Post to Facebook on 9/7/2018 at 11:08 AM
Commenting on “Low clearance rate shows Melbourne sellers determined to hold out for desired prices”
https://www.domain.com.au/news/low-clearance-rate-shows-melbourne-sellers-determined-to-hold-out-for-desired-prices-20180708-h12ems-751563/
Some reports actually say that property prices have contracted, and some have reverted back to the 2016's. Months ago, I predicted that 20%-50% price fall depending on the suburbs was forthcoming.
It is not easy to make predictions, no matter for good or bad outcome; about the economy or real estate marketing; or any subject matter. In order to make a close to accurate prediction, one must remain cool-headed, not bias, be independent of other influencing parties, and ignore the sceptics and critics.
I do have a secret of success to share with you, that is , "be a pessimistic optimist". This is one step better then the scout's motto - "be prepared". I do look for the light at the end of the tunnel, but I have to envisage when I should do if I ever have to enter a tunnel without light. If I have go through the tunnel, I will. However, is there another option to reach the end of the tunnel without going through, and what other risks are involved?
Although I am not an economist, I have "arguing" that the RBA's move in keeping the cash rate constant for so long. It does not make curb rising house prices and ease housing unaffordability. It has prolong the pain until now. RBA could have done the reverse, and collaborated with of both state and federal governments offering better incentives and concessions for genuine owner occupiers.
Banks, being commercial entities whose main objective is to make profits to survive and keep the shareholders happy, finally suddenly experience hard landing with the strict lending and credit control imposed by the government.
The banks are at a state of dilemma. The low interest rate does not attract depositor which provide the short-term funds for loan to customers. This funds accounts for 80% of the total. Although the number of loan applicants has fallen, the banks do need the money to be there to lend out, or else they have to pay others to top up. The banks have no choice but to increase interest rates to attract more short term cash from depositors, and in the meantime increase the loan rate to keep the business profitable.
There are always winners and losers. In very rare occasions, there are win-win situations, which normally still involves certain sacrifices.
I have been advising you, the readers, to hold back on your house buying decision. Impatience does have its downside. However, you must take this slack time to go round to learn more about the various suburbs, because "Knowledge is Power"
Have you been working hard, saving more and spending less? You do need to "suffer" for at least two to three years if you are serious about owning your own home sooner.
Thank you for reading.
Commenting on “Low clearance rate shows Melbourne sellers determined to hold out for desired prices”
https://www.domain.com.au/news/low-clearance-rate-shows-melbourne-sellers-determined-to-hold-out-for-desired-prices-20180708-h12ems-751563/
Some reports actually say that property prices have contracted, and some have reverted back to the 2016's. Months ago, I predicted that 20%-50% price fall depending on the suburbs was forthcoming.
It is not easy to make predictions, no matter for good or bad outcome; about the economy or real estate marketing; or any subject matter. In order to make a close to accurate prediction, one must remain cool-headed, not bias, be independent of other influencing parties, and ignore the sceptics and critics.
I do have a secret of success to share with you, that is , "be a pessimistic optimist". This is one step better then the scout's motto - "be prepared". I do look for the light at the end of the tunnel, but I have to envisage when I should do if I ever have to enter a tunnel without light. If I have go through the tunnel, I will. However, is there another option to reach the end of the tunnel without going through, and what other risks are involved?
Although I am not an economist, I have "arguing" that the RBA's move in keeping the cash rate constant for so long. It does not make curb rising house prices and ease housing unaffordability. It has prolong the pain until now. RBA could have done the reverse, and collaborated with of both state and federal governments offering better incentives and concessions for genuine owner occupiers.
Banks, being commercial entities whose main objective is to make profits to survive and keep the shareholders happy, finally suddenly experience hard landing with the strict lending and credit control imposed by the government.
The banks are at a state of dilemma. The low interest rate does not attract depositor which provide the short-term funds for loan to customers. This funds accounts for 80% of the total. Although the number of loan applicants has fallen, the banks do need the money to be there to lend out, or else they have to pay others to top up. The banks have no choice but to increase interest rates to attract more short term cash from depositors, and in the meantime increase the loan rate to keep the business profitable.
There are always winners and losers. In very rare occasions, there are win-win situations, which normally still involves certain sacrifices.
I have been advising you, the readers, to hold back on your house buying decision. Impatience does have its downside. However, you must take this slack time to go round to learn more about the various suburbs, because "Knowledge is Power"
Have you been working hard, saving more and spending less? You do need to "suffer" for at least two to three years if you are serious about owning your own home sooner.
Thank you for reading.
