scooby3

Recent financial events with projected redundancies in the mining sector predict a $100,000 - $200,000 price drop in Mackay, Townsville and Cairns house prices apparently stocks will return to prices of 2000...scary stuff!!!

TheSubMainMan

On the upside thou':

I just got of the phone from speaking to my colleague and we both agreed, if you're going to unemployed be unemployed in a hot country!

Reading fan

Yup our theory at the moment ride the storm in some sunshine !

Tableland

This is happening across many countries and won't be restricted to north QLD. I expect at least 30% off house prices across Australia from peak to trough and have been saying this for over a year. Every day my prediction becomes a little bit more believable. I would not buy a house in Australia or the UK now for any price less than 50% off of peak because I am that unsure of the current global economy.

And who the hell would part with several hundred thousand pounds now?

In edit I add that to be honest, I'm not sure I would buy a house even at 50% off, frankly. Way too uncertain about these markets.

sooperlids

Good news for some who hope to be on their way next year.

Tableland

It is good news - but keep your money safe andbe careful where you put it.

framac67

Depends what you read.Fall in interest rates allows more buyers into market I aint worried

sooperlids

Under my mattress is about as safe as anywhere at the moment!

Tableland

I thought this for a second, but now disagree.

1. The cut in rates is an emergency measure to stop, basically, the entire global banking system from collapsing, it is not about getting people to continue buying houses they can't afford.

2. The average house is now so over-valued that many people have to borrow ten times their salary to "buy" it. This cannot go on. If more people understood how compound interest worked it wouldn't happen of course, but they don't, so it does.

3. The average house in the 1920s cost the equivalent of £15,000 today, so you can see from that how out of control things have got.

4. Reference the above points, I htikn even the most stupid of society now recognise houses are chronically unaffordbale and that a crash is on the way. Most people will be and should be very reluctant to buy now, and will simply "wait it out", which will force prices down.

5. Banks might have lowered their rates a little, but they still demand a massive deposit (in the UK at least). MOst people will take years to save this money, thus delaying the from buying and driving prices down.

Basically, I cannot see the housing stock being successfully reinflated, even though our insane governments are trying to do this to inflate their way out of their debt. I think, in the immortal words of GWB, this sucker is going down.

sooperlids

Doesn't work in the UK as the banks rarely pass on any cuts these days.

Petals

House prices have to drop because people can no longer service the loans, young people have no chance and the banks will not lend now unless sizeable deposit.

One thing I have always known my house is my home not an investment.

wardy2

Please tell me where is careful i'm looking at which bank accounts to happen when we arrive in Cairns in januaryand I have to say I am quite nervous about my money being protected, I am already locked into an exchange rate for all my money or else it would stay in the Northern Rock with 100% guarantee .

thanks

framac67

Been watching with interest and Aus economy looking good enough to miss most of the turmoil

Tableland

The Australian Govt. does not guarantee any funds in private savings accounts unlike the US ($250,000), the UK (who can keep up? It was £50,000 last time I checked but now with part-nationalisation??). Greece, Ireland, Germany all gurantee 100%. As I predicted a few months ago, there were a couple of mouse-size squeaks coming from the vicinity of Swan & Rudd about this issue, but nothing solid.

Tableland

It depends, IMO. Aussie banks look more solid for now, but think how quickly US and UK banks went south. It depends on factors like the degree of loans in the sub-prime sector etc. Also, commodities taking a hammering which is pushing AUD down against other currencies, and Aussie unemployment UP in latest figures.

IMO Aussie certainly stronger than UK due to larger financial services sector there (UK), but not safe from this monster by a long way.