Home and Land Packages

[Bitza1984]

Hi Guys,

 

I've been Adelaide now for over a year and seriously thinking about buying a home and land package. I have a bit of a deposit and will want to apply for the first home owners grant. I have never purchased a house before so any help would be appreciated.

any companies you guys would recommend? I've heard Weeks and Macklin are good. They are building houses in areas my partner and I like too.

 

Also what would be the first steps to take? see a mortgage broker?

 

My partner and I both work full time but she is in her probationary period until March. Would this be an issue?

 

Cheers.

 

N.

[flossybeth]

We didn't build our house just bought one but I would imagine your first step would be to visit some of the show homes in different areas and get an idea of who's building what and what's included in your package. I'm fairly sure things like the garden are not so you'd need to take that into account.

 

There is someone on here (NicF, perhaps?) who built their house recently - not sure it was a house and land package - so they'd know a lot more about the whole process, but I think they tweaked the house design to get a layout they were happy with, so even if you don't see something you love I think you can customise it (but then presumably the costs will start to add up). So maybe a good place to start is a company who's build quality your happy with?

 

Sorry it's all "I think" but I don't have the experience.

[DougM]

Be aware that building your own, whilst nice in theory, costs you in the long run. Not only do you have a mortgage for the package, but you also have on-going costs for carpets, light fittings, curtains and hangers, paths and other concrete work, and in some cases, fencing. Then of coarse, you have to dig the hard, compacted soil/rubble mix that is called the garden.

Best you look around and find some-thing that's reasonably new, but established. It's so much easier, and cheaper, to modify to your personal taste.

[Guest Claire-n-tel]

Be aware that building your own, whilst nice in theory, costs you in the long run. Not only do you have a mortgage for the package, but you also have on-going costs for carpets, light fittings, curtains and hangers, paths and other concrete work, and in some cases, fencing. Then of coarse, you have to dig the hard, compacted soil/rubble mix that is called the garden.

Best you look around and find some-thing that's reasonably new, but established. It's so much easier, and cheaper, to modify to your personal taste.

 

Although if that "reasonably new" house has already been lived in you will lose the $15000 first home owners grant.....

[NicF]

 

There is someone on here (NicF, perhaps?) who built their house recently - not sure it was a house and land package - so they'd know a lot more about the whole process, but I think they tweaked the house design to get a layout they were happy with, so even if you don't see something you love I think you can customise it (but then presumably the costs will start to add up). So maybe a good place to start is a company who's build quality your happy with?

 

Sorry it's all "I think" but I don't have the experience.

 

We did build our own house but it wasn't a house and land package as such. We bought a block of land then went looking at builders to build a house for us. The process was quite simple really. Especially as the mortgage side of things was all sorted out for us by Andrew and Stacey at Vista Financials (would highly recommend them). We weren't eligible for any grants as my OH had already owned a house in Australia and we were spending too much for the other grant that was available at the time. Andrew and Stacey would be aware of the requirements for the grants and would probably organise the application as well.

 

As for the process I would say the first stage is to work out if you can get a mortgage and how much you can afford to borrow. This will help you to work out a budget for a house. Them go and talk to builders to find out what they are offering in the package and how much it costs. It's also important to find out what isn't included as these are the things that can really add up. Oh, and whatever they tell you the price is, unless they have already done a survey on the land, add an extra $20k to $30k for foundations. Some of the salesmen we talked to were very open about the fact that the foundations would most likely be more than is allowed for in the cost of the house and some were less forthcoming.

 

When we built our house we had a lot of extras. We moved a few walls, put in extra walls and doors, changed the window configuration, had double glazed UPVc windows put in, had extra power points (although it's still not enough) and a bigger, customised kitchen. This added to the cost of the build itself but then we also had the cost of retaining walls and fences around three sides of the block and the landscaping of the outside area once the house was finished. We had budgeted for most of the costs although we were hoping to put solar panels on but didn't have enough money left for this. If you get a turnkey package with a builder Athelstone landscaping should all be included but I don't know how much choice you get in what you can do. The builder should be able to to tell you though.

