Some powerful lessons here for Australians from the UK experience…..
Property lessons from UKs busted boom
I doubt if they'll listen though, the rot has already set in in Sydney…..
Sydney sellers drop prices by 6%
Cheers
Tom.
OK, I'm kind of thinking so what?
Two points – the UK economy is totally scre*ed so while I will happily admit I'm no expert, I would have thought a 10% fall isn't that surprising given the curcumstances.
Considering that prices in the south east of england we're going up by 10% per year for year after year after year, just pulling back 10% over a 3 year period doesn't seem like armageddon?
Secondly, the media talked the boom up here and in the UK, and fear sells papers, so we'll be hearing about all the horror stories no doubt as well.
From what I can make out, UK house prices have just come down closer to Australian prices
thommo
They also said the price of tulips would not fall also !
http://en.wikipedia.org/wiki/Tulip_maniaHistory never repeats, I tell myself before I go to sleep
LOL @ Duckster
All I'm saying is I don't consider a 10% drop a massive bubble crash. If it happens here it won't worry me that much and I'm sick of all the scaremongering end of the world stuff.
Obviously property goes in cycles like all assets, however I do think that the down swing of prices in Australia will be modified by the generally strong economy – unlike elsewhere which compounded it. Whether that sets it up for an even bigger fall at some other point in the future, who knows.
For everybody that goes on about long term price/income averages like it's some sort of unshakeable rule of physics, it's not.
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