Guys, you seem to think this property crisis has never happened in australia before. I was talking to a friend of my dad who said that he bought a house in the 1970's, and within a year there was a credit crunch and he could have bought a similar house for close to have what he paid. But it didnt worry him as it was a family home and he could pay the mortgage.
The same applies here. Sydney has already experienced 40-50% drops in the western suburbs, but these are forced sales because of portgagee in possession. Some one posted that Australia had a stable population. i dont think so, australia has been growing and growing with skilled and moneyed immigrants. We have a housing shortgage and we have a structural change in the size of houses. but to have a wholesale collapse wont occur unless interest rates go to 12-15%, unemployment raises to unbearable amounts and the government wont do anything.
Keen arguements are not new. There are always people out there using spreadsheets to determine whether to rent or buy, he just another and compared to some of the proffesors I have come across, not to bright when it comes to money. intellectually superior, but dumb as a dog ssss for other things.
It seems thare are a few to many trying to put fear into some to get a bargin. Guys, you dont need to post on HC to do this, just shop around and you will find a poor soul that couldnt provide for his or her family and has been forced to sell at a big loss, with the ultimate humilation of still owing the bank.
