Just read this article, "Think twice before buying a home" by David Koch . Doom and gloom... don't buy! it almost screams!
"Overseas economists warn Australian home prices are up to 50 per cent overvalued."
"Our property market missed last year’s global downturn. Sometime in the next two to four years there will be a dip in the property cycle, I’m concerned it could be a major correction. "
I'm planning to buy soon, have a read and tell me what you think? true or scare tactics?
Ok for Koch his had his own home and lived in luxury for yrs.
But what if you haven't, we've been between houses and in limbo 3 yrs renting, it's been hell.
I have 4 other places now but they're cheapies, heaps of margin , my own place was spending a lot more so I held off and got caught out ..
I waited till early last yr, Rudd stepped in and off it went again back to ridiculous for atleast 14 mths and those buyers would certainly be in a lot of trouble if things turn ugly but now here we are again looking like headed back to pre Rudd but finance has tightened, a lot .
Demand does seem to have eased right off again now putting us buyers back into a good offering position but now it's financing. For me all this waiting certainly backfired .
I wouldn't invest on these prices , unless it's 30 or 40% of market and they're around . But buying your own place , how long are you meant to wait ?
I we're safe as long as we don't pay these stupid prices, again just like investing .
Find that one off bargain 20 or 30% down even if it's a renovator and with deposit we should be safe.
On a national front , we do actually have quite a bit in common with the US scenario . But sure yes they were doing dodgy loans but, our mobs have allowed people this last 7-8 yrs and in particular Rudds stimulus spike period to pay ridiculously way over inflated prices with massive loans.
I actually could not believe the banks were lending the kind of money they did last yr on spiked prices like that that "followed" , 6 or 7 yrs of the biggest boom the country had ever seen and 300 & 400% gains in under a decade, our stuff is 50% over priced , I've said that for yrs.
The OS guys do look at us and just shake their heads stepping back for the pop but still, how are you suppose to wait 4 yrs to buy your home.
We've decided to move into an investment place if it goes ahead, for a yr or two from here . Restructure , finish that reno and then back to buying our own. So who knows where it'll all be in 18mths , although moving into that one is because we haven't found our own yet but the wait may end up worthwhile and I get a win yet- ahwell.
Cheers
