Dropping prices

[Mofra]

So , prepare for 50% price drops : The UK housing market is a lot healthier than Australia's housing market, so UK crash can only be shallower.

So you're effectively forecasting tens of thousands of opportunities to purchase positively geared properties?

Sign me up!

 

[Harris]

And soon, when sickness and stress catch up with Aussies working 100 hours per week just to pay their mortgage interest, they will ask themselves "was it all worth it ?" and then commit suicide or get into crime, or drink themselves to death, or end up in the gutter, or maybe all of the above.

You do need some serious counselling scamp .. And I am not kidding ! I would be scared of you if you were living next door to me !

Grow up and smell some fresh air .

Harris

 

[seank]

Scamp why don't you let us know about your investing background or formal qualifications (if any) so we can take you a bit more seriously.
Doubt I will get a reply.

 

[Pom]

The Reserve Bank has a LOT of leeway to stimulate the economy if it comes to that....

Imagine the effect of 3 or 4% rate cuts in the scenario you describe. That will go a long way towards getting things moving again.....

A neat trick indeed in the face of high global inflation. I'm sorry, but it isn't that simple for the RBA - caught between a rock and a hard place springs to mind.

 

[boomtown]

If the Fed can do it - why cant the RBA?

 

[Trogdor]

A neat trick indeed in the face of high global inflation. I'm sorry, but it isn't that simple for the RBA - caught between a rock and a hard place springs to mind.

Australia's economy will only go into recession if the rest of the world does. We have too much buffer due to resources exposure and a strong economy.

If the world economy goes into recession inflation in Australia will NOT be high. Both domestic demand will fall AND cost push inflation (i.e. oil prices, etc..) will fall.

I think they are only caught between a rock and a hard place now when things are still relatively good.

 

[Petal]

Scamp's not silly, he is just like any child who is naughty to get attention.

Look at all the lovely posts (including mine) with his name at the top. All this attention, wow he is loving it, he is SOMEBODY.

WRONG

 

[IndexFund]

haha petal

 

[boomtown]

Ive been told to piss off by at least 4 different realtors over the past week. No real price drop here

 

[FHB]

Where are you boomtown?

I've had 3 tell me vendors are dropping asking prices this week. Even Peter D'Arcy in Ashgrove says $40k down so far this year.

Most of the places I've been looking at are empty (ex rentals or moved already). They are under some pressure to sell considering current holding costs. With winter here I'm expecting less listings, if the buyers don't return by spring, prices will have to drop if vendors want action.

On the RBA, if they have to drop interest rates 2-3%, unemployment will be through the roof, not a good scenario for increasing house prices. It didn't work in the US or UK.

 

[plusnq]

On the RBA, if they have to drop interest rates 2-3%, unemployment will be through the roof, not a good scenario for increasing house prices. It didn't work in the US or UK.

It's pretty obvious that you haven't lived through a recession with unemployment at 10% FHB .......or you wouldn't be wishing for it so forcefully. A lot of hurt occurs in those times and only a few areas are spared its effects (health services and alcohol sales). It's hard to service that cheap house loan when you don't have a job :-(

 

[FHB]

Sorry, you lost me plusnq. Did I say I hoped this would happen, I don't even think it will happen.