Hi all A quick update on sentiment = Monday morning sitting at local cafe, couple next table talking about property, acountant adviding them no to buy now - to wait at least 2years Monday arvo - clients inform me they haves sold house on auction ( after auction) .80k less the first estimate, and 50 k less than wha they quoted as the minimum - did they have a choice, no retiring and need the equity Thursday - business partner sees client. one house 200k loan valued 600. one investment property 400k loan - value 600k. earnings 7k per month - outflow 11k. Financed through ....... increasing loans Today, client brings up topic of property prices in Melbourne and how he thinks they will fall alot.
Close friend told me the other day they are 25k in debt on CC. Its been like that for 2 years. They have a mortgage but ofcourse had to have an inv property which cpsts them 10k per year. Wife doesnt work so no negative gearing benefit for her. they have being paying 5k extra interest per year on CC, 10k loss on Inv property and have increased mortgage once( 2 years ago) to pay of credit cards
I cant tell you all how much sentiment has changed. 1 year ago, people where either bullsih or silent. Today its a different story.
lastly, people keep refering to First home owners, and how they are priced out of the market. Doesnt that in itself tell you how expensive property is. For young people not being able to buy a house, that is not normality, its a reflection of the disconnect between average incomes and property prices.
IN the US, it was the inv bankers blamed for the GFC, in Australia, its the real estate agents, unregulated and full of rubish that I see as reponsible. The way the ridiculed some people for at auctions, the rubbish they talked, its one profession( used loosely) that should be reenineered and regulated
