Australia housing bubble

[Citroënbender]

“HOT1” won’t do that. He might complain (as he would say, kvetch) but he will stick to these onboarded obligations so long as he’s bound by them. I’m not a Meriton fan at all, but having read of his life story it’s easy to understand why he is, the way he is.

[roKWiz]

Originally Posted by Citroënbender

“HOT1” won’t do that. He might complain (as he would say, kvetch) but he will stick to these onboarded obligations so long as he’s bound by them. I’m not a Meriton fan at all, but having read of his life story it’s easy to understand why he is, the way he is.

No doubt a very proud old builder like Masterton.

Old mans building is a Meriton, you know the ones, cladding that falls off, cracks all through them, alloy doors that jam and water leaks.

[Citroënbender]

You forgot copper pipes penetrating slabs, with no allowance for movement.

Had I only the choice between living in a Meriton building and one by Toplace, I’d choose the former.

[FoxtrotGolfXray 5.0]

Are you guys talking about metricon that build houses or meriton that build apartments? I thought it was metricon that was cancelling contracts? Or have I got my wires crossed?

[Citroënbender]

Meriton, the home unit sausage factory.

Of course, it may have been a malapropism by Wiz, but I failed to check.

[roKWiz]

Originally Posted by FoxtrotGolfXray 5.0

Are you guys talking about metricon that build houses or meriton that build apartments? I thought it was metricon that was cancelling contracts? Or have I got my wires crossed?

Actually I was talking about both, Meriton trying to squeeze the apartment prices up along with rents and Metricon doing the dirty on builds.

Sorry for the confusion and "spelling" in the first post about it.

Both A Holes in my view.

[FoxtrotGolfXray 5.0]

Had to have a chuckle at the story on Melbourne 7 news tonight regarding the Reserve Bank leaving interest rates on hold: they interviewed a circa 60-year old who said that if interest rates go up any further, he'll have to restructure finances to make ends meet, including cutting back on spending. He says this whilst sitting in front of his circa $100k caravan plus appropriate tow rig, on holidays!

I wonder how many others 'doing it tough' are in a similar boat?

[Syndrome]

No rate rise as expected. Will probably be the same in September then a 0.25% increase in October.

[Itsme]

Originally Posted by FoxtrotGolfXray 5.0

Had to have a chuckle at the story on Melbourne 7 news tonight regarding the Reserve Bank leaving interest rates on hold: they interviewed a circa 60-year old who said that if interest rates go up any further, he'll have to restructure finances to make ends meet, including cutting back on spending. He says this whilst sitting in front of his circa $100k caravan plus appropriate tow rig, on holidays!

I wonder how many others 'doing it tough' are in a similar boat?

Plenty of knuckle heads like the one you described, keep on refinancing and spending money on their toys, once retired they will spend their super on mortgage payout then whinge about having to live on a meagre pension.

[Citroënbender]

Noticed my local medical centre no longer bulk bills, I’d imagine this was driven by “cost of living” decisions per the staff.

[Trendseeker]

Originally Posted by Citroënbender

Noticed my local medical centre no longer bulk bills, I’d imagine this was driven by “cost of living” decisions per the staff.

All of the medical centres in my area stopped bulk billing over the past couple of years. They won’t even accept walk in visits anymore. Booked appointments only. I generally go to a GP but the medical centres are handy if a rare after hours visit is needed.

[Citroënbender]

Via a friend looking for a new housemate, I’ve been exposed to a little of the lower end rental market this last fortnight. My job being to open up and show the place when they’re not able to be there. Of course you chat a little while doing this.

I’ve only met one prospect who was up the creek through no fault of their own; really unfortunate family history but they were working full time and saving to guard against that recurring. Others - “shoppers” looking for a bargain, people who had chaotic lives, new arrivals essentially conflating share housing with private hotels… The fact that nobody has yet taken half a house with a huge yard at $350/wk actually surprises me.

[Syndrome]

The Melbourne market is beginning to come off the boil. Some stock taking ages to move,

[Polyal]

Lets see what happens closer to Christmas..things still tightening up and I know our resoruces company is forecasting a slight down turn so who knows.

[Itsme]

Originally Posted by Polyal

Lets see what happens closer to Christmas..things still tightening up and I know our resoruces company is forecasting a slight down turn so who knows.

Funny how you say this, I work for a steel manufacturer who supplies the building & mines market and sales has dropped dramatically, even with a price drop our sales is still low. I don't think we are out of the woods, if any it is looking grim.

[Syndrome]

Originally Posted by Itsme

Funny how you say this, I work for a steel manufacturer who supplies the building & mines market and sales has dropped dramatically, even with a price drop our sales is still low. I don't think we are out of the woods, if any it is looking grim.

Our sales this month have been poor.

[mad2]

Originally Posted by Syndrome

Our sales this month have been poor.

i'm surprised we are still pumping out our carpet ...... we are currently running behind schedule and are doing overtime!.


but we are also doing an EBA .. so will see what wheels fall off

[danzvtil]

I’ve noticed all the Uber eats drivers have disappeared from my area, they are normally sitting around restaurants waiting for jobs, now gone.

