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Landlords are Leaches, page-902

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barry2007

1,222 Posts.

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12/05/24

18:59

Post #: 73786438
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Originally posted by nippy: ↑

Commercial properties falling 80% in value over 5 years or so.

100's of millions lost on bad assumptions and property speculation.

The biggest assumption was that the tenants would keep paying their rent. This failed when work from home became a thing and the % of vacancies went through the roof. The first assumption was that you cannot lose on property.

Most average property investors are merely gambling ( they dont like to admit it bit it is the truth as the Japanese found out ) that govt policies will help property values to grow. They in fact have little actual idea about economics. They confuse the fact they happen to do well with having ability. The very same investors will do their short when govt policy means property values fall. They will still have no idea as to why they are losing money. Gamble and pray is their go. Japanese properties selling for as little as $500.00 an hour away from cities or Italian properties selling for $1 show you what can happen. No need to go to that extreme. $1,400,000.00 back to $700,000.00 is still very nasty.

The students with 80g HECS debt and big credit card debts won't be buying your house when you want to sell. How far can the price drop if Genz can't pay at all? The question of who you are going to sell to is a real one.

Only so many bigger fools out there.

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