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Smurf1976

More Bears Coming Out In Australia

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Today Tonight, a popular mainstream (but not particularly intellectual) "current affairs" TV program on Channel 7 (a major Oz TV network) has just run a story on people losing the lot due to low-doc loans, too much MEWing etc.

And it all went belly up when:

...House prices went down.

...We withdrew equity straight after we bought the property.

...Simply couldn't meet the repayments.

...Interest rates went up (remember that 0.25%).

...We bought an investment property. "We should have just sold and bought another house and not invested at all".

And so on. The relevance here goes far beyond the content of the story itself but rather that:

1. A large number of people have just been told that people lose the lot when house prices fall.

2. Only last week they heard from John Symond that prices are indeed falling.

3. They have also been told that over leveraged investment leads to ruin with the conclusion very much a "don't go there".

4. They also heard from the "victims" that if you can't afford property then just don't buy.

In short, lot's of bearish stuff.

More telling though in my opinion is the fact that a major TV network just ran this story at the front of the program. That's three high profile bears in 9 days now. And this one referred to the property price falls as very matter of fact "and then the prices went down and...". If this doesn't convince the public then nothing will.

Crash is rolling in Oz in my opinion. Just too many bears coming out now to ignore. Game Over.

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Guest Winners and Losers

For those of you who think that the UK property market will not crash, I fear that you are terribly misguided. I bought a flat in Streatham Hill in 1997 for 65,000. Having spent nothing on it, bar painting, I then sold it in 2002 for 180,000. It sold in less than a week. My husband and I then moved to Australia and (stupidly!) bought a house in late 2002. At the time there was huge competition for property and you could not beat vendors down. We then decided to come back to the UK, after I spent a considerable amount of time kicking myself for selling my London flat! We paid 390,00 (oz dollars) for our house. We were told to market it in late 2004 for 540,000. Unfortunately it was the beginning of the end. Hardly any lookers and no offers in 12 mths, even after dropping price by 100,000!! And it wasn't just us. Nothing was shifting and buyers were making crazy offers. EA's and media tried for months to say it was this and that, soft landing, blah, blah, blah (all in their own interests of course!). We ended up renting the house out. Now I doubt we would get much more than we paid for it. Our saving grace is the equity we have - we were not greedy in taking it out! Still the rent only covers an interest only mortgage. As the UK market started to get wobbly I could see the writing on the wall, as we had just experienced all of what is happening now in the UK. We want to buy again in the UK, but will definitely wait now. Prices will come down, like it or not.

Today Tonight, a popular mainstream (but not particularly intellectual) "current affairs" TV program on Channel 7 (a major Oz TV network) has just run a story on people losing the lot due to low-doc loans, too much MEWing etc.

And it all went belly up when:

...House prices went down.

...We withdrew equity straight after we bought the property.

...Simply couldn't meet the repayments.

...Interest rates went up (remember that 0.25%).

...We bought an investment property. "We should have just sold and bought another house and not invested at all".

And so on. The relevance here goes far beyond the content of the story itself but rather that:

1. A large number of people have just been told that people lose the lot when house prices fall.

2. Only last week they heard from John Symond that prices are indeed falling.

3. They have also been told that over leveraged investment leads to ruin with the conclusion very much a "don't go there".

4. They also heard from the "victims" that if you can't afford property then just don't buy.

In short, lot's of bearish stuff.

More telling though in my opinion is the fact that a major TV network just ran this story at the front of the program. That's three high profile bears in 9 days now. And this one referred to the property price falls as very matter of fact "and then the prices went down and...". If this doesn't convince the public then nothing will.

Crash is rolling in Oz in my opinion. Just too many bears coming out now to ignore. Game Over.

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There is no doubt now that a very nasty story is unfolding in the Aussie property market.

However, your man in the street here in Ireland is blissfully unaware as the mainstream media haven't yet picked up on the story - I am yet to read or hear a single reference to it. I am not holding my breath either.

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Guest Winners and Losers

I'm glad you didnt say that you'd eat your hat. Hate you to end up with a nasty case of indigestion.

There is no doubt now that a very nasty story is unfolding in the Aussie property market.

However, your man in the street here in Ireland is blissfully unaware as the mainstream media haven't yet picked up on the story - I am yet to read or hear a single reference to it. I am not holding my breath either.

http://www.belfasttelegraph.co.uk/news/sto...sp?story=669060

Perhaps you should read this.

There is no doubt now that a very nasty story is unfolding in the Aussie property market.

However, your man in the street here in Ireland is blissfully unaware as the mainstream media haven't yet picked up on the story - I am yet to read or hear a single reference to it. I am not holding my breath either.

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I'm glad you didnt say that you'd eat your hat. Hate you to end up with a nasty case of indigestion.

http://www.belfasttelegraph.co.uk/news/sto...sp?story=669060

Perhaps you should read this.

Perhaps you misunderstood me a little. I meant that, I am yet to read a reference to it because here in the Republic of Ireland, only bullish property news is reported (it is one of my favourite rants). Hence, 99% of people will be completely unware of the Aussie situation.

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Today Tonight, a popular mainstream (but not particularly intellectual) "current affairs" TV program on Channel 7 (a major Oz TV network) has just run a story on people losing the lot due to low-doc loans, too much MEWing etc.

And it all went belly up when:

...House prices went down.

...We withdrew equity straight after we bought the property.

...Simply couldn't meet the repayments.

...Interest rates went up (remember that 0.25%).

...We bought an investment property. "We should have just sold and bought another house and not invested at all".

