
Updated Sat Apr 26, 2008 10:54am AEST
The REIV says a further price slump could be on the cards.

The REIV says a further price slump could be on the cards.

Rising interest rates have had a significant impact on Melbourne's property prices in the past three months.

The median house price dropped 8.4 per cent - the biggest quarterly drop since 1993.

The average house price has decreased by $40,000 since December.

Chief executive of the Real Estate Institute of Victoria (REIV), Enzo Raimondo, says it is four times more than the expected March quarterly fall.

He says a further price slump could be on the cards if there are more interest rate rises and the banks continue to lift their rates.

"The Reserve Bank has certainly increased rates four times in eight months and then we have had the banks do their own few increases," he said.

"In the last few days a couple of banks have increased interest rates, the more that happens the worse affect will happen to the property market.

"It may affect transaction levels as higher interest rates means higher commitments on mortgages."

The ANZ and the National Australia Bank have both raised their variable home loan rates in the past week.

[Dean@Massiveaction]

Population growth, infrastructure spending and competent government makes OZ a great pick for GROWTH over NZ currently. To bag a bargain stay in NZ.

[mlkmnz]

Population growth, infrastructure spending and competent government makes OZ a great pick for GROWTH over NZ currently. To bag a bargain stay in NZ.

1) Our population growth is higher (.95% vs .82%)
2) Our unemployment rate is much better
3) Their infrastructure spend is on par with ours
4) Speak to your average Aussie, they'll bitch about their government as much as ours.

They've some areas still growing, particularly in Queensland. However a lot of it is rip shit and bust stuff akin to what I've seen happen in California where they just kept building subdivisions as far as the eye could see until reality caught up with them. There should be as much caution taken there as there is here.

The grass is pretty much the same colour on the other side. There's just more of it.

[Mark_B]

but nz is better cause no cgt...

Here's the thing....

Behave in a certain way in NZ and the IRD will tax the profits you make on your IP sales (effectively a CGT). Not only that, they'll tax you at your full marginal tax rate.

Otoh, Australian CGT has a 50% discount for assets held 12 months or longer.

M