Post to Facebook on 18/8/2018 at 10:08 AM
Commenting on “London suffers biggest fall in house prices in nine years”
https://www.domain.com.au/news/london-suffers-biggest-fall-in-house-prices-in-nine-years-20180816-h141o8-758692/
What has this news on London house prices to do with Melbourne Real Estate?
I have been saying that there is no sure win in any investment, especially you are looking for a quick buck.
If there is a guarantee about making heaps of money from real estate, why are those gurus giving their secrets away free of charge so willingly. These are just entree to get you signed up to their many thousand-dollar courses or consultation.
In an economics class, the common discussion is about supply and demand curve. There is more than one pattern or behaviour. When demand goes up, supply needs to meet supply. If supply is insufficient to meet demand, then there will be premium on the supply, and therefore prices go up.
On the contrary, if demand does not exist, and supply is excessive, then prices will go down.
If everything is hunky-dory, the prices will stay the same for years. However, the virtual “shrinking” of distance separating countries and hence the investors is moving fast, and things are getting more dynamic than years ago.
Someone has to tip the equilibrium first, and creates havoc to the market.
History has told us about Hong Kong property market collapse years ago, causing many suicides and bankruptcies. In recent times, Australia is not doing that well too. Today’s news about London's decline in property market confirms that the faster the rise, the bigger the fall.
News about biggest fall in house prices in nine years will send many to suffer a heart attack, especially those who have to sell the property due to mortgage stress. It can mean one moving out from a big house to living in a small rented room or goes homeless sleeping in the cold under a bridge.
Readers of my post must take note of my “free” advice. Take one step at a time, and do not let greed gets into your head. Do not follow the Joneses blindly, because they own a few properties, but under heavy mortgage.
For those budding developers and flipping investors, please do your sums right. Always work out the worst case scenario, and make sure you have an escape route should the worst case happen.
Melbourne cannot avoid the real estate downturn. It may be your opportunity to get your first home.
Thank you for reading.
Commenting on “London suffers biggest fall in house prices in nine years”
https://www.domain.com.au/news/london-suffers-biggest-fall-in-house-prices-in-nine-years-20180816-h141o8-758692/
What has this news on London house prices to do with Melbourne Real Estate?
I have been saying that there is no sure win in any investment, especially you are looking for a quick buck.
If there is a guarantee about making heaps of money from real estate, why are those gurus giving their secrets away free of charge so willingly. These are just entree to get you signed up to their many thousand-dollar courses or consultation.
In an economics class, the common discussion is about supply and demand curve. There is more than one pattern or behaviour. When demand goes up, supply needs to meet supply. If supply is insufficient to meet demand, then there will be premium on the supply, and therefore prices go up.
On the contrary, if demand does not exist, and supply is excessive, then prices will go down.
If everything is hunky-dory, the prices will stay the same for years. However, the virtual “shrinking” of distance separating countries and hence the investors is moving fast, and things are getting more dynamic than years ago.
Someone has to tip the equilibrium first, and creates havoc to the market.
History has told us about Hong Kong property market collapse years ago, causing many suicides and bankruptcies. In recent times, Australia is not doing that well too. Today’s news about London's decline in property market confirms that the faster the rise, the bigger the fall.
News about biggest fall in house prices in nine years will send many to suffer a heart attack, especially those who have to sell the property due to mortgage stress. It can mean one moving out from a big house to living in a small rented room or goes homeless sleeping in the cold under a bridge.
Readers of my post must take note of my “free” advice. Take one step at a time, and do not let greed gets into your head. Do not follow the Joneses blindly, because they own a few properties, but under heavy mortgage.
For those budding developers and flipping investors, please do your sums right. Always work out the worst case scenario, and make sure you have an escape route should the worst case happen.
Melbourne cannot avoid the real estate downturn. It may be your opportunity to get your first home.
Thank you for reading.
