Australia is one of the most desirable places to live in the world... so why shouldn't the prices be high?

Here we go.... So in 2005, prices were 50% above, in 2010, they need to fall 30%, but this is cushioned. So it could be 10 or 20%, basically where we were 2 or 3 years ago...or possibly in line with demand. The only way house prices can fall dramatically in Australia, is if our economy declines at a very destructive rate, unemployment at 12-15%, banks start to wobble, and basically a whole destruction of our lifestyle, which nobody will be able to afford to buy commodities/property anyway. To all the people who keep drumming the "Bring it on" "About time", consider this for one minute, yes you might get your house at a reduced price, but you will be out of a job, your bank will probably have gone broke - operating on a Government lifeline, your super balance will be about 30% of what it is now, and our country will be completely devastated and a terrible place to live. Don't wish for a 40-50% price reduction, if you don't fully understand the consequences.

In a similar position to most capital driven western economies... during the last 20 years, Australia has seen spectacular demand for property investment for a variety of reasons, widening the gap between the wealthier and poorer members of society. While some of the latter are still fighting the crowds to purchase their initial residence, the other end of the street are sitting on two rental properties purchased strategically by utilizing available resources and data. The best way for an income earner to get ahead now is to make use of the resources at hand, or be very, very lucky. As previously mentioned, you shouldn’t depend on luck - so there's the rub.

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

Stimulus Package

Three contractors are bidding to fix a broken fence in Yarralumla.
One is from Canberra, another from Melbourne, and the third one
is from Perth.

All three go with a government official to examine the fence.

The Canberra contractor takes out a tape measure and does some
measuring, then works out some figures with a pencil. "Well", he
says, "I figure the job will run to about $900: $400 for materials,
$400 for my crew and $100 profit for me".

The Melbourne contractor also does some measuring and figuring,
then says "I can do this job for $700: $300 for materials, $300 for
my crew and $100 profit for me".

The Perth contractor doesn't measure or figure, but leans over to the
government official and whispers "$2,700".

The government official, incredulous, says "You didn't even measure
like the other guys! How did you come up with such a high figure?”

The Perth contractor whispers back "$1,000 for me, $1,000 for you,
and we hire the bloke from Melbourne to fix the fence".

"Done!" replies the government official.
And that, my friends, is how the new stimulus plan is working...

If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to http://www.directnegotiations.com.au/ or call the team on +61 (0)8 84631997

Australia - the lucky country.

The randomness of luck (or lack of it) is something worth contemplating. I'm not talking about luck with the horses or on the dogs — that's insignificant in the scheme of things.

Constitutional luck, that is, luck with factors that cannot be changed. Place of birth and genetic constitution.

The physical and environmental stimuli that surround you and your access to food, clean water and healthcare, all of which combined have a huge impact on your quality of life. This kind of luck profoundly affects you and directs your passage in the world.

If you're reading this now you're doing well (I would even say you're extremely lucky). In a pool of an estimated 6 billion people (and growing by the second) your luck is almost miraculous, considering only 26 percent of people have access to the Internet, half of the world's population exists on less than $2 a day and there's only an 18 percent chance of being born in an industrialised country. Let's just say you got a VIP ticket for this ride.

But often the clincher is the luck that comes with being born into a family that owns property. This is particularly so considering intergenerational passing of wealth is set to hit record levels in Australia, as Bankwest reported recently.

According to Bankwest's report Inherited Housing Report 2010, the elderly and baby boomers own nearly half of the nation's total housing stock of $3.5 trillion.

Bankwest Retail CEO Vittoria Shortt said the Inherited Housing Wealth Report was based on ABS Census data and life expectancy figures and showed that $407 billion worth of housing assets is projected to be inherited by Australians over the next 15 years.

"One in 10 homes owned by households will potentially be given away by 2025, which represents an unprecedented baton change in intergenerational wealth, the likes of which we have never seen before," Shortt said in an recent media release.

If nothing else, these figures help to explain the curious ability of many young people to purchase $1 million homes. But what about the rest of us?

Given the chances outlined above we're all outrageously lucky to be here, in an industrialised country with access to the food, water, healthcare and the Internet. But if you stand to inherit a home by 2025 you're 10 times luckier than the average Australian citizen.

With Australia's projected population growth and a steady increase in housing prices many families are hoping to inherit wealth. Will you? Will you pass it on? Share your thoughts below.


If you are looking for a well performing residential or commercial investment property, an addition to your existing property portfolio or a home to live in, we guarantee to save you money on your next real estate purchase. Go to Direct Negotiations or call the team on +61 (0)8 84631997