House prices to keep falling for years

[robots]

hello,

yes nunthewiser, another classic was the workers cottages in Port Melbourne and South Melbourne

yes get down to Centrelink and see what you can get if in difficulty, everyone who pays taxes are entitled to get down there and get assistance if possible

the best thing people can do is sit tight, pay down everything, spend on basics only, hang in there

tell the kids you love them and working on this as a family

before you know it you out of the woods man, every year gets quicker and quicker and the affects of those procedures will be telling

any questions fire away

thankyou
robots

 

[aleckara]

Not indicative of where I am in my life just saying.

And no, I would never buy in western Sydney at any price probably.


Not always. You own a home and you wont get any benefits.

I'm sorry. You are complaining of not getting benefits and yet you are above Western Sydney?

Btw even in Western Sydney there is some very nice properties - in fact some of them I would prefer than the city life simply for the enjoyment if not the convenience. Western Sydney is so vast and so spread out that there is a variety of properties just like everywhere else and there is a lot of people that don't want to live near the city and prefer wide open spaces. I know a few western sydneysiders that hate places such as the Inner West and the cramped houses. If you don't work in the city then it can be a much better area. It's all about location and tastes.

Here is an example.

http://www.realestate.com.au/cgi-bi...er=&cc=&c=6183654&s=nsw&snf=rbs&tm=1225704548

You sound young (possibly a city uni student) and quite used to a certain living standard probably close to the city. Even my parents had to suffer and sacrifice to save for their first house. Everyone does; and as other posts have alluded to you need to climb the ladder to build up your equity.

I also hope house prices can go down - they are overvalued in my opinion and it would be good for me since I am looking for a first house as well. But I'm not above any area if it is the only one i can afford.

 

[nunthewiser]

hello,

yes nunthewiser, another classic was the workers cottages in Port Melbourne and South Melbourne

yes get down to Centrelink and see what you can get if in difficulty, everyone who pays taxes are entitled to get down there and get assistance if possible

the best thing people can do is sit tight, pay down everything, spend on basics only, hang in there

tell the kids you love them and working on this as a family

before you know it you out of the woods man, every year gets quicker and quicker and the affects of those procedures will be telling

any questions fire away

thankyou
robots

LOL im a long way from needing to claim cednterlink payments m8 but will keep in mind for a rainy day .........

 

[robots]

hello,

sorry, i missed typing in Reealjrd at the start of the second sentence

please accept my deepest apology regarding this matter and may the sun shine bright for you tomorrow

thankyou
robots

 

[nunthewiser]

hello,

sorry, i missed typing in Reealjrd at the start of the second sentence

please accept my deepest apology regarding this matter and may the sun shine bright for you tomorrow

thankyou
robots

hahahahahah apology accepted and may your cockles be warmed on a daily basis

 

[Glen48]

Well its started house prices in Brisbane have fallen by 3.3% the biggest since records were started Sydney and Melbourne not far behind. They will now continue to go down for the next 2-3 years To those who sold and made a profit congrats. to those stuck with a new Liability sorry.

So much for de coupling from USa the good thing is once USa turns we will know when to buy back in.
MY new Land lord is now down 12 K in two months.

 

[robots]

Well its started house prices in Brisbane have fallen by 3.3% the biggest since records were started Sydney and Melbourne not far behind. They will now continue to go down for the next 2-3 years To those who sold and made a profit congrats. to those stuck with a new Liability sorry.

So much for de coupling from USa the good thing is once USa turns we will know when to buy back in.
MY new Land lord is now down 12 K in two months.

hello,

RE: Robots post #1561

please forward to your landlord, if doing it tough he/she should get down to centrelink and see what they can sort out,

maybe a concession card or mortgage assistance package a bit like what they do with farmers,

we all here to help

thankyou
robots

 

[gfresh]

LOL i remember a time when STkilda , yarraville (melbourne), redfern ( sydney ) bayswater (perth ) and various other now in "vogue" suburbs could be bought for a dime a dozen because of the socio economic views of the areas ( junkies , crime etc etc ) funny how times change

Woodridge is probably a good example for Brisbane - ztune guy made a good amount of money investing there, but god, tell anybody you were planning on living there and you'd be put in the dark corner by any friends or family. It's still the cheapest realestate in Brisbane.. if you are game.

