House prices
thermalben wrote:Forget house and land prices, check out the pubs!
Justin Hemmes has apparently bought a block of Byron land on Jonson Street for $50 million, and is said to be spending $20 million building a new venue along the lines of the Coogee Pavilion.
Hemmes also bought the (vacant) Cheeky Monkeys backpackers bar for $13 million. And in Vicco, picked up the Lorne Hotel for $38 million.
Sydney developer Podia paid $18 million for the Byron Bay Backpackers on Jonson Street. The old Woolworths (opposite Cheeky Monkeys) also sold for $120 million to the Mustaca family and they're building a new four-star hotel.
Stu Laundy recently bought the Lennox Hotel for $40 million and The Farm for $16 million.
Last year, the Byron Bay Beach Hotel sold to investment bank Moelis Australia for $104 million.
And, media reports a few months ago said that both Hemmes and Laundy were in a bidding war for the Pacific Hotel at Yamba, with an asking price of around $50 million. Dunno if it sold though.
Another one to add to the list.
It’s reported that last week the Great Northern Hotel sold.
$80 million.
Buyers were apparently Scott Didier, founder of ASX-listed building company Johns Lyng Group, and Scott Emery, founder of ASX-listed online lender MoneyMe.
Please, please, please.
For the love of God, no more gentrification of the Northern.
it's the last non-wank thing left standing in Byron.
My hometown is fucked too. It’s sad cause I want to stay where I grew up but now I just wonder why I’m here. In saying that, I wonder that now Sorrento has nearly hit terminal velocity of wank, that maybe it could potentially revert back? I pray.
Sorrento is too far gone Nick, the worst of Melbourne have taken over that place and won't be handing it back. It's all super wealthy popped collar private school folk down there now. I can't stand the place.
I hope Cath Mooney falls on her face on the way to the bank, not for selling The Northern, but just for being her.
Rumour is that the Northern will be getting rid of the beer taps and installing an oxygen shot bar alongside a French patisserie/ tapas bar. Going to be a love swing set up for Instagram shots too.
Apparently the Byron Bay shire logo is getting an upgrade as well.
As for predictions…..I’m calling the top right now. Plateau for the next few months then prices ebbing by Christmas. I reckon there’ll still be headline sales above and beyond and that places still keep moving hard for a little bit but now is the time that people will look back on and say “ I should have sold in X”.
Just my opinion folks. Thrown out without much real conviction or consequence.
Spring property season will be the test, could still be a bit more juice in the market still to come, but Spring property volumes are usually the highest so the lead up to Xmas and how the market deals with a bit more volume will be a bit of a sign.
Dx3 wrote:Sorrento is too far gone Nick, the worst of Melbourne have taken over that place and won't be handing it back. It's all super wealthy popped collar private school folk down there now. I can't stand the place.
Looks like Portsea is cooked also.
https://www.realestate.com.au/news/46m-in-land-changes-hands-at-inviteon...
Yep once the chain stores get into a strip it is all over red rover. Sorrento has them just about all now and no local small boutiques just all the ones in Melbourne. Drinking holes are now in the industrial areas where no one cares and rents are still half reasonable. Portsea was always cooked however the shops have improved and the pub has the best Pizzas.
How the fark do you make a return on a $80M pub? Even $20 schooners of craft won't get you there.
That’s the beauty of a Ponzi scheme, Bonza.
You just sell enough craft beer to cover the loan for a few years till you sell it to someone else for more than you paid.
haha
you make a return on an 80m pub by selling it 5 years later for 150m.
see Beach Hotel Byron Bay for recent eg.
yep. sorry was having a logical thought process. it's important not to do that when discussing property.
the prices had me momentary baffled
Beach Hotel: Original pub bought and knocked down by Strop Cornell for 9 million in 1990.
Sold for 47.2 million in 2007.
Sold for 70 million in 2017.
Sold for 100 million in 2019.
We've got boutique 'op-shop' 2nd hand clothing stores and boutique fabric sellers now - ie, not Spotlight.
I miss uggies down the shops and trackies.
Blowin wrote:As for predictions…..I’m calling the top right now. Plateau for the next few months then prices ebbing by Christmas. I reckon there’ll still be headline sales above and beyond and that places still keep moving hard for a little bit but now is the time that people will look back on and say “ I should have sold in X”.
Just my opinion folks. Thrown out without much real conviction or consequence.
My mums house is currently worth about 1.1 million,(4 bedroom house with aunsuite and other bathroom renovated and done up everywhere she and i can with under the house bricked up and perfect for Lebanese traditions..(could pull a lot of yield if the wife/gf doesn't get on your back) use cob lighting for lower temps and electricity bills or quantum boards for even less heat and more efficiency..constant 22'C and low humidity like 45% same temps year round. but she needs cafes ,shops,theaters and movie cinemas, all those sorts of things.
