and once this sentiment turns and gathers momentum, watch out!
talking to a good mate on the weekend, his tune has completely changed. From the "when are you buying a house?" and "what are you doing? you're missing out" lines i used to get, things have shifted to the "what if my contract isn't renewed", "its not worth it" type lines.
he spoke of his personal situation where his house hasn't had a single offer in 5 weeks (priced low 300's, bottom end) and that he will be lucky to break even after fees. he fully recognises that the last 3 years of mortgage payments and renovations have been an utter waste and he's fed up.
he talked of two of our other mates - one who had interest only loan on a 450k property and is now getting offers 30-40k less than he paid 5 years ago. and the other, who is 40k down on a place owned for 4 years in brisbane.
these guys are starting to feel for themselves just how long 3-4 years of no gains and nothing to show for it actually is. its a lot different to the little charts of long-term, sit back and relax, cumulative gains they were showed back in 2007. the curtain is coming down for these guys.
none of these guys follow markets or have an actual interest in finance and investment. their comments are always a case of "well they reckon you should see this much growth" with only reference to agents or heresay.
i tell you, the get rich quick scheme is fading fast! these aren't passionate investors that will stick out the tough times. once they lose interest they will be getting out asap and its happening.
property investment to this profile of young home owners is fast becoming like that home gym you were into for a little while but just can't be bothered any more.
