Sydney house prices due for 87 style meltdown?

[pepperoni]

Yes it works if you can get that Balmoral dream house for $750/week. But how many people get that deal? You are WAY under the market there - all advertised similar places are asking at least TWICE that rent. I also noticed you said in the other thread you are considering moving - to a 2 bedroom flat no less for not much less $$$ - why is that?? The sweet deal coming to an end? Owner wants to move back in as they were o/s for a short while or something similar? I bet it would be hard to repeat your current deal!

Cheers,

Beej

Owner wants "a bit more" but for $200 I can get a removalist for a change of scenery/new life experience and walk or train to work .... the options are ...

Waterfront 2 bedder at mc mahons pt for 650 a week or 2 bedder with opera house views for $495 ... . Not alot for what you get.

The house Im in has gone down over 20% over the last year ... they would love to sell but cant find a buyer.

Yes it will be harder to recreat the deal in rentals now (they are stronger) but easier to get a similar bargain buying

There are a flood of new listings this week ... sellers hoping for good news are biting the bullet in droves.

Looking like ideal low balling conditions in the next 2 months for non auction properties ... think of a reasonable price, multiply by .8 and offer away.

 

[pepperoni]

You can call it what you like but things that have intrinsic value (assets) go up in value over time. You can't stop it.

Incorrect eg they have been flat in germany for decades.

Your confusion seems to arise out of some imagined "magic hand" that keeps pushing prices up which is nonsense.

Prices go up because of supply and demand ie higher demand at a higher price.

That demand at a higher price only exists when capacity to pay increases.

Wages arent going to do anything special, credit will have issues for years to come, and most of the money going around is old money that will be diluted in ineritances.

Flat or falling real prices for are clearly a possibility and IMO a probability ... we have seen it already for 5 years since affordability died

 

[Happy]

Prices go up because of supply and demand ie higher demand at a higher price.

That demand at a higher price only exists when capacity to pay increases.

Some property's uppward pressure is contributed by replacement cost being pushed up higher: land, materials, labour; where inflation takes part too.

Even if price of property doesn't fall and stays flat, value decrease.