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Thanks again Richard and Terry.
You have solved all my (current) problems.
Thanks for the advice.
I thought there were limits on 'gifting' money for tax purposes ($10,000 springs to mind for some reason). Can I loan an unlimited amount to my brother and do I have to charge interest (even at a token rate) to prove to the taxman it is a loan?
What ever the terms of a 'loan' if i can make it happen it would solve my problem.
Thanks again to those of knowledge that continually assist the bewildered and bemusedProperty markets, like the sharemarket, can often be driven by fear / greed as much as economic fundamentals.
Never underestimate the power of panic.
Although there is the argument that a drop in values makes property more appealing to investors who move in to stabilize prices, panic selling accelerates a decline making investors and first home owners alike adopt a wait and see approach.
This in effect lowers the safety net in the price mechansim.
It is likely a steady stream of negative economic news will see plenty sitting on the fence for a while yet.The Yanks are going to take a big hit, anyone who thinks this is the bottom for them is in for bad news. We all get affected by that in some way. We will be far from the worst hit in terms of the general economy, but the property market will be particularly interesting to watch as the numbers have seemed unsustainable for a while.
Each of us will put our money where our mouth is. Buy, sell, wait – its up to you
But remember that with many of us sitting back and waiting – demand goes down, and prices with it
Northern cities like Leeds and Manchester were the focal points of the 'buy-to-let' bubble as property investment is known as over here. These cities have the worst of it now as they were the scene of hundreds of new developments with people buying off-plan. The CBD has a massive over supply with not a tennent in sight and people were losing plenty on these deals when the market in general was still rising.
Many of these are deemed unsellable now and I wouldnt be surprised if a few desperate souls are being taken to the cleaners.
There will be a few cash-rich lads up north licking their lips right now and picking off the weak one by one.
These will give the spectacular headlines, the real story is not so dramatic but still pretty grim. It will be a couple of years i think before this market turns aroundThanks for the advice Matt.
Unless the Aussie market takes a massive nosedive it looks like I will have to rent my PPOR and chase down a few of the bargains you mentioned as investments
I am selling my PPOR in the UK at the moment to head on home. Like Australia there are many different aspects to the UK market – one example is the extremely high range London market artificially propped up by a flood of wealthy Russians.
In my area prices have dropped around 15% in the last 9 months and will continue heading south.
Fuel costs are driving inflation but the Bank of England is reluctant to raise rates due to concerns over the housing market and the threat of a recession. This dilema is lkely to be repeated in countries around the world but I feel inflation will win and rates will rise.
The UK's obsession with credit dwarfs that of Australia. When I arranged my mortgage there were over 14,000 deals on the market. Everyone provides financial products over here. You can get a mobile phone, travel insurance and a mortgage from the same people you buy your groceries from.This will heighten the effect of the crash as massive debt levels (both secured and unsecured) are commonplace.
The resources boom in Australia for me is the main factor that separates us from other countries but I dont know how that will play out.
Bottom line is that I need to sell but I will sell fast. I am happy to take it on the chin and come on home.
Won't do me any harm if the Oz market tanks. Actually, I'm counting on it.
