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Aussie Property Market...Oh Dear!

davidsrsb said:
What is happening with rental rates in Oz? KL rents are down about 25% in 6 months (over supply and less inflow of ME refugees)
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They are dropping.

I guess long term if Developers can't shift their apartments and units they become defacto landlords?
 
In KL rentals are now way below the mortgage payment, so buy to invest is in real trouble.
You still see "guaranteed rental return for two years", but property developers here make each project a separate limited company and they have a habit of going bust when they cannot meet the promises
 
, but property developers here make each project a separate limited company and they have a habit of going bust when they cannot meet the promises[

Same here, many have got away with shoddy (leaky) builds using that one.
 
Property really is one massive ponzi scheme from start to finish.

There are 40yo Ozzies signing up to $1.5m mortgages (might be the second mortgage they've had since their 20's) that they will still be paying off in they've 70.

So the banks will have control of them for nearly half a century!
 
andyoz said:
Property really is one massive ponzi scheme from start to finish.

There are 40yo Ozzies signing up to $1.5m mortgages (might be the second mortgage they've had since their 20's) that they will still be paying off in they've 70.

So the banks will have control of them for nearly half a century!
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In Japan grandchildren pay off mortgages taken by their grandparents...
 
wacko said:
In Japan grandchildren pay off mortgages taken by their grandparents...
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I think this will be the only way out for a significant number of Australians now.

Crazy house prices and wages under serious pressure.

I really wonder if in a continually rising market, do people signing mortgages realise it's only their equity that is on the line if prices fall. The bank has your signature on a fixed mortgage amount that must be repaid no matter what the house price 'really' ends up being.

Banks really don't have to care as it's a one way bet. If the market turns they just bleed you dry, eventually take the property and sit on it for 5 or 10 years until things recover. There are still loads of properties filtering onto the market from banks here in Ireland from the crash 10 years ago.
 
It really is one big con and just inflates house prices

I cleared the mortgage in January and it's the best feeling in the world
 
S**t buildings...another classic sign of a boom when people will literally buy anything...

With Chinese investment money evaporating 2 years ago, God knows who's going to buy all this crap that's flooding the market...

 
Not a problem that will affect the UK as successive governments have failed to address a housing shortage by building more houses, which is entirely unconnected to the fact that a lot of MPs are in the BTL market.
 
russel said:
the fact that a lot of MPs are in the BTL market.
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If this is true it flies in the face of the crack-downs and squeezes the gov't has effected on landlords, both existing and potential. Tenancies also suffer as a consequence. MPs are not known for deliberately shooting themselves in the foot !
 
Been watching the Aussie love it or list it programmes , mouth watering prices !!! Very interesting programme
 
As was New Zealand's, which was why you'll see many houses and appartments covered in shrinkwrap and scaffolding.
 
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