Recently, a friend has asked me for advice on a certain IP being marketed. Its an Ecoville project at http://www.playgroundconstructions.com.au/.
Now what amazes me is that I live near Wyndham village and I've never heard of it! (This friend learnt of the project in Singapore where it is being marketed). I'd like to hear what you guys who are the experts think as I'm relatively new to IP.
Don't invest in property. Stay out of it, don't commit suicide financially.
That's the only thing you need to know : Property is something to stay away from, just like shares.
Buy gold or save money on the bank, whichever you like, but do NOT buy shares or property.Scamp wrote:Don't invest in property. Stay out of it, don't commit suicide financially.
That's the only thing you need to know : Property is something to stay away from, just like shares.
Buy gold or save money on the bank, whichever you like, but do NOT buy shares or property.You reckon the market is going to fall further? Melbourne has been surprisingly resilient. Haven't budged at all from previous months' prices.
Yes, it will fall further. What you have seen until now is merely the start.
The correction is coming from September 2009 and onwards. ( due to all the mortgages resetting from 6% to 10% interest rates, which will drown 900.000 people almost instantly )clubhonda wrote:Now what amazes me is that I live near Wyndham village and I've never heard of it! (This friend learnt of the project in Singapore where it is being marketed). I'd like to hear what you guys who are the experts think as I'm relatively new to IP.I've been going to a few open houses recently and there are quite a few interested people from Singapore and Hong Kong looking to buy here. Don't know if its because it looks cheap to them or is it because they are willing to take a punt and will not be put off by scaremongering idiots with secret agendas.
One thing you may not be aware of is that the BLR (base lending rate) in Singapore is more like 3-4% according to my mate. With that kind of interest rate, a lot of properties here can turn +ive gearing easily. Add to that the strength in AUD/SGD that's not bad.
Having said that, I think for the near term its safer for an overseas buyer to put their money in a AUD term deposit then risk it in property (fAUS property seem to be in a tug-of-war at present). I just spent a whole day today looking at over a dozen houses, and it is apparent that the market has gone a lot softer. Some of the properties are taking 20-30k off their initial asking prices 2-3 mths ago.
Certainly, the "Domain" pull-out @ Sydney Morning Herald newspaper is getting thinner and thinner….
god_of_money wrote:Certainly, the "Domain" pull-out @ Sydney Morning Herald newspaper is getting thinner and thinner….I noticed less listings these days as well. But then again it could be due to the weather. A lot of brokers are expecting more listings in Spring.
clubhonda,
Well, I subscribed to SMH for years and I did notice that 2008 winter is super thin.. may be just co-incidence????god_of_money wrote:clubhonda,
Well, I subscribed to SMH for years and I did notice that 2008 winter is super thin.. may be just co-incidence????You might be on to something. It has been reported in some of the newspapers that there is a tug-of-war between the buyers and sellers at the buyers at the moment. Sellers know they won't be getting a good price if they list now and those who can afford to probably will not do so.
The reason there's less listings is simple : Sellers are turning into Landlords in order to at least get SOME money back, they have given up trying to sell , because there's just not any buyers. This pushes rental prices down.
So now, both rental prices AND house prices are under fire, which will lead to even lower houseprices.
Don't you love the downward spiral ? It's much more entertaining than the upward spiral.When have you heard anyone talk about real estate at the BBQ lately ? .. oh… it's taboo … ok.
clubhonda wrote:Scamp wrote:Don't invest in property. Stay out of it, don't commit suicide financially.
That's the only thing you need to know : Property is something to stay away from, just like shares.
Buy gold or save money on the bank, whichever you like, but do NOT buy shares or property.You reckon the market is going to fall further? Melbourne has been surprisingly resilient. Haven't budged at all from previous months' prices.
Yes, and since then ( july 2008 ) things have gotten a LOT worse. The lowering of the interest rates has brought depression onto Australia's soil : The biggest mistake anyone could have made was to lower the interest rates.
They tried to save the property investments ( because they ( the policy makers ) own a lot of properties ) and by doing that they have forsaken their children's future and the whole nation.Way to go, you have seen nothing yet. My predictions back then were dire ( and they came true already ) but my predictions now are even worse. Australia is in for a crash unlike any other country has ever had ( Maybe Iceland or Ireland can compare )
maybe they should of kept raising interest rates, that would of really helped…
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