more bad news for melb property, page-17

The general consensus now is property is going to get smashed, read the comments from punters on the article in the first post of this thread below,
Sentiment has certainly changed.


George Posted at 12:02 AM Today
And it is only going to get worse when the housing crash really hits properly. BANG!
Comment 1 of 109
Tim of Melbourne Posted at 12:05 AM Today
Investors need to know the difference between Par Value and Market Value. If it rents for $300 a week, its only worth $300,000 average over the next decade.
Comment 2 of 109
john stark Posted at 12:40 AM Today
so much harder for the young ones now.i bought 40 years ago for 6000 sold for 14000 so bought for 22000 sold for 66000 bought for 115000 sold for 215000 bought for 317000 nor valued at 3555,000. now 70 years old and need the size to have all the grand kids stay the night.kids get the lot subject to not taking drugs and subject to not being able to lose gambling in one day more then they earn in one week. so far so good
Comment 3 of 109
Big Saver of Melbourne Posted at 12:54 AM Today
Homes are for living in, not for investment games. Shame on this country for creating the tax opportunities that created this mess. Lots of investors are still in denial - they're losing money negative gearing year after year. Capital gains are over!. Investors don't realise they are pawns in the game only making the banks rich.
Comment 4 of 109
Scott of Melbourne Posted at 1:03 AM Today
Every time one of these eyesore towers go up the value of those around them diminish. Blind Freddy could see this was going to happen. You would need to hold on to one of these trumped up flats for a while to make money on them. When the demand is there sell at a profit otherwise no sympathy from me.
Comment 5 of 109
John murray Posted at 1:17 AM Today
These were the same guys that told everyone property never goes down, and that worse case scenario it will go sideways......now saying it will drop another 15%. Look out for the massive wipeout that is ahead, will see greater than 50% falls. Just think, the average house in America costs $135,000 australian........
Comment 6 of 109
Johnny Posted at 1:55 AM Today
"The market has been battered by seven interest rate rises since April 2009, which have added about $85 a week to a $350,000 mortgage." Basttered is totally wrong description. Interest rates are currently at a 'neutral' rate i.e. a rate unlikely to increase inflation. The lower interest rates were a sign of a potentially weak economy. The US which went int recesion in 2008 and has nearly twice our unemployment rate and higher inflation has an official intereset rate near zero.
Comment 7 of 109
petern Posted at 4:59 AM Today
So investors lost money on investments gone wrong? So what? You gamble, you can win or lose, it's the law :)
Comment 8 of 109
John of Nambour Posted at 5:35 AM Today
Don`t worry ,Victoria is not the only one to experience this. My neighbour has dropped his price almost tweny percent and still no takers.
Comment 9 of 109
real world Posted at 6:14 AM Today
What a crock. The market dictates the prices. If it's a seller's market, then the buyer pays a premium. If it's a buyers market, the the seller takes whatever he or she can get from the buyer. Swings and roundabouts. The key is to buy in a buyers market and sell in a sellers market, not the other way around.
Comment 10 of 109
Jason of The Bush Posted at 6:42 AM Today
Those paying grossly-inflated prices deserve everything they get. Their profligacy makes it nearly impossible for 'normal' people to get a roof over their heads.
Comment 11 of 109
Delilah of South Yarra Posted at 7:17 AM Today
The CBD, Southbank and Docklands are the state's leading loss-making suburbs?? Darlings I was so sure they would be Yarraville and Seddon. Goodness even South Yarra suffered losses? Better hang on to all my houses for the moment, till the market picks up. Oh well I guess I can wait a little while for my new Audi.
Comment 12 of 109
Darren of Wantirna Posted at 7:49 AM Today
Please don't cry poor. An investment by definition is supposed to have an element of risk based on the expected return. Investors took the risk and it didn't come off. Too bad. I look forward to further housing price adjustments to bring the price into the affordable zone for the average Australian. We are way overpriced compared to other countries.
Comment 13 of 109
Oh my of Diamond Creek Posted at 8:17 AM Today
You only lose money when you sell. If anyone wants short term gains, the property will never provide it.
Comment 14 of 109
Mark of Melb Posted at 8:23 AM Today
I have no sypathy for these people. They bought homes at a time when they were clearly over valued. They didnt do their homework and study the market. They have themselves only to blame.