I dont think she can move to anywhere besides those ridiculous houses near the farm and mystics.
Close to her nieces sisters and nieces and nephews i spose.
Her current place is great its just some nasty pretentious sticky beak neighbours cause shit from time to time. i guess she could settle for a two bedroom unit in Manly.She loves that place.
A good news story for once:
House next to a mate went up for sale a few weeks back, double-size block, developers dream. It was on the western side of my mate's house, lots of trees, beautiful creek running through it, so he was dreading what would get put there.
Meanwhile, fella I know through the kids school saw the house for sale, wrote a letter to the owner saying he has a young family, doesn't want to change anything, including the sixty-year old swing-set the current-owner built way back when. He's a first home buyer, currently rents a house on the same road.
Owner renounced the who-pays-more method and chose to sell to old mate based on his letter.
The story, as it got told to me, had one of the interested developers then offering to pay even more, remonstrating what it would cost him to knock down, carve up, build, and then sell off to find his upper price limit. That little charade only vindicated the owner's decision to go with the family for a lesser amount.
Drafting up letters as we speak ;p
Big win.
Indeed. I can think of two other similar cases.
One from over a decade a ago and a few suburbs south where developers were eyeing off a very large suburban block but a fella I know - and who occasionally posts here - told the owners they didn't want to knock it down and carve it up but instead build a produce garden. They came in under the asking but got the place anyway. He and his family acted on their promise and supply seasonal veges and greens to local shops, plus host various gardening DIY courses. They were even on one of the gardening shows - Better Homes and Gardens? - recently.
Another case is a local surfer renting - long-time renter, +-10 years at the same place - who found out the owner was retiring and approached him with an offer before going to market. And this was last year when everything was auctioning for record amounts.
No lessons to draw from these examples, except perhaps that not everyone prioritises the profit motive, so if you find yourself in a hopeful situation it's worth rolling the dice.
did you read the article?
says most households will cope with "normalisation" of interest rates.
I don't see a catalyst for a crash or even correction in that article, if that was what you were implying.
I bought a house with a lower bid, three or four years ago.
Two offers were higher than mine by around 20k but they were from interstate investors.
The agent had told the vendors I was looking for a home to live in and liked the location for the surfing.
I got the place because the vendors liked the idea of someone maintaining the local vibe.
Another friend in another area wrote a letter explaining why they liked the house they wanted to buy. They were a young couple, planning on having kids soon, were going to grow vegies and have animals, etc.
Vendor had two offers at the same price but took theirs because of the personal story.
Freeride - I was posting it in reference to your recent claim that interest rates weren’t going to rise for many years to come.
I don't trust any news reporting outlet regarding interest rate predictions. I've been seeing all kinds of weird stories over the last six years (since I have owned a house), here's a small selection from the ABC, in the four years pre-Covid-19:
Oct 2016: "Australia's big banks could be about to increase your mortgage repayments. The reason is something you may never have heard of - the net stable funding ratio."
https://www.abc.net.au/news/2016-10-31/mortgage-repayments-could-be-lift...
Mar 2017: "Investors warned to brace for up to 3pc in mortgage interest rate rises"
https://www.abc.net.au/news/2017-03-15/investors-to-be-hardest-hit-as-ba...
July 2017: "In the minutes from its July meeting a fortnight ago - when rates were left on hold at 1.5 per cent - the RBA signalled that the "neutral nominal cash rate" would need to rise to around 3.5 per cent to keep inflation in check and growth at reasonable levels. That implies a 2 percentage point increase in official interest rates from their current level, although there was no hint how long it might take to get there.
https://www.abc.net.au/news/2017-07-18/reserve-bank-meeting-minutes/8719438
July 2018: Big four banks face mounting pressure to lift interest rates
https://www.abc.net.au/news/2018-06-27/big-four-banks-mounting-pressure-...
Jan 2019: Home loan borrowers should brace for new year pain as BoQ raises interest rates. "It remains to be seen whether this is a one-off event, or whether this triggers other lenders to follow suit. In our experience, the latter is more likely," observed Graham Cooke, Finder's insights manager.
https://www.abc.net.au/news/2019-01-09/mortgage-borrowers-should-brace-f...
I bought my first block of land in 1988 at a land auction, Northhampton Shire WA. Conditions of sale were owners were required to build to top plate height within the first 12 months.....Naturally, most land owners built to completion...
Fixed mortgage interest rates.....17.5%.......
Hey Ben, maybe it's when the news media begins to print articles that say interest rates are going to stay the same, that you should begin to be concerned...
