But what noone seems to understand is the reason why real estate doubles every 10 years ( the last 60 years ). Inflation ( and houseprices doubling every 10 years are a form of inflation ) only became a problem when debt levels started to get out of control. The western countries now have so much debt ( 9 trillion for the US , and ticking ) that…[Read more]

Yes. This is a bad time. Read http://www.news.com.au Especially the property section, and the money section. US / UK / NZ / Spain are in recession already, Australia is well on their way of getting in trouble too.Australia's house prices are most unaffordable / overpriced / wage to price is way out of historical trends.A 'correction' is in place in all…[Read more]

atevans wrote:
Just because the mortgage is $305000 doesn't mean the house cost $305000 to build.  The house including landscaping etc cost around $330000, and then if you consider two years woth of interest….well $320000 would be a loss in my opinion.

Welcome to the housing crash, caused by negative gearing ( a fancy word that really means…[Read more]

wow… I am so glad that I have a considerate girlfriend that discusses *THE MOST IMPORTANT DECISION IN OUR FINANCIAL LIFE* with me. And that's my girlfriend : If she messes up, I'm not financially liable for her debts. But this is your husband ! I'm amazed that you were at all ABLE to make an offer without consent of your husband. I think it…[Read more]

Well the easy answer is : If it was easy to subdivide, why wouldn't the current land owner subdivide it and then sell it ? From that perspective, you need to do research. Every council has different rules and legistlation on subdivision, so best thing to do is to visit the council and ask them about what the possibilities are for that piece of…[Read more]

What loss are you taking if you sell for 320.000 ? Looks like you would have WON 15.000 dollars ?Is it just me ? Equity is NOT real .. it's mythical , fairy value, it doesn't exist until you SELL.Sell now, for 320.000

Quote:
What do you think?

I think you're trying to sell ice creams in the winter…..Go back to your previous job before unemployment rises and you find yourself without a job.

I don't say the end is nigh.. I just say that property will devaluate. It's already happening, hard to ignore something that already happens. Just drive through the streets, see how much is for sale. Whole villages are for sale, yet noone buys. Do you think that that is a good sign, or a bad sign?

Reminds me of RE agents telling everyone "Rent incomes up to 800$ per week!"Can you complain at the Dept of Fair Trading when you only get 200$ ? I mean, they were right, 200$ is up to 800$ What about you asking 800.000 for a house , when it's worth only 240.000 ?Can I sue you for asking an unrealistic price ?

Benhaman wrote:
240 per weekhttp://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104580217&f=0&p=10&t=res&ty=&fmt=&header=&cc=&c=82032024&s=qld&snf=rbs&tm=1213268179

Quote:
This investment has it all for the astute investorGreat depreciation!

Haha.. he warns you already there "Great DEPRECIATION!" I think I found the first honest RE…[Read more]

Skip101 wrote:
1 million dollar properties selling for $500,000? I think you may be losing some credibility here.

I never had any credibility, nor do I want credibility. This actually was my first post ever, so I don't expect anyone to trust what I write. It's my own personal opinion that houses that sold for 1.000.000 in the highest time in…[Read more]

Skip101 wrote:
Too much negativity and not much common sense/fact in a lot of this thread, personal opinions, often from people who have no idea of the Australian market, in some cases not even residing in the country, hence no first hand knowledge.

ItalianDragon wrote:
The most annoyning thing is that REALESTATE agents are the number 1 people…[Read more]

Well said Italian dragon. Very simply put : Why would you invest into a house that costs more to 'hold' than you get back from it ?The only reason would be 'because house prices go up'. Well, bad news for you : they won't go up in the next 2 years at LEAST. Now what happens if you buy a house and can't pay off the mortgages due to negative gearing…[Read more]

Well, Ben : you have your answer : don't buy now. Just wait till Januari 2009. The inside info all points to only 1 thing : Wait with buying, you will get loads more for your money later, than before.And seeing stagflation is just around the corner, you will be happy you have some spare cash to survive the 'harsh times' where the debt bubble…[Read more]

Let's take a house worth 500.000$ AUD. Let's assume you only pay off interest ( for mathematical ease ) The interest over 10 years ( at current rates , which will go up ) is 475.000$ AUD. IF … ( and they don't ) properties go up every 10 years, that still means you didn't make a profit if you calculate CPI over 10 years ( 5% per year = 71% over…[Read more]

Maxxi, just show up at http://www.globalhousepricecrash.com Read and educate yourself, some smart people around there. There's bears and bulls alike on the forum, there's statistics and everything you want to make up your own mind. What I do here is exactly the same as everyone else is doing on this forum : Provide no data or statistics at all , just…[Read more]

Excellent advice from Duckster.Pay off loans, no credit cards, investigate the market, don't step in now but wait a bit till the crash passed, until then save as much as you can, don't eat fancy restaurants and don't buy expensive car or plasma TV. Get a cheap hobby ( fishing  or something ) or get a second job, and buy everything you buy…[Read more]

The only city I would invest in ( if I were to buy right now ) would be Melbourne, but not Adelaide. Mind you, in Melbourne the prices will also drop, but due to the better infrastructure and the amount of work there, it won't be affected as much as for instance Brisbane or Perth or Sydney. Gold coast is nice when economy does well. But once that…[Read more]

Maxxi wrote:
if you understand mortgages well then you will know that the Serviceability ratios for purchasing/lending are between 4-6 to 1 depending on O/O or Investment Property.  Therefore, it's not the $50K income earners that are driving the market.  And …. all of those that cant get into the market are long term renters/tenants…. K…[Read more]

blogs wrote:
John, you mention percentages of houses that are fully owned, or mortgaged over 10 years ago, but surely you would realise that these are not what will affect property prices. Just as people value there house value on properties recently sold and jumping up and down with joy, when they get sold down should this also devalue their…[Read more]