Australian Real Estate: The Next Bubble ?

[beau]

Sarafina, this is a forum for cruisers.

If they wish to discuss financial trends (in this case real estate in Australia) they should be allowed to do so.
It is all about our lives as cruisers.
This is the right forum for cruisers or potential cruisers to discuss such matters.
We are a different breed with different wants and needs from the general public.

[cat man do]

The worlds most expensive real estate markets 2009

London and New York head the list
Sydney is number 10 on the list

[Doodles]

A quick Google shows this is on a lot of people's mind ...australia real estate bubble - Google Search

If you are already in there may not be much you can do, but if you are looking to invest cruising funds I'd think twice, maybe three times.

[D&D]

Originally Posted by sarafina

This forum is about cruising, sailing and the people who do it.

With the greatest respct to our learned moderator, it appears this is a topic of interest to a fair number (as much as in other threads anyway) of Forum members...and isn't that the more relevant test of whether it's "topical"?

For what it's worth, we second MarkJ's comments...and we would add for younger readers the advantage of forced-savings through mortgage payments. Watching two adult and professionally employed sons both subscribing to the doom-and-gloom forecasts for Sydney real estate (and thus staying out of the market while the market continues to frustrate the doomsayers, especially those markets MarkJ mentions) and both really going nowhere, we embrace our combined lifetimes' experience in supporting MarkJ's conclusions.

If the s--- is really going to hit the fan, nothing will be safe. Even cash would be vulnerable if the 'crash' is inflationary-driven. In the meantime asset diversification -- Shares should also form part of the plan for liquidity and yield -- is a long-proven form of both security and wealth accumulation.

Trying to outsmart market cycles is a mug's game and a sure way to stay poor.

[sarafina]

Dudes, give it a rest already ; -)

I didn't close this down. I didn't say it wasn't of interest... I just pointed out it was off topic.

Frankly, so long as a topic stays civil and friendly it will hardly ever get shut down. Something gets sour and then that off topic button gets pushed pdq.

You all are good. Relax.

[VirtualVagabond]

I'm selling all the goddam real estate... Buying a monster yacht, probably a ketch... painting it red (I'm sure Sir Richard will kick in for the paint)...
I'm going to get a bunch of good lookin adventurous girls, ex-Virgins of course, and I'm going to pimp my way round the world...

[Doodles]

Originally Posted by VirtualVagabond

I'm selling all the goddam real estate... Buying a monster yacht, probably a ketch... painting it red (I'm sure Sir Richard will kick in for the paint)...
I'm going to get a bunch of good lookin adventurous girls, ex-Virgins of course, and I'm going to pimp my way round the world...

Now this is beginning to get off topic!

[D&D]

Dunno bout off topic...wda thought cruisers are well known for dreaming!

[beau]

I'm selling all the goddam real estate... Buying a monster yacht, probably a ketch... painting it red (I'm sure Sir Richard will kick in for the paint)...
I'm going to get a bunch of good lookin adventurous girls, ex-Virgins of course, and I'm going to pimp my way round the world.

Sounds like a good dream to me. You should put it in the topic "how to raise money while cruising"

[gandalf]

Just to add to the original topic, I'm in Australia and a number of my colleagues have made trips to the U.S. to buy investment properties on the current depressed market. Apparently rental returns are higher in the U.S. than can be expected from properties in Australia!

Maybe it's just that the grass is greener......

[Doodles]

Originally Posted by sarafina

Dudes, give it a rest already ; -)

I didn't close this down. I didn't say it wasn't of interest... I just pointed out it was off topic.

Frankly, so long as a topic stays civil and friendly it will hardly ever get shut down. Something gets sour and then that off topic button gets pushed pdq.

You all are good. Relax.

Sarafina,

Now I'm really confused. You posted that it was off topic, then you posted a counter to two posts questioning that and essentially said we were wrong, and now you are saying everything is cool. And things were civil and friendly from the start so what was this all about? It seems you created a problem where there was none.

[David M]

In this forum, cruising, boating, sailing or ocean related topics are strongly encouraged. That's who we are. Topics that have no relevance to those items are either tolerated or put to rest....it really depends. If its the latter off-topic category, then it depends on how the conversation is flowing. If people are getting along nice and enjoying themselves then its no problem. If an off-topic thread becomes a problem with multiple rule violations and multiple warnings then it is almost always closed.

As Sara said, you guys are all good. Enjoy!

Could we go ahead and enjoy the real estate conversation and perhaps drop the questioning? If you ever have a problem with a moderator then a Private Message is the way to address the problem.

Lets get back to real estate.

[Doodles]

Just to spread the joy around ... it looks like the Brits are in for a tough time real estate-wise as well.

House prices 'to crash 20pc by 2012' as Budget bites, says Capital Economics - Telegraph

[troppo]

Originally Posted by Doodles

Just to spread the joy around ... it looks like the Brits are in for a tough time real estate-wise as well.

haahaha, "spread the joy", I thought that was funny.

. . . .

Now I don't know why (Maybe because I am troppo.). Poor ol' Brits.

[Get-a-Life]

I don't agree with MarkJ and would suggest he is talking thru his hat.

I now live in Hobart (a place he says don't buy, too cold). Before this we lived in Melbourne.

If the intent is to fund a cruising then the important financial consideration is "cash flow" not "capital gain."

When we took off on our extended cruise for the selling price of our house in Melbourne (which would have rented out at $300p/w) we were able to buy 5 rental properties in Hobart. These rented out at $130p/w.

The same ratio still applies these days.

Therefore my advice to any aspiring property moguls is to look for areas which are selling cheap and renting high. Sydney and Melbourne do not come into this criteria.

In a lot of country areas in Australia you can still buy a property for around $100,000 and rent it for $130+ p/w that gives a good return of over 10% on your investment and a steady income while cruising.

If it's capital gain you want, then Sydney or Melbourne is the go.

Safe cruising and investing to all.

Ken