http://theage.domain.com.au/real-es...-new-home-sales-abandoned-20121128-2adpm.html
The above article details how much Melbourne Project Homes sales has slowed from the heady days of 09/10 when abandonments (deposits taken and then left) were at only 5%. They have been 23% for most of the year and just tipped 30%. That is 3 in 10 home deposits are not going ahead.
Now in most cases they are only $500 to $1000 lost but some are a lot more like:
Others buyers have had to walk away from settlements – and much larger deposits worth up to 5 per cent of the purchase price – after failing to get financing on blocks of land that have lost 10 to 20 per cent of their value since they signed the contract.
As an investor this is good news but i don't like to see FHO losing cash but blame the Fed Gov for being too generous. Melbourne now has TOO much supply and a lot of demand was brought forward in 09 with overly generous FHOG.
The old rule: supply versus demand.
Don't expect to see housing in VIC add to any recession busting activity.
FYI Peter 14.7
The above article details how much Melbourne Project Homes sales has slowed from the heady days of 09/10 when abandonments (deposits taken and then left) were at only 5%. They have been 23% for most of the year and just tipped 30%. That is 3 in 10 home deposits are not going ahead.
Now in most cases they are only $500 to $1000 lost but some are a lot more like:
Others buyers have had to walk away from settlements – and much larger deposits worth up to 5 per cent of the purchase price – after failing to get financing on blocks of land that have lost 10 to 20 per cent of their value since they signed the contract.
As an investor this is good news but i don't like to see FHO losing cash but blame the Fed Gov for being too generous. Melbourne now has TOO much supply and a lot of demand was brought forward in 09 with overly generous FHOG.
The old rule: supply versus demand.
Don't expect to see housing in VIC add to any recession busting activity.
FYI Peter 14.7