Join Australia's most dynamic and respected property investment community

Bloodbath is coming for us

Discussion in 'Property Market Economics' started by Leo2413, 23rd Jun, 2015.

Tags:
  1. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,768
    Location:
    Sydney
  2. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Leo2413 likes this.
  3. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
  4. Bayview

    Bayview Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    2,716
    Location:
    Mornington Peninsula
    It is nothing new.

    Of course; the problem will only occur for these folks if they have to sell. Most will ride it out for years if they can; until the market turns again and goes up again.
     
    Leo2413 likes this.
  5. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,768
    Location:
    Sydney
    The bubble, Australian property collapse and the like etc is all nonsense for the average intelligent investor. If I listened every time some negative report came out, I would still be no where.

    The fact is (in my mind at least) that we have NO other option. What? work for an employer all our life, the best years of our life and then only to retire on peanuts when we are old..??? ahh no thank you.

    The alternative to investing and having a fighting chance at some freedom, is doing nothing and waiting for the inevitable. That's petrifyingly depressing to me.
     
    Set81, Catalyst and Bayview like this.
  6. LibGS

    LibGS Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    616
    Location:
    Melbourne, Australia
    Never ever going to happen. Federal and state governments would step in and save the day, because it is too big to fail. Classic example of "moral hazard".
     
  7. SonOfTrigger

    SonOfTrigger Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    99
    Location:
    VIC
    I think it's entirely plausible.

    The problem for the average joe won't be negative equity - as others have said you can batten down the hatches and ride it out if need be. The problem will be any roll on effect for job losses, discretionary spending etc and then average joe can't keep paying his mortgage(s).
     
  8. Foxy Moron

    Foxy Moron Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    133
    Location:
    Regional QLD
    I hear you trigger man. Thought Ross Greenwood covered the topic well on Channel 9 this morning. Reminded people that although there may not be an dramatic and immediate bloodbath, after a giant bull run the market in Australia can just stagnate for years and years. Some young guns need to be aware of how that might play out for their portfolios. I think he mentioned the Sydney market 2003 - 2011 as one such example.
     
  9. sash

    sash Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,214
    Location:
    Sydney
    A lot of happens behind closed doors that is not evident to the public...like professional people struggling to pay bills...will certainly be interesting..

    Spot on about Sydney....