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From: Peter Davidson
Did anybody watch "Today Tonight" last night on Channel 7, Melbourne. Heading was "Property Boom, Bust". The report said that even before September 11 and the global economy slowdown, property in Sydney, Melbourne and to a lesser extent Brisbane is predicted to fall by 5 to 10% over the next 6-12 months, due to it being majorly overpriced. I'd hate to imagine what it will drop to when there is a major economic slowdown, more people lose their jobs and interest rates start to rise. BIS and Shrapnel(I think that's who they are) predicted interest rates to be at 9.5% in 2004, adding $150 per week to a $200k home loan. Time to lock in. Scary. Any thoughts on this and has anybody seen similar reports?
They also said it was the wrong time to invest, as rents had plummeted due to a huge supply of rental properties and renters often negotiated up to 40% off the asking price, landlords barely making ends meet and many already selling.
Any thoughts on this?
Regards,
Pete.
Did anybody watch "Today Tonight" last night on Channel 7, Melbourne. Heading was "Property Boom, Bust". The report said that even before September 11 and the global economy slowdown, property in Sydney, Melbourne and to a lesser extent Brisbane is predicted to fall by 5 to 10% over the next 6-12 months, due to it being majorly overpriced. I'd hate to imagine what it will drop to when there is a major economic slowdown, more people lose their jobs and interest rates start to rise. BIS and Shrapnel(I think that's who they are) predicted interest rates to be at 9.5% in 2004, adding $150 per week to a $200k home loan. Time to lock in. Scary. Any thoughts on this and has anybody seen similar reports?
They also said it was the wrong time to invest, as rents had plummeted due to a huge supply of rental properties and renters often negotiated up to 40% off the asking price, landlords barely making ends meet and many already selling.
Any thoughts on this?
Regards,
Pete.
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