Property Rocket Ride Is Over - Enter The Bargain Hunters

[fatfreddie]

The Aussies Press don't muck around, they are usually up front with whats going on unlie the UK press who during the eatrly 90s crash kept saying things would pick up next year more like 7 years later.

"Property rocket ride is over - enter the bargain hunters"

Home prices across the city have fallen 10 per cent since the boom ended in late 2003 - and by 2.3 per cent in the last quarter - a Bureau of Statistics survey has revealed, suggesting the market slump is deeper, more protracted and from a lower peak than previously thought.

For those who invested in 2003, the shortest time horizon would be 2011 or 2012 before they start to see their investment has been worthwhile," he said.

http://www.smh.com.au/news/national/proper...3422108583.html

From stats round the UK I reckon its the same picture as in Oz though property in Oz is 50 % overvalued and in the UK it is 30 %

The timeline for 2011/2012 is about right. Similarly in both countries property peaked in 1988 then dropped and picked up in 95/96 and was back at 1988 prices around 10 years later 1997 (in London) which was the current boom till 2003. The timeline is almost identical in Oz.

[BandWagon]

Anecdotal:

I know a couple who bought a 4 bed house in Paddington (Sydney) 5 years ago. Paid $600k, and over a few years spent $200k renovating.

Last year the property was valued at $1.4mil, but sadly the years of renovating took their toll on the marriage.

They divorced and were forced to sell the house this year, and had to drop from $1.4mil to $850k.

That's a 40% drop, in one year.

Over five years they've made a 6% profit, not even keeping pace with inflation.

Property boom, what property boom?

Don't believe the rubbish in the papers, things in Sydney are dire.

If you're buying it may be worth making offers at 50% of asking price.

I hope we can do the same in the UK in a few years.

Edited December 3, 2005 by BandWagon

[fatfreddie]

The Property Slump here in Australia has made the TV tonight. Property is on the decrease and will drop for another 5 years in line with inflation. It was advised First Time Buyers wait . Auctions are getting passed in. There are still booms in Perth and Darwin as this is due to the commodity boom eg Resources. Not looking good for Sydney, Melbourne and Brisbane. The average property is overvalued by 10 %(Early in week it did state that the Australia market was overvalued by 50 % which I may agree may be slightly exagerated. It has a very heavy BTL market as more tax breaks etc)

What a day Front Headlines in Sydney Morning Herald with Big Letters and on TV news.

http://www.smh.com.au/news/national/proper...3422108583.html

Maybe some Property Developer has pissed off the Press and TV.

I think the only thing that can save the UK is if a gold vein is found running through the country or a heap of Uranium which the Chinese will pay anything for (For energy use...honest...yea really).

Now if the British tabloids printed what was headlined in the Sydney Morning Herald how long would the Editor be in a job.

Edited December 3, 2005 by fatfreddie