What do you think of the free fall in Australia?
Original publication date on the United States Real Estate Forum on Facebook:
2019-02-04T06:18:33+0000
What do you think of the free fall in Australia?
The Australian real estate bubble is bursting, and the 60-minute investigative program is broadcasting. Experts emphasize: “Get away from the market as long as you can,” prices may drop by 45% in just one year. In the video you will see a realtor, investor, analyst and financial analyst analyzing the dismal state of the market, giving a black outlook for the future. Yes, after 40 years of rising prices, the market in sought-after cities in Sydney and Melbourne has completely changed, prices are falling and buyers are taking the time.
Australians who are chasing home ownership obsessively are discovering a new reality. Declining market, difficulty selling, banks refusing to refinance mortgages and refusing to give loan collectors for existing mortgages, negative media headlines that cause declines to spread throughout the market, and some "surprises" such as:
The interest rate hike after a few decades in which it was just down, and demand from Grace loan holders to start paying off the fund as well (which ruined thousands of pensioners for their "real estate" pension plan and replaced it with anxiety and stress).
In addition, they tell us that the large brokerage agencies have forbidden intermediaries to be interviewed for the article and to say that the market is falling and that the good times are over. The bank also forbade workers from telling how many homes they are foreclosing due to arrears in mortgage payments. They also try to control public opinion and hide reality.
The Australians and their government understand that they are addicted to debt, all were "on the same drug" and believed that rising real estate prices would continue to drag the economy forever. But home buyers are finding that their situation is bleak - some have given up on the joys of living in order to meet mortgage payments.
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As is known Australia is a country with infinite uninhabited territory. You can see that they had no shortage of apartments and yet they have gone through years when prices went up insanely. How do you know that there was no shortage of immigrants there? The answer - look at what happened to the rent there.
Testing over the 20 year shows that their salaries have increased gradually. But in relation to salaries, house prices rose according to 2 while rental in general decreased. A classic case in which there is enough supply, so from the point of view of people it is easier to pay rent. But when everyone tries to buy a few apartments rather than one, the excess demand drives the buying prices skyward.
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Comments:
A million Australian dollars = 2.7 million.
Even after 40, the average house price in Australia rises, in shekels, only 1.5 million, similar to the average apartment price in Israel.
Only their easier. Their salaries are higher by 40%
And there is another difference - in Australia the average citizen lives in a private house of 235 meters and not a 100 meter apartment…
Link to the original post on the United States Real Estate Forum on Facebook - Works on a desktop computer:
http://bit.ly/2G9VrRm
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Daniel Lotker
Smells familiar .. Something from 2008… Lots of opportunities for cash buyers and it looks like the rental market will jump! Too bad Australia is so far away and quite difficult to reach?