Perth House Prices Plummet
May 5th 2009, 3:58 am
#46
Lost in BE Cyberspace
Joined: Feb 2005
Posts: 15,526
Re: Perth House Prices Plummet
Nothing really dramatic happening in Melbourne as of yet... Unless you live in the high end of town.
All that appears to be happening here is the gap between the top end of town and bottom end is narrowing.
Lets see what happens with the FHOG, I dont see how the government can afford to change it at present.
For more detailed information read the following report.
http://diamond-valley-leader.whereil...es-fall-again/
I concur totally with IvanMs appraisal that there has been a major slow down of houses on the market.
Here's the most upto date article I can find at present.
http://www.theaustralian.news.com.au...54-643,00.html
Looks like it's Melbournes biggest slump since 2004...
http://www.theage.com.au/articles/20...938920983.html
All that appears to be happening here is the gap between the top end of town and bottom end is narrowing.
Lets see what happens with the FHOG, I dont see how the government can afford to change it at present.
For more detailed information read the following report.
http://diamond-valley-leader.whereil...es-fall-again/
I concur totally with IvanMs appraisal that there has been a major slow down of houses on the market.
Here's the most upto date article I can find at present.
http://www.theaustralian.news.com.au...54-643,00.html
Looks like it's Melbournes biggest slump since 2004...
http://www.theage.com.au/articles/20...938920983.html
Last edited by ozzieeagle; May 5th 2009 at 4:08 am.
May 5th 2009, 5:08 am
#47
Joined: Jun 2006
Posts: 4,555
Re: Perth House Prices Plummet
RBA has kept rates on hold.
May 5th 2009, 7:55 am
#48
Banned
Joined: Jan 2009
Posts: 1,157
Re: Perth House Prices Plummet
The places that are really falling are areas filled with British and Irish immigrants that most Perthites wouldn't even bother to visit.
Areas in central areas yes are falling but compared to Woodvale or mandurah no way near
Areas in central areas yes are falling but compared to Woodvale or mandurah no way near
May 5th 2009, 9:18 am
#49
Fighting my corner
Joined: Aug 2005
Location: Adelaide, South Australia
Posts: 11,948
Re: Perth House Prices Plummet
I am not denying the idiocy of plenty of people but also the blind matter in which people take out a mortgage without thinking of the possibility that rates go up and the inability to unlock oneself from a mortgage, especially fixed rate deals. Rather than contacting a responsible advisor they contact mortgage brokers who will always give the answer they want to hear. In the belief the brokers are reputable they believe the salesman because that is what they want to believe. They also believe that housing only goes up which comforts them in their ways.
My point is that regulation is needed to rescue the financially illiterate and ignorant. The regulation is also needed to prevent the financially reckless from putting the economy at risk as had happened.
A case in point is QANTAS. Had the US hedgie got his fax off in time right now QANTAS would have $10billion in loans due to the private equity takeover. Right now QANTAS is capitalised at $5billion and would have been wrecked by the current crisis. A consortium of bankers would have raised a fortune in fees yet the tax payer would have taken on the wreckage. The QANTAS board wanted the takeover because they would have earned a huge sum (Geoff Dixon $50million).
My point is that regulation is needed to rescue the financially illiterate and ignorant. The regulation is also needed to prevent the financially reckless from putting the economy at risk as had happened.
A case in point is QANTAS. Had the US hedgie got his fax off in time right now QANTAS would have $10billion in loans due to the private equity takeover. Right now QANTAS is capitalised at $5billion and would have been wrecked by the current crisis. A consortium of bankers would have raised a fortune in fees yet the tax payer would have taken on the wreckage. The QANTAS board wanted the takeover because they would have earned a huge sum (Geoff Dixon $50million).
May 5th 2009, 9:53 am
#50
Joined: Jun 2006
Posts: 4,555
Re: Perth House Prices Plummet
Very true however they are consistently in the top 3 political donors. A side affect of this downturn is lower donations.
May 5th 2009, 10:03 am
#51
Fighting my corner
Joined: Aug 2005
Location: Adelaide, South Australia
Posts: 11,948
Re: Perth House Prices Plummet
May 5th 2009, 10:35 am
#53
Account Closed
Joined: Mar 2009
Posts: 383
Re: Perth House Prices Plummet
Absolute bollocks, its well known some of these suburbs stil ahve saleability because of this fact.
May 5th 2009, 11:03 pm
#54
Joined: Jun 2006
Posts: 4,555
Re: Perth House Prices Plummet
I should clarify. I mean the real estate industry as a whole however those donations can be channeled through multiple sources.