Comment 15 of 109
U No It Makes Cents of City Of Moorabbin Posted at 8:33 AM Today
I had a feeling that those high-rise apartments in Docklands were poor investment properties. And if you buy a property when the market is peaking and sell when there is a lull, of course you are unlikely to make a profit. With any speculative investment you are more likely to make a loss if you buy and sell within a short term than if you buy for the long term. Safe short term investments are bank deposits. Property and shares are long term investments. Also with property there are the additional expenses of stamp duty, conveyancing fees, agents fees and interest if a loan is used to purchase the property. These factors have to be taken into account when purchasing property as an investment.
Comment 16 of 109
Stephen of Australia Posted at 8:51 AM Today
Possibly the most sensible article written on the property market all year. It is a simple calculation to work out the real costs associated with buying, holding and selling a property, but unfortunately the majority of people only see dollar signs and fail to see that property is an under-performing investment.
Comment 17 of 109
J Cupples of Essendon Posted at 8:52 AM Today
Who owns the land that all these apartment blocks are sitting on???? Jules of Essendon
Comment 18 of 109
gazza of Sunbury Posted at 8:54 AM Today
Why Blame the Banks,????? Most Investors in Property expect a higher return than the Interest Rates they are paying on the loans. Property Investors, with the advantage on negative gearing, unduly influence the prices paid by owner occupiers.
Comment 19 of 109
Neil of Melbourne Posted at 9:01 AM Today
And why would Stamp Duty (theft by Govt.) and other costs not be included in such calculations? Who is hiding what and why - as if we didn't know.
Comment 20 of 109
Jai of Brunswick Posted at 9:02 AM Today
It's called GREED.
Comment 21 of 109
Luke of Kerang Posted at 9:08 AM Today
the melb property market is on the slide, any owner who is highly geared with debt should prepare for many sleepless nights ahead.. those hoping for a rate cut don't be so sure! based on a few key drivers the RBA should increase rates when they next meet. We are almost at full employment (5.3%) and retail sales are picking up, both will drive inflation. International markets are tanking and a rate cut now will send the 'our economy is in trouble SOS' to the rest of the world & scare away foreign cash. Anyone who ever said, you can never lose in property was wrong!!
Comment 22 of 109
Don't sell now. of melb. Posted at 9:08 AM Today
This is no surprise to me. Melbourne property prices were over inflated thanks to the scare tactics from the extremely greedy real estate agents and REIV, making everyone believe there was a property shortage and all the chinese were going to buy our property ! what a load of crap. If these people did venture out in the west prior to buying they would have seen how many houses were actually on the market. And than not felt the pressure to rush into it.
Comment 23 of 109
greg of Narangba, QLD Posted at 9:10 AM Today
Keep on falling I say. I retruned to Australia to buy a house/ start a family in the very near future. I cant believe how everything is 3 to 4 times as much as it is in the USA. A new, 130K house in the US, would be equivalent to one over 600k in Melbourne or Brisbane city.
Comment 24 of 109
james of irishtown Posted at 9:29 AM Today
move out of melbourne and you will get great value for your money, places like ballarat are as cheap as chips.
Comment 25 of 109
Nicholas B.Von Danziger of Sassafras/Victoria Posted at 9:32 AM Today
Property investors should have done their research. What's happening now is only the BEGINNING. Greed is NEVER good, especially in buying and selling REAL ESTATE. It "probably" will come good over time, it usually does; but it will be quite awhile, so BE PREPARED for a LONG WAIT...!
Comment 26 of 109
Fred Bloggs of Castlemaine Posted at 9:33 AM Today
That's a punch in the guts for the greedy speculators who're principally responsible for our increase in rates by overvalueing properties. Good news for joe-blow punter
Comment 27 of 109
Geoff Mc Naughtan of Langwarrin South Posted at 9:40 AM Today
Negative gearing - what a curse on the real estate market. It is akin to margin lending as used on the share market.A tax minimiumisation that is past it's use by date . You speculate and get burned its your problem.
Comment 28 of 109
jacko of Melbourne Posted at 9:43 AM Today
Buying real estate for future capital gains when there has been negative ongoing return from rent vs. interest rate payments was not investment but speculation and as such very risky. The question always was not if this Ponzi scheme ends in tears but when it does. This rout will not end next year. We have entered a long period of deleveraging as many other western countries did 2-3 years ago. As usual Australia is behind the trend and no, it's not different here. Even if there is no massive economic collapse due to possible recession in the US, sovereign defaults in Europe or stalled economy in China (all quite likely) we will have a lot of volatility that will dent people's confidence and they will be to afraid to borrow to buy overpriced real estate. Many sellers will not have the choice of holding off and will have to sell for a much lower price than they bought. Don't forget that prices change at the margin and it only takes a few heavily discounted deals to set the trend.
