Post to Facebook on 26/4/2018 at 10:05 AM
Commenting on “Melbourne house prices stagnate, with lowest quarterly growth since 2012”
https://www.domain.com.au/news/melbourne-house-prices-stagnate-with-lowest-quarterly-growth-since-2012-domain-group-20180426-h0z8ak/
Don’t just read my blogs like you read a story. If I give you and exercise to calculate the worst case scenario of the auction clearance rate, make an attempt to calculate it.
Reading without understanding is time wasted, and half-bake knowledge may lead to making a worse decision.
For a while, I estimated the weekly clearance rates reported by the regular sources to be in the vicinity between 50% and 60%, nothing like over 70%.
There are a lot more houses sold by private sale, and the results are not reported. In other words, there are plenty of overpriced houses out in the market not attracting any interest. These properties will sell if the price is right.
For the past few years, many gurus had been giving free get-rich quick seminars - looking out for development sites and offer owners above market value for the property, buy run down property and do a quick-and-nasty jazz up job for a sale, buy off-the-plan property and land and sell it before settlement.
Temptation turns into addiction, and confidence drives one to be greedy. That’s is why it is important to understand facts and figures, rather than just rely on hearsay.
Even after reading my blogs, you should not just accept my words as gospel. Read, think and analyse is the way to learn about the real estate market or any subject. When in doubt, hang on to your hard earned money. In the meantime, be frank to admit your doubt or even your shortcoming, and seek help and further advice.
Houses prices may have stagnated, but is that all? Will it continue at this status, or will it fall further? What should you do now?
Thank you for reading.
Commenting on “Melbourne house prices stagnate, with lowest quarterly growth since 2012”
https://www.domain.com.au/news/melbourne-house-prices-stagnate-with-lowest-quarterly-growth-since-2012-domain-group-20180426-h0z8ak/
Don’t just read my blogs like you read a story. If I give you and exercise to calculate the worst case scenario of the auction clearance rate, make an attempt to calculate it.
Reading without understanding is time wasted, and half-bake knowledge may lead to making a worse decision.
For a while, I estimated the weekly clearance rates reported by the regular sources to be in the vicinity between 50% and 60%, nothing like over 70%.
There are a lot more houses sold by private sale, and the results are not reported. In other words, there are plenty of overpriced houses out in the market not attracting any interest. These properties will sell if the price is right.
For the past few years, many gurus had been giving free get-rich quick seminars - looking out for development sites and offer owners above market value for the property, buy run down property and do a quick-and-nasty jazz up job for a sale, buy off-the-plan property and land and sell it before settlement.
Temptation turns into addiction, and confidence drives one to be greedy. That’s is why it is important to understand facts and figures, rather than just rely on hearsay.
Even after reading my blogs, you should not just accept my words as gospel. Read, think and analyse is the way to learn about the real estate market or any subject. When in doubt, hang on to your hard earned money. In the meantime, be frank to admit your doubt or even your shortcoming, and seek help and further advice.
Houses prices may have stagnated, but is that all? Will it continue at this status, or will it fall further? What should you do now?
Thank you for reading.