This would have been incredible for someone willing to live simply and make their own luck through a bit of hard yacka. Epic entry level opportunity. Under offer now…..but they’re still out there. Grow your own food and ride to the beach.
https://www.realestate.com.au/property-house-wa-denmark-136635226
A transportable for 400K and in a little out of the way town. Can't be serious?
$400K for a habitable residence on 4150 square metres of flat land with potential rezoning. Walking distance to the surf in a town eminently more liveable than Manly.
So , yeah. I’m serious. You know what Ocean Beach is “out of the way” from? A shithole city with its putrescence of humanity.
Let me see here - Magestic forests, clean ocean, abundant wildlife, powerful surf and friendly close knit community vs aspirational yuppies and their rat eat rat lifestyle in waves which are crowded, polluted dung 99.99 percent of the time…..such a hard decision. Particularly as one is affordable and the other comes with a price tag of thirty years of sleepless nights worrying about money.
Denmark is epic.
Better being the “Savvy investor” snapping up a one bedroom unit at shitstain Queenscliff for a bargain $1.5 million and getting to listen to your neighbours watch MasterChef through the common wall.
Yewwwww!
Not disputing any of that Blowin, but saying IMO it's overpriced for basically land in Denmark. Absolute beautiful zone but you'd want to have family a missed already and a possibly work remote job to love down there.
For 420K down there I'd expect a nice 3 bedder house no, not a transportable?
The beauty of your thinking Craig - that regions have no work, no women and no opportunities- is that it’s the reason the regions are as uncrowded as they are. That Christ for that false impression!
You’d have said the same thing about buying at Lennox a few years ago.
And also tell us how ya really feel.
Where I live is one of the most unique and beautiful places to live and surf in. A harbour one side, one of NSW's best surf beaches on the other, you can go either side of it to escape the wind, surrounded by bush on nearly all sides, North Head is an absolute playground and there are spots there I go to where you've got 90m cliffs and can't see civilisation. Slabs, reefs, clear, clean water and a good community.
Also it's a great launching pad to the north and south as well as the Bluey's. Sure I'll never buy here but I'd rather rent than spend 420K on something like that down in Denmark.
If it were up more your way it becomes more attractive but then, that's a lot for land still.
You ever been to Denmark, Craig?
I’ve been to Manly. You can save your sales pitch. No mention of the 5,000,000 punters vying for every inch of the assets you described though mate.
PS - One of NSW best surfing beaches….lol. How many surfers go on a road trip to Manly vs the Manly crew getting the fck out and heading elsewhere?
Look, it’s fine that you live there. It’s fine that a quarter of NSW’s surfers live there. I appreciate the service you are providing to the rest of the state with your concentration in one area.
Anyone else here think that joint is overpriced for 420k? Or am I that delusional that it should be going for 250-300K or so?
Nah.
Craig - you realise that block is the equivalent size of 4 blocks worth $250K each ? You’re a smart bloke, you do the maths.
Plus it’s got a habitable abode so you can start living straight away if you need a house or live in whilst you build something else on the huge block.
Craig wrote:Anyone else here think that joint is overpriced for 420k? Or am I that delusional that it should be going for 250-300K or so?
Its on the high side if there is no subdivision potential. If you could subdivide, make $250K and use that to flash up the main house and have some cash up your sleeve in case of a lack of work it seems ok. Denmark is a cracking part of the world and as more people seek these locations out for holiday shacks, prices continue to rise.
Personally I would be wary of buying any property at the moment unless you have a long time frame your going to live there. Prices (at least in my area) are bug shit crazy and it feels even more unstable / bubble-like than 2008.
That said, no one picked this 'boom' so i think the market is harder to pick than a broken nose.
Everything that goes up inevitably comes down tho
If that was on the M P it would be 2 million+
Cheap as chips bro
Ps. Bit harsh on Craigos blowin
Thats gd value for the land size with a Dwelling
This is on 435 sq
https://www.realestate.com.au/sold/property-house-wa-denmark-128963402
It all seems ridiculous.
420k for that place near Denmark seems steep.
850k for 600m2 in Lennox seems fucking insane, 1.15 million for a (nice) place on 400m2 almost as crazy.
But I've still got prices in my head from pre-2000.
You can get a pretty nice place on the beach in North Queensland for for around 300k, but of course, people like us might have reservations about living up there.
Goofy….I’m only ever taking the piss. I’ve got a soft spot for slagging off Manly same as I do Victoria. It’s just a giggle, not unlike taking the piss out of NZ.
I don’t know Craig but I’ve got full respect for his professional work, his adventurous spirit and his even temperament and objective insights on these forums. Don’t read too much into the other stuff.
House prices - going to go up , down or sideways ?
Opinions and anecdotal stories if you could.
Cheers