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!
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.
nebbian said... 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.
WA is sitting in a bubble. I find it facinating linking in with people from our other offices around the world and talking about market conditions etc etc.
If China goes down, Australia will go too.
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!
petermac33 said... 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 we can expect a 50% drop in petrol prices too? And groceries? And electricity?
Petrol price bubble.
________________
I mean you can't argue that these prices are unsustainable when they have been for years now, almost ten. There is no bubble, there are expensive houses and food and cars and pretty much everything in Australia. It's equally valid to say there is a wages anti-bubble, and an overdue wage breakout.
<doom>
There's a good chance that it will get even worse over the coming decade(s). Yes, it can get even worse. Hong Kong has had far more unaffordable housing than us for decades, and it's still getting worse. It is not impossible just because you don't like the idea (and nobody does like the idea).
Personally I think we're in for a long, slow, drawn-out, torturous breakdown from the bottom up. The line that delineates the hopeless from the well off will get higher and higher. Our economy is being slowly but gradually undermined.
Single income families have given way to dual income families are giving way to short term jobs/contracts are giving way to being outsourced.
</doom>
petermac33 said... 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 we can expect a 50% drop in petrol prices too? And groceries? And electricity?
Petrol price bubble.
An Iranian war would see that go the other way............... how close is that to happening????
The supply China.... if China can't get oil from there, they will get it from our suppliers............ ^ prices.......ballz up.
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
SandS said... If you want a cheap house or even say a large guest house , go to Ireland !
Yeah I saw a show on the ABC about this. They sold this big seaside hotel in Ireland for the equivalent of about $400K or something like that. It seemed unbelievably cheap and not in bad condition either.
The beach looked pretty good there so it probably wouldn't be a bad place to live.
I'm thinking about selling out here in Australia, taking the cash over to America and retiring. Buy a house for a couple of grand and then relax.
Anyway I don't think we need to take advice from visiting American property experts. They buggered up their own housing market through government propping up unstainable loans to low income earners. Think Fannie Mac and Freddy May or what ever those companies are called.
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.
wodgina6722 said... I've been expecting the fall in house prices but it just hasn't happened.
Had a look down Mandurah and surrounds, few weeks back
Its dropped at least 40% down there. Couple of prime houses at Ravenswood on big blocks less the $400k
wodgina6722 said... I've been expecting the fall in house prices but it just hasn't happened.
Had a look down Mandurah and surrounds, few weeks back
Its dropped at least 40% down there. Couple of prime houses at Ravenswood on big blocks less the $400k
petermac33 said... 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!
Yea great 30k for a house in the USA but why would ya wanna live there
Cheap houses for sale in the wheatbelt places like cadoux and Mucka but again why would ya wanna live there?
Rockingham was just a classic case of real estate agents selling a turd as a gemstone.
Anything is only worth what someone is prepared to pay.
Don't recon we will see a massive price drop in general, just in isolated areas such as Rockingham that were overpriced to begin with.
W
Portugese is a pretty hard language to learn isn't it? However retiring to a place where they speak a foreign language probably isn't a bad thing to do. It would keep your mind active, learning the language, thus helping delay aging. However being so far away from family and friends would make it pretty tough. The Internet makes living in places like this not such an ordeal though.
If living there is so cheap it probably would be better to rent out your house here and just live off the rental income, rather than selling out.
Right now with a few properties and one day being debt free it would be sweet to live somewhere where it costs $500 a month to live and be collecting about $2500 a month net rental income, plus super and all that.
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.
errr, right!
Single income families have given way to dual income families are giving way to short term jobs/contracts are giving way to being outsourced.
</doom>
Cheap houses for sale in the wheatbelt places like cadoux and Mucka but again why would ya wanna live there?
Rockingham was just a classic case of real estate agents selling a turd as a gemstone.
Anything is only worth what someone is prepared to pay.
Don't recon we will see a massive price drop in general, just in isolated areas such as Rockingham that were overpriced to begin with.
W
