Reading between the lines I think not even the Government are saying these stimulus packages will avoid a recession. I think everyone realises its going to happen. The stimulus packages are to try and "soften the landing" as the economists like to say. No doubt there are tough times ahead but still opportunities for those who are cashed up and have a secure job/ income.
Property prices falling?!?!?!?
- Thread starter essence
- Start date
It's the only thing he has left.
That and some worthless properties which once interest rates hit 18% I will be forced to sell at a 60% discount.
Have you looked at the lyrics ?
The repo man took his furniture and his landlord kicked him out for non payment of rent. Probably spent the rent money on weed and other goodies which made him happy, at least until he ran out.
The rumors could be true if he was a heavy user and suffered withdrawal symptoms like anxiety and mood swings. Which is probably what the property bears are feeling right now after the latest rate cut and proposed stimulus package.
Thanks for the post essence, it is very funny and it is good to have a laugh about property investors.
I love this quote about the bear capitulating:
How about the Bull capitulating? or the professional investor capitulating? And of course the professional investor that bought below median price property will sell below median price property and that of course will reduce the median price and give the illusion of property price falling while it is just the capitulating point.
Hang on, that it is now! you are right we are at the bottom of the market!
"Herd of silly people with silly money start to buy prestige properties (symptoms of inferiority complex - look at me how great I am)."
maybe they just don't want to live next door to bogans?
maybe they just don't want to live next door to bogans?
the yelps already happened. WA lead the boom and lead the retreat. Don't think there is much pain left here, tho the official numbers will lag. Rents are now neutral to holding costs - my home opens are seeing very strong demand. It's at the point now that it's toss a copin whether to sell or hold. As for new construction, forget it. Until there is 20% cap gain there is no point. Demand rising, supply strangled, interest rates dropping.
is there much in Qld that isn't in Brisbane?
Thanks for the post essence, it is very funny and it is good to have a laugh about property investors.
I love this quote about the bear capitulating:
How about the Bull capitulating? or the professional investor capitulating? And of course the professional investor that bought below median price property will sell below median price property and that of course will reduce the median price and give the illusion of property price falling while it is just the capitulating point.
Hang on, that it is now! you are right we are at the bottom of the market!
Oh please!!!!. Professional investors capitulating. Ha.HA!!.HA!!!!!.HA!!!!!.
Professional investors sell their properties only if they made a mistake. I so far sold only one - and it was a single one bought based on Residexe's "Top 50 suburbs" prediction. Was the only one that just simply doubled in value during the last boom, and was spoiling the look of the whole portfolio which is more than tripled. Fallen 2% when rest maintained its value or growing.
And can you please give me a reason to capitulate when I am buying now at 7-8% rental return and financing under 5%?
you are perfectly right and there is no reason to capitulate in those circumstances. I am wrong saying professional are capitulating and most probably they will never do in Australia.
In any case, capitulation even for professional is possible. Just think at financing, it is a 2 way agreement and if the lender doesn't want to give the overleveraged investor any money or money only at high interest rate he will have to sell and capitulate. Just look at company that have grown or risk too much like Centro, B&B, ABC etc. their problem was just that lender where not willing to lend them anymore and their asset value got too closed to the debt value.
Anyway, just assume you have 100 mil$ assets and 80 mil$ loan and you have a net worth of 20 mil$ and you are cash flow positive, all looks good. But then Lenders will still see you a big risk if property prices turn down and might want their money back as soon as possible.
Of course it would be a completely different scenario if your assets are worth 20 mil$ and you have 0$ debt and of course you are still cash flow positive.
Mate, you said you were financing at 4.99% before the recent 1% interest rate drop. I posted a question asking you where you can get a normal loan for that rate and didn't receive an reply.
I think you might be telling a porkie or two.
I think you might be telling a porkie or two.
evand, I'm pretty sure you could get 4.99% fixed for 3 years from Westpac prior to the last 1% drop. A few ppl on here took it up and a few started the process and then put it on hold pending further expected drops.
went out yesterday looking for a new PPOR thinking of a bargain upgrade. not as much pain out there as I had hoped and plenty of people attending home opens. may be stuck where we are for a while yet unfortunately
had a sniff around dalkeith, nedlands, claremont, floreat. I heard there was good buying at Cottesloe but not so sure about there
yeh tried one - luke warm response. will work on it but there doesn't seem to be a shortage of interested parties. will let you kow if I strike a bargain somewhere
