LIKE EVERYTHING ELSE IN LIFE, NOTHING LASTS FOREVER
The dip in the market is definitely, without doubt on its way within 12 months in residential property:
The dip in the market is definitely, without doubt on its way within 12 months in residential property:
- Banks are lending ridiculous sums to new buyers and the self employed like events leading to the 1987 sharemarket crash
- Friends of mine who are big contracting income earners are making twice their normal salary and are spending everything they have on stuff...they are not worth the income they are getting at all
- The young people (age 25-35) have never been through a crash and don't know the pain or the nature of a market economy
- Interest rates are very high and possibly rising, perhaps not as high as the past but current prices are higher than ever before in relation to income % which offsets this
- Prices are way higher than current building replacement cost
- The Chinese sharemarket is about to crash big time, like 1987 in NZ, who knows what this will do
- I have noticed a few properties around town being resold within 9-12 months, speculators are on the up more than I have ever seen and are trying to cash out
- I went to an open home close by in Brooklyn, Wellington and have never seen such a small amount of people, there was only one other person there which has been unheard of over the past 5 years
- A Valuer who I know has been in the game for 30 years recently told me he has had signs from agents and is hearing things similar words from them like before the last big crash
- I believe the market is dipping as I write this, current economic info is 3-6 months behind
- In Sydney the prices have dipped by up to 40% in Parramatta (Sydney) and out West in average suburbs
- Little drop in good areas, large drop of up to 30-40% in bad areas within 12 months, e.g. Wainui and Porirua
- Overgeared investors (leverage 80%+) could go under if they have a portfolio is undesirable areas or in apartments that are in average locations
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