Give up 10% deposit pre settlement?

When was the last time it paid NOT to be optimistic on long term house prices? I'd take his views over anyone elses at this point.

Exactly. Here's a scenario: Many asian share markets have barely moved from their peaks, whereas our dollar has tanked. There are literally millions of millionaires in China looking to invest their money outside the country. Their $ relative to ours may mean they are richer now than before, and many have children at unis here who may be unsure if they will come back next year and therefore need to buy now. What if the government loosens international investment rules to pay for the stimulus? Who is to say there won't be massive international investment in our property market over the next year?

Every time in the last 15 years I've thought prices can't go higher for decades I've been wrong. That will change one day (maybe), but I wouldn't bet on that.

There are >50 different vaccines in clinical or pre-clinical trials, not to mention the hundreds of treatment methods already in clinical trials. Only one of these needs to hit for the whole landscape to change. If one of the existing drugs is found to bring mortality rates down to flu levels it can possibly be rolled out in weeks. This will pass one day.

 

people stop wanting to live in the nicest place they can?

you have such faith in people.

 

Have invested through 3 recessions ... I will humbly disagree regarding housing and finances

I hope there is a behaviour change, but feel that would be slanted more towards being kind to the planet/others, buy Australian and realising we don't need as much "stuff" ... housing doesn't come under "stuff"

At the end of the day, it's your call but , unless you were planning on flipping this quickly, then why actualise your loss? Do you have excess money to throw away because the price "might" go down in the short term?

It's like all those who panicked in 2019 that Sydney house prices dropped 5-10% ... but somehow forgot they went up 40% in the preceding 2 years ... and then the prices bounced back a few months later anyhow.

 

Speculating property will go down is no different than speculating it will go up:

'This is our moment': Why these buyers are pressing ahead with their search

 

I would love to be as optimistic as you but all the data indicates that this will be an enduring depression...

the last 15 years have been good to me so I can take the hit.

vaccine still at least 12-18 months minimum, but go CSIRO!

 

It’s not at all like people panicking in 2019 when prices dropped 5-10%.

At least 40% of households suddenly can’t afford their lifestyle and per the PM tonight won’t be able to improve situation for 6-12months.

Australians have highest debt level in the world... the music had to stop at some point... again, if this your run of the mill recession it would be a small economic miracle at this stage

 

So, why didnt you buy in the panic of 2018/9?

You dont have much of a choice now anyway.

 

Is your job safe? If so, it's a PPOR, who cares about the market? If you were able to afford it when you started the process, then you'll certainly be able to afford it now, when rates are 0.5% lower!
Don't worry about it too much, it's only money.

 

Ah ... well ... also went thru the 1982 recession where personal taxes were up to 70% ... the 1987 recession we "had to have" where interest rates were a high as 24% ... the tech wreck of the 2000's ... the slump of 2003/4 ... the 2009 gfc where the stockmarket plunged more than than 40% ... none of those were particular run of the mill. I used the panic blip of 2019 as an example of how people get caught up in the hype and consolidate losses they needn't have

Your choice, but don't ask experienced investors their advice and then pooh pooh the advice if you've already made up you're mind to ignore everything

 

When you crash this purchase @SarahSydney please post the address and price .

As it will be interesting to follow it's ongoing sale and see just how low it goes and how long it takes to recover, I'd say less than 18 months !

 

Only money? Hmmm sounds like a pre-corona saying

 

im hoping to be buying in panic of 2021

 

that might have been an option before you let a contract go unconditional.

Lets take a guess at this. You saw the market tank in 2018. Thought here is my chance to get something during a panic. Lets wait.

but it recovers strongly. So you decide its not going to crash lets buy it.

if you didnt have an unconditional contract in place? Probably is better to wait. But that assumes you eventually buy something