Anyone Remember What a Housing Slump Looks Like?

Discussion in 'Property Market Economics' started by MTR, 19th Sep, 2017.

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  1. MTR

    MTR Well-Known Member

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    Australia has certainly been the lucky country for many property investors who have been riding the boom cycles.

    But, does anyone remember what a housing slump looks like? What about the investors who road a couple of boom/bust cycles.

    I do, I did, lucky me I survived it, some lost their shirt.

    MTR:)
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Here's the slump test

    [​IMG]
     
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  3. 2FAST4U

    2FAST4U Well-Known Member

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    Yep. I live in Adelaide. Outer suburbs (particularly anything in the northern suburbs) has been in a slump since 2010. Not falling just stagnating.
     
  4. sash

    sash Well-Known Member

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    nah no remember...just us oldies...its all apples till some loses a few houses. :D

     
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  5. MTR

    MTR Well-Known Member

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  6. datto

    datto Well-Known Member

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    Yep. Sydney from around 2004 to 2012. Particularly hit hard was Sydney's west.

    You could pick up houses in the Druitt for 190K. If only. Those days are never going to come back hey sash lol.

    I had a VN Calais in those days. My hair was in a pony tail....zzzzzz
     
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Did I sell you a pair of white shoes?
     
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  8. LifesGood

    LifesGood Well-Known Member

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    You don't think Perth is in one right now?
     
  9. Connor

    Connor Well-Known Member

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    Yes, Melbourne 2003 right after I bought my first IP at peak. Learnt a valuable lesson about timing!
     
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  10. MTR

    MTR Well-Known Member

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    done this one many moons ago.... hard lesson to learn for sure
     
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  11. hammer

    hammer Well-Known Member

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    Experiencing my first one now. They're not all bad.....it allowed me to buy a nice place.
     
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  12. Marg4000

    Marg4000 Well-Known Member

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    Lived in Brisbane all my life.

    I have seen booms, steady growth, busts, many years of little growth.

    Anyone who predicts the future is usually taking a wild guess - and of course some will be correct. Most won't.
    Marg
     
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  13. zed_kid

    zed_kid Well-Known Member

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    Melbourne 2010 – 2013. Wasn’t horrible but still a slump. Wish I bought more but being on graduate salary could only get 2, still turned out ok.
     
  14. turk

    turk Well-Known Member

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    You haven't seen a slump.

    [​IMG]
     
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  15. Biz

    Biz Well-Known Member

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    Does anyone remember eating at The Black Stump? Not a bad steak back in the 80's, I remember the mushroom sauce being particularly good..
     
  16. highlighter

    highlighter Well-Known Member

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    I seem to recall something happening in Dublin...

    In all seriousness, some major things I remember though are it being very slow and drawn out (no sudden "pop") and people saying it was never going to happen even a year after the peak (I had to convince my sister out of buying into some crappy, overpriced "luxury" estate/development in the country).

    I also remember the crash happened from the outside in. The first and worst hit areas were newly developed suburbs on the urban fringe, such as new estates out near the airport (a good example was Belmayne), while good family homes in good areas did comparatively well and recovered fast.

    A 50% crash sounds horrifying and even impossible but it is pretty common after a bubble. However, remember this isn't balanced. The assets that lose maybe 90% or more are those oversupplied dreck assets built right near the end of the boom, that are poor quality and run of the mill, where few people actually want to live. These made up most of the crash, aside from a bit of a correction in some areas where prices got a bit too carried away. Quality family homes have all recovered, so look for cash flow and have a long term plan.
     
    Last edited: 20th Sep, 2017
  17. New2prop

    New2prop Well-Known Member

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    Don't know how the 2003 slump happened as I wasn't here. Can anyone please enlighten and also are there any parallels this time around?
     
  18. Gen-Y

    Gen-Y Well-Known Member

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    I do appreciate the old gold nugget comments from a few poster on here.
    Noone can tell what will happen or they would be very rich beyond imagination.
    Nor would they spend their time on PC to have a chin wag about how good they have done it. Gentleman never reveal right?
     
  19. sash

    sash Well-Known Member

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    Nope those days of 190k in the Druie won't happen...but 320k-380k...that could.....
     
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  20. neK

    neK Well-Known Member

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    Sydney from 2003 to 2008