Property Busts

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cpmj28672
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@cpmj28672
Join Date: 2003
Post Count: 5
January 15, 2004 - 3:09 am
I keep hearing and reading about property doom prophets and all theories about a bust that is on the horizon.
Can anyone enlighten me about historical property busts. I know Sydney had a downturn in 1989-90 where across the board a drop in housing prices of around 13% occurred but this was on the back of a 40%+ rise the year before.
Over the past 25 years this has been the greatest “correction” so why does the current climate fear such a drastic downward turn in prices?
ian_from_brisbane
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January 15, 2004 - 3:59 am
I know Sydney had a downturn in 1989-90 where across the board a drop in housing prices of around 13% occurred but this was on the back of a 40%+ rise the year before.
I think it was also the result of high interest rates.
gmh454
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January 15, 2004 - 4:28 am
Originally posted by cpmj28672:
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Can anyone enlighten me about historical property busts. I know Sydney had a downturn in 1989-90 where across the board a drop in housing prices of around 13% occurred but this was on the back of a 40%+ rise the year before.
Over the past 25 years this has been the greatest “correction” so why does the current climate fear such a drastic downward turn in prices?
Personally back in the Gold Coast boom of the early eighties I had clients buy units OTP at $160,000 expecting to flip a profit who could not sell them for more than $80,000. (Real storey guy was exec TNT )
Back in the early 1990’s Carla Zampatti paid around 3.8M for a property and sold for around 2.6M. Can’t remember exact figure but was a loss of 1.1M on a buy of less than 4M. Heard pleanty of other drops of 25%.
Your figure may be overall, but individually some ppl got slaughtered.
Now was that Boom bigger than the current ????
wealth4life.com
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@wealth4life.com
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January 15, 2004 - 8:49 am
1965 – Credit squeeze
1972 – High unemployment
1981 – Mini correction
1990 – Gulf War – 18% interest rates – Pilot strike – the recession we had to have ( Keating) – building industry crash.
1990 – 1994 dead market
1994 – 1998 prices doubled
1998 – 2000 quiet market prediction of gloom
2000 – 2003 lower interest rates houses boomed again
2004 – my prediction is well located property (investments) can’t go broke.
Regards Philip