Australia housing bubble

[FairmontGS]

Originally Posted by leesa

How is superannuation a form of middle class welfare?

When I put money in super I only pay 15% tax where I’d normally be paying ~37% to the national tax revenue. I also get the same concession on earnings in the fund and withdrawals are tax free.

Given that this is a fact, why are you not demonising superannuation like you are property investment?

[Yellow_Festiva]

Last weekend I was going to attend this auction:



Agent told me that expectation was 'around $1.4 million'. I toyed with the idea of buying and eventually adding a second story.

Glad I didn't go to the auction.

Then this gem below:



Was very tempted... It needed a garage and I questioned the agent as to why the previous owners removed the fireplace from the living room (the flue was still poking up through the roof).

I think this sort of practice is very misleading... they know full well what sort of interest and offers a property is going to get before the auction and they purposely bait buyers to attend with BS like 'come and get a bargain' then it sells for near $200k above expectations.

A buyer with $800k thinks they are in with a fighting chance and miss out on other places they may have got.

Another agent messaged me at around 5:20pm to tell me he has stalled the online auction for another place I inspected 10 days ago and asked me if I wanted to buy for $xyz K and was happy to sell to me at that price.

I'm sure he sent that same message to 30 other people...

I would have replied 'sure, no worries'.. only to then get another messages 10 minutes later saying I have been trumped by $5k...

But, here is the problem. After my inspection I told the agent I was not at all interested in this place, and that opinion was confirmed again a few days ago when I got another 'courtesy call' reminding me of the online auction.

I get that the nature of the game at this point in time but I'm a buyer that has money to spend but will now hold off from looking because I feel I'm wasting my time with the above sort of BS.

And the digital manipulation of images is getting beyond the joke, as well as the misleading 'attributes' of properties for sale.

One 3br unit townhouse style unit I looked at included the large grassed common area of the complex as the private yard of the property for sale.

Yet hit the 'report listing' button and nothing changes...

I do have my eye on another place coming up at the end of the month. See what happens.

[Mulva]

Glad you clarified/gave context by adding "of images" at the end of "digital manipulation" lol. That ****s me too - so many pics are so obviously 'stretched' horizontally.

Sydney prices still shock me as I am conditioned to what you get for your dollar in Radelaide...but then I guess that is the same as someone being shocked by Adelaide prices compared to what their dollar gets in regional SA.

But even then your dollar is getting less and less in Adelaide's burbs with each passing month...

In June this year this 4-bed 2-bath joint in Greenwith, large block but half of it (in my opinion) wasted went for $920k: https://www.realestate.com.au/sold/p...with-136642618

6 months earlier, same suburb but bigger block, 5-bed 3-bath, better/more usable grounds (in my opinion), better views and more importantly a shed I would die for, only $5k more than the one above: https://www.realestate.com.au/sold/p...with-134757494

Only 6 months and $5k difference between the 2

[Mulva]

Originally Posted by leesa

Got a bit difficult to stick within the rules when you move the goalposts. Compulsory superannuation is not middle class welfare and there was nothing stopping hayseed from making voluntary superannuation contributions instead of an investment property portfolio.

And nothing stopped him creating an investment property portfolio, which likely outperformed most super funds while giving him access to capital/equity he can access before old age.

But that will all change soon - your posts here are so close to changing the system, changing policy, and changing the minds of property investors.

[PG2]

What's happening here? Everyone sick of the COVID thread so they thought they would come over here and start?

Once again, I find members having pot shots at other members. leesa is not having pot shots any anyone else personally so it would be appreciated if others don't keep having personal pot shots at her.

FWIW, leesa has not reported any posts in here but it seems as soon as she says something even remotely out of line my inbox fills up.

Russ deleted 32 posts the other day, and this being on top of Raptor and myself deleting a few, however, this does not seem to be working. Come on everyone, don't back us into a corner where we start handing out warnings.

[Citroënbender]

YF, curious as to the value now of the house you sold a while back - has it gone up much?

[Yellow_Festiva]

Originally Posted by Citroënbender

YF, curious as to the value now of the house you sold a while back - has it gone up much?

Probably worth more but it was always a hard one to gauge. Never built it to sell and had attributes that made it hard to value.

No regrets selling it and wouldn't change anything.

I'm in a far far better place financially and mentally, that's worth far more to me than having one of the biggest houses in the area.

[Mulva]

Hope he doesn't mind me saying but YF shared that house with me a while back and OMG it was freakin' awesome...the design, it's size, balance of form and function, decor and fittings, where it was, etc...only time I've ever looked at NSW real estate and thought it was worth that price and then some - seriously impressive.