Comment 29 of 109
Phil Posted at 9:56 AM Today
"Yesterday, almost 600 properties were auctioned, but only achieved a clearance rate of 54 per cent". The 54 per cent is overstated too, based on 260 sold over the 480 odd auctions reported. When and if the outcome of the rest is reported, the real clearance rate will be less than 50 per cent. Yikes!
Comment 30 of 109
David of Melbourne Posted at 9:57 AM Today
Hahaha....greed is finally being rewarded. The sooner Australians stop trying to make a quick buck out of property, which has also been encoraged by our small minded politicians, the better.
Comment 31 of 109
Not Fooled By Property Spruikers Hype Posted at 9:59 AM Today
Have a look how Perth investors went in the last 18 months. Even if was without a mortgage. Lets assume on the 1st July 2010 the property was worth $500K & it rents for $500 pw or $25K pa -3% vacancy factor & 5% property Mgt charges= $23K -rates -water - insurance - maint =$18K less 7.5% capital loss past 12 months -$37.5K (Source RP DATA) = Loss of $19,500.00 it cost you almost $20,000 to accommodate you tenant for 12 months (You have to count capital loss even though you have not realised the loss because investors always count the capital growth even though they have not realised it) Now investors have to get a capital growth of at least 8% in the next 12 months just to get back to where you were in July 2010 (FYI thats 2 years wasted) The chance of capital growth in the next 12 months is nil in fact all serious commentators predict a further fall of at least 8% by the end of June 2012 Remember July 1.63% price fall & Aug 2% price fall so half of the 8% fall has already happened in the first 2 months. Investors had a $37.5K loss not including the interest on a mortgage of say $22K plus. Ouch $60K loss in 12 months & the same in the next 12. Down 3.6% first 2 months of the year!
Comment 32 of 109
Sam of Elwood Posted at 10:02 AM Today
Umm...so if one out of every 20 properties was sold at a loss, what about the other 19 out of 20? Break even or profit? I'd take a 95% chance of making money everytime, wouldn't you?
Comment 33 of 109
Under the hammer! of St Kilda Posted at 10:02 AM Today
Um, 5427 losses divided by 268000 sales = what crisis? Property will always hold its value, if the investor obeys the old adage of Location, Location, Location. What we're seeing here are 5427 stupid vendors, probably investing in no-man's land in the outer suburban fringe like Wyndham Vale, Tarneit and Melton South. I hardly see them as representative of a property bust!
Comment 34 of 109
David Isdale of Preston Posted at 10:09 AM Today
There's a lot of negative people on here. I'm going to hold my investments for a period of five to 10 years and I expect to turn a good quid. In the meantime, the ATO will assist me in keeping my name on the titles. Negative gearing, once allowed and adopted can never be abolished.
Comment 35 of 109
Anne Posted at 10:17 AM Today
A little 1960's 2 bedroom house in Frankston with a small carport $410.000. At least $100.000 overpriced. Get rid of negative gearing that will put a cat amongst the pidgeons.
Comment 36 of 109
4 property owner of Melbourne Posted at 10:17 AM Today
Sounds like alot of these comments are comg from sour grape renters who 'missed the boat'
Comment 37 of 109
Matilda of Perth and proud of it Posted at 10:19 AM Today
It is tough but if you speculate on anything into the future you do stand a good chance of being burnt. This is a warning of things to come. Property is a long term investment and will always be dangerous if you invest in the short term. Im no financial wiz but common sense sometimes says put your money in the bank and wait. No guarantees are given and it pains when things go wrong investors scream from the highest hill.
Comment 38 of 109
andrew of werribee Posted at 10:21 AM Today
It is very significant that the RE industry even admits and publishes this type of information. Usually, the RE industry has more smoke and mirrors than David Copperfield the magician specialising in illusions. So the tide must be seriously changing.
Comment 39 of 109
dark horse Posted at 10:27 AM Today
yeah but the stamp duty is ALWAYS paid
Comment 40 of 109
Rich Posted at 10:27 AM Today
If house prices drop 50% there will be a HUGE buying frenzy causing prices to sharply increase, it's all about supply and demand, but the demand will always be more because there's no more land available in a 30km radious to the CBD.
