troubled zones of melbourne, page-10

I'm enjoying this socialist commentary,

But let's be honest, a Sudenese man who has migrated here from a cardboard box in Africa is no sound value judge of property worth. He's likely to pay whatever you tell him your house is worth. He has not come here from an economically sound country and probably not from a wealthy family, just arrived with a few bag's and a young family.

He wants to make a new start and prosperous future for his family. Good on him. Just as my parents did moving here from Ireland in the 70's.

He realises that to make a footprint here he needs to call something his own. Get a job and buy a house, probably out in Dandenong where there is much social service and among the Sudanese migrant community.

That takes me back to my Value/Price argument.

When you ask people what there house is worth they'll tell you whatever someone's prepared to pay for it.

Thats bollocks. Your presuming that everyone buying property is making a sound financial/investment decision and that they are not paying too much for that particular property. People make stupid decisons with money all the time, buying on emotion rather than sense.

For example, remember the dot.com boom on the sharemarket?
there was people paying $5 per share on company's that had no earnings, no product and no profit.

Ludicrous behaviour. Kind of like the stuff we're seeing in Dandenong right now.