And so on. The relevance here goes far beyond the content of the story itself but rather that:

1. A large number of people have just been told that people lose the lot when house prices fall.

2. Only last week they heard from John Symond that prices are indeed falling.

3. They have also been told that over leveraged investment leads to ruin with the conclusion very much a "don't go there".

4. They also heard from the "victims" that if you can't afford property then just don't buy.

In short, lot's of bearish stuff.

More telling though in my opinion is the fact that a major TV network just ran this story at the front of the program. That's three high profile bears in 9 days now. And this one referred to the property price falls as very matter of fact "and then the prices went down and...". If this doesn't convince the public then nothing will.

Crash is rolling in Oz in my opinion. Just too many bears coming out now to ignore. Game Over.

Hey Smurf,

Fancy meeting you here :)

I wish someone would tell the mob where I live what's about to happen.

Over here in WA, and particularly the Midwest, it's going nuts, absolutely silly. Houses here are about 8-10 x earnings..IN A COUNTRY TOWN. Unemployment is also quite high here.

It's absurd and I can only see pain for lots of folk.

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I met up with a mate of mine whom I had not seen for 11 years. Anyhow over a few(sic) beers he started going on about how BS house prices were, how as much as he would like to buy he couldn't afford and if he could he wouldn't buy because why should someone make $150,000 just because they bought a house 3-4 years ago. I let him in on my opinion (I don't share it much because ppl love to shoot the messenger).

The fact is that house prices are far in excess what the average person can afford. In order for houses to be affordable prices have to drop or wages need to rise. In Oz wages are under attack so the only place wages are going is down. So that leaves house prices. Once prices start to fall people will not buy because of the belief that if they wait they can save even more. Mu ha ha. Sheeple thinking working for me for a change.

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The 12,000 or so jobs going at Telstra isn't going to help house prices rise...

That said, I would rather see the workers keep their jobs so I'm not saying that this is a good thing.

Hey Smurf,

Fancy meeting you here :)

Perhaps we should invite tech/a over. :D Not really his sort of forum though...

The latest Commonwealth Bank data is out. I haven't had time to look at it all yet but I did notice that Hobart was down a bit. :)

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Today Tonight, a popular mainstream (but not particularly intellectual) "current affairs" TV program on Channel 7 (a major Oz TV network) has just run a story on people losing the lot due to low-doc loans, too much MEWing etc.

And it all went belly up when:

...House prices went down.

...We withdrew equity straight after we bought the property.

...Simply couldn't meet the repayments.

...Interest rates went up (remember that 0.25%).

...We bought an investment property. "We should have just sold and bought another house and not invested at all".

And so on. The relevance here goes far beyond the content of the story itself but rather that:

1. A large number of people have just been told that people lose the lot when house prices fall.

2. Only last week they heard from John Symond that prices are indeed falling.

3. They have also been told that over leveraged investment leads to ruin with the conclusion very much a "don't go there".

4. They also heard from the "victims" that if you can't afford property then just don't buy.

In short, lot's of bearish stuff.

More telling though in my opinion is the fact that a major TV network just ran this story at the front of the program. That's three high profile bears in 9 days now. And this one referred to the property price falls as very matter of fact "and then the prices went down and...". If this doesn't convince the public then nothing will.

Crash is rolling in Oz in my opinion. Just too many bears coming out now to ignore. Game Over.

What are the bankruptcy laws like in Australia?

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Can anyone update me on what is going on with the Melbourne property market?

I am planning to migrate to Melbourne from Hong Kong and I would like to buy a 'family home'.

Are prices in Melbourne stable now or are they about to fall off a cliff?

All views are most welcome.

Cheers.

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Telstra? 12,000 jobs going?

Sorry, should have explained. :)

Telstra, the partly privatised national Australian phone company, has just announced today that 12,000 jobs are to go.

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Ponderings On THe Australian Market

It seems to be a general concensus that the Australian market (and crash) is six months ahead of the Uk's.

I was thinking that this could result from geographical factors. Being in the southern hemisphere Oz is currently enjoying Spring.

Can anyone confirm whether we should expect now to be the bussiest period in the Australian anual cycle? (as spring is in the UK)

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Can anyone confirm whether we should expect now to be the bussiest period in the Australian anual cycle? (as spring is in the UK)

In short, yes.

The Christmas / Summer period is the main holiday season in Australia with schools not going back until the end of January or even mid-February in some states. A very large portion of the workforce will take at least some of their leave during this period too. Therefore a primary concern of those selling / buying property is that they want to move at least a couple of weeks before Christmas so if they haven't sold/bought by about now then many will decide to wait until after Christmas. Some will even take properties off the market to avoid moving in January.

Real estate transactions peak in Spring and then basically go dead over over the holiday season before picking up again in late January.

Around the end of February tends to be a traditional financial "wake up" time since the back to school costs have just been paid, the credit card bills from Christmas are due, people are back at work etc. and by this time the strain can start to show.

Edited by Smurf1976

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Guest Winners and Losers

Apologies. Yes, ignorance is bliss. But, education is expensive, ignorance is even more expensive! It might end up being different here, but having lived through the slow down (and now, seemingly, crash), I cant see how it will be any different. All the signs are the same. Time will tell I guess.

Perhaps you misunderstood me a little. I meant that, I am yet to read a reference to it because here in the Republic of Ireland, only bullish property news is reported (it is one of my favourite rants). Hence, 99% of people will be completely unware of the Aussie situation.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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