Victoria - Melbourne realestate, will it drop, will it rise? Has the world gone mad?

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  CyberMurning on 29/07/2016 - 17:32

  +1

  Fix your grammar? Too many there, a bit confused.

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  Name on 29/07/2016 - 21:09

  +1

  Interesting coincidence. This was posted 30 mins ago on abc news.

  http://mobile.abc.net.au/news/2016-07-29/australia-headed-fo…

  I can see it coming back down again.. Just like it has done in the past. Property goes through cycles of up and down. Long run it always goes up, but we're due for a downward dip in the market. I don't see prices falling 40 to 70% across the board like the professsor in the article reckons tho. There may be isolated instances of this though, perhaps in mining towns and maybe in the top end of town. But I doubt anything that the average person on here has to worry about.

  In saying that, it doesn't matter what the price of houses are doing unless you're selling and even then it's not a problem if you buy before the market moves up again, it's all relative.

  If you buy on the high, sell on the low and don't make any investments you're an idiot or just really unlucky.

  • 

    m0tyrider on 30/07/2016 - 00:51

    +1

    As a first time buyer/investor I am very worried about buying a place in the current market, things just arn't making sense to me. I am by no means a professional but have been watching the market for about two years and the only thing that seems to be jacking up the prices is low interest rates.

    Call me crazy but it seems like a massive pyramid scheme, Someone buys something for $250k, asks $350k for it, the next sap will pay $450k, $550k…when will it stop?

    40-70% might be a bit too high, but I would not complain due to my situation.

    I can't see them being the same price as 10 years ago, but I guess time will tell.

    If I keep waiting it might do me more harm then good if it doesn't go less then what they are at the moment!

    • 

      Name on 30/07/2016 - 19:14

      I'd probably hold off until after next year. Market is so unstable at the moment.

      And apparently we broke a record with longest country to go without a recession and are overdue.. Although just to say we hold the record doesn't mean we have to have a recession.. But with slowest wage growth in decades and highest levels of personal debt and the rba looking to drop rates further. It's looking more and more likely.

      http://fortune.com/2016/03/02/australia-recession/

    • 

      Euphemistic on 30/07/2016 - 20:58

      If you can afford to buy now, you should buy now. Speculating about saving money waiting for prices to drop will cost you in lost capital gain and potential higher inspterest rates.

      The catch with buying in this market is you need to be sure you won't HAVE to sell if the prices drop, be prepared to ride it out and wait for the price to return.

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  [Deactivated] on 29/07/2016 - 21:13

  It will have to eventually come off. I just sold my house, waiting on the sidelines from now on. I made in 3 years more than my salary tax free during that period. Nothing short of insane.

  If it doesn't come off, the world's a big place. No need to spend your life waiting for a 1950's shithole or dodgy bros new build for picasso prices in little ole Melbourne in little ole Aus.

  • 

    m0tyrider on 30/07/2016 - 00:52

    +1

    Valid point about the world being a big place, that said I wouldn't want to leave here. :(

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  chumlee on 30/07/2016 - 21:32

  It has to slow down and potentially drop in some cases eg apartments. Prices are rising way faster than incomes so it's not sustainable and yes you are correct to imply when interest rates rise people will be squeezed as a lot will have already borrowed at the top of their repayment capacity.