Comment 41 of 109
Scott of Melbourne Posted at 10:27 AM Today
The Melbourne skyline used to look good. Docklands and South Melbourne destroyed it. Any hope of the buildings built post 2000 being demolished after all most are apartment towers and if they are not worth anything can we have a government buyback and demolition program. After all it was Bracks who allowed them to be built in such large numbers and where is he now? Come on Big Ted let us reclaim our skyline.
Comment 42 of 109
Suzanne of Proud home owner Posted at 10:28 AM Today
If you sell and buy in the same market your not really loosing out. You sell cheaper, you buy cheaper!!!
Comment 43 of 109
tom of melbourne Posted at 10:30 AM Today
Blame oversea people buying properties and leaving them empty for years.
Comment 44 of 109
Some real calculations would be in order Posted at 10:36 AM Today
Reading similar articles yesterday I was gobsmacked when the calculation of the gain/loss was selling price less purchase price? Hmm... no stamp duty, agent costs, property outgoings, mortgage costs? If you sell a house you purchased for $1 mill two years later at $1.05 mill I suspect the loss is more in the order of $200k assuming a 80% loan.
Comment 45 of 109
Big Al of Monty Posted at 10:36 AM Today
When you buy a 'home' for investment,then these are the risks you take. Investors need to remember the castle - there is a difference between a house and a home.
Comment 46 of 109
thunderstruck of Langwarrin Posted at 10:36 AM Today
It may take a little bit longer to turn around, but we sold my fathers home in Frankston South in 99 for under $100k 2 years latter it went at auction for $240k plus, i din't know what it is worth now but i would say before the downturn it would be $500 plus to me this is just a bump in the road another 2 maybe 3 it will all be up again, even though i think housing is overpriced, a lot of people pay more for some houses than i would!! it's a bit like ebay people get to involved in bidding and don't realise what they have paid! they need too step back and have a 2nd lookand make sure they haven't paid more than it's worth!
Comment 47 of 109
Reality Check of Kew Posted at 10:40 AM Today
It all depends when, where and what you buy. Most real estate goes in 7 year cycles. So short term investors are most likely to lose particularly if you buy new apartments or at the top end of a cycle in an area that is peaking.My advice is to do your homework and buy well.If you are new to the game, never buy to make money as that's a sure way to make mistakes.If the current interest rates are hurting you should not be buying.Always factor in rates at around 12% and plan on holding onto the property for 10 years at least. That way you can see through tougher periods.
Comment 48 of 109
Love to rent and no sour grapes here of Melb Posted at 10:43 AM Today
Gee i am sick of these people that have tickets on themselves because they made loads of money on the property market, well i rent and i don't have sour grapes, i went to uni, got a job, saved a deposit, worked my way up the corporate ladder to get to a wage where i can service the loan, and now i am waiting to see what the market does. If it goes down a couple of thousand, i win, if it remains the same i still win because i can still afford to pay the price. If you think they will shoot up in the next 12 months, keep dreaming. I am very happy renting, keep the place i live clean and tidy and my landlord is a gun . And finally about "missing the boat" pfft have been hearing this for 5 years while i saved my deposit, yet new home owners are still buying, go figure. Prices will always be dictated by want and ones ability to pay the price.
Comment 49 of 109
gm of Melbourne Posted at 10:43 AM Today
It just shows how over-inflated prices have been in the suburbs in the last few years. And it's no use building all those apartment towers if not enough people can afford to buy or rent them. The same with rents, all around my area I'm seeing "for rent" boards on houses, I've never ever seen so many. But it's not surpising they have to advertise, because who can afford the ridiculously high rents they're charging now?
Comment 50 of 109
janet of vic Posted at 10:48 AM Today
Well how silly to pay that much in the first place.
Comment 51 of 109
Gordon of East hawthorn Posted at 10:48 AM Today
So 1 in 20 transactions were sold at a loss! Big deal. There's always vendors who have to cash out in a hurry.When in a market that's not skyrocketing of course they are going to lose. Slow and steady is the only way to make money on real estate. A little over 5000 losses across the whole of Melbourne. That's a good news story, not a bad one.
Comment 52 of 109
realist of Central Vic. Posted at 10:49 AM Today
That's because, when they first paid for these houses, they got ripped off by over inflated prices thieving realestate agents con home sellers into thinking they are worth.
Comment 53 of 109
Daniel of Nanny state Posted at 10:50 AM Today
Hold on a sec, doesnt property double every 7-10 years? Well at least thats what real estate agents and mortgage brokers keep telling me
Comment 54 of 109
michael of rosebud Posted at 10:52 AM Today
That's life, get over it and try being a bit smarter next time and not so greedy or gullible
Comment 55 of 109
One way street, Aust. of 3044 Posted at 10:57 AM Today
If the Government charges us Stamp duty and capital gain on properties, why don't we get compensated for the loss on properties?
