Renting V Buying

[flag of convenience]

It's not an Australian phenomenon like you make it sound flag. Happens all over the World and I'm sure you saw it in the UK too. When I left Uni and was looking to buy the first house with my wife house prices were going crazy. Adverts on TV about get in now or you never would, News items about how much they had gone up in a single day, as if it was all a good thing. Drove people who had never considered owning a house into panic buying. A guy I worked with bought a house with his Sister because he believed the hype about if you don't buy one now next week they are going to be 10,000 pounds more. Happened in America before the GFC. The older generation, like us, know that there has to be a correction sometime and hope we are happy with where we live.

 

I don't think Perth is anywhere near as bad as Sydney and Melbourne and I think it's there that the rot will start. There may be a slowdown and a bit of a correction here but if you haven't over extended yourself and happy with where you live you shouldn't have too much to worry about.

 

Well it doesn't happen all over the world but the Anglo sphere are definitely impacted as are a few others, but the world luckily exists further than those countries. Of course east credit has led to the housing explosion as a principle factor in countries where housing is regarded as a prime asset factor.

 

I doubt how many are indeed aware that there has to be a correction of any sort. That why so many were dumb founded in UK late 80's. USA mid naughties, and the others that followed. Not that people necessary learn. The Irish market has increased 16% this year which has got some worried.

 

Perth is indeed over priced coming down from the biggest boom in its history in terms of resource created wealth. The rot has already started in Perth. We are the only capital where house prices are downwards in the negative. Brisbane only just out of negative ground. Sydney and to a lesser extent Melbourne are more global cities where more white collar, activity can for longer sustain at least for some higher prices. It and the financial industry is mostly found in those two cities.

Also the cities where cashed up immigrants tend to flock. It will hardly save those places but will likely prolong what has ben happening.

 

If you are not treating your house as an asset to dispose of for quick gain and as a place to live in for the foreseeable future of course the likely coming maelstrom (correction if you prefer)will have minimum to no impact. But far from all are in that position.