Reading a lot of posts on here has got me thinking, if as some say property value could drop up to 50% in the coming years, what does that really mean? I recently bought a 10 year old house for $315,000, going on the average block in my area, the land my house sits on is worth about $140,000. With a price reduction of 30% my property would be worth $158,000, thats all fair enough, my question though is if property value drops will land become very cheap because I cant see the costs of building a house coming down. Say it costs $180,000 to build a house in my area if the cost of property drops 30% the price of the average block would have to be -$22000. Or is it likely that the price of building a new house will also become a lot cheaper. Sorry if you cant understand this post, if someone can I would be interested in feedback. Cheers.