Comment 56 of 109
Ivi Posted at 11:00 AM Today
Buyers (sheep) tricked by agents! Typical sales pitch "apartment A sold for $1 million, and this apartment is better for the same price".  All a big game with the small people losing as usual. 
Comment 57 of 109
Joel of Bendigo Posted at 11:02 AM Today
Look out the sky is falling. 95% of the article about how 5% of homes lost money. 5% of the article about how over half of the homes doubled in value.
Comment 58 of 109
Rusty of Toorak Posted at 11:03 AM Today
Significant difference between investment and speculation. Speculators in housing or shares deserve to suffer the consequences. Must be some way that the government can bail out the poor speculators? Any more grants about?
Comment 59 of 109
The Thinker of Melbourne Posted at 11:09 AM Today
The silence is deafening from those who said property never goes down in value and to use debt to buy more properties. These people are fools.
Comment 60 of 109
James of Melbourne Posted at 11:11 AM Today
Highest volume of surplus stock? What do the fools say now who said Melbourne has a severe housing shortage?
Comment 61 of 109
Outside the box of Oakland Posted at 11:13 AM Today
So I bought 3 apartments when the Aussie was at 70 cents and sold my investments by enough to cover the tax and converted back to US at $1.02 I really made 24 cents in the dollar Tax free. did you factor that in to your calcs with all of the other foreign investors??
Comment 62 of 109
Amazing what I see of Victoria Posted at 11:18 AM Today
As a worker in new home sales its a worry with the amount of foreign investment & the amount of foreigners who can claim the FHB grant saying they are residents, or one partner already has a house, then the other claims the grant in their name for another house. While ppl keep paying enormous prices for a 400sq mtr block land, of course the bubble will burst. Scarey to think land is more expensive than a house. I dread to think what it will be like for our kids. Our govt's need to regulate this market with all the overseas investors & ppl need to say no to buying highly inflated land prices from developers...
Comment 63 of 109
Bingo of Melbourne Posted at 11:19 AM Today
Homes for people to live in not for the greedy to make a quick buck. It only encourages them to build more of them and wreck whats left of our green state.
Comment 64 of 109
Scott Forbes of Melbourne Posted at 11:25 AM Today
There will be one hell of a housing surplus when the baby boomers die off so we have not seen anything yet. They should stop building these things pronto.
Comment 65 of 109
Joel Posted at 11:25 AM Today
Imagine if their were no investors. Property prices would be lower but were would everyone live. Not every person wants to buy a house, and where would those who do want to buy live while saving for a deposit. I am sure parents want their 40yr old kids still living at home while they save for a deposit. For those saying you can buy a house in America for 135k, there a lot of reasons for this but a big one is the minimum wage of $5 an hour in a lot of jobs. For those that complain about negative gearing the long term effect of its abolishing will be higher rental prices as investors seek to cover any losses in value. In many areas there are simply not enough houses to rent. Renters actually get it too good in Australia. In many overseas countries rental yields are over 10% while Australian investors will accept less due to the benefits of taxable expenses
Comment 66 of 109
Theo M. of Melbourne Posted at 11:35 AM Today
Keep going, your future has been destroyed by your own hands. The manufacture was the backbone of Melbourne not the mining booming. You have ship all the jobs to China and you have create a future disaster. What will happen when no jobs left for your children?
Comment 67 of 109
Steve of Rowville Posted at 11:37 AM Today
I brought a investment property 4 years ago for 375k and borrowed 300k. Back then the rent was $300 a week, now I'm getting $425 a week rent and the house is worth over 500k....bad investment?.....o and I would like to thank the renter paying my mortgage :)
Comment 68 of 109
Bill the Agents of who lie and do not buy themselves Posted at 11:40 AM Today
Its the tip of the iceberg. Right on about extra costs of mortgages insurance selling costs and stamp duties and even the con artists who say they make millions by buying multiple properties, the awful land tax. Not Fooled By Property Spruikers Hype said it all. About time the Govt stopped allowing agents from conning people into negative gearing for starters, that is a guaranteed loss when the rents are as cheap as they are today. Their agents should be forced to only take commission on net rent after all costs.
