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From: Louie Langov
Coming from a shares background, i have come to know overvaluation of shares and the following market crash that we are seeing now. The Sydney residential market appears to me to be the same, values are unsustainably high now, since we are reaching the limits people will be willing to pay for rent. Could there be a possibility of a market crash in the Sydney residential market? This may not have happened before, but just follow the logic,
rentals increase
people refuse to pay overinflated rentals
owners discount rentals
property valuations fall
people sell properties to pay for the ridiculous amounts they borrowed
panic follows
market correction
Coming from a shares background, i have come to know overvaluation of shares and the following market crash that we are seeing now. The Sydney residential market appears to me to be the same, values are unsustainably high now, since we are reaching the limits people will be willing to pay for rent. Could there be a possibility of a market crash in the Sydney residential market? This may not have happened before, but just follow the logic,
rentals increase
people refuse to pay overinflated rentals
owners discount rentals
property valuations fall
people sell properties to pay for the ridiculous amounts they borrowed
panic follows
market correction
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