[Yellow_Festiva]

Originally Posted by Mulva

Hope he doesn't mind me saying but YF shared that house with me a while back and OMG it was freakin' awesome...the design, it's size, balance of form and function, decor and fittings, where it was, etc...only time I've ever looked at NSW real estate and thought it was worth that price and then some - seriously impressive.

Thanks.

Is this ontopic for this thread? What's with all the photoshopping going on? This one has had the grass completely replaced. At what point does it become misrepresentation?

https://www.realestate.com.au/proper...eham-137797322

[GasoLane]

Originally Posted by leesa

Is this ontopic for this thread? What's with all the photoshopping going on? This one has had the grass completely replaced. At what point does it become misrepresentation?

https://www.realestate.com.au/proper...eham-137797322

image

image

Send them a message thanking them for leaving the original photos there so you can compare them to the (badly) photoshopped ones

[Citroënbender]

A tidy return likely for someone:

“Sold February 1998 $130 000”


https://www.realestate.com.au/proper...leham-vic-3064

[T3rminator]

Originally Posted by Citroënbender

A tidy return likely for someone:

“Sold February 1998 $130 000”


https://www.realestate.com.au/proper...leham-vic-3064

1997 - $14k must have been an empty block of land?

Nearly a 10 bagger in one year.

[Giant Cranium]

Originally Posted by leesa

Is this ontopic for this thread? What's with all the photoshopping going on? This one has had the grass completely replaced. At what point does it become misrepresentation?

https://www.realestate.com.au/proper...eham-137797322

image

image

the place we bought was like that, in the photos was perfect grass. reality was no grass and piles of bricks.

i actually told the real-estate that it was the biggest pile of house I've ever seen.

[PG2]

Originally Posted by leesa

Is this ontopic for this thread? What's with all the photoshopping going on? This one has had the grass completely replaced. At what point does it become misrepresentation?

https://www.realestate.com.au/proper...eham-137797322

image

image

I believe (ie I am not 100% sure) that they put a disclaimer in somewhere in the ad, "Pictures are for illustration purposes only"

[Citroënbender]

Originally Posted by PG2

I believe (ie I am not 100% sure) that they put a disclaimer in somewhere in the ad, "Pictures are for illustration purposes only"

That’s like food packets displaying “Serving Suggestion” or “Garnish not included”.

French real estate ads are often much grittier and realistic, at least in smaller sized towns. They don’t dwell on grunge, but it’s much more WYSIWYG.

https://www.leboncoin.fr/ventes_immo...2055293276.htm

[hayseed]

Originally Posted by leesa

Is this ontopic for this thread? What's with all the photoshopping going on? This one has had the grass completely replaced. At what point does it become misrepresentation?

https://www.realestate.com.au/proper...eham-137797322

image

image

The perpetual Digital Furniture does My Head in...

[Citroënbender]

Wondering how much it would cost to truck this from Byron Shire to Ganmain.

https://www.abc.net.au/news/2021-11-...head/100611248

What a great platform for conversion to residential.

[yakcam]

Originally Posted by Citroënbender

Wondering how much it would cost to truck this from Byron Shire to Ganmain.

https://www.abc.net.au/news/2021-11-...head/100611248

What a great platform for conversion to residential.

Jeez, Arthur looks like the kind of bloke you'd have a beer with.

[Mulva]

With the "average house now 7 times the average annual salary" thing, and comparisons to average house to average salary when boomers were buying, I know it all can't be put down to this but you also need to look at the difference between an average house today versus the average house they were buying.

Based on Adelaide (so may not be the same in your states), but the average house being built here in 70s was 3 bedroom at most; much (MUCH!) smaller bedrooms than current with no walk in robes or built in robes; 1 small bathroom (no ensuite); no garage under main roof (not even freestanding carport either); small kitchen with single sink and stand-up oven that was your cooktop/oven/griller all in one (no cooktop with separate wall oven or underbench oven), no dishwasher, much less cupboards/cabinetry (no fridge provision cabinets etc); was not open plan (as someone looking to remove a load-bearing wall that **** adds lots of cost); very little choice of facade (no choice of renders and styles, just choice of brick colour or fibro/weatherboard); single lounge (no living room plus family room etc); maybe a single gas heater in lounge room and an airconditioner where a window would otherwise be (no ducted aircon and central heating, or ducted reverse cycle); and you'd add a verandah at your own cost later rather than than alfresco area under main roof; and just much smaller in size overall compared to the 'average' home now.

Surely that is also some part of the difference.

Edit: GET OFF MY LAWN!!!