[DougM]

Although if that "reasonably new" house has already been lived in you will lose the $15000 first home owners grant.....

 

Maybe so, but your going to spend that on all that stuff I mentioned. Do your home-work folks, and don't rush in. Just saying.

[burgermeister]

We are in the process at the moment of trying to build and personally would never do it again. We bought the land 5 years ago then had to put things on hold due to having to move interstate for 3 years to get our PR after visa rule changes. We looked at lots of show homes and designs from different builders and then came up with our own design which included some features of 3 or 4 builders designs and some specifics we wanted. From speaking to different builders and a couple of people we know in the business it seems every builder has their own process and we've heard good and bad stories about several of the major ones. Too keep this post from being an essay I'll just say the process our chosen builder uses has our put the whole build in jeopardy and on the limit of our budget. We were asked to go through the selections process before they gave us the engineering report, soil test result and subsequent footings cost. As someone previously mentioned footings costs can be a major issue, increasingly so. Our builder gave an allowance of 25000 which from our previous enquiries seemed reasonable. The report received 10 days ago is now quoting 44000. There is also another 10000 we had not expected. We did not upgrade too much in the selections but had we known the huge increase in footings cost we would have saved some by keeping virtually all our selections within standard, probably gone for concrete drive instead of paved, and colorbond roof instead of tiled. Now if we want to change selections or anything else the builder and suppliers will both charge us 500 for every change. These charges could add up to as much as we would save. To get the energy rating approval we have had to upgrade most of the windows to DG. We did not mind that but the builders are again charging us 500 for changing something which we believe they should have been able to advise us on up front. Our in laws had problems with their land

(big slope) but once they sat down with a good builder (not cheap but good) they had less grief with the build. I imagine house and land packages would probably be a lot less hassle, but our dream was to have the house we really wanted (just average size here), which was something we could not have afforded in the UK but could over here. Rant over, sorry if I've put anyone off building.

[Guest Sea Change @ Semaphore]

Each state has different amounts for First home owners grants and governments change the amounts granted so you need to check on government web sites or contact your local member of Parliament and they will give you accurate information.

Amounts may change at the end of the financial year.

Cheers and good luck

[beckdownunder]

We are in the process of building with Weeks & Macklin.

 

I would echo what the others have said.....don't blow out your budget on the initial presented costs of the house. We have found during our process that there seem to be lots of extra's that keep getting added on along the way - and not small sums of money either.

 

We are yet to break ground....hopefully it will al be worth it once its complete!

 

Good luck.

 

Beck

[notpom]

We are in the process of building with Weeks & Macklin.

 

I would echo what the others have said.....don't blow out your budget on the initial presented costs of the house. We have found during our process that there seem to be lots of extra's that keep getting added on along the way - and not small sums of money either.

 

We are yet to break ground....hopefully it will al be worth it once its complete!

 

Good luck.

 

Beck

 

First, always remember a rule - when you are spending hundreds of thousands, it is painful when you have to sell for less than you paid, and it always feels nice when you make some money.

As I said many times, capital gain is only achievable when you buy land that is in short supply. And this is NOT land in new housing estates, which multiply in Adelaide at the rate of bacteria.

 

The only land in short supply is land on waterfront or land where waterviews can never be built out. Even in theory. Everything else is a waste of money, especially if you are forced to sell during property downturn. Waterfront is like a buying insurance for your money.

 

As to house and land packages. The term is deceptive on its own. The builder buys land for you, and they do it for the profit. Money wasted. You would have negotiated yourself the price of land with the owner that is much more competitive.

 

Because the builder sells you a "package" (means you do not want to save money on buying the land yourself) - this is the signal for a builder to overcharge you on building.

 

Simple example.

