So there is a lot of talk that property prices are falling. Some people estimating 5% in next 12 months, other reports showing 10%.. some people even mentioning up to 30% in 2 years.
But are these sweeping statements?
Most of the crisis in Sydney is in the Western Suburbs. What about places like the inner city, eastern suburbs or lower north shore… if these places are constantly in high demand, are prices in these areas likely to fall too or will the rich keep buying and maintain the value of these areas?
These seem like sweeping statements. The market is made up of thousands of different areas – some may go up, some may go down. you just need to pick a few areas and do some research and come to your own conclusions before buying.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Depends on so many things, like:
What happens to interest rates.
What happens to unemployment.
How much of the market's value is leveraged.
How much is brought the next 2 years.
How much land is released.
How financially secure the majority of vendors are.
What happens with the credit crisis in the US.
What happens to other housing markets.The RBA is always trying to get a beat on these things to work out what to set it's interest rates at but some figures (like what value percentage market is leveraged) are not that easy to report on accurately.
Contrary to most opinions here, mine is that in uncertain times it is most prudent to wait.
Terry Ryder in his recent national report mentioned that he is in buying mode.
Bardon (nice avatar BTW, make it yourself?) to play the devil's (or capitalist's:)) advocate (as I usually do) Terry Ryder could be trying to promote interest in the market to help secure the value of his own investments. Then again, the guy has got it in for REAs, so he can't be all bad…
PS – Reading some of his stuff, he seems to give good advice. Especially about future water concerns. Probably is a good investors market in some areas now – I know of one investor working in Queensland that is already buying @ 30% below last years price (and before you ask, I am only a friend to his brother and can't ask him exactly where he is buying).
Got the avatar from a website I like the ying and yang concept it applies to many things including the proeprty cycle. Yes Terry could have a VI and be talking the market up for his own benefit. I dont know the guy but I do think he is a balanced reporter.
Good on the buyer for getting the 30% discounts he deserves them and will no doubt do well buying at that rate.
You must be logged in to reply to this topic. If you don't have an account, you can register here.
