realestate pops

  1. 574 Posts.
    My feeling on the situation on real-estate prices in Australia is they are heading for a fall. All this talk about lack of supply is smoke screen tactics, a desperate attempt to hold prices up against an impending fall. If you can’t afford to buy a house/apartment, and the bank isn’t amenable to your plight then you make other arrangements. As people begin to realise the plight faced by the outer suburbs of spiralling living costs, and massive mortgages, then people will hold of buying and wait.

    Oh and that issue of spiralling rent, well this will be overcome by more people living in a dwelling, which is more the norm than not. No doubt there will be a general public outcry if over leveraged land lords try to compensate for negative equity by pumping up rents. The ultimate result of which will be investment properties hitting the market at depressed prices.

    It’s been a breath of fresh air to be overseas for the last couple of years away from the constant niggling Australian fanatical love of property, which permeates every dinner party and general day to day life. The constant mantra to “get on the property ladder” peddled by friends and media, coupled with government policies that promote the same, and in turn push house prices through the roof has only lead to a society delusional about wealth and prosperity.
    As we hurtle towards the brick wall, that is the end of property price growth (Agricultural land excluded), I believe this will be a major psychological blow to many people as they hedged there dreams and futures on property asset appreciation.
    The old proverb still hold true, don’t put all your eggs in one basket, let’s just hope the consumer doesn’t get hit too hard as energy and food prices continue to encroach on peoples disposable income.
 
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