 

Two listings for the same block of land:

 

1.Land only (range $220-$240K)

http://www.realestate.com.au/property-residential+land-sa-port+noarlunga+south-201055359

 

2.House and land package:

http://www.realestate.com.au/property-house-sa-port+noarlunga+south-118712919?listingType=buy

 

Lets look at the first case.

Does not take a rocket scientist to work out lowest acceptable offer when agent specifies price range. Lower boundary is set to attract lower offers so agent can tell the other purchasers "We have had plenty of $220K offers, all of them were rejected". The money owner wants - it is right in the middle. So you can get the land for $230K - guaranteed. The land has an approved plans for three bedder. Single storey three bedder if built by say Rivergum homes is going to cost you anywhere from $65K to $100K depending on inclusions. In other words, the whole "package" is going to cost you anywhere between $295K and $330K.

 

If you take the second option (Weeks and Macklin "house and land package") it is going to cost you some $100K more than the same thing "unpackaged".

 

How Weeks and Macklin have set their price? Extremely simple. In this place you would never be able to rent a house on a waterfront for less than $400 a week. $386 a week mortgage repayment is whole $14 a week lower than the lowest rent.

 

The same old selling line - why rent if you can own brand new home for less.

Unfortunately it seems that there are too many wealthy people around who do not mind to pay $100K extra just for not wanting making an offer on land themselves and hiring a conveyancer. $100K is not bad for 10 minute job.

[minty]

First, always remember a rule - when you are spending hundreds of thousands, it is painful when you have to sell for less than you paid, and it always feels nice when you make some money.

As I said many times, capital gain is only achievable when you buy land that is in short supply. And this is NOT land in new housing estates, which multiply in Adelaide at the rate of bacteria.

 

The only land in short supply is land on waterfront or land where waterviews can never be built out. Even in theory. Everything else is a waste of money, especially if you are forced to sell during property downturn. Waterfront is like a buying insurance for your money.

 

As to house and land packages. The term is deceptive on its own. The builder buys land for you, and they do it for the profit. Money wasted. You would have negotiated yourself the price of land with the owner that is much more competitive.

 

Because the builder sells you a "package" (means you do not want to save money on buying the land yourself) - this is the signal for a builder to overcharge you on building.

 

Simple example.

 

Two listings for the same block of land:

 

1.Land only (range $220-$240K)

http://www.realestate.com.au/property-residential+land-sa-port+noarlunga+south-201055359

 

2.House and land package:

http://www.realestate.com.au/property-house-sa-port+noarlunga+south-118712919?listingType=buy

 

Lets look at the first case.

Does not take a rocket scientist to work out lowest acceptable offer when agent specifies price range. Lower boundary is set to attract lower offers so agent can tell the other purchasers "We have had plenty of $220K offers, all of them were rejected". The money owner wants - it is right in the middle. So you can get the land for $230K - guaranteed. The land has an approved plans for three bedder. Single storey three bedder if built by say Rivergum homes is going to cost you anywhere from $65K to $100K depending on inclusions. In other words, the whole "package" is going to cost you anywhere between $295K and $330K.

 

If you take the second option (Weeks and Macklin "house and land package") it is going to cost you some $100K more than the same thing "unpackaged".

 

How Weeks and Macklin have set their price? Extremely simple. In this place you would never be able to rent a house on a waterfront for less than $400 a week. $386 a week mortgage repayment is whole $14 a week lower than the lowest rent.

 

The same old selling line - why rent if you can own brand new home for less.

Unfortunately it seems that there are too many wealthy people around who do not mind to pay $100K extra just for not wanting making an offer on land themselves and hiring a conveyancer. $100K is not bad for 10 minute job.

 

Your price of $65-100k on the build is incorrect. What about footings, retaining walls, AC, floorings, storm water, paths, drive, etc.

 

Very misleading.

Edited January 28, 2015 by minty

[jim and adel]

Single storey three bedder if built by say Rivergum homes is going to cost you anywhere from $65K to $100K depending on inclusions.

 

Very misleading to put the idea in people's minds - especially those not yet over here who might just actually believe you - that a three bed home can be built for $65k. Utter nonsense.

