Posted to Sydney Morning Herald (8/6/2011) on 8/6/2011 at 11:06 PM
Commenting on "The Myth of the Buyers Market"
http://smh.domain.com.au/real-estate-news/blogs/domain-investor-centre-blog/the-myth-of-the-buyers-market-20110607-1fqpa.html
Real estate market in general is cyclical, and by my calculations, the real estate market will continue to slide until reaching the bottom in April 2013.
If there is a shot-in-the-arm in median price, it is largely due to higher price range property owners can no longer hang on to their properties and have to let go of them. That is a sign of further market deterioration.
RBA which increases interest rate is no longer the culprit causing mortgage stress. The real culprits are the banks or correctly speaking the lending institutions. They are all alike, and they increase the rates higher than what the RBA has determined. The banks are no longer playing by the rule.
Many new entrants to property investment are naive and ignorant, and rather lazy to learn the basic mathematics. They are also driven by greed and expect high return in short space of time.
Many buyers think that they are good negotiators, smarter than many real estate agents. Just think about this, the number of properties sold by an average real estate agent is lot more than most people's property transactions in many life times.
For the next year or so, the return on capital will decrease, and the rental income will be well below interest rate. For those who wish to benefit from negative gearing, now their wish has come true - a lot worse than expected.
Given the present situations, with the Labor Government making one mistake after another, plus the recent banning of live cow export to Indonesia, the coming quarter will definitely hit another negative GDP growth, resulting in the recession Australia can never get out of - compliments of Julia Gillard and her incompetent team!
Commenting on "The Myth of the Buyers Market"
http://smh.domain.com.au/real-estate-news/blogs/domain-investor-centre-blog/the-myth-of-the-buyers-market-20110607-1fqpa.html
Real estate market in general is cyclical, and by my calculations, the real estate market will continue to slide until reaching the bottom in April 2013.
If there is a shot-in-the-arm in median price, it is largely due to higher price range property owners can no longer hang on to their properties and have to let go of them. That is a sign of further market deterioration.
RBA which increases interest rate is no longer the culprit causing mortgage stress. The real culprits are the banks or correctly speaking the lending institutions. They are all alike, and they increase the rates higher than what the RBA has determined. The banks are no longer playing by the rule.
Many new entrants to property investment are naive and ignorant, and rather lazy to learn the basic mathematics. They are also driven by greed and expect high return in short space of time.
Many buyers think that they are good negotiators, smarter than many real estate agents. Just think about this, the number of properties sold by an average real estate agent is lot more than most people's property transactions in many life times.
For the next year or so, the return on capital will decrease, and the rental income will be well below interest rate. For those who wish to benefit from negative gearing, now their wish has come true - a lot worse than expected.
Given the present situations, with the Labor Government making one mistake after another, plus the recent banning of live cow export to Indonesia, the coming quarter will definitely hit another negative GDP growth, resulting in the recession Australia can never get out of - compliments of Julia Gillard and her incompetent team!