Perth house prices drop 30k

[Nathan]

come to sydney, WAYYYYYY under valued! wanna make some money, carry a couple of mil of sydney property thru next boom, some parts of sydney would have to be cheapest city areas in australia, and certainly take on other states such as QLD VIC for value for money....

 

[Nathan]

Ah, now it's all clear. I didn't know the whole story. Commiserations HG.

Conversation in HG's house:

The missus: I told you we should have bought a house last year, but oh no, you said 'Trust me Honey, house prices are going to crash'. Well, they haven't, have they?

HG: But they will. Soon. Promise. Every single house in Australia. Pick one. Any one. In a couple of months the owners will be begging us to buy for half what it's worth now.

The missus: Says who? Those sad tossers on that house crash internet forum thing? I would rather you surfed porn sites. At least you'd be less gloomy. Just as well you bought those shares. Thank goodness we're making a fortune on them. How are we going with the shares Darl? You there Darl?

Sound effect: Sound of a door shutting and footsteps running fast down the road into the distance.

HAHAHAHA...
Scotty mate, that would have to be the funniest post i have even F@#KIN read on this site mate!

so so so so true.... and you painted the picture so perfect!

 

[Nathan]

oh 1 last thing, i think HG is digging himself a bigger grave every time he openes a new post....

i love sitting here reading these posts....

i got nothing better to do, if not watching this id have to be calculating how much my properties are declining in value...... hmmm.. still waiting... waiting... waiting..... nup not gone bust yet.

oh on a serious note, congrats HG on the baby!

 

[Aaron Sice]

c'arn guys, a man is entitled to his opinion.

rents in perth WILL be going up. the lack of investors, now, will still create a tight market with demand outstripping supply - regardless of what's been put on the ground last quarter. that's how long since the speculative buying stopped? is that time similar to how long it takes to construct a house? hmmm....

i've said it before and i'll say it again. when the rents go up, investors will return and a floor will form - but only when the blood is flowing in the streets. property won't crash - it'll just stay stagnant (by that i mean vary +/- 5%) for as long as it takes for one median to meet the other.

 

[HiredGoon]

He criticized me for buying a 2 bed unit, 5 k's from the city in Brisbane. When I was 23 I paid off my mortgage.

Do you think this would be possible now?

As FHB says - most people on GHPC are interested in buying their own property (PPOR - not all are into IPs), the only disagreement with somersoft is about price.

Buying property may have worked for people who bought before the bubble but I have to buy now, and prices are incredibly expensive.

Being expensive means they take a long time and a lot of interest to pay off. Being expensive they could also lose me a lot of money if they become not-expensive.

rents in perth WILL be going up.

Vacancy rates are increasing, this will subdue the rises.

This week, the Housing Industry Association estimated WA would be 30,000 houses short of demand within five years.

Meanwhile, the same Mr Druit quoted in this article said:

Mr Druitt said the large number of properties for sale punctured the myth of a housing shortage. "In WA we have a situation of oversupply - not a problem with undersupply, and this is due to the strength of building activity between 2001 and 2007," he said.

There was only a shortage compared to speculative over-demand. Without that, which is now, there is a glut.

From the UK:

http://link.brightcove.com/services/player/bcpid1184614595?bctid=1659814586

The presenter "How can house prices be falling when all we have ever been told is we have a massive shortage and require the immediate building of 3 million homes"

The response with shrugged shoulders "well, I think it is pretty obvious we don't have a shortage".

He said a 25 per cent rent rise predicted to occur in Perth over the next two years would actually be a good thing for renters as well as owners.

Mr Druitt said an increase in rents would provoke a corresponding rise in rental yields, which would encourage more investment back into real estate.

Does this make sense to anyone?

 

[Frank]

Quote:
He said a 25 per cent rent rise predicted to occur in Perth over the next two years would actually be a good thing for renters as well as owners.

Mr Druitt said an increase in rents would provoke a corresponding rise in rental yields, which would encourage more investment back into real estate.

Does this make sense to anyone?

No, but drippy never does.

 

[Shadow]

There was only a shortage compared to speculative over-demand. Without that, which is now, there is a glut.

Does this make sense to anyone?

HG, from your own Bubblepedia site, national unsold inventory is falling fast.

Looks like that 'glut' is being snapped up. Better get in soon before they're all gone!

I suspect Foundation will stop posting these charts on Bubblepedia soon... they haven't been telling the story he wants them to tell for some time... he was including Northern Beaches in the charts for a while too, but that disappeared once inventory levels there started falling!

 

[boomtown]

It makes perfect sense. There is an oversupply where no one wants to live and a shortage where everyone wants to live.

 

[INVSTOR]

Do you think this would be possible now?

Yes, it is still possible. My husband was just telling me last night about a friend of his who partied all his life and had no assets. A few years ago he purchased a property. He sub-divided and sold off the block, did a renovation and lived in the property for a few years. He just sold it for over $1mill. He's paid off his relatively small mortgage, and can now purchase another house with cash.