[b0son]

Originally Posted by Mulva

Surely that is also some part of the difference.

Why pick a house in the 70s? Houses didn't become wildly out of step with incomes til around 2000 onwards:



And while, yes, houses have gradually been getting bigger for several decades, they've actually been shrinking again since 2012 (same time house prices started to boom again after the GFC):



as has the median lot size for new developments:

[Mulva]

Originally Posted by b0son

Why pick a house in the 70s?...

Was in direct response to comparisons to when boomers were first home buyers, which would have been in the 70s. That reason and that reason alone.

I wasn't the one that started comparison of current gen of first homer buyers versus boomers as first home buyers..."They started it"

Looks like those posts have been deleted now anyway, so guess it is moot point

[BENT_8]

Originally Posted by Mulva

With the "average house now 7 times the average annual salary" thing, and comparisons to average house to average salary when boomers were buying, I know it all can't be put down to this but you also need to look at the difference between an average house today versus the average house they were buying.

Based on Adelaide (so may not be the same in your states), but the average house being built here in 70s was 3 bedroom at most; much (MUCH!) smaller bedrooms than current with no walk in robes or built in robes; 1 small bathroom (no ensuite); no garage under main roof (not even freestanding carport either); small kitchen with single sink and stand-up oven that was your cooktop/oven/griller all in one (no cooktop with separate wall oven or underbench oven), no dishwasher, much less cupboards/cabinetry (no fridge provision cabinets etc); was not open plan (as someone looking to remove a load-bearing wall that **** adds lots of cost); very little choice of facade (no choice of renders and styles, just choice of brick colour or fibro/weatherboard); single lounge (no living room plus family room etc); maybe a single gas heater in lounge room and an airconditioner where a window would otherwise be (no ducted aircon and central heating, or ducted reverse cycle); and you'd add a verandah at your own cost later rather than than alfresco area under main roof; and just much smaller in size overall compared to the 'average' home now.

Surely that is also some part of the difference.

Edit: GET OFF MY LAWN!!!

My Sons townhouse cost him $223k 18 months ago, today my Daughter enquired about building the same design with the same builder 100m away from her Brother, $263k.
$40k price rise for identical builds 18 months apart.

[T3rminator]

Originally Posted by BENT_8

My Sons townhouse cost him $223k 18 months ago, today my Daughter enquired about building the same design with the same builder 100m away from her Brother, $263k.
$40k price rise for identical builds 18 months apart.

Cost of building has risen. Timber the culprit I believe.

[Giant Cranium]

Originally Posted by BENT_8

My Sons townhouse cost him $223k 18 months ago, today my Daughter enquired about building the same design with the same builder 100m away from her Brother, $263k.
$40k price rise for identical builds 18 months apart.

building materials have gone through the roof, 15% is not much, im quoting 35 to 40% more

[Ross 1]

Originally Posted by Giant Cranium

building materials have gone through the roof, 15% is not much, im quoting 35 to 40% more

This is an excerpt of an email with price rises in NZ, this is the 8th one I have received this year. Then there is the supply issue for a high percentage of the materials, we are having to alter materials and designs to account for what we can't get hold of. Cedar has gone over $30NZ per metre now and it's not worth using, a shipping container from Canada full of cedar used to cost $3-4k to ship, it's now nudging $30k.

[Citroënbender]

Originally Posted by BENT_8

My Sons townhouse cost him $223k 18 months ago, today my Daughter enquired about building the same design with the same builder 100m away from her Brother, $263k.
$40k price rise for identical builds 18 months apart.

After this thread?

[BENT_8]

Originally Posted by Citroënbender

After this thread?

I know but its what she wants and shes old enough to make her own decisions.
Perhaps you could suggest an alternative new house at that price in our area.

Originally Posted by BENT_8

I know but its what she wants and shes old enough to make her own decisions.
Perhaps you could suggest an alternative new house at that price in our area.

What was the end result from that thread? Did he get it sorted or is he going to sell it and move somewhere else? How would someone protect themselves from buying a place with a problem like that? I'm guessing that sort of thing isn't exactly listed in paperwork somewhere for a potential buyer to be aware of.
How are builders getting away with stuff like that ...

[Ben73]

They're building a new housing estate a few kilometres from where I am. I couldn't believe the prices that are being asked.

In 2015 I bought my 820sqm block of vacant land for $315,000
Now in the new estate they have 800sqm blocks for $760,000

If people are willing to buy these overpriced blocks that means I wouldn't leave my house unless I could break the 7 figure mark.

I now wish I kept the first house I bought in 2012 even though it was garbage under the surface. It was a much more desirable suburb than my current suburb.