Thanks for the story springkaan, i have seen listings on market that would appear to be in the same vein, that is people a bit worried anout further falls so trying to sell now. These listings i mention are the extremely large proportion of sydney north shore properties that have usually traded since 2007 and are on market for the same price as purchased. Most times this price is not achieved. That means a loss to inflation of about 15% over the last five years even if you do fetch your pre gfc 2007 price.
Another real life story to add. A mate at work has many investment properties. He used to be an agent as well. He was complaining last week that he is in trouble in Karratha, due to the council releasing some land and some new homes having been built.
The yields that he ran his numbers on before investing in his properties in Karratha are adjusting rapidly in the wrong direction. Not only are people leaving town due to the end of a large build project in the area, but there are more houses ( they finally woke up and realized the rents were astronomical and they had better release some more land, of which there is no shortage) and now the fewer people in town are all heading for a brand new 4 bedder for less rent than my mates respectable but old houses.
He is also worried by the fact that many of his properties could only be sold now for about 60% of what he bought them for, not just in Karratha.
Anyway, just goes to show looks like the 10 to 15% yields he was raving about a while ago were a bit of a honey trap. As with anything, the greater the return, the more risk, unless the return is earnt from having held a property before the boom IMO.
