That is true but the divorce rate is steady. If someone in your street sold a house for $600k in Jan then you will not sell your house for lees than that no matter how much equity u have. Too much loss of pride. The only time this happens to any degree is when people are under real stress and that is just not there in the Perth economy. Unemployment is really low, wages are still growing GDP growth is exceptional at 4% by any barometer.
Despite what Massive is claiming I have never predicted a booming market, but claims of a crashing market are ridiculously far fetched, IMHO
People sell for whatever they can get at the time. If you own property to live in, price falls are your friend if you are trading up. If there was a 50% fall and you sell your previously $400k house for $200k, the formerly $600k house that you want to trade up to now only costs $300k. A saving of $100k.
I did this years ago in London. I sold my house that would have fetched 80k five years earlier for 70k and traded up to a house that would have cost me 100k five years before but now cost 85k.
Whenever I have been a homeowner (most of the last 30 years), I have never given a monkeys about prices going up or down.
The idea that I would not sell because someone down the road sold for $100k more six months ago is plain bollocks. He would have paid more for his replacement house and I would be paying less.
The only people that gain when property goes up are the RE industry, banks and investment buyers.
High house prices help nobody who uses the house for its intended purpose.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
High house prices help nobody who uses the house for its intended purpose.
Yep, and the reason we're heading for the doghouse over the next few years is because we conditioned a generation to believe this was not true.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
People sell for whatever they can get at the time. If you own property to live in, price falls are your friend if you are trading up. If there was a 50% fall and you sell your previously $400k house for $200k, the formerly $600k house that you want to trade up to now only costs $300k. A saving of $100k.
I did this years ago in London. I sold my house that would have fetched 80k five years earlier for 70k and traded up to a house that would have cost me 100k five years before but now cost 85k.
Whenever I have been a homeowner (most of the last 30 years), I have never given a monkeys about prices going up or down.
The idea that I would not sell because someone down the road sold for $100k more six months ago is plain bollocks. He would have paid more for his replacement house and I would be paying less.
The only people that gain when property goes up are the RE industry, banks and investment buyers.
High house prices help nobody who uses the house for its intended purpose.
It doesn't work like that for the borrowers under stress, they need a certain price to repay debts and give them a deposit on the next house. If they can't get enough equity out they just sit tight until prices rise enough to give them some equity back.
You are talking like a guy with no debt, but that's not the case for the vulnerable owners that people are trying to screw.
It doesn't work like that for the borrowers under stress, they need a certain price to repay debts and give them a deposit on the next house. If they can't get enough equity out they just sit tight until prices rise enough to give them some equity back.
You are talking like a guy with no debt, but that's not the case for the vulnerable owners that people are trying to screw.
Spare me the sob story. You don't need equity to trade up. You just have to be able to prove that you can make the repayments on the larger loan. I have been there and done it. Whether your equity position is positive or negative, the lender will allow you to transfer that position to a different property.
Negative equity is no big deal unless you are trying to get out of the market altogether.
Tell me now how deflation is bad for consumers?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Spare me the sob story. You don't need equity to trade up. You just have to be able to prove that you can make the repayments on the larger loan. I have been there and done it. Whether your equity position is positive or negative, the lender will allow you to transfer that position to a different property.
Negative equity is no big deal unless you are trying to get out of the market altogether.
Horseshit.
Any expressed market opinion is my own and is not to be taken as financial advice
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Spare me the sob story. You don't need equity to trade up. You just have to be able to prove that you can make the repayments on the larger loan. I have been there and done it. Whether your equity position is positive or negative, the lender will allow you to transfer that position to a different property.
Negative equity is no big deal unless you are trying to get out of the market altogether.
Tell me now how deflation is bad for consumers?
Ive never known someone able to do this. Maybe if there were two incomes where before there was one. But even then I'd be surprised.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Ive never known someone able to do this. Maybe if there were two incomes where before there was one. But even then I'd be surprised.
Very simple. You go to your lender who you owe (say) 400k to and tell them that you want to buy a 600k property. Your existing property is worth 350k so you need an additional 200k to buy the 600k property. They check your finances, see you are good for it and you buy and sell just like you normally would. They are not going to turn you down because they will be charging valuation fees and you will have a larger mortgage. Just like if you had traded up with positive equity.
The negative equity trap is a pile of bollocks (unless you are trying to leave the market altogether).
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Very simple. You go to your lender who you owe (say) 400k to and tell them that you want to buy a 600k property. Your existing property is worth 350k so you need an additional 200k to buy the 600k property. They check your finances, see you are good for it and you buy and sell just like you normally would. They are not going to turn you down because they will be charging valuation fees and you will have a larger mortgage. Just like if you had traded up with positive equity.
The negative equity trap is a pile of bollocks (unless you are trying to leave the market altogether).
I know people, many people where the computer said no.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
It doesn't work like that for the borrowers under stress, they need a certain price to repay debts and give them a deposit on the next house. If they can't get enough equity out they just sit tight until prices rise enough to give them some equity back.
You are talking like a guy with no debt, but that's not the case for the vulnerable owners that people are trying to screw.
So a borrower having problems paying the mortgage will just tell the bank - no, im not selling for a small loss.
Gees, these banks are fair dinkum good blokes!
So in a full blown recession, we'll just have 50% of mortgagees not paying anything and waiting for the next leg up! Brilliant!
Im originally from Victoria(been here 6 years), and my opinion on Perth is very similar to Jimbos. The place is riddled with dumb fucks that have no idea what they are doing and a decent down turn is going to send them all running for the exits.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy