C2 : Before 2000 property wasn't overpriced. 16% ? wow.. but you bought at 3 times wages , so you can't compare with today. The problem is that wage to property price is out of sync. This is the first time ever that it happened, and it will be the first time even that it crashes ( see US / UK / Ireland / Spain / New Zealand / France / Australia…[Read more]

C2 wrote:
SCAMP,I think you need to use another example rather than Japan and can you validate the source of your figures as they appear to be highly over exaggerated.   If you can quote the source I can notify them and get them to correct their information.Remember : In Japan house prices have been DROPPING 70% total value over 10 years. T…[Read more]

CHIS wrote:
Scamp, you sure are a panic merchant. What's it like living in fear? Man up

I don't live in fear. I have made cash on the housing bubble myself. Luckily I didn't invest in shares because I saw that bubble miles away too. The ones who live in fear are the ones with mortgages and / or big debts.I could retire if I wanted to ( that was…[Read more]

Ummester : The reason the RBA dropped by 100 basis points is that they don't want the resetting mortgages to cause a rally of foreclosures like in the USA. ( you remember , I told everyone on here a few months ago that from September 2008 until July 2009 mortgages would reset from their low interest rates of 6% to the 9% interest rates ). The sad…[Read more]

Oh sorry… Is this forum only for people who think houseprices go up ?

Get your champagne bottles out guys ! Apparently we should be buying property again !Soon your tenant will pay your interest repayments ( erh.. that's 50.000 ) from his 40.000 dollar wage.oh.. wait… that's what happened in America. Oh no.. maybe leave your champagne bottles out for a year more and then see again before we all start cheering.…[Read more]

CHIS wrote:
Australia has mass immigration. All our capital cities have urban sprawl. WA is being bulldozed for housing. House prices will not plummet because their isn't enough of them. It isn't America. Interest rates came down 1% today. The sooner you get into property the sooner your life gets going. The sheep are scared. The Lions are…[Read more]

foundation wrote:

gibbo1 wrote:
You state that prices are falling, the house in question is located in Perth. Perth has some suburbs that are falling, some that have fallen but have started to turn around, some that are pretty flat and others that have continued to increase (although at a decreased rate) during this whole cycle.  I think its i…[Read more]

Macnatt wrote:
I disagree with Scamp about massive job losses in the mining industry. The mining boom is underpinned by the asian markets which have esacped the financial meltdowns of  the US and Europe virtually unscathed.

You clearly do not know how the Asian market works. Asian markets do not come out of this unscathed. In fact , yesterday…[Read more]

Stu macca, read some of my other posts, especially the one about RBA having dropped the interest rates by 1% and the real reason to do this ( mortgage resets ). AUD has fallen 30% already over the past few months. It will drop more because of the interest rate drop. This is 30% less profit for mining. Also , commodity prices have crashed about the…[Read more]

devo76 wrote:
Just remember oil was going to be $2.00 bucks a litre  now. OOPS its droped.Interest rates will not drop. They will go up.   OOOPS there droppingEverytime the gloomers predict something it changes and they have a excuse for the change. Boringthey will get it right eventually and i believe they will with lower house values but50% dr…[Read more]

Macnath : It is you that need medication for your nerves, not me.

Oh yes, and people won't be paying rents either. Property investors are in for double trouble.How much tax returns will you get when you don't have work ?oooh that's right, 0. A triple whammy.

gibbo1 wrote:

Scamp wrote:
Please let us know what you sold your house for ( if you can even sell it in this climate ). My guess : You will put it on the market for 570 now..  In 4 months you will drop to 550, in 9 months you will be without a job and you will put the house on the market for 450, and in 15 months you will be bankrupt and the…[Read more]

alani wrote:
gold has also traditionally been a hedge bet when inflation has been high. when the credit crisis is over and oil goes back to $150 a barrel, the price of gold will probably go through the roof.

Yes. Gold is a good investment. Banks are too, but not yet.

Please let us know what you sold your house for ( if you can even sell it in this climate ). My guess : You will put it on the market for 570 now..  In 4 months you will drop to 550, in 9 months you will be without a job and you will put the house on the market for 450, and in 15 months you will be bankrupt and the house is sold on Auction for…[Read more]

Stay out of the property market at all costs. Getting in now will ruin you for life. End of story.

Sell if you still can. Put it up for sale for 450.000 ( you say you think you can sell it at 560.000 which is clearly not true market value ).  Take the loss and see this as an expensive lesson. You were suckered into a property bubble that will keep declining for years to come. In the meantime you are losing capital on this house while getting…[Read more]

yes I can give my opinion. You will be in much financial pain very soon. Sorry to bring this bad news, can't make it any better than it is. You got suckered in, you will probably be ruined. Good luck with repaying your debts the rest of your life.

The explanation : You buy a house during a housing bubble, don't do anything to it, don't even put tenants in it. Wait 6 months, sell for 50.000 more. That's how it works, there's nothing more to it. If you want to make yourself believe you had anything to do with it you could paint it white or whatever, reorganize the garden but that's all just…[Read more]