Perth just on 2010 values and falling. Renters will have saved a nice deposit on like for like.
There would be some that saved and invested and will likely do alright. Many would have pissed their money against the wall and wasted an opportunity.
On the home buying side, there would be some that have kept borrowing against their property to by nice new shiny, gleamy toys that fall in value and may soon be finding they owe more on their property than it is worth.
Not all renters are losers, not all home buyers are winners.
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
It's about time somebody asked this question. It's like the taboo subject around here.
I have now come full circle, after going through the GFC, watching Keen rise to prominence and following his views, and those of other bears such who reside here. I don't really understand everything Keen and co. say, I really don't and I'm not ashamed of that (I have an IQ of 135). They are clearly very very smart guys. Smarter than your average smart guy.
But I put it to you all that academic smarts don't always lead to real life success. Sometimes it comes down to politics and backdoor deals and factors that academic analysis may not be able to grasp as well as the man on the street. As well as the man whose gut tells him although the argument sounds right, it clearly isn't - for a reason unknown.
I wish I had more street smarts and less academic smarts, the older I get, the more I realise street smarts are far more valuable.
Look, I don't really care anymore, it's a hopeless situation. I've missed the boat and now it's either mortgage myself to the eyeballs or buy something I don't wanna buy. I'm going for the mortgage myself to the eyeballs route. What's the worst that can happen. Bankruptcy I guess. Not optimal, but it's a risk I'm going to take. I can honestly see this market steaming ahead for a long time to come. There is no respite out there on the streets. The desperation is tangible.
Tell me please, where are all these buyers going to go? The 100 or so who walk through a property with me every weekend. Where are they going to go?
Honestly, it has hit home hard since I've hit the Saturday inspection trail over the last couple of months.
It's hopeless. It's frustrating. It makes me hate this city I call home.
Now, I'm not blaming anyone for my extremely bad decision not to buy a home when prices were significantly cheaper. That was my bad decision. My decisions are my own. But I wish I never had of found this forum and others like it. I wish I had never seen Keen on "your money your call". Then I'd be like all the other ignorant buyers who dived in and are now on their way to the easy life. Ignorance really can be bliss.
But I think it needs to be pointed out that there are people on this forum and elsewhere, the proclaimed expert on the topic of home prices, who have got it FLAT OUT WRONG. I just want them to admit that (Keen did with his walk to some degree and I respect that a lot). I just want them to admit, that even though they are super duper smart and understand economics and markets and whatever to a level that us mere mortals could never dream, that their smarts may not be so "street smart".
I'm done following them. I am no longer a bear. I am not a bull. But I just don't believe these guys any more. Good luck to those who follow them into the future.
I would love to hear some other experience of FHBs on the street each Saturday. Maybe theirs is different to mine and there are properties within 10km of the Sydney CBD that are not in high demand. There may be opens without an air of desperation from the buy side. I'd like to hear it. I'd also like to hear where all these displaced buyers are going. I've upped the ante on my finance arrangements and willingness to pay. I suspect many others are doing the same.
All this may make the crash bigger, or it may set a floor under the market forever. No one really knows!
Hi Shadow. Still being fraudulent lol
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
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