Provided, of course, that the people who were previously in market for prestige housing don't decide to slow down a bit and buy mid range instead.
Der. If that happens the people selling the lower end prestige properties will have to reduce their prices and then the next lot of people in the market for the mid range will be able to afford the lower end prestige. Fool.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Der. If that happens the people selling the lower end prestige properties will have to reduce their prices and then the next lot of people in the market for the mid range will be able to afford the lower end prestige. Fool.
Wrong.
What happens in the real world is that demand moves down and compresses into the lower and medium parts of the market. With greater demand, prices are supported for lower and medium, but prestige really suffers (which is what we're seeing now).
What happens in the real world is that demand moves down and compresses into the lower and medium parts of the market. With greater demand, prices are supported for lower and medium, but prestige really suffers (which is what we're seeing now).
Wrong. What happens is double income people get a prestige property for around $800k and the mid range goes down to $500-600k and units go down to $200-$300k. That's a rough idea from a Sydney perspective.
You don't understand percentages do you.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Wrong. What happens is double income people get a prestige property for around $800k and the mid range goes down to $500-600k and units go down to $200-$300k. That's a rough idea from a Sydney perspective.
You don't understand percentages do you.
Wrong.
Double income people buy upper medium, because most of them don't have the horsepower to raise the fund needed to convince a bank to lend for a prestige property, even when that property is available at a discount. A few people take advantage of cheap prices for prestige property, but there's not as many of them as you think. Most people on average to average+50% incomes (even when there's two of them) don't have the equity, cash and cashflow needed.
Double income people buy upper medium, because most of them don't have the horsepower to raise the fund needed to convince a bank to lend for a prestige property, even when that property is available at a discount. A few people take advantage of cheap prices for prestige property, but there's not as many of them as you think. Most people on average to average+50% incomes (even when there's two of them) don't have the equity, cash and cashflow needed.
Wrong. In the event of a crash lower prestige becomes upper medium. Upper medium becomes medium, medium becomes lower, lower becomes a unit, a unit becomes a lot cheaper.
Two people on $100k spend about $800k and get a lower prestige house. As they should have in the first place before all the corruption and theft occurred from the property mafia scum.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Wrong. In the event of a crash lower prestige becomes upper medium. Upper medium becomes medium, medium becomes lower, lower becomes a unit, a unit becomes a lot cheaper.
Two people on $100k spend about $800k and get a lower prestige house. As they should have in the first place before all the corruption and theft occurred from the property mafia scum.
The market doesn't drop down linearly like you are suggesting - it compresses. During difficult times, there is more demand for low end property, not less, so prices generally hold up well. Medium range property also has more money chasing it. The top end suffers.
Until there is a large change to unemployment, bottom end and lower-medium property will still have lots of money chasing it. It's just that more buyers have to compete for the same market MINUS most of the prestige property.
''Prices in the prestige market are back to 2007 levels,'' says the senior economist at Australian Property Monitors, Dr Andrew Wilson, pointing to the $1.6 million median house price of the top 10 per cent of the market as of early 2007. Five years on, that median is now almost level at $1,605,000.
Won't be long til the prestige market drives down the prices of the mid range market.
I calculated it was back to 2005 levels. That's the prestige property market for you. Capital gain is great when it is running, but it is *very* volatile because nobody feels compelled to buy in it. It's a totally different mareket from the rest of property. Not a great investment at any time.
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