As long as those thousands have money or a need for your good's it will be ok but if banks start to foreclose and you are trying to sell on a tanking market it will all implode.
You really are a bitter little man aren't you
Oh well I wish you the best, You are going to have trouble getting anything good in life with that lousy attitude,
All I will say is that the economy is not a cake where if one person gets rich it means they have a bigger slice and some one else will miss out.
The economy is more akin to candles, where we all work to light each other candles.
If I use my candle to light your candle I am not dimished anyhting and you have light,
But if your sitting there complaining and moaning no one is going to want to light your candle.
what percentage of the population do you think are in this position,
26% of people rent,
30% of people own their home with no debt,
that leaves 44% with debt against a house, and the average LVR is 50%, So maybe only 5% of people have high levels of debt against their home,
And out of those 5%,... 95% of them are employed, So probably less than 1% of the population are in danger,
But that 1% do happen to be the ones paraded on today tonight as representing "Normal" so I guess I forgive you for thinking that every one is hurting.
Sorry I didn't work hard to be born to a well off family and work hard enough to be born old enough to buy property when it was dirt cheap.
For those still thinking that a collapse in property cannot happen to us then the following gives some disturbing trends in our economy that are going to have impacts on r/e in my view.
http://seekingalpha.com/article/394831-an-epic-australian-bust
It been 4-5 years since Steve Keen predict the doom day scenario, when will he get it right? another 5? another 2? another 10? or when he's in his 90's and crashing or not doesn't really matter
Have you heard about the FHOB? Seriously, some people here...
Yeah I heard about it back in 2002, Long before steve predicted the crash.
Yes, several years of growth has brought in some sloppy speculaters who think they are sophisticated investors, The market has a why of routing out the gamblers.
Tysonboss said:Again I wouldn't call those people investors to start with, and the same can be said for alot of people in share investments,
Given that you are talking about the FHOG when I mentioned the FHOB, I presume you have not
well that is the nature of the game isn't it? you cant predict the
future whether it's help from the government, printing money etc... if
it doesn't goes your way blame it on some other forces, if it does you are the
clever one ...
No it's actually quite easy;
1. Aussie property is the biggest property bubble in the world.
2. This bubble has now lived it's course with the global credit bubble bursting.
3. The government will try this and that to prop it up - but in the end it will fail, and whatever pauses the government will manage to engineer will be nothing but a blip on a longer term (say 10 year) outlook.
No government is powerful enough to overcome market forces - this is not possible.
Therefore, house prices will continue fall. And they will accelerate in falls as negatively geared speculators and the newly retired pull out.
Demographics drive long-term boom and bust cycle - they have since the dawn of time. This is no magic and it is definitely, 100% predictable.
What happens in USA we follow about 5 yrs later their property started to tank 2007 -08 add 5 yrs and we are in line.
Every 75-80 there has been a depression just long enough for the old to some times remember and the young to know nothing about.
Add 75-80 yrs 1930 and we are now due but Big Ben is holding on fighting so prolonging the pain.
Once house prices are seen dying by the Home and Away fans all will panic and the house of cards will blow away.
Take the first offer or any offer and get out now.
I can see your point, but think of it like this...
If house prices were to fall by 40-50%, then you're looking at a rental return of b/w 9-11% on some properties in areas around me (inner-west Melbourne).
I understand that rents would fall slightly, but with rental vacancies around the 3% mark and immigration in Australia still fairly strong, I don't see how:
- Rents would drop significantly; and following this,
- how property prices would plunge to allow for anything close to a 10% return
I can still see another possible 5-10% drop, but the potential figures that are being thrown out of 30-50% seem somewhat over the top.
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