Bernbaum said:
As for the actual subject matter of Real Estate advertising, this is indeed something I will keep in mind. All the places I've looked at in my Sunday afternoon property-owning daydream sessions seem to start around $700,000, and the discrepancy of a few tens of thousands of dollars can mean all the difference when applying for a loan.
700k would get you a run down 2 bedroom terrace or nice 2 bedroom apartment + parking in Newtown. Granted the prices have come down a bit recently. It feels only like yesterday a deceased estate with holes in the floor went for 900k. I went to inspect that place and later laughed at how much it sold for.
Fredescu said:
I'm jumping onto Mar_'s bandwagon. I reckon a property correction is not far away. Seems like it's already starting in Brisbane and Perth. I even thought about selling up and renting for a little while, but I think the government will step in to try and flatten things out and I'll just end up being annoyed about renting.
I like the deliberate underscore you've placed there.
Selling then renting in this current environment would certainly be an attractive idea. I know a guy who says "I'm a millionaire!" when in conversation about his Coogee house. And sure, it's all paid off and it is worth a million or so, but to actually be a millionaire he has to sell that and trade down, and in Sydney trading down and keeping that cash means living out in Campbeltown somewhere. Not a lifestyle he'd be accepting I don't think. So yeah, he'd have to sell then rent, losing his security, but he would be a millionaire.
But like you said, there's too much up in the air and danger of the government stepping in and propping up house prices. They are very keen to do so to keep all those millions of baby boomers off the government pension. Economically Australia would be fucked if prices crashed.
Personally I'd love it to happen though. Eventually this has to turn in favour of the majority or we are just making a problem much worse generation after generation.