‘Property is a risky thing’: Stagnant property prices the new normal

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Stagnant house prices are likely the new normal for property markets in much of Sydney and Melbourne, analysts are warning as prices fall for the 11th month in a row.

Read more here: http://www.abc.net.au/news/2018-09-11/property-prices-in-sydney-melbourne-likely-to-remain-stagnant/10231796

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Comments

Bris Vegas says:

Prices can never continue to rise and rise, if that happened money itself would become so inflated that the value of the property would be based on an artificial ideal which is not in line with reality. Prices need to come back down to earth and people need a reality check. Australia needs to have a major correction.

Richard Minh Le says:

3% down? Spoiler Alert it will finish at 70% in the mist of the steepest Depression in Australia’s history – 50% unemployment with dead banks walking.

S S says:

Ofcourse going to be the recession..Ppl don't have cash they buy house

MonkeyHazard says:

It honestly just makes me laugh, NO SHIT we're heading into a property crash, house and rent prices are insanely overpriced, this boom has been fueled by overseas investors and people buying investment properties and all of a sudden, they'll be no one who actually wants to buy to live in said properties, you think the population can afford these prices let alone WANT these prices. More and more people are either living with their parent's longer or sharing homes with more and more people, the demand for these houses *IS FAKE*, like I said above, it's fueled by idiots trying to make more money.

When the pool of overseas investors and investment property buyers runs out? That demand will suddenly switch to its real counterpart, aka, people who actually want to live and buy these said houses, and guess what? That's a TRUCK TON less demand than the artificially inflated demand we have now. The housing market crash will be one hell of a spectacular implosion, and honestly, I'm happy about it, fuck all this bullshit which is preventing millions from securing a basic human right, shelter at a realistic and affordable price. For example, the house in this video, really think about how much they're asking and the literal material and structure you're getting, 1.2 million dollars for that. Insane.

Flatpack Spiritualism says:

We are nowhere near the bottom of the market and people should stop listening to those who have a vested interest in the market—you know, the ones out there saying “Finally new home buyers catch a break”! With current rent returns in Sydney you need to be making ~4%pa growth just to break even, after you pay the mortgage and costs, so even stagnant property growth is a bad buy; you’re better off saving. Absolutely buyers are sitting on their hands, Veronica—because they haven’t been waiting for ‘things to slow down’; they’ve been waiting for this unfolding crash. We are in the top three countries when it comes to household debt, with almost $2 going out of households for every $1 coming in; we make Americans blush! There was no wage-driven demand behind the boom; it was purely debt-driven, so take away the easy access to debt and nobody can afford to buy; and because we don’t save, we import our debt, and overseas borrowing costs are going up. We are at the beginning of a downward spiral to recession—imported inflation, imported interest rate increases, rising global conflict between the US and our #1 trading partner, tightening household spending, job loses in the building, real estate and financial sectors spilling into retail etc. etc. Anyone buying property now is buying bad debt.

Joe White says:

A lot of my friends put their saving and even retirement super in investment property. They think life will be easy. RBA can't raise internet rate even half a point. I believe we are heading to a big disaster. We have not seen anything yet. Apartments will go extremely down.

Jayme Capurso says:

This story makes me smile as all the people who bought as an investment property instead of a home to live in are in for a rude awakening in the years to come when they want to sell to those who cannot afford to buy their stupidly over priced homes.

Jamie Subramaniam says:

Penrith.. maybe $450,000 you can sell.

Flatpack Spiritualism says:

Buying before selling in a falling market, seriously bad idea…

Jarejander69 says:

Can you hear the sound of the smallest fiddle?

Nothing to see here says:

Your house is worth what the market is willing to pay not what you think it's worth

Dubsys says:

Who the hell would want to live in the OUTSKIRTS of sydney for 1.2 million dollars

Royce Machado says:

The people complaining now about not getting the price they want for there property are the same people that were bragging when there property price was going up

Tsundere Shyvana "it's not like I wanted to get a penta or anything...b...b...Baka!" says:

AHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHHH SELL SELL SELL

Bop-ya Good says:

Property is risky if you are ignorant about property.
Walking in the national park is risky to those ignorant of the Bush.

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