Comment 69 of 109
TWOEYED of Collingwood Posted at 11:44 AM Today
What a beat up by the Real Estate industry for an interest rate drop! As if the Reserve Bank would be so stupid. Probably stay the same but more inclined to increase rather than decrease.DAH! Given basic domestic economic indicators ie. High rate of employment maintained and inflation under control.
Comment 70 of 109
Michelle of Portsea Posted at 11:48 AM Today
The surest, and quickest, way to inject sanity into real estate pricing is to lift interest rates by 4-5% points. Then we will see the current ridiculous price of $1000 for 1 square metre of dirt, 30 kms outside of the CBD, coming down to a more reasonable and affordable price. It would also help if politicians of all persuations stopped pandering to the demands of their land developing mates by limiting the amount of land released for housing so that demand outstrips supply/land availability.
Comment 71 of 109
Only in My Opinion Posted at 11:49 AM Today
Australia is becoming an integral part of Asia and this is the beginning of great mass migration out of Asia to Australia. Prices are reduced to allow people to buy in. By 2019, the average price 2011 $400K poperty will be doubled. Don't wait or you will miss the boat again................
Comment 72 of 109
Craig of Mordialloc Posted at 11:49 AM Today
Its no surprise that values in cesspits like the CBD, Doclands and Southbank are dropping. Who would want to live amongst druggies, vomit and excrement every weekend?
Comment 73 of 109
Fedup of BERWICK Posted at 11:54 AM Today
And doesn't the Government hate all the Stamp Duty revenue.... NOT!!!
Comment 74 of 109
Jack Flash of Melbourne Posted at 11:56 AM Today
The Real estate vultures win again, preying on the Australian dream and gullibility of the consumer. Australian house prices are over priced by at least 50%. The housing boom is over and no one can afford to live in this so called most liveable city anymore.
Comment 75 of 109
Sin of Wheelers Hill Posted at 11:59 AM Today
Real estate cycle is about 10 years, but the recent one has been distorted to about 12 years, by government policies enticing buyers to commit excessive loans, RBA's far-from-accurate interest rate modelling and banks' / financial institutions' greed to skin off extra from heavily debt burden borrowers. Investing in high rise apartments even in the CBD always carry a lot more risks because Australia is not ready for it. For those with employment, they have enough being "imprisoned" at their workplaces few hours a day, and would rather spend the rest of non-working hours in more spacious dwellings. Our population is still far too small to call for high rise apartments which look like one-finger salute. Despite all the bad publicity, properties near water will have their days of glory returned sooner than the other similar investments, say around 30 to 40 years away. Beware of owners' corporation fees, they are like daylight robbery – why spend money on pool or gym for other people’s enjoyment! Prices are not just due to supply and demand, but the ultimate reason is scarcity of land. It may be cold comfort for some, but the upswing of the cycle will commence in March / April 2013.
Comment 76 of 109
Chris of Sydney Posted at 12:02 PM Today
I beg to differ. I wish the developers build more and build them faster, so when I'm finally ready to take my money into the market after it crashes, I can pick and choose the best bargain of a life time.
Comment 77 of 109
sarah Posted at 12:07 PM Today
Maybe they paid too much for them to begin with, just a thought. The bubble must pop sooner or later...
Comment 78 of 109
Cynic of Melbourne Posted at 12:09 PM Today
Homeownsership used to be every australians dream now it is only a dream of the wealthy and the Chinese we truly are the dumb country ..
Comment 79 of 109
Scott Johnson of Melbourne Posted at 12:09 PM Today
Since when did speculation guarantee a profit?
Comment 80 of 109
magpie 1 Posted at 12:13 PM Today
the problem is that propety developers or those who pretend to be on your side such as investment agents who are supposed to help you for your retirement, get their own advisers and all is painted as a rosy picture full of false information and how wondeful and foo proof it allis untilo the day you want to sell and then you get the shock of your life. there should be laws and guid lines with regards to these investment agencies. One typical example is They tell you that within ten years your property doubles in price but they do not tell you that if you were to sell capital gains tax takes a big chunk of your profits. They also tell you that you can claim all your expences. the facts are that you can only claim in line with your tax bracket so if you pay 15% tax you only get 15% back. they not inform you on other hidden expences such as land tax, land rtates meter charges, insurances etc. its a jungle out there with all these hunters on the prawl.
Comment 81 of 109
graeme ritchie Posted at 12:18 PM Today
Buyers market, sellers market. Ha ha, anyone would think houses are a scarce commodity. Real estate should be taxed like all other business ventures. Why the family home escapes capital gains tax is bewildering.
