The last sentence hit the topic on Ty head!
"Who's right, who's wrong.... Who knows."
I have been hearing the same thing since 2006.
On another vid,Asian woman bought hi-rise apartment,think in Gold Coast few years back for $1.4m,now valued at $800k.
No one has any money with petrol and utility price rises especially.
Reckon 50 percent drop is just the start.
Can buy a respectable wooden house in certain parts of U.S now for $30K!
So, house prices are going down by 50%, and we'll all be OK, it will be a buyers market. Just wait. This logic is amusing. If this happens, employment will fall through the floor, the lenders (banks) will be up poop creek, many with mortgages will be bankrupted... But don't worry, if you are a first home buyer, have a job(s), what's left of the lending market will be more than happy to lend to you
errr, right!
You reckon that local Gov will let it happen, I doubt it..... most of their income like rates etc are based on % of house valuations.
Another gem from the cut and paste philosopher
Keep that tin foil hat on tight mate.
Won't happen.
Decreased prices = decreased tax revenue from stamp duty and capital gains........ banks asset books would look terrible.......
At the end of the day, banks will be backed up and protected, and government will increase imigration and do anything to keep demand high.... get ready for more relaxation of foriegn investment rules......
Can't wait till they start rebranding chinese investment into residentual housing as a saviour processes....... and not a deal with the devil....
Australia.... amazes me the psychosis that exists in this country..... people still believe high property prices benefit them...... but don't realize its tidal.........
The Emperior has no clothes...........
Just like when people thought that the property boom would never end, now I'm amazed that people think we will be in bust times for ever.
Some smarter aussies are now trying to buy american property because it's at rock bottom prices. If I had any spare cash I'd be doing the same thing.
We're at the bottom of the cycle now, as far as I can tell.
Pundits have been saying this for years. One day it will happen. Maybe its already happening. Prices have dropped heaps in certain places, ie coastal areas of NSW and Queensland where its a nice place to live but there is no work.
Why pay $400K for a house when the average income in the area is about $15K a year? Its a bad sign when you walk down the main street of a town and most of the businesses there are employment and real estate agents.
Supply vs Demand = not going to happen.
In regard to local property - although homes aren't selling like hotcakes (but many are still moving at good prices), my business (building design) is going great-guns due to home owners that would previously sell to upgrade their homes are now deciding to sit & wait it out and spending their dollars on renovations & additions.
Granted the expensive homes that had previously elevated prices due to views & location have taken a plummeting & will possibly drop further, but the average home will hold its value, or at least not drop to 50% IMO.
Then again...I'm no economist!
In the Age this morning, house in Hawthorn (vic) sold on the weekend to an overseas rich BASTARD ( yell like Rick out of youngones) for 13,200.000@ last time sold in 2002 for 3.200,000 ,tidy profit , house prices have been dropping for some time now? Maybe in the outer suburbs
I'll put the title in the same category as "one day, cancer will be eradicated", "the 3-day work week", "retirement 55" and so on.
Fact is, the burst has been expected in Australia by some since the mid-90s, and it never happened, and likely won't. Hasn't even slowed much.
www.abc.net.au/news/2012-04-20/new-home-buyers-boost-market/3963034?section=wa
Perth property market is moving... up... apparently.
I have seen sluggishness and up to 30% deductions (from 2008) on western, or inner northern suburbs dwellings... he he he dwellings... reminds me of The Castle!
I'm looking for a house at the moment in melbourne (inner west)
My observations over the past 6mths:
- Real estate agents form 2 years ago are cold calling me asking if Im still looking
- Real estate agents actually calling you back (in the boom they didnt give a p0o)
- Way less people at open's (compared to the last 4 yrs)
- Not many baby boomers looking for investment properties
- The expected selling range is the range the property would sell for (not another 100k and in many cases the lower end)
- There are townhouses everywhere that are discounting up to $100k
- Many townhouse developments only going ahead once they have have sold at least one. Before people were queuing up to buy them.
- Many properties (10+ I have seen) have been withdrawn from the market over the last year.
- For Lease signs are staying up a lot longer. Before they never even had to put them up.
Im not sure if they would drop 50% (we are screwed if they do) but I have seen in my neighbourhood a softening of about 5 -10%. Many of my work mates that bought at the top of the cycle are in negative equity. They are bummed.
Can see in the next few years,many living in their cars/campervans etc.Vacant properties everywhere,squatters paradise perhaps.
Why continue paying off the mortgage, say on a 600k property,when it's only worth around half that?
You pay all the interest plus the principle,totalling say 900k on a 600k property,then you can only sell it for 300k. I would just walk away and go bankrupt i think.
What you mean't to say busterwa.....i know i should respect your opinion but i find that difficult as i want to continue being a serf to the international bankers.
