paul1977 Posted November 5, 2015 Share Posted November 5, 2015 http://www.perthnow.com.au/realestate/news/perth-wa/prestige-perth-house-prices-plunge-by-up-to-30-per-cent/news-story/da43bc1cd034231cfd72605f8d055b2d#load-story-commentsour A bargin in 18 months time Quote Link to comment Share on other sites More sharing options...
newjez Posted November 6, 2015 Share Posted November 6, 2015 http://www.perthnow.com.au/realestate/news/perth-wa/prestige-perth-house-prices-plunge-by-up-to-30-per-cent/news-story/da43bc1cd034231cfd72605f8d055b2d#load-story-commentsour A bargin in 18 months time I guess anyone who sold their UK property a few years back and exchanged at 1.5 are staring at their shoes. My village in the se UK is up 20% this year alone. All a matter of timing. Aren't you coming the other way? Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 Thankfully we are here for the longer term. I feel for people who bought at the peak and now risk negative equity. Swings and roundabouts. Still areas of growth here in Perth I have noticed from REIWA stats, seems to be very suburb driven. Quote Link to comment Share on other sites More sharing options...
Parley Posted November 6, 2015 Share Posted November 6, 2015 Presumably everyone who bought was happy with the price they paid, at the time of purchase. So don't worry about it. Unless you lose your job. Then you can worry. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 Some of the wealthier suburbs have seen falls way beyond the 7% given for the year. It is patchy but mostly how much lost. I doubt if there are any gains anywhere. Although the industry is claiming another 2% fall should see the market become stabile, it appears more wishful thinking than based on scientific fact. The market is shockingly overpriced. All due to the incredible level of leverage during the days of hyper easy capital requirements which thankfully are coming to an end. Too many builds in Perth with a slowing population and declining job market. Of course it was going to end in tears for many. Banks likely to lift interest rats on own account regardless of what the Reserve Bank of Australia does. Not only on investment property either. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 Presumably everyone who bought was happy with the price they paid, at the time of purchase. So don't worry about it. Unless you lose your job. Then you can worry. I wonder why you would arrive at that conclusion? They were scared stiff in many cases that the market would be out of their reach for ever if failing to act. This does not imply they were in a position of any comfort to take on a massive mortgage as banks were very laissez faire lending money. Main part and easy money for them while the economy is moving along. The games been sussed and banks are called to have better back up. Borrowing on foreign markets hardly cheap either. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 Thankfully we are here for the longer term. I feel for people who bought at the peak and now risk negative equity. Swings and roundabouts. Still areas of growth here in Perth I have noticed from REIWA stats, seems to be very suburb driven. I would treat REIWA stats with some caution. A lot of the well to do suburbs are losing ground steadily far more than the 7% overall loss. Much, much more in some areas. I wonder which areas they are high lighting as growth? Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 I guess anyone who sold their UK property a few years back and exchanged at 1.5 are staring at their shoes. My village in the se UK is up 20% this year alone. All a matter of timing. Aren't you coming the other way? Lessons are never learnt I'm afraid. UK setting itself up for a repeat performance. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 I would treat REIWA stats with some caution. A lot of the well to do suburbs are losing ground steadily far more than the 7% overall loss. Much, much more in some areas. I wonder which areas they are high lighting as growth? Just referring to the % increase that comes up when you search by suburb. Currambine I think it was 7% up...or Connolly, one of the 2. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 Just referring to the % increase that comes up when you search by suburb. Currambine I think it was 7% up...or Connolly, one of the 2. I think I did hear about Currambine. Not sure if still the case. Not to worry.Far more interesting is what size of a correction is coming. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 I think I did hear about Currambine. Not sure if still the case. Not to worry.Far more interesting is what size of a correction is coming. What do you think will happen long term? Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 What do you think will happen long term? I prefer not to get to bogged down with logistics, as have been saying a lot on this topic, over the past couple of years, as the situation became obvious that it was untenable. I received quite severe criticism in places from those not wanting to know. But I will say Perth has a long way to go before any possible recovery and the worst is yet to come. For those of us with no debts and purchased long ago it doesn't really impact. Well actually it does as lower interest rates aggravate the problem as well as giving me far lower returns. Besides I am no fan of lower interest rates and weaker dollar. It shows an economy for what it is. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 I prefer not to get to bogged down with logistics, as have been saying a lot on this topic, over the past couple of years, as the situation became obvious that it was untenable. I received quite severe criticism in places from those not wanting to know. But I will say Perth has a long way to go before any possible recovery and the worst is yet to come. For those of us with no debts and purchased long ago it doesn't really impact. Well actually it does as lower interest rates aggravate the problem as well as giving me far lower returns. Besides I am no fan of lower interest rates and weaker dollar. It shows an economy for what it is. I've raised our mortgage payments while the rate is so low as we can afford it. Not looking forward to the inevitable rise. Just glad we bought when did and in an OK position. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 I've raised our mortgage payments while the rate is so low as we can afford it. Not looking forward to the inevitable rise. Just glad we bought when did and in an OK position. Get rid of all debts as soon as possible would be my advise. That's real freedom. No debt and money in the bank and ability to sack the boss, not the reverse. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 Get rid of all debts as soon as possible would be my advise. That's real freedom. No debt and money in the bank and ability to sack the boss, not the reverse. Trying! Quote Link to comment Share on other sites More sharing options...