Even more worrying is the donations to federal labour by companies interested in funding from Rudd bank.
http://business.smh.com.au/business/...0309-8tbo.html
Even more worrying is the donations to federal labour by companies interested in funding from Rudd bank.
http://business.smh.com.au/business/...0309-8tbo.html
May 6th 2009, 8:34 am
#55
Happy migrant
Joined: Oct 2006
Location: Newcastle , NSW
Posts: 6,756
Re: Perth House Prices Plummet
I am not denying the idiocy of plenty of people but also the blind matter in which people take out a mortgage without thinking of the possibility that rates go up and the inability to unlock oneself from a mortgage, especially fixed rate deals. Rather than contacting a responsible advisor they contact mortgage brokers who will always give the answer they want to hear. In the belief the brokers are reputable they believe the salesman because that is what they want to believe. They also believe that housing only goes up which comforts them in their ways.
My point is that regulation is needed to rescue the financially illiterate and ignorant. The regulation is also needed to prevent the financially reckless from putting the economy at risk as had happened.
My point is that regulation is needed to rescue the financially illiterate and ignorant. The regulation is also needed to prevent the financially reckless from putting the economy at risk as had happened.
A lot of people are financially illiterate and if a mortgage broker tells them they can afford a property they believe it. They do the figures, see that they can afford the monthly payment because they are both working and have a low interest mortgage. it doesn't occur to them that interest rates can go up significantly.
We didn't make that mistake even though the bank offered us a lot more than we took - but I won't condemn those who did. Regulation is what's needed.
May 6th 2009, 9:44 am
#56
Joined: Jun 2006
Posts: 4,555
Re: Perth House Prices Plummet
We can talk about self responsibility all we like but as with banking self regulation we know there are too many that cannot help themselves.
I agree totally.
A lot of people are financially illiterate and if a mortgage broker tells them they can afford a property they believe it. They do the figures, see that they can afford the monthly payment because they are both working and have a low interest mortgage. it doesn't occur to them that interest rates can go up significantly.
We didn't make that mistake even though the bank offered us a lot more than we took - but I won't condemn those who did. Regulation is what's needed.
A lot of people are financially illiterate and if a mortgage broker tells them they can afford a property they believe it. They do the figures, see that they can afford the monthly payment because they are both working and have a low interest mortgage. it doesn't occur to them that interest rates can go up significantly.
We didn't make that mistake even though the bank offered us a lot more than we took - but I won't condemn those who did. Regulation is what's needed.
May 6th 2009, 10:27 am
#57
BE Forum Addict
Joined: Nov 2003
Location: Lower Chittering, Perth
Posts: 4,646
Re: Perth House Prices Plummet
I bet Ocean Reef wont plummet now!!
May 6th 2009, 10:52 am
#58
Fighting my corner
Joined: Aug 2005
Location: Adelaide, South Australia
Posts: 11,948
Re: Perth House Prices Plummet
If I get a credit card and run it into the red, then get another credit card and do the same, and then do it again with a third, I can't simply blame the bank and walk away. I have to take responsibility for the fact that I willingly took on more debt despite knowing that I was unable to meet my original commitments.
May 6th 2009, 10:59 am
#59
Forum Regular
Joined: Jan 2008
Location: Perth NOR
Posts: 242
Re: Perth House Prices Plummet
Wouldn't get too excited about Ocean Reef's new harbour. Hillarys and Mindarie have not outperformed Perth's average house price over the last 5 years, don't see how Ocean Reef will differ.
Hillarys house prices Mar 08/Mar09 -9.3%, Perth Metro area -5.4%.
Hillarys house prices +11.8% over 5 years, Perth Metro area +14.3%.
Source REIWA
Mindarie house prices Mar 08/Mar09 -0.4%, Perth Metro area -5.4%.
Mindarie house prices +13.5% over 5 years, Perth Metro area +14.3%.
source REIWA
So looking at Hillarys & Mindarie, having a harbour hasn't really driven up house prices above the average.
*feeling very ABCDiamond right now and pleased with myself*
Hillarys house prices Mar 08/Mar09 -9.3%, Perth Metro area -5.4%.
Hillarys house prices +11.8% over 5 years, Perth Metro area +14.3%.
Source REIWA
Mindarie house prices Mar 08/Mar09 -0.4%, Perth Metro area -5.4%.
Mindarie house prices +13.5% over 5 years, Perth Metro area +14.3%.
source REIWA
So looking at Hillarys & Mindarie, having a harbour hasn't really driven up house prices above the average.
*feeling very ABCDiamond right now and pleased with myself*
May 6th 2009, 11:02 am
#60
Forum Regular
Joined: Jan 2008
Location: Perth NOR
Posts: 242
Re: Perth House Prices Plummet
If I get a credit card and run it into the red, then get another credit card and do the same, and then do it again with a third, I can't simply blame the bank and walk away. I have to take responsibility for the fact that I willingly took on more debt despite knowing that I was unable to meet my original commitments.