Comment 82 of 109
Glen of Docklands Posted at 12:21 PM Today
That's it hang it on property. Think about this. There are only 3 places where money goes. Property, Shares and Fixed Interest investments. Choose one. Go on dont be shy. Well of course you picked property. Why? Because if you sell today you lose and if you buy today you win. 95% chance of getting a profit is better than 100% chance of doing your retirement on shares and having to work longer. Count those situations and then compare. What you dont even factor in is the opportunity cost of doing things. Younger people are not concened if the sun falls out of the sky, only if it lands on them. STop preaching doom for others do what is right for you. THAT is where investors make their decisions - real investors and not speculators. Docklands was selling units for $300k 10 years ago off plan and everyone was canning it. Go and try to buy one at that price today. Good luck with it. Don't forget that Docklands has only been through probably just one property cycle. Others have been through 10. Can't compare an old lady with a young girl.
Comment 83 of 109
Mark of Toorak Posted at 12:22 PM Today
Hmmmm I bought a 1 bedroom apartment In toorak in a small block of 8 for $340,000 12 months ago and recently a smaller one with no court yard in the block sold for just under $390,000 with about 60 people at the action and 8-9 bidders. If we are in a down turn I'd like to see what sort of effect a rising market would have:-s
Comment 84 of 109
it makes sense Posted at 12:25 PM Today
Yes I rent and I am proud of that fact!! Rather than buying overpriced property I prefer to put the difference between a mortgage and rent and put it into superannuation. I will be retiring at 65 whilst a lot of homeowners will still be working!!!
Comment 85 of 109
Ross of Sunshine West Posted at 12:29 PM Today
Why would you buy an inner city apartment as an investment? They don't rise in value, they have no land content to speak of so there is no appreciation in value, you have to rely on tenants who are mostly from overseas where this style of living is a regular occurence, unless you have the money to purchase a penthouse you are less likely to get tenants in who will take care of the property and treat it with respect.
Comment 86 of 109
Molly of melbourne Posted at 12:33 PM Today
Glen Waverley is a 40 year old suburb. How do you know if a particular house was sold less than its worth...? The quality of the building, property or even land is not included in the data used by this mob.
Comment 87 of 109
Daniel of Eltham Posted at 12:39 PM Today
If 1 out of 10 losers money, then 9 out of 10 makes makes a profit....I will take those odds any day of the week. How about running a headline like 9 out of 10 property investments make a profit instead of this doomsday prophecy of a property market collapse that ain't going to happen....please study the history of property in this country all you doomsday prophets....a property collapse will never happen while the population of this country continues to rise and there are shortages of roofs over heads.
Comment 88 of 109
Sake Bandit of Arkham Estate, Melbourne Posted at 12:56 PM Today
I have no sympathy. The price inflation is mainly due to investors buying multiple properties. It's greed, pure and simple. Meanwhile, the estate agents, lawyers, developers, and taxman are all popping champagne.
Comment 89 of 109
Sin Fong of Wheelers Hill Posted at 12:56 PM Today
Where have all the overseas students, mainly Chinese and Indians, gone to? Melbourne CBD is no longer the same on weekdays and weekends. Most apartment investors are not owner occupiers. In fact, many of the high rise apartments are refurbished or built for special purpose – student accommodation! The change of Federal Government policies on visas and international education kill off at least 50% of the lucrative $18.8b international education industry, and even Ted Baillieu is feeling the pinch for the state revenue! End Part 1 of 2
Comment 90 of 109
Sin Fong of Wheelers Hill Posted at 12:57 PM Today
The demand of accommodation was not generated from local students, but those from overseas coming to study in private colleges, TAFEs and universities. Many of the apartments were sold off-the–plan to buyers overseas through exhibitions or seminars conducted in their country of origin. Investors, local and overseas, were attracted to rental guarantee, which unfortunately translates to inflated purchase price. However, due to lower interest rates couple of years ago, the rental return was far too attractive to walk away from. Local investors can also offset their loan repayment by negative gearing. However, if rental demand decline due to shortage of student tenants, negative gearing becomes a big financial loss. Compounding the problem is that parents of overseas students are allowed to purchase properties when their children are studying here, on condition that the properties have to be sold after their completion of study. With hardly any new students coming, the demand of second-hand properties has dwindled, and therefore sold at a loss. End Part 2 of 2
Comment 91 of 109
Don't Prop Up the Ponzi of Melbourne Posted at 1:18 PM Today
In the past property moved in cycles, but over the past 20 years we have had a growing housing bubble. In 2007 property was breaking new records every week as people rushed into buy for fear of missing out. That should have been a warning sign, but during the GFC when prices fell, what did the government do? They pulled out all stops to reinflate the bubble even bigger than before! By tripling the FHOG, opening the floodgates to immigrants and encouraging foreign buyers to buy as many Australian properties as possible whilst maintaining negative gearing which subsidised investors competing with non-subsidised buyers, or buyers clutching their FHOG booty we managed to kick the can down the road. And all the while the real estate lobby, scared investors who had already bought at the top, and others with vested interests kept assuring us that Australia is different to the rest of the world, everybody wants to live in the capital cities, we have China, you can't lose with property etc. etc. Anyone with half a brain could work out that we had a government sponsored Ponzi scheme and soon we were going to run out of "greater fools" to pay over-inflated prices.
