Hey Guys, this thread started by D on June 5, 2006.
Anyone want to summarize?
1. Early indication of problems in RE in June, 2006
2. First major signs of instability in December??? 2007
3. Today indications of RE loosing value (only small %), September 2008

Seem like as time passes it just becomes worse. Given trend we have and based on past experience it seem like next 12 months situation to cause further reduction of RE value. I some how do not think we "have reached permanently flat plateau"

I am 31, fiance 28
Good job, just paid out all loans and can afford comfortable living.
Want to work and not retire, life is the game to me which I greatly enjoy. Enjoyment is my goal.

I wonder if we already hit the 'flat" or still have a way to go till we hit the bottom…
Any thouths?

1. The man I know just sold his boat for under 1Mil and purchaser asked him to indicate higher value so he can get 100% finance on pleasure cruiser…….
2. Few of my friends have refinanced there's PPOR do draw the equity to……..purchase car…….go on holiday
3. We just purchase industrial land, part of larger block of land with factory on it. Owner only got about 20% of money as the rest went to bank. Company been in Business for 15 years.
4. The best one – is year old Aston Martin valued about $500K been auctioned by finance company. Get an idea of a caliber of people going down ?

There is a fine line between been excited about someone else trouble and actually seen an opportunity, didn't some one say : Buy when there is blood in the streets. Some got heart by rising prices and been unable to purchase PROP, other will get heart on the downturn. There is always some one in trouble. You just have to try to stay on the side which is making money at the time, not loosing.

I spoken to few people who are retired now or semi-retired. Some have few $$$ others not as much. But all made one interesting comment " you actually need less money what you think(when retired), you eat/drink/travel/party less and already have everything paid out"
Makes you think….

Trying to get as many people as possible to comment / add staff to the list to get as close picture of the current state of the economy as possible.
The truth is born in discussions.

The reason I use this thread is my believe that we live on the edge of the BIG BANG as the current state of the economy is unsustainable. If we to figure out when and how it will erupt – money to be made by those who understand it.

Hello hleung

2. This is based on my search for new PPOR. I noted that in the last 8-12 weeks many properties worth about $700K have not been sold, instead price where reduced on some. Areas I looked in: Manly / Wynnum, Stafford / Alderley

4. Based on report : http://www.news.com.au/business/story/0,23636,22918048-462,00.html
according to the source, unemployment is rising now for two months in the row.

OK, bright part of Aussies  have elected the Labor party to rule the country. I hear that they are known for weak economy control.
Next 12 months should indicate where are we heading. Any thoughts anyone?

Hey D, i see the logic behind it.

Interesting reading by Westpac : http://www.news.com.au/business/story/0,23636,22756808-462,00.html
In short, Interest is 25 point up with warning of another 25 point coming, BUT consumer spendings did not suffer much, and those who in rent are actually started spending more.
So  people still have enough fat to take the beating. I wonder at what cash rate the middle class will start to suffer, 10-12%?