Point Piper is one of the nicest part of Sydney, stunning views, beach front, near the city. Waterfront properties are tightly held and as recently as August 2007 an Australian record of $28 million was paid for a waterfront 3-bed 3-bathroom property Routala, and it only took 10 days of marketing to bring that result.
Well I tried really hard to find a more upbeat post on Australian property news compared to my last post. Unfortunately the world is not cooperating with me today. Its all doom and gloom in the property world down under.
Only just though. The predictable calls are now to extend the higher rate of the first home owner’s grant past its June 30 cutoff date. After years of a housing market supported by negative gearing by investors now, suddenly, debt is out of fashion and grants are back in favour.
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Changes in Australian’s Federal government regulations means that it is now easier for overseas investors in invest in Australian holiday units. We’ve discussed before that Australia is quite restrictive about what type of property an overseas investor can buy in Australia can purchase – restricting them to basically new built property.
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Well 2008, and even more so 2009, have and will proove to be very interesting years for property investors.
What have we learned in 2008: property is more stable than shares? I think the eye opener for anyone too young to have lived through the 87 crash was just how little investment, whether it is shares or property, has to do with the market fundamentals. Its all driven by people i.e. emotions, greed and fear particularly.
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Finally the Wall Street melt-down has cooled down Perth’s overheated office market. Desperate mining and resource companies are trying to sub-let unused office space to pay the bills as the usual angel investors focus more on their margin calls than investing in new projects.
WA homeowners increasingly are faced with a shortfall in what their property is worth and the size of the mortgage. Worst hit are low to middle-income earners in Perth’s fringe suburbs who bought at the peak of the boom in mid-2006.
Pop diva Kylie Miinogue has been hit by the economic downturn just like the rest of us – that’s a comforting feeling – I think? Kylie has had her French Island getaway on the market since February: originally priced at $1.2 million it now has a selling range of $950,000 to $1,050,000.
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