Post to Facebook on 8/4/2020 10:57 AM
Commenting on “'Property prices to plunge as auction clearance rates fall off a cliff”
https://www.theage.com.au/money/investing/property-prices-to-plunge-as-auction-clearance-rates-fall-off-a-cliff-20200403-p54gt1.html
Commenting on “'Property prices to plunge as auction clearance rates fall off a cliff”
https://www.theage.com.au/money/investing/property-prices-to-plunge-as-auction-clearance-rates-fall-off-a-cliff-20200403-p54gt1.html
You have to keep up-to-date with my blogs. What I advised yesterday may be out-of-date today.
When I advise readers to hold, I do mean hold. Some people ask me whether a property is worth a certain amount, my answer is always vague and non-committal. The reason is simple; I am not the one that buys the property.
Beauty is in the eyes of the beholder. I do not know how much they like that property, and for what reason. The worth of that property in my eyes is different from theirs.
By now, you probably have read many of my blogs, and some of you have taken my advice and hold back that purchase. If during this period you are still accumulating your money more than you expense, you will have a much larger deposit when the time comes.
Even some people I know well or related to me thought that I was pessimistic and talked crap, until they got themselves burnt, and burnt badly. Even recently, one just bought a property which I believe is at least $150k too much.
Some people have bought and sold a few properties, and they become very confident or even over confident. No one can be an expert unless his ears are on the ground and eyes on the market trend. Each property has its own objective value, and the same property value fluctuates with economic situation.
My first boss at Barry Plant once said, “if you think you are an expert in real estate, it is time to get out of the game”.
There is some truth in it. Some real estate representatives and agents do get arrogant and with a click his fingers quote a price of a property without looking at it. Just a word of warning; these are not the agents you want to sell your property or sell you one, because they take things for granted and very likely they are a smart Alec.
A few days ago a member messaged me and asked “SFC what’s your outlook both economy and hounding market for 3, 6, 9 months?”
As I have said on 26 January, “the coronavirus will have a negative impact on the real estate market”, and I have said the fall at best will be no less than 20%, that translates to a property sold at $1,500,000 can go down to $1,200,000 or lower.
For some reason I think the economy will see some daylight in August or September. However, this Coronavirus pandemic will have left a trail of disaster.
Please remember NOT to bank on negative gearing. This pandemic will serve as a bad lesson that gives them financial nightmare.
Thank you for reading.
When I advise readers to hold, I do mean hold. Some people ask me whether a property is worth a certain amount, my answer is always vague and non-committal. The reason is simple; I am not the one that buys the property.
Beauty is in the eyes of the beholder. I do not know how much they like that property, and for what reason. The worth of that property in my eyes is different from theirs.
By now, you probably have read many of my blogs, and some of you have taken my advice and hold back that purchase. If during this period you are still accumulating your money more than you expense, you will have a much larger deposit when the time comes.
Even some people I know well or related to me thought that I was pessimistic and talked crap, until they got themselves burnt, and burnt badly. Even recently, one just bought a property which I believe is at least $150k too much.
Some people have bought and sold a few properties, and they become very confident or even over confident. No one can be an expert unless his ears are on the ground and eyes on the market trend. Each property has its own objective value, and the same property value fluctuates with economic situation.
My first boss at Barry Plant once said, “if you think you are an expert in real estate, it is time to get out of the game”.
There is some truth in it. Some real estate representatives and agents do get arrogant and with a click his fingers quote a price of a property without looking at it. Just a word of warning; these are not the agents you want to sell your property or sell you one, because they take things for granted and very likely they are a smart Alec.
A few days ago a member messaged me and asked “SFC what’s your outlook both economy and hounding market for 3, 6, 9 months?”
As I have said on 26 January, “the coronavirus will have a negative impact on the real estate market”, and I have said the fall at best will be no less than 20%, that translates to a property sold at $1,500,000 can go down to $1,200,000 or lower.
For some reason I think the economy will see some daylight in August or September. However, this Coronavirus pandemic will have left a trail of disaster.
Please remember NOT to bank on negative gearing. This pandemic will serve as a bad lesson that gives them financial nightmare.
Thank you for reading.