 

Rivergum do have transportable homes that start around the $80k mark, though, but people need to understand that's what they are - transportable. Something a bit like a cross between a shed and a static caravan (but without some of the features of new caravans unless you bump up the inclusions). We were enticed by the potential price to stick one on a block near Victor for a holiday home until we spent a night in one ... no thanks!

 

Even then, there are many other costs associated with building (or transporting!) that would add considerably to the overall price.

 

Finally, and at the risk of offending people (which isn't my intention), I can't help but think that a price range of $220-240k for a 220m2 block in Port Noarlunga South is taking the piss. Vacant land in Perth (with the reputation of the most expensive vacant land of any Aus capital city) averages $630 per square metre.

[Guest Guest75]

Ditto on the last two posts..................Utterly misleading to say the least. Be wary.

[notpom]

Your price of $65-100k on the build is incorrect. What about footings, retaining walls, AC, floorings, storm water, paths, drive, etc.

 

Very misleading.

 

Very misleading to try to publish very uninformed opinion to others.

All blocks of land in this area are as flat as a billiard table. In cases like this cost of footings is standard, included in the base cost.

Not to mention retaining walls. (Who in their right mind would build at Hallett Cove where the average site costs are about $50K? What for? For the sake of driving 10 minutes less a day?)

 

Rivergum homes now offering free driveways and AC.

Drainage is directly to the street. 6 meters of 90 mm drainage pipe cost $13 at Bunnings (or get it free on Gumtree)

 

Even if they did not, split system AC costs about $1500 on 50 months interest free.

 

Instructions on how to lay laminate flooring are printed on every pack of laminate. If you are incapable to read and follow them - what is the value of your opinion?

[Guest Guest75]

Very misleading to try to publish very uninformed opinion to others.

All blocks of land in this area are as flat as a billiard table. In cases like this cost of footings is standard, included in the base cost.

Not to mention retaining walls. (Who in their right mind would build at Hallett Cove where the average site costs are about $50K? What for? For the sake of driving 10 minutes less a day?)

 

 

Incorrect twice here.

 

There are blocks with slopes everywhere to some degree - retaining walls / digging out costs money!!!, it is not often included in the price at all - your "advice" could cause someone to really fall foul and be out of pocket!!

 

 

A LOT of people wish to build in Hallett Cove - the new release on Burlington Road had people camping out overnight to buy the blocks!!

[notpom]

Very misleading to put the idea in people's minds - especially those not yet over here who might just actually believe you - that a three bed home can be built for $65k. Utter nonsense.

 

Rivergum do have transportable homes that start around the $80k mark, though, but people need to understand that's what they are - transportable. Something a bit like a cross between a shed and a static caravan (but without some of the features of new caravans unless you bump up the inclusions). We were enticed by the potential price to stick one on a block near Victor for a holiday home until we spent a night in one ... no thanks!

 

Even then, there are many other costs associated with building (or transporting!) that would add considerably to the overall price.

 

Finally, and at the risk of offending people (which isn't my intention), I can't help but think that a price range of $220-240k for a 220m2 block in Port Noarlunga South is taking the piss. Vacant land in Perth (with the reputation of the most expensive vacant land of any Aus capital city) averages $630 per square metre.

 

For just $10K you can veneer any "transportable" in brick, which would make it no different from a brick house. For even less you can veneer it in hebel or blueboard, render it - and have the same effect.

 

Perth does not have a property market. Perth is an absurd borne by a mining boom. Mining boom is over, so is Perth. Land is never sold by square meter. And land with a million dollar water views will never cost the same as land with a nice view of rundown housing trust units somewhere in the North East - where getting to the beach - is a "yearly event" (at the best).

 

"Other costs" are for people who have no foggiest idea of what they are. You can not buy land on 20% slope and expect that builder will charge you basic price. But if you buy land which exactly meets description of the one that these "basic costs" were calculated for, the basic costs of building is what you pay.