[kevino]

Originally Posted by danzvtil

I’ve noticed all the Uber eats drivers have disappeared from my area, they are normally sitting around restaurants waiting for jobs, now gone.

Yes just had my worst/quietest door dash week ever.
Consumers are tightening their belts and not surprisingly delivery to home of takeaway food is one area that can be chopped off.
Fortunately its just a bit job for me 10-15 hours a week not supercritical.
Anybody looking at this work full time is nuts -its a low low earner now.

[Itsme]

Originally Posted by kevino

Yes just had my worst/quietest door dash week ever.
Consumers are tightening their belts and not surprisingly delivery to home of takeaway food is one area that can be chopped off.
Fortunately its just a bit job for me 10-15 hours a week not supercritical.
Anybody looking at this work full time is nuts -its a low low earner now.

Lot of take away shops are starting to feel the pinch, the couple of shops I go to have told me about 30% drop off with sales.

[raised by monkeys]

Originally Posted by Citroënbender

Via a friend looking for a new housemate, I’ve been exposed to a little of the lower end rental market this last fortnight. My job being to open up and show the place when they’re not able to be there. Of course you chat a little while doing this.

I’ve only met one prospect who was up the creek through no fault of their own; really unfortunate family history but they were working full time and saving to guard against that recurring. Others - “shoppers” looking for a bargain, people who had chaotic lives, new arrivals essentially conflating share housing with private hotels… The fact that nobody has yet taken half a house with a huge yard at $350/wk actually surprises me.

I understand the market dictates, but regardles off yard size, $700 per fotnight to share a house is preposterous.

[Citroënbender]

This opportunity was taken up over the weekend, a young single chap from overseas who was sick of paying the same coin to share a unit on the beaches. Kept saying “it’s enormous”. His only regret was losing access to a shared bicycle at the previous address, so he’s sniffing around for an unwanted mountain bike or similar.

[MITCHAY]

Next door sold their house within 1-2 weeks. They made nearly $230k capital gain, I would be closer to $300k on my purchase price and their sale but I reckon I could squeeze more as both the house and yard is bigger. Now I have a comparison at least

I have been thinking lately I could downsize and either have a smaller loan, debt free and even, or a profit after changeover after looking at some apartment options. Always good to have the option I guess.

[asagaai]

Originally Posted by MITCHAY

Next door sold their house within 1-2 weeks. They made nearly $230k capital gain, I would be closer to $300k on my purchase price and their sale but I reckon I could squeeze more as both the house and yard is bigger. Now I have a comparison at least

I have been thinking lately I could downsize and either have a smaller loan, debt free and even, or a profit after changeover after looking at some apartment options. Always good to have the option I guess.

Just do the sums with apartments, if it has a pool/lift the strata fees will be huge. So it may cancel out the savings on a smaller mortgage, and you are reducing the capital investment you have.

Also I would be very concerned about buying an apartment made over the last 10 years odd- so many horror stories in Sydney. Ok if you do your due diligence and find out if it was a reputable builder, reputable engineers and had a decent architect overseeing the project over its duration.

[MITCHAY]

Originally Posted by asagaai

Just do the sums with apartments, if it has a pool/lift the strata fees will be huge. So it may cancel out the savings on a smaller mortgage, and you are reducing the capital investment you have.

Also I would be very concerned about buying an apartment made over the last 10 years odd- so many horror stories in Sydney. Ok if you do your due diligence and find out if it was a reputable builder, reputable engineers and had a decent architect overseeing the project over its duration.

I was looking at the strata it's about what I am paying now and was thinking WTF how is that possible although we are only a 16 unit body corp so maybe that's why?

It's an option and a thought, I'm no where close to actually doing it

[Syndrome]

I was talking to a builder last night. He predicts that a lot of wealthy Chinese will be escaping with their money in the next year due to the coming economic turmoil. Some of this money he predicts will end up in Australian property causing prices to jump significantly. Anybody agree with this prediction?

[T3rminator]

Originally Posted by Syndrome

I was talking to a builder last night. He predicts that a lot of wealthy Chinese will be escaping with their money in the next year due to the coming economic turmoil. Some of this money he predicts will end up in Australian property causing prices to jump significantly. Anybody agree with this prediction?

Similar thing happened when they cracked down on corruption a decade or so ago. Many funnelled the money out and put it on property. Hence why you see some owner happily sit on vacant million dollar homes.

[T3rminator]

Right on cue.

https://www.abc.net.au/news/2023-09-...ices/102833958

[Citroënbender]

A very “thin” article.

[kevino]

Originally Posted by Syndrome

I was talking to a builder last night. He predicts that a lot of wealthy Chinese will be escaping with their money in the next year due to the coming economic turmoil. Some of this money he predicts will end up in Australian property causing prices to jump significantly. Anybody agree with this prediction?

Chairman Xi with his centralised control policies is certainly strangling most of the Chinese economy.
But can people pull their money out of China-not sure.