Jonnie Thurston's uncle got bashed and killed there the other day by a gang of nine, but you know, these things happen in the big city

200+ properties there for sale under $350k, still a handlful under $200k.. knock yourself out (before somebody else there does)

 

[nunthewiser]

200+ properties there for sale under $350k, still a handlful under $200k.. knock yourself out (before somebody else there does)

LOL nah i think i,ll give it a miss , done my time investing and defending property in balga (perth ) many years ago ....... intresting to say the least but was that close to the city was only a matter of time before it got noticed and rerated .must say tho it was a breath of fresh air moving out of there

 

[nulla nulla]

no offense, but anyone thinking real estate prices will fall for the next consecutive three or more years in inner Sydney or Melbourne Suburbs, is dellusional. There may be a tightening in the glamour waterfront suburbs where a $6million overdeveloped waterfront property will trade for $5.1million, but this will more than likely be a reality check because the wally that paid $6million for it overpaid. The rest of the inner City suburbs will consolidate then continue to appreciate. Outer suburbs are the ones most likely to experience real falls in value, as again, like the US sub prime, they have been developed and sold at inflated prices often with 100% mortgages.

 

[saiter]

no offense, but anyone thinking real estate prices will fall for the next consecutive three or more years in inner Sydney or Melbourne Suburbs, is dellusional. There may be a tightening in the glamour waterfront suburbs where a $6million overdeveloped waterfront property will trade for $5.1million, but this will more than likely be a reality check because the wally that paid $6million for it overpaid. The rest of the inner City suburbs will consolidate then continue to appreciate. Outer suburbs are the ones most likely to experience real falls in value, as again, like the US sub prime, they have been developed and sold at inflated prices often with 100% mortgages.

If people are unable to afford a house in the inner west and if there are home owners needing cash, then prices will fall.

 

[r34ztune]

Woodridge is probably a good example for Brisbane - ztune guy made a good amount of money investing there, but god, tell anybody you were planning on living there and you'd be put in the dark corner by any friends or family. It's still the cheapest realestate in Brisbane.. if you are game.

Jonnie Thurston's uncle got bashed and killed there the other day by a gang of nine, but you know, these things happen in the big city

200+ properties there for sale under $350k, still a handlful under $200k.. knock yourself out (before somebody else there does)

I personally wouldn't live in Woodridge, doesn't mean it's a bad investment.
If prices drop more, most properties will be close to neutral or positive geared, so they won't cost you a cent to own.
Some of my best tenants are from Woodrige, alot are long term and look after the place as their own.

 

[kotim]

GEEZ some fo the property bulls here better go to the doctor and ask for a reality shot. The bigger the boom the biger the bust and it has never been any different.

Ask the shareholders in the stock market if a year ago they would have thought that the current situation could occur and 99% would say no, but history says it happens.

I know so many people who bought property and just refuse to accept a fall in property of any degree becasue they have ultimatley never looked into it. and just don't want to think about it. If history for eg says average 25% fall then this is the minimum average we will experience on this occasions.

We have had such a huge property boom built ultimately on hope and now that hope is dissapearing.

Have a think about an 8% unemployment rate, that alone will cause a collapse in prices and 8% is not a historically high rate that would be unlikely to occur.

Just accept the fact that we are going to have 20%+ fall in prices (on average) and prepare for it.

There is so much credit extension out there on a personal level that much lik the share market. In Qld today the state gov't offered the ambos 4.5% pay rise for the first year and then 4% thereafter., now after allowing for tax the real pay increase is really about 2.5-3%. Yet this year alone inflation has run at over 5%. For the next couple of years we are going to see a real decrease in peoples money and then add unemployment.

