Post to Facebook on 2/8/2018 at 1:33 AM
Commenting on “The worst is yet to come: house prices fall by the fastest rate in six years”
https://www.theage.com.au/business/the-economy/the-worst-is-yet-to-come-house-prices-fall-by-fastest-rate-in-six-years-20180801-p4zuuc.html
The news media real estate journalists and experts did not ring the alarm bell when Australian government announced the end of amnesty and tough stance taken by China government to curb the outflow of money.
Then there were all those self-proclaim real estate gurus running free seminars on accelerated depreciation, negative gearing, options and more recently property development, enticed the attendees to use duplication and replication approach to make mega bucks, and consequently led many greedy but half-bake and naive investors borrowing huge sum from various sources.
The early adopters may be the winners, but the market became congested, and prices kept going up and up because the pack mentality was at work. Mums and Dads had very good intention to help their children to get into the real estate market by providing interest free loan without knowing that the extra buying power in fact pushed the property prices up for the wrong reason.
The fall is sharp and will be for another year, around third quarter of 2019, when the bottom will be reached. However, it is not expected a sudden upswing until new government comes to power and starts mucking around with housing policies.
Hold on to your seat and tighten your seat-belt. The ride is getting more bumpy!
Thank you for reding.
Commenting on “The worst is yet to come: house prices fall by the fastest rate in six years”
https://www.theage.com.au/business/the-economy/the-worst-is-yet-to-come-house-prices-fall-by-fastest-rate-in-six-years-20180801-p4zuuc.html
The news media real estate journalists and experts did not ring the alarm bell when Australian government announced the end of amnesty and tough stance taken by China government to curb the outflow of money.
Then there were all those self-proclaim real estate gurus running free seminars on accelerated depreciation, negative gearing, options and more recently property development, enticed the attendees to use duplication and replication approach to make mega bucks, and consequently led many greedy but half-bake and naive investors borrowing huge sum from various sources.
The early adopters may be the winners, but the market became congested, and prices kept going up and up because the pack mentality was at work. Mums and Dads had very good intention to help their children to get into the real estate market by providing interest free loan without knowing that the extra buying power in fact pushed the property prices up for the wrong reason.
The fall is sharp and will be for another year, around third quarter of 2019, when the bottom will be reached. However, it is not expected a sudden upswing until new government comes to power and starts mucking around with housing policies.
Hold on to your seat and tighten your seat-belt. The ride is getting more bumpy!
Thank you for reding.