 

People keep buying "cheap land" and then complain that they have to spend thousands more than builder specified on their website.

 

Pay peanuts - get monkeys. Ever heard of that?

[Guest Guest75]

For just $10K you can veneer any "transportable" in brick, which would make it no different from a brick house. For even less you can veneer it in hebel or blueboard, render it - and have the same effect.

 

Perth does not have a property market. Perth is an absurd borne by a mining boom. Mining boom is over, so is Perth. Land is never sold by square meter. And land with a million dollar water views will never cost the same as land with a nice view of rundown housing trust units somewhere in the North East - where getting to the beach - is a "yearly event" (at the best).

 

"Other costs" are for people who have no foggiest idea of what they are. You can not buy land on 20% slope and expect that builder will charge you basic price. But if you buy land which exactly meets description of the one that these "basic costs" were calculated for, the basic costs of building is what you pay.

 

People keep buying "cheap land" and then complain that they have to spend thousands more than builder specified on their website.

 

Pay peanuts - get monkeys. Ever heard of that?

 

It would still be a transportable though!!!

 

You are tired of people like Jim!!!!!

I think some are tired of others trying to ram an incorrect ideology down people's throats.

[notpom]

Incorrect twice here.

 

There are blocks with slopes everywhere to some degree - retaining walls / digging out costs money!!!, it is not often included in the price at all - your "advice" could cause someone to really fall foul and be out of pocket!!

 

A LOT of people wish to build in Hallett Cove - the new release on Burlington Road had people camping out overnight to buy the blocks!!

 

Oh, spare me!!!

I look at the people "camping to buy in new estates" couple of years after they camp. Believe me or not, they were camping even for a new estate in Reynella with a nice (not!) view of Southern Expressway.

 

We were enjoing glass of wine on their alfresco area accompanied by a symphony of sounds their neighbor produced having diahorrea in their toilet (toilet window was less than a foot from a fence right where the alfresco area was.)

 

Talking point was that having paid $90K for the land the guy ended up paying $360K for the house in a ghetto.

At the time he was camping, I have bought $340K 6 bedder on the Esplanade inn Seaford. There was another smaller 4 bedder on the Esplanade for $320K, which I was trying to persuade this guy to buy. He said he can not afford that much

I was asking - why did you get into this rubbish dump (with compulsory injection of housing trust) instead of buying quality property.

 

His answer was "if you were a good friend, you would have punched me in the face, instead of simply talking".

 

I am not interested what crowds of people incapable of following common sense would do. If tomorrow they decide that it is fashionable to jump off the cliff - I am not going to follow them.

 

BTW - the land we are talking about. The max difference in heights of ground is 50 mm. If you are not capable to fix this "terrible terrain" with a garden rake, you are not entitled to produce any opinions.

Let alone to play drama Queen like you do.

[Guest Guest75]

Oh, spare me!!!

I look at the people "camping to buy in new estates" couple of years after they camp. Believe me or not, they were camping even for a new estate in Reynella with a nice (not!) view of Southern Expressway.

 

We were enjoing glass of wine on their alfresco area accompanied by a symphony of sounds their neighbor produced having diahorrea in their toilet (toilet window was less than a foot from a fence right where the alfresco area was.)

 

Talking point was that having paid $90K for the land the guy ended up paying $360K for the house in a ghetto.

At the time he was camping, I have bought $340K 6 bedder on the Esplanade inn Seaford. There was another smaller 4 bedder on the Esplanade for $320K, which I was trying to persuade this guy to buy. He said he can not afford that much

I was asking - why did you get into this rubbish dump (with compulsory injection of housing trust) instead of buying quality property.

 

His answer was "if you were a good friend, you would have punched me in the face, instead of simply talking".

 

I am not interested what crowds of people incapable of following common sense would do. If tomorrow they decide that it is fashionable to jump off the cliff - I am not going to follow them.

