Forum Replies Created
- crashy wrote:
I agree mostly.
I would also add that rents are still rising and rates are falling so fast that many people will decide to stop renting & buy.
but I think a recovery by Jan is way too soon. the share market is still hitting new lows every day (despite many forum members declaring it was time to buy months ago) and until this stops investors will be forced to sell assets at any price to meet margin calls. in the U.S & U.K house prices have not even started to bottom, and we lag those markets.
Im looking for an Apr/May bottom, with prices falling 5% between now & then at the bottom end, and 20-30% at the top end. but with clever negotiating you should be able to buy 10% under market right now, meaning you are still 5% ahead when the bottom hits.
have to agree
Kuade wrote:hbbehrendorff your points and sentiment is exactly the same as the rest of the "Doom and Gloomers" as you put them. Your points aren't relevant. The media has clearly had an impact.Firstly. Australia's property market is not in the USA. The US issue was a bomb waiting to go off. 1. a massive oversupply of houses and subsequent over inflated prices, 2. people with no jobs or assets being leant large sums of money for houses that they could never hope to pay back. 3. very low introductory interest rates that spiked after several years which was when the mess started to unravel.
Secondly, there is a shortage of new property being built in Australia. There was a gap of 40,000 properties built in the last year compared to what was required to account for the growth in population. The gap has and will continue to get bigger, as property development declined due to high interest rates and costs. Even if developers begin to build now, we won't see any impact for at least 12 months as it takes that long to build.
LA Aussie makes some good points. Its those people who bought McMansions with their booming Aussie economy pay, that will feel the largest impact. Those who invest in affordable property close to infrastructure, transport and work hubs will weather the storm the best. At the end of the day, people have to live somewhere. They might not own or be repaying their home loan, but they'll be renting and paying for someone elses. Given we already have historically low vacancy rates, it's only going to drive rents higher and bring the investors back to property as the returns improve and keep property prices from plumetting.
EXACTLY.
The US is just about giving money away and thats not having much of an impact. Imagine if our lending rates reached bellow 5%?
