A house in Toronga (suburn in Melb) that I have been following...

A house in Toronga (suburn in Melb) that I have been following is already down 20% since September. Still no taker. The "investor" who bought in early 2010 can definitely claim as big capital loss on his tax return (assuming he does the smart thing - bite the bullet and discount more to meet the market).

Problem isn't the price has really fallen 20% now or by 30% (we are talking about hundreds of thousands losses here) in a couple of months. Problem is it was overvalued by 60% when it was bought.

That's how I look at it.