Renters vs Owner-Occupiers

Avg price to buy in Teneriffe is about $1m, with avg in Newstead about $1.1m - but that includes units - i know the house over the road is on the market for $2.5m & the house next door is about $2.5m as well - both are owners - most renters in New Farm, Teneriffe/Newstead are units

$1.5 is starting price.... Most homes are owner occupied but there are quite a few that are rented. I would suggest maybe 10 houses in the whole Cutters Landing are rental.There is definately a market for prestige homes in the rental market.

I wonder if prices will come down because of the current economic problems - does anyone have recent prices in the area?

One has just sold for $1.45M. That is the cheapest you will see one now. They are actually really good value for money at that level. You know the prestige market is back when these houses start selling in volume. I have previously owned one in Refinery Parade and I sold it a year after for a tidy $150K profit. A shame I didnt hang on until 2007 where these were selling for $1.8M or more than double there original price point. The prices need to build again for any real volume of homes to come back on. Most of the resident owners are cashed up and not in need of losing money. Knowing a few of them, they wont come back into the market until they can get $1.7M+. If you can buy one on a long settlement for less than that it would be a good deal.

I know its still such an affordable and great place to live!

I love the suburb personally and it is actually affordable to purchase I house or apartment you just need to be in the right place at the right time. I have seen over the past 12 months houses in new farm go for as cheap as 700-800K which is still very reasonable when you consider the location and ROI.