Jul 02, 2009 10:50 pm
The forecasts are suggesting that outer suburban houses, like what a lot of forum members own or a building, are tipped to increase in value more drastically than ever before. At least in Melbourne.
We can't predict the future, but looking at how inner suburbs are becoming unaffordable for the average Joe, and land running out it seems that it might just come up aces for us home owners in the outer suburbs.
I have just bought in Point Cook and am ecstatic to be getting out of the ever tightening and unreasonable rental industry. My repayments will be the same as my rent. We should be ready to move in in June next year, wouldn't it just be lovely if the property had gone up in value even before it has been made. Personally, I don't mind if the value goes no where, but it's a nice thought.
What do you think the future holds?
Is it happy sailing, or is the financial crisis going to take a strangle hold and everything slows down after the FHOG ceases?
Re: Housing prices tipped to increase by 20% in the outer burbs3
Jul 02, 2009 10:55 pm
well IMO prices will grow, I think in different spurts in different price brackets, but I generally feel the FHOB outer suburban will always make a slow and gradual increase, and occasionally (like now) because of gov grants, it grows a little better than the others... But overall, you are def onto a good thing if you can buy your own piece of dirt (or floor level) rather than be a slave to the landlord. Essentially it's all about affordability and opportunity, which visits us at different times in our lives, so if you can do it now, go for it. Point Cook is a great area, def one of the better areas in the west, so congrats on that too!
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Re: Housing prices tipped to increase by 20% in the outer burbs4
Jul 03, 2009 10:23 am
People will always believe what they want to hear.
You just bought in the outer burbs so naturally you want your house to be worth x3 what it cost in a years time.
If you bought a unit in the inner city you would believe the articles about units close to the CBD about to skyrocket.......
There is no bad time to buy a house if you are happy with the place and location IMO.
Re: Housing prices tipped to increase by 20% in the outer burbs5
Jul 03, 2009 11:00 am
I think its really anyones guess short term. I believe that unemployement will play a big part in any increase/decrease short term. I am worried about areas that traditionally have ethnic munufactoring type workers such as cragieburn, roxburgh park, melton to an extent. Long term yes, they will increase, just look at population growth of Melbourne.
Re: Housing prices tipped to increase by 20% in the outer burbs6
Jul 03, 2009 11:08 am
I hope so!!! I'm a first home buyer.. and I'd love my house to be worth more in the future obviously.. I'm not too fussed if it doesn't grow in price quickly, because we are planning to stay here for a while. It's a long term investment.
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Re: Housing prices tipped to increase by 20% in the outer burbs7
Jul 03, 2009 11:51 am
If house prices go up and you get more for your place than what you bought it at don't forget that you are buying in the exact same market that you are selling in so the place you are going to buy has also gone up.
The only way it really is of benefit is if you have paid the majority of your mortgage off and then move into a rental property. Although it is nice to know that your house is worth a lot more than your mortgage etc
Re: Housing prices tipped to increase by 20% in the outer burbs8
Jul 03, 2009 3:13 pm
The only way it really is of benefit is if you have paid the majority of your mortgage off and then move into a rental property.
Well not really. You could also choose to downsize or use the equity that has been in the house to buy other properties. The fact that all the properties around you are also increasing in value does not mean that the increases are pointless.
In terms of the outer suburbs, there seems no doubt over time they will, like most property, increase in value. Personally I doubt the returns will be immediate as the FHOG has artifically inflated the market and that demographics is likley to be hardest hit by the financial crisis.
The biggest problem/issue in front of the outer suburbs is interest rates. It seems likekly we will have another year or two of low rates but equally it seems likley that they will start to drift higher. That is when these markets will come under real stress because they carry such low levels of equity.
I think if you take a 3 year view you can see some potential for values to flatten/fall slightly. However if you take a 10 year view the I think the returns will be good.
Re: Housing prices tipped to increase by 20% in the outer bu11
Sep 10, 2013 11:48 am
Prices will go up 20%... heck they will even go up 100%. Question is in what timeframe. If you look at house prices in 5 years they could be less than current... but in 100 years I'm pretty sure they will have gone up 20%.