 

BTW - the land we are talking about. The max difference in heights of ground is 50 mm. If you are not capable to fix this "terrible terrain" with a garden rake, you are not entitled to produce any opinions.

Let alone to play drama Queen like you do.

 

 

:biglaugh:

 

I walk the dogs along that new stretch of Burlington Road most days. There are slopes and there is a need for retaining walls - do you want me to take photographs and show you??

I have also spoken on my walks and the Christmas street party with most of the new residents. They seem very happy to have purchased the land and built there.

Personally they are a bit close together for my liking - but the owners are "Happy" - something that does not seem to factor into your posts.

 

Also note that I am speaking from first hand experience and can prove it.

 

Also remember that I am a property investor with 35 years experience, 20 in the UK and 15 here in Australia.

 

I would have enlarged about the "Punch in the face" comment but it would be edited out / I would be banned .

[Blossom]

I am not interested what crowds of people incapable of following common sense would do. If tomorrow they decide that it is fashionable to jump off the cliff - I am not going to follow them

So, tell me this, why are you interested in what we on this forum do? You obviously class us all in the same bracket as this from the names you keep calling people. The forum is directed at Poms living in Adelaide. You are neither a pom, nor living in Adelaide, so what are you trying to achieve? I don't think I have seen one person agree with anything you have said, so what is the point? Why are you interested in us?

Edited January 29, 2015 by Blossom
Spelling

[Ktee]

Please let's stop with the personal attacks if you don't like another members point of view move on. Getting yourself worked up isn't going to change their views and I'm sure it won't change yours.

We can't ban a member because of difference in opinion so if you are unhappy with someone please place them on ignore.

[notpom]

:biglaugh:

 

I walk the dogs along that new stretch of Burlington Road most days. There are slopes and there is a need for retaining walls - do you want me to take photographs and show you??

I have also spoken on my walks and the Christmas street party with most of the new residents. They seem very happy to have purchased the land and built there.

Personally they are a bit close together for my liking - but the owners are "Happy" - something that does not seem to factor into your posts.

 

Also note that I am speaking from first hand experience and can prove it.

 

Also remember that I am a property investor with 35 years experience, 20 in the UK and 15 here in Australia.

 

I would have enlarged about the "Punch in the face" comment but it would be edited out / I would be banned .

 

 

Please note, I am not against Hallett Cove. My first Adelaide property was bought there and I own quiet a few.

Having said that, I would NEVER buy anything in Hallett Cove without water views. Waterviews which can be built out I consider "temporary feature" and I would NEVER buy such a property either.

 

Let alone places which are anywhere near new estates. You are in typical denial - your subliminal mind tells you that you are in troubles because "compulsory house trust" have come to your door.

[notpom]

Please let's stop with the personal attacks if you don't like another members point of view move on. Getting yourself worked up isn't going to change their views and I'm sure it won't change yours.

We can't ban a member because of difference in opinion so if you are unhappy with someone please place them on ignore.

 

Thanks Ktee,

Your words are pure diamonds. If you do not want to be "wealthy healthy and wise" - just ignore me.

I can show you where the water is, but I am not going to make a slightest attempt to make you to drink.

 

Just have a respect to people who are now making a painful decision whether to buy, where to buy, what to buy.

 

Unfortunately, the reality is VERY different from what you read in mass media. Starting from 2003 they are trying to convince us that "property crash" is coming and interest rates are about to hit "double digits".

 

The reality is that rates are full steam ahead to 0%, and mother of all property booms is unfolding before our eyes.

 

People need to get the view of the reality. And to make the informed decision, they are entitled to get right info.

[jim and adel]

notpom, I don't have an axe to grind, and you're as entitled to your views as the next person. Partly because of this I don't make a habit of responding to your posts - also partly because, to be frank, from what I've read your point of view seems inconsistent from response to response, making it hard to know what you actually mean. The reason I responded to this thread is because it would likely be of interest to those making the move, and their eyes would likely light up on learning that a three bed home could be built for $65k, which unfortunately isn't the case.

