Monthly Archives: February 2018

It’s on track in Brisbane – for a massive correction

Speaking with friends in Brisbane. Massive deals on Apartments and an increasing number of horror stories.

How about large 3 bedroom plus study apartments with 2 car spaces at exactly the same price as they were in 2008? Great investment huh?

How about apartment developers giving back “cash in hand”  up to 10% of the purchase price so that transfer duty is paid at full price to effectively disguise what is really going on in the over supplied market?  Dodgy huh?

Agents actively encouraging buyers to submit “low ball” offers to get a sale and commission quickly!  Nice one people.

One yet to be completed project has lowered its official asking price for 2 bedroom apartments by $90,000 in 6 months.  No takers.  No offers. No sales. Savvy apartment buyers in Brisbane are inspecting displays in ever increasing numbers but both hands are shoved deep in their pockets!

It’s the start of an avalanche.

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Mortgage Stress is real – coming to many suburbs near you – soon !

Just here in Queensland, many analysts say near 200,000 mortgages were super sensitive to ANY mortgage rate rise.

The near defaults right now range from 10,000 to 20,000.  Banks won’t reveal how many households are currently in negotiations to try and save themselves from repossession action.

The huge number of loans, especially in “Nappy land” about to reset from Interest Only Honeymoon rate to Principal and Interest Penalty rate will ensure blood in the streets and a domino effect on the market.

I keep saying it.  Wait til rates rise 1 full percent and see what happens!

Media makes me laugh – always- so pathetic

Spouting yet another “record price” for a piece of minor CBD commercial property, the writer revealed the purchase price, date of purchase and the recent sale price.

You don’t have to be Einstein to put the raw purchase price into the Reserve Bank’s inflation calculator and see the sale price is actually a 10 percent LOSS over the holding period.  My raw calculations do not take into account purchase and sale costs.  I did a quick add and subtract, and the loss crystallized at near 20%.

I know the building concerned.  Sellers have had their long time vacant strata titles on the market for up to 3 years.

Hot market?   Records?

Rubbish!

 

 

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