THE BLOCK 401-407 Dorcas Street South Melbourne
Millions have watched THE BLOCK Reality TV show and marveled. Last weekend's auction results for the four terrace houses in South Melbourne came in way above the estimated auction results and are likely to trigger unrealistic expectations in aspiring renovators. The contestants where blown away. Has the market turned around in Melbourne ? But more importantly should we all rush out and become renovators ? One thing is sure, making 0.4 Mio $ in 10 weeks is very appealing. So everybody go on the next show if you can get in. I presume there will be thousands of applicants for the next show. For the rest of the 2 Million viewers and aspiring diy renovators be cautious and judge yourself.
Click here to see the figures.
The Business Spectator has an interesting article that raises concerns about stagflation in the Australian Housing Market. Quote:
"More importantly, it's a view that is not without precedent. Between 2004 and 2009, Sydney home prices remained relatively flat, meaning that prices fell in both inflation-adjusted and income-adjusted terms."
Apparently this concern is becoming more widespread and in my opinion it is a valid concern. But it will not kill my interest in real estate. I am of the opinion that a moderate increase (somewhere between CPI and income growth) of say 3..4% is still attractive if I can achieve a rental return of 5% or more and a long term capital growth of 5% or more as well. Please click here or on picture to read the full article.
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