By Selva Freigedo – Port Phillip Insider (Australia) –
Last weekend, I (Selva Freigedo) made a big mistake.
During a barbeque at a friend’s house, I brought up the Australian property market. Friendly chatter turned into a heated argument, and the party soon divided in two: the ‘bubble’ side and the ‘no-bubble’ side.
A word of advice: There is nothing like bringing up the property market to ruin a party — and ruin the taste of the sausages on the grill.
Needless to say, the ones on my team — team ‘bubble’ — were fewer in number. Many at the party were either already on the property market ladder and looking to profit, or keen to get on it.
The fact is, the property market is hot, and emotions are running high.
As reported by realestate.com.au:
‘The owners of a three-bedroom penthouse in Castle Hill shed happy tears after making more than $1m profit on their property in just six years.
‘According to CoreLogic RP Data, the couple paid $730,000 for the property in August 2010. The sale price means they made more than $150,000 profit every year of ownership.’
With a 20% profit per year for just holding on to the property, anyone would be crying tears of joy. Especially with interest rates at a low 1.5%!