Victorians defy gloom on property


Kamahl Cogdon, property reporter
18aug04

VICTORIAN investors have defied a national retreat from the property market and set their sights back on bricks and mortar.

A new report revealed the number of Victorians with property investment plans swelled to 169,000 in the June quarter.
The 4 per cent jump in Victoria -- the equivalent of 6000 extra aspiring investors -- came despite a 15 per cent slump across the nation.

The Tomorrow's Property Investors report found 120,000 people across Australia shelved their plans for property investment in the three months to the end of June.

The biggest falls were in the volatile Queensland market, down 32 per cent, and in NSW, down 16 per cent on the back of a new stamp duty on the sale of investment properties.


The report by Nielsen Media Research for Wizard Home Loans found that baby boomers -- Aussies aged 40-58 -- made up the biggest contingent of would-be property investors at 43 per cent.

"Older investors have not been deterred and are in for the long term," Wizard executive chairman Mark Bouris said.

"This is consistent with our past research showing that baby boomers are investing in property to fund their retirement."

Over-58s increased their slice in the investment pie -- up from 14 per cent to 16 per cent.

But Generation Xers aged 25-39 continued to walk away from property investment, falling from 35 to 34 per cent.

The report also found low and middle income households -- those earning $50,000-$100,000 -- led the exodus, with about 90,000 households ditching their property investment plans in the three months.

White collar professionals make up the greatest proportion of potential investors at 57 per cent, but blue collar workers gained ground from 20 to 23 per cent.

From: http://www.heraldsun.news.com.au/common/story_page/0,5478,10482374%255E2862,00.html

I thought Queensland was the leader? With all the growth? I remember someone saying about it, and also Perth had some big growth? I know Sydney is booming, with the new estate stretching way oout og the city to form new suburbs of Sydney.

It says volatile Queensland market, but what does that mean? Does it mean unpredictable, or changing market conditions? Someone please help! Im confused.....

It just shows that all the apartments around the CBD and Docklands will sell, investors and buyers alike, the investors will rent them out and the buyers will live in them, this will be great growth for Melbourne in the coming years.

booms happen when everyone gets excited at how much money can be made by investing, and demand for investments goes up increasing prices and increasing the excitement. Until investment is so overpriced that no one can afford to invest, the boom slows, people get scared of losing money meaning demand for investments goes down. The feedback loop reverses itself and becomes a bust.

Queensland has been rapidly approaching, and is probably now past the peak of a big boom, and as usual everyone says 'southern markets are diving, but because of our big population growth we are immune to a bust'. Of course this just means that our booms are fuelled for longer and drive prices even further over valued until an even bigger bust sets in. Hence we have faster growth and a more volatile property market.

Queensland has been rapidly approaching, and is probably now past the peak of a big boom, and as usual everyone says 'southern markets are diving, but because of our big population growth we are immune to a bust'. Of course this just means that our booms are fuelled for longer and drive prices even further over valued until an even bigger bust sets in. Hence we have faster growth and a more volatile property market.

The biggest problem with Metro SEQ at the moment is its overpriced - well I think so. SEQ is now the second most expencive city after Sydney thanks mainly to interstate migration, delays in building approvals, skyrocketing construction costs and labor issues.

I think we are past the peak in the boom but you have to ask yourself - what is a boom and what is a bust, especially in Queensland. I mean during the 90s recession Brisbane was going off with towers - off the top of my head I can think of 9 resi towers and two hotels build during the mid to late 90s alone in the CBD - and that was a bust?

Personally I would love to see property prices come down a little as I am looking at buying an older style apartment in the inner suburbs in the next few years. I don't want to rent all my life.
jt

I posted this article on the other Vic property thread this morning .
But all the same its great news for Victoria and makes all the doomsayers look stupid NB: K Barrymore of the AFR

SEQ is now the second most expencive city...
jt

I hadn't realised that it's a city now.

Honestly Jayt, you're an Olympic Champion at making yourself look like a dick.

If you spent your time on facts, people wouldn't hate u so much.

Just some friendly advice.. take it anyway u like.

Cheers

Dean

what is SEQ?? South East Queensland im guessing? Never heard of it.....is it a city or something?? or another name for Brisbane?

btw someone moved this post, thats why it is here....it was in the skycraper and skylines one, I would have thought that was most appropriate because it was about victoria yes, but it is a discussion of property across he country....

Queensland has been rapidly approaching, and is probably now past the peak of a big boom, and as usual everyone says 'southern markets are diving, but because of our big population growth we are immune to a bust'. Of course this just means that our booms are fuelled for longer and drive prices even further over valued until an even bigger bust sets in. Hence we have faster growth and a more volatile property market.

Well which is more expensive to live in? Brisbane or Gold Coast, the way I see it, it wouldn't be hard to choose where to live if one is cheaper than the other. I can see the Gold Coast being more expensive the the Brisbane City area, mainly due to the Gold Coasts attractions and position, the property market will determine this....

Its just like here in Melbourne, the price really doesn't vary that much where you live around the CBD, for expample, St Kilda does not cost as much as to live near or around Albert Park area, or Docklands, they are all relative the same price as far as I know, I may be wrong....but I can see the Docklands getting the most expensive as it develops, it will easily rivial Sydneys. it may even surpass it....some of Sydneys apartments will become outdated in 10 or so years, the Docklands ones will become the highly sought after "Modern Ones" like the ones in Sydney are, so called modern living.

Thats why I say it is crazy if you have the money now to buy an investment apartment in Docklands now, why it is relatively cheap, give it 5-7 years and your investment will double and could even tripple, once all the other entertainment precints come to being built and completed down there, entertainment and recreational facitlities ALWAYS increase property values....the so called professionals predicated gloom for Melbournes apartment properties, they were wrong, its only INCREASING.

btw someone moved this post, thats why it is here....it was in the skycraper and skylines one, I would have thought that was most appropriate because it was about victoria yes, but it is a discussion of property across he country....

Its news, hence in the news and weather channel.

Its news, hence in the news and weather channel.

I see.....are you a moderator? How do you become one?

I see.....are you a moderator? How do you become one?

Nah i'm not. I really doubt we'll get anymore mods anyway. The ones we have now have been on the forum since the beginning of time. They also all have gigantic post counts and are pretty level headed.

So in every way you're screwed at getting mod :D hehe :jk:

ahh crap have to go to class. damn you rmit.

Nah i'm not. I really doubt we'll get anymore mods anyway. The ones we have now have been on the forum since the beginning of time. They also all have gigantic post counts and are pretty level headed.

So in every way you're screwed at getting mod :D hehe :jk:

ahh crap have to go to class. damn you rmit.

i see.....

I posted this article on the other Vic property thread this morning .

Hey i've been following the Olympics real closely but I hadn't noticed you'd won a medal, congrats!