I believe property in Melbourne is overpriced at present, is it...

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    I believe property in Melbourne is overpriced at present, is it
    a bubble that will explode, or will it stabilize for a few years and
    let inflation work off some of the air, either way I would not be
    advising anyone to buy at present because I cant see much value

    It is only cheaper to buy than rent because of the lowest interest rates in
    most peoples living memory, that house you were looking at has probably
    increased in price circa 100k in the last 5 years or so, say from 250 t0 360k
    the gross yield has probably dropped from around 6-7% to the current
    5% in that timeframe, is it the house that is cheap or the interest rates
    that are low?

    I bought a house 14 months ago for 750k as ppor that was previously rented for over
    800PW, (that property has now increased to easy over 900k, the last 12 months in
    our area has just gone crazy) I think the outer east-south east suburbs maybe in
    a blow off top at present IMO but will wait and see.

    I am not saying dont buy the property, after all you have not linked the listing. if
    its on a block bigger than 600sqm or future dual occ site it could be value...but

    I am sitting on lots of cash at present because everything looks dear to me, maybe
    I just need new glasses......nice rose colored ones

    Though I have seem some beachside WA properties that are looking like they
    could be good value proposition now/soonish


    cheers grant
 
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