bristolman Posted November 6, 2015 Share Posted November 6, 2015 Get rid of all debts as soon as possible would be my advise. That's real freedom. No debt and money in the bank and ability to sack the boss, not the reverse. We have minimal debt, no mortgage and I'm the boss Quote Link to comment Share on other sites More sharing options...
bristolman Posted November 6, 2015 Share Posted November 6, 2015 http://www.perthnow.com.au/realestate/news/perth-wa/prestige-perth-house-prices-plunge-by-up-to-30-per-cent/news-story/da43bc1cd034231cfd72605f8d055b2d#load-story-commentsour A bargin in 18 months time That's crazy but it was unsustainable. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 We have minimal debt, no mortgage and I'm the boss A mans cave his certainly his castle when your home. I can tell. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted November 6, 2015 Share Posted November 6, 2015 That's crazy but it was unsustainable. More craziness to follow. Quote Link to comment Share on other sites More sharing options...
newjez Posted November 6, 2015 Share Posted November 6, 2015 G Just referring to the % increase that comes up when you search by suburb. Currambine I think it was 7% up...or Connolly, one of the 2. You have to take the reiwa stats with a pinch of salt. For instance, take aveley, which has an average price of around 500,000. Now say sales were really low, but a couple of top end properties managed to sell for 800,000, discounted from the last purchase price of a million. Reiwa would report this as a massive rise. This is an exaggerated example I know, but the theory holds true. Just because reiwa says a suburb rises or falls, doesn't mean it actually has. There are better tools out there, abs or rp data. Although these too are only an indication. Quote Link to comment Share on other sites More sharing options...
newjez Posted November 6, 2015 Share Posted November 6, 2015 I prefer not to get to bogged down with logistics, as have been saying a lot on this topic, over the past couple of years, as the situation became obvious that it was untenable. I received quite severe criticism in places from those not wanting to know. But I will say Perth has a long way to go before any possible recovery and the worst is yet to come. For those of us with no debts and purchased long ago it doesn't really impact. Well actually it does as lower interest rates aggravate the problem as well as giving me far lower returns. Besides I am no fan of lower interest rates and weaker dollar. It shows an economy for what it is. There is a theory that rates in Australia will need to rise when the US raises. The US hadn't raised rates for such a long time. It is unprecedented. It could be a millennium bug moment, or it could be a financial tsunami. Cool the beers, get the pop corn and grab a front row seat. Quote Link to comment Share on other sites More sharing options...
newjez Posted November 6, 2015 Share Posted November 6, 2015 Lessons are never learnt I'm afraid. UK setting itself up for a repeat performance. The problem is immigration to some extent. Cheap labour from the EU is keeping wages down, and keeping inflation down. Cheap dumping from China is also keeping inflation down. Interest rates should already be rising. The fact that they are not may lead to another asset bubble. We all know how that one ends. The govt needs some balls and needs to regulate. Without it, rinse and repeat the last ten years. Quote Link to comment Share on other sites More sharing options...
JockinTas Posted November 6, 2015 Share Posted November 6, 2015 How would the average family cope if interest rates rose to 17%. That's how high they were at the end of the 80's. Quote Link to comment Share on other sites More sharing options...
HappyHeart Posted November 6, 2015 Share Posted November 6, 2015 How would the average family cope if interest rates rose to 17%. That's how high they were at the end of the 80's. Scary thought! Quote Link to comment Share on other sites More sharing options...
JockinTas Posted November 6, 2015 Share Posted November 6, 2015 Scary thought! Isn't it. Mind you houses were a great deal more affordable back then but it was still a struggle at times. Quote Link to comment Share on other sites More sharing options...
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