Comment 92 of 109
Matt R of Melbourne Posted at 1:19 PM Today
Are we meant to care about people who lose money on INVESTMENTS?? Maybe their OWN GREED got them what they deserved..
Comment 93 of 109
Andrew of Melbourne Posted at 1:21 PM Today
No surprises here - property prices are too high relative to income. I don't buy the demand side argument "a property collapse will never happen while the population of this country continues to rise and there are shortages of roofs over heads" - for a few reasons:- 1. Our population growth rate is lower than most of the world and is declining. 2. We don't have the income to fuel existing property price growth - we also don't have the rate of income growth - if property price increases and income increases kept up with their rates of increase of the last 10 years for the next 50 years - houses would be worth more than a hundred times average annual incomes. Ie: even a family of working people would not be able to service a loan on that type of income. 3. even if people need somewhere to live - most Australians don't want to live as debt slaves - and will leave to go overseas or refuse to buy prices at ridiculous prices. 4. The economy is tanking. We're in recession except mining and this will flow through to property. The problem has been greed - housing is aright, not an 'investment'. Investments have to build something - not be static and drain funds in maintenance...
Comment 94 of 109
A Litteray of Sunshine Posted at 1:33 PM Today
Property prices are so out of whack, it is not funny. If you are looking for someone to blame, look no further than John howard and his first home owner grant, nothing more than a subsidy to drive up the income from his baby, GST. With the government/media/real estate created housing boom, the poor punter trying to cover mortgage payments is left to suffer. Don't you think it's a coincidence that around the time the owner grant came in, all these shows about renovating, and selling, and profiting, our governments have sold us the biggest dummy ever. I will happily watch the housing market slide back to where it belongs. I dont have a mortgage thank goodness!
Comment 95 of 109
Tatts of Straighttalkville Posted at 1:34 PM Today
Ummm 1 out of 20 lost money? That means 19 out of 20 made money, I wonder if 19 out 20 Super funds has made money in the last couple of years? Talk about warping stats.
Comment 96 of 109
Hawthorn - Vendor/Landlord Posted at 1:49 PM Today
Expecting high inflation, buyers figured that even if they overpaid, tomorrow's appreciation would rescue them and still leave room for a handsome profit. Paying a premium to "Keep up with the Joneses". Now home prices have stopped (except for some dolled-up weatherboard(s) in Hawthorn on small sqm land selling at silly bitter-sweet prices only this weekend, and elsewhere) - and home prices have stopped their upward flow. Paying more than a house is worth. Sadly few years it is worth less than paid for. The buyer faces foreclosure. The thrill of owing a home turns into worry, fear, and sleepless nights. Don't count on unrealistic appreciation, don't count on mortgage interest rates to fall, and don't figure you're going to put aside more money from your paypack than you normally save.
Comment 97 of 109
Zappy of Geelong Posted at 1:58 PM Today
Suckers. Australia has the highest real estate values in the world. Any idiot that purchased in the past ten years as an investment deserves everything they get.
Comment 98 of 109
Scott of Melbourne Posted at 2:10 PM Today
Does Melbourne look like Surfers Paradise yet? Steve Bracks said it wouldnt.
Comment 99 of 109
3 property owner Posted at 2:13 PM Today
4 property owner - here here! I too hear people missing the boat! Sour grapes I say. I will ride out any drop in property value as I researced all of my 3 properties and made sure I didn't pay over the odds. Long live negative gearing.
Comment 100 of 109

http://www.heraldsun.com.au/news/more-news/home-owners-300-blow/comments-fn7x8me2-1226162101573

So it's not just HC, it's now the general public as well, out of 109 comments, therenare still a couple in denial, but interestingly, not that many