Don't forget that the average house loan out there needs both hubby and wife to work more or less full time to pay the mortgae etc, so take away a few jobs or hours worked in relation to the jobs and then the measley interest rate deductions will never make up for the loss of wages.

Look to history for the outcome.

 

[arco]

Financial crisis set to claim Australian jobs

AUSTRALIAN employers have signalled they will start firing staff in a bid to stem the growing impacts of the global financial crisis on their businesses.
An Australian Industry Group survey, to be released today, warns businesses are in for a "rough ride", with three in five revealing they had substantially felt the effects of the economic meltdown.

The survey of 303 manufacturing, services and construction businesses in October found that "companies are revising their business plans, lowering employment and cutting costs".

http://www.news.com.au/couriermail/story/0,23739,24591503-3122,00.html

In the boom leading up to the Great Depression of the 1930s, most Americans did not borrow money to buy a home. Variable rate mortgages didn't exist. And Wall Street investors rarely got involved in the business of financing homes. Home prices did fall dramatically. But those price declines came mostly after the stock market crashed, after the economy shrunk and after millions of workers had lost their jobs.

 

[nulla nulla]

Come back to this thread in 3 years and we will see who is right. Whether it is Inner West, Inner North, Inner East or Inner South, property values will consolidate rather than plunge. The better houses in the better streets will continue to appreciate, average houses in average streets will hold their value or experience negligible dips and the rundown houses in less desirable locations will go for their land value. Instances of people needing to sell to cash up will not be the majority of sales in the inner suburbs and are unlikely to be enough to give the picture of falling prices.

 

[chops_a_must]

Come back to this thread in 3 years and we will see who is right. Whether it is Inner West, Inner North, Inner East or Inner South, property values will consolidate rather than plunge. The better houses in the better streets will continue to appreciate, average houses in average streets will hold their value or experience negligible dips and the rundown houses in less desirable locations will go for their land value. Instances of people needing to sell to cash up will not be the majority of sales in the inner suburbs and are unlikely to be enough to give the picture of falling prices.

I'm sorry.

I didn't realise the only city to exist in Australia was Sydney.

 

[numbercruncher]

Im giggling so hard at these RE permabulls that keep saying prices are on the up swing .... news in the real world seems to get worse by the day ....

THE biggest fall in house prices in 30 years and manufacturing output dropping to recession levels will leave the Reserve Bank board with no alternative but to cut interest rates again today.

http://www.theaustralian.news.com.au/story...617-601,00.html

 

[xoa]

Bad news for speculators, good news for young Aussie families.

Prices will continue to fall in coming years, bringing the great Aussie dream back in reach of hard working Aussies.

 

[Pommiegranite]

Im giggling so hard at these RE permabulls that keep saying prices are on the up swing .... news in the real world seems to get worse by the day ....




http://www.theaustralian.news.com.au/story...617-601,00.html

Yes number, its all in the mainstream media these days, unlike a couple of months back.

Even Robbie has now resorted to comparing asset groups to make him feel better, and talking about riding out the hard times. Whereas a couple of months ago he was saying "BUY BUY BUY". All I know is that a massive lump sum in a 3year 8%+ term deposit is feeling mighty good to me now.

We should move onto how long and how deep the falls will be.

I expect a 20% minimum off average house price in ALL Australian cities by the end of 2010. Any predicting further out than this would just be guessing. However, if I were to make a guess, I would say 35% off from peak to trough. The thing is that the bottom could flatline for many year, but we'll cross that broken bridge when we get to it.

 

[Mofra]

Yes number, its all in the mainstream media these days, unlike a couple of months back.

Exactly, media contrarions have possible the best timing mechanism known for market (sell when the media say to buy, and vice versa).

Amazing that after 3+ years and 3 seperate threads, the permabears are jumping for joy at a single quarter of negative growth. In the meantime, how many properties have become positively geared, noting on this day the RBA are likely to cut rates again?

Holding an asset for 20+ years, positively geared, and we're supposed to be worried about a single quarter of negative growth (although many suburbs still appreciated during the quarter)? Okay then...