Reply With QuotePlus people that put their mortgage on ice for a few months are still paying interest on the balance which will cost them as well
The real estate market has been hit hard by the virus pandemic and property values are expected to tumble. Despite this, look at what is happening in the city. George Street cinema is to be demolished to make way for high rise apartments after receiving City of Sydney's approval of two Mirvac development applications to be constructed on the Event Cinema site. The City of Sydney Lord Mayor Clover Moore was quoted saying the council was impressed by the plans for the site. Of course it would be and we know the reason. The CBD was very congested prior to the lockdowns. Do we really need more apartments in the city?Originally Posted by GoldfishMan
Plus people that put their mortgage on ice for a few months are still paying interest on the balance which will cost them as well
Planning for this development has probably been going on for years. The developers are unlikely to pull the pin because of current crisis. Even if they start now, it will be 2 or 3 years before they are finished. Prices might drop a bit, but reports suggest there are still plenty of cashed up Chinese investors waiting to jump in.
Airbnb was always a profitable venture and something that I (even me) was planning to do, unfortunately since the virus everything’s collapsed. A lot of people can’t pay their mortgages, but on the other hand it’s true that some banks are being tolerant about money owed.
**Being second is to be the first of the ones who lose**
If you're referring to that recent property-spruiking article about the surge in Chinese people enquiring about Aussie property, don't think too much about it. That surge could mean a lot of things. It could be people who already have an Aussie property looking to sell; it's normal to check the market if you want to sell. Or it could be people looking for prices to crash before making a move.
Both the above are more likely than what that article hopes we would think, which is somehow miraculously Chinese buyers now want to buy overpriced Aussie property, in the middle of all this negative global sentiment.
There has been a slight hit to prices (purchase) but nothing like the Armageddon predicted. If vendors don't look like getting what they wanted they just withdraw unless they are desperate. Units have dropped a little but units were headed that way anyway. Now that open homes and auctions are back on, properties are moving again. 3 out of 5 places I looked at on the weekend went under contract after their 1st open. If your property is reasonably priced and presents well it will move. I am referring to the suburbs obviously, but it's the same story from Box Hill to Rooty Hill, Wetherill Park, Fairfield, all the way to Liverpool and everywhere in between.
Its definitely a renters market right now which is not the norm, especially in recent times.
No Immigrants, no tourists, no international students etc.on the demand side.
Newly built apartments and ex-AirBNB on the supply side.
It will be even more of a renters market in a few months time when Jobseeker, Jobkeeper runs out.
So if you are renting start looking at moving.
You can get a similar place for less than you are paying now or a better place for the same money.
If you are too lazy to move then just bluff your agent/landlord.
Tell them you are moving, and chances are they will reduce your rent or give you a few weeks free rent.
You can't lose.
And if they call your bluff then fuck them! Move to a nicer and cheaper place.
Its not often renters have bargaining power so use it while you can.
Same principle applies to your mobile phone, internet, electricity, car insurance, home loan, credit card, health insurance etc.
Just ring the cunts up and tell them you are leaving and going to a better deal from a competitor and they will offer you better deal.
That's exactly what I'm about to do. Moving to a bigger place. I'm interested to see how they will react.
About jobseeker and jobkeeper, if someone had mortgages to service and they were on those payments, you know what that means right? It's basically servicing loans using the dole. Now step back and think a minute how fucked up that is. No bank will ever sell a mortgage to someone on the dole. Now they're forced to swallow all of it.
There's still a lot of spruiking happening in the real-estate sites at the moment, playing on people's wishful thinking. A lot of garbage out there like Chinese investors coming to save the day. Or another one I really like, claiming that the people losing jobs at the moment are just the low paid people so it wouldn't affect property prices because those people don't normally own property anyway. Haha... That's so stupid because those people don't own, they rent! And when they stop renting en masse (go back to family, own country, start with friends, etc), who's going to hurt?
I agree with comments about upcoming pressure on the housing and rental market.
just want to add a point here: the gov. might reopen faster than anyone had thought possible. just look at the rough way they pushed thru the return-to-school plan, it's absolutely disgusting.
Throwing out all concerns for kids & teachers' safety, all for those folks who are struggling with finding people to look after their kids while they return to work.
Why? it's all about money. schools reopen, more people go back to work, more tax to collect, more traffic help gas stations and refineries and toll collection etc.
I wouldn't be surprised at all if scomo eats his words and finds an excuse to allow overseas students to come in the 2nd half this year, or relax the 14day quarantine requirement to encourage travel. some part of Europe are already making noises like this.
so an alternative development could be a much faster return of business & travel along with ultra low interest rates. we all know how this powerful combination does to housing.
I certainly hope the gov exercise caution and hold our health above business interests, esp. of those shody degree factories and greedy professors.
The apartment rent is riskier for the owner and for the customer as well. I don't think why in your area the prices for rent are so low. In my opinion, they should be around 1200$, especially if we talk about fully-furnished apartments. I don't like renting apartments if I am on vacation. The most comfortable option for me is staying at Hotel. If I need long-term apartments, I usually buy them after consulting with the professional Mortgage Advice Cambridge local service. Have a good day!
Is this about to hit Sydney?:
https://www.smh.com.au/property/news...06-p59f5e.html
Unfortunately property has become a speculators playground.
I wish these cunts would just stick to shares and casinos and horses and bitcoin and other frivolous shit and not fuck with the roof over people's heads.
Totally agree, bro rooter. There are much better ways to make money than to screw with the livelihood of the next generations.
Agree. Unless someone at the state / federal level changes the rules, speculating in property is a heavily promoted policy. As that is one of the biggest cash cows for the state coffers - stamp duty.
Interest rates will go up soon. They can't stay low indefinitely. Many people have gone in to purchase property with loans at very low rates. Many are at their maximums and hoping rates won't increase. If rates go up I don't know how many will survive with repayments.
Are we talking about official RBA rates or retail bank rates?
See, in this world there are doves and then there are hawks. Take a look at Phil Lowe. Does he look more like a dove or a hawk? He's a dove through and through. He has no balls to do what is required of him. He'll be going "Inflation is high, but wages haven't gone up, so I'm gonna keep rates at zero", then "oh, interest rates in every other major economy have gone up, but wages haven't increased enough, still keeping rates at zero", etc etc etc. The end result would be our currency will tank.
Retail rates, on the other hand.... I agree with you, will go up for sure regardless of the official rate. The major banks are already preparing for this situation now. They're slashing variable rates to attract more customers onto their books, but increasing fixed rates at the same time because the outlook for rates is that it will be going up. Higher rates give the lender a higher dollar profit.
I don't think it will last. Once international students start to flood back in. We'll be back to square one. With 5 people living in small 1-2 bedroom apartments in the city. Paying WAY too much in rent.
Pre-covid I had a friend who was living in a 2 bedroom place in Zetland. It was $1000/week for a modern 2 bedroom apartment in ZETLAND! Of all places. That area is so over supplied with apartments, and people were still willing to pay ridiculous rents just to secure a place.
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