 

Of course a transportable house can be clad, but as Tyke has pointed out, it will still be a transportable house. Cladding it won't make the walls any more substantial (you mention Rivergum - the last time we were in the vicinity of Victor Harbor we took a look at their transportable display homes and noted how the toilet roll holders had come away from the walls leaving large holes, and this is in display homes where the facilities aren't used. Try hanging a picture on one of those walls ...) You state that once it's cladded, a transportable is the same as any other house. Totally incorrect. At any re-sale, it would be a liability, not an asset, and priced down accordingly (it's not unknown for land with a transportable home on it to sell for less than it would had it been vacant, because of removal costs).

 

Transportable homes suit some people, and I'm pleased for anyone who's decided that's what's right for them, but they're not the option most of us choose. Also, dressing one up to look like any other house comes at a cost - not just the material. Roofing, guttering and windows are sized for the original build and have to be altered/refitted if adding a course of bricks - that's not cheap. A transportable home clad to look like a real home will look just like a transportable home that's been clad. It won't add value.

 

Many developments won't even allow transportable homes - there's a reason for that.

 

On one line you write 'pay peanuts - get monkeys' and then later you tell us about free driveways and air con from builders - do you ever think of applying your principles to your own opinions? Anyone who thinks they're getting anything free from a builder hasn't got a track record as an investor, regardless of what they claim. A $1500 air con unit and DIY laminate would go really well with the hebel clad transportable home ...

 

Transportables don't need much in the way of footings, which is why some are like walking on a trampoline. With real houses, though, it's not just about the slope (and no land is billiard table flat; all require some work which extends well beyond the garden rake). The biggest cost affecting the slab is likely to be soil type. Builders' prices assume low reactive soil and no rock, and most tests show higher reactivity and often rock - anyone who's actually built in SA will be aware of this ...

 

You mention somewhere about someone regretting buying because their fence was a foot away from the neighbour's toilet window, yet you're showing land for sale that's all of 220m2 - how far away do you think the neighbours would be with this block?

 

It's an incredible statement that land isn't sold by the m2 and that Perth doesn't have a property market. Such views make me question your 'investor' credentials. Land is always sold by area; there's no other way to sell it. Many costs associated with owning a home are based on land value (it seems ridiculous to have to state these things). WA has been hit by the end the mining boom, no doubt about it. The thing is, that boom has already paid for many of the infrastructure projects which that state (and Perth in particular) needed, which is why all those shiny new trains run on shiny new tracks and the tax payer doesn't have to dig ever deeper into their pockets to fund them. Despite the end of the mining boom, WA's economy continues to out perform the rest of the country by, well, a country mile (growing at 5.5% and with more people moving there than any other city in Aus). To state - I assume seriously - that Perth 'is over' simply boggles the mind. Even if it were true, I could have chosen Brisbane or Sydney and vacant land in those cities is still roughly half the price of what land goes for in Adelaide (but I assume the reason for this is that those two cities are also 'over'!)

 

Finally, in amongst your views you weave in statements about it being incorrect that 'double digit' interest rates are close ... I'm not sure where you get the idea that people think that's what will happen. It's certainly not something I come across. We arrived here at the back end of '07 and all the talk since then has been about 'how low can they go?' You're not telling people something they haven't already figured out for themselves when you point out that the economy is flat; most people can see clearly the state things are in and the direction that's being travelled, which is all the more reason why they should spend their money wisely and not on over-inflated tiny blocks and cladding transportable sheds in the hope they'll look like real houses.

 

Anyway, no response I could make will have any impact on your views, I get that, so I'll not rise to anything further. I just hope that those who aren't here yet take what you say with a pinch of the proverbial - you could cost someone a lot of money with such ill formed views.

 

Jim

Edited January 29, 2015 by jim and adel

[Ktee]

As my polite request was ignored 3 people have found themselves taking a break for the night. I will also close the thread as I don't think it is getting us very far. Apologises to the op that your thread has been hijacked.