Nothing is unrealistic. There is no real price. The price is always what the buyer and seller agree to.
You know nothing.
You love deflation and you probably have dreams about it. Its called negotiating realistically, and when it gets toooooo stupid one backs out and movers on (buyer) and seller accepts or rejects and if they are smart should understand the market they are in.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
You love deflation and you probably have dreams about it. Its called negotiating realistically, and when it gets toooooo stupid one backs out and movers on (buyer) and seller accepts or rejects and if they are smart should understand the market they are in.
The price is whatever the buyer and seller accept. There is no other price, other than in communist states, but even there ...
Speak when you are angry and you will make the best speech you will ever regret. Ambrose Bierce
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
Nothing is unrealistic. There is no real price. The price is always what the buyer and seller agree to.
well, not exactly... it depends what you mean by Price.
IMHO.
The Price is, in the real world, the Asking Price that is put out (assuming a fixed price is advertised).
The Sale Price is the final agreed price between buyer and seller.. it is often taken as the current value, simply because it was sold... however if the property was bought by a vendor underselling, or a buyer over paying it's fair market value, then this mistake should not automatically mean the real value and the sale price are equal... eg. a long or short settlement might skew the price, or a vendor who has been cheated out of fair market price, or a buyer who is caught up in outbidding fake other interest in the property.
In the same way when you walk into a shop and a loaf of bread has a price on it, there is nothing stopping you from haggling on that price to reach an agreed sale price, but the initial sticker price was it's actual price.
You can purchase a 2 bed unit sub 400,000 in the top 10 wealthiest suburbs of Perth..... If it drops much more, dole welfare recipients could afford the repayments!
Extract:
"While Perth results were very poor Mr Ryder said that could be a sign to some investors that now was a good time to buy. “The smart investors buy when markets are down and it would be a really good time to be looking in Perth because it is pretty much at the bottom,’’ he said. “You can buy at really good prices without competition from other buyers. The smart counter-cyclical investors would see now as an opportunity for Perth because we know it has got a history of being a strong city and we know it will come back. “We are now starting to see almost daily better news about the resources sector and commodity prices particularly for coal, but also for iron ore are rising and if that continues we are going to see some revival.’’
So you agree that if prices fall a bit more, welfare recipients could afford the repayments ?
Maybe they could, but we will do some sums in a moment.
But do you think they could drum up the required deposit Terry ?
Do you think they would qualify for a loan Terry ?
So does it really matter even if they could somehow afford it ?
Remember this. It does not matter how cheap prices are, how cheap rents are, how much the population is growing by, or how low interest rates are, what matters is wheather you have jobs for these people. Without a job, you will not qualify for a mortgage.
Now , could they afford the repayments if prices dropped a bit more ? Lets say prices drop another 10%(despite apparently being at the bottom Terry) , so now this $390k 2 bedder is $350k . Lets pretend the banks think its so cheap they dont even need a deposit , or nanna pays the deposit and guarantors the property. And that stamp duty has been abolished , or nanna paid that too.
Ok... So now we have a 350k mortgage, and he rents the room out to his other dole mate for $150 a week.
A 350k mortgage over 25 years at 3.75% , would still see him around $400 a week after the rented room pays council, inurance, water rates ,strata fees or repairs.
Can somebody on the dole afford $400 per week in repayments ? Terry seems to think so. Thats what he tells us.
Will rates be 3.75% forever ? How much will repayments be if rates rise ?
Lets assume rates go to zero from our current 1.5 % rba rate, and banks pass on half, being 0.75% .
Repayments are still over $380 per week. Can somebody on the dole afford that ? And now we are at zero , so no more discounts to be had for any mortgage holder.
Lets assume the banks pass on the full 1.5 % from here. Repayments are still over $350 per week.
Will zero rates makes much difference, even if the mortgage holder does have a job ?
well, not exactly... it depends what you mean by Price.
Yes, exactly. By price I mean the dollar consideration that has passed.
Quote:
The Price is, in the real world, the Asking Price that is put out (assuming a fixed price is advertised).
No, it isn't. There is no price until a contract is agreed by the buyer and seller.
Quote:
In the same way when you walk into a shop and a loaf of bread has a price on it, there is nothing stopping you from haggling on that price to reach an agreed sale price, but the initial sticker price was it's actual price.
No it wasn't, otherwise entry into the shop would imply a contract to purchase bread. The sticker 'price' is merely an offer. The potential buyer can make a counter offer. If neither offer is accepted, there is no contract. If any offer is agreed to by both the buyer and seller, the price is struck when consideration passes from the buyer to the seller.
Speak when you are angry and you will make the best speech you will ever regret. Ambrose Bierce
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