Probably your best post in weeks, if not months.

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Womtrade

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12/02/23

20:34

Post #: 66205355
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Originally posted by Bunn-Wackett: ↑

The heading of this thread assumes that prospective buyers have cash at the ready.

Well they don't because the bubble of everything due in no small part to free money has pushed the price of housing out of the range of many. Banks have drastically cut what they'll lend, greedy landlords are not only adding to inflation by putting rents up, but they're taking renters potential deposits away from them in the process by jacking up rents.

Something has to give, and it is.

A 30% drop will hurt recent buyers, but only by around 10% as they'll be forced out of the market pretty quick ... all thanks to Philip Lowe and his outrageous comments! Those who continue to hang on will be hurt to the tune of 30% but that's their choice.

A 30% drop will be welcomed by those looking to get a foot in the door. It will hurt those who have been reckless with their money, borrowed the maximum and continued to spend like drunken sailors, it will hurt greedy investors the most, those leveraged to the hilt who thought property could only ever go up.

I welcome property dropping by 30% for two reasons, 1) to bring equilibrium back into markets and 2) where the average punter might be able to finally get their foot into the housing market, maybe, just maybe, current renters might end up buying an ex-rental as prices continue to drop! That would be ironic wouldn't it?

Those who own homes and property investments leveraged to the hilt are getting a lesson right now, and many are angry. Property doesn't go up forever, and yes it is different this time as the combination of Recessionary and Inflationary inputs are unique and it will push property into a severe crash. It will benefit a couple generations to the detriment of older generations, many who feel entitled to their wealth brought on by 'free money' at the expense of others ... some made stupid decisions by leveraging themselves to the hilt brought on by greed.

Suck it and adjust ...

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Probably your best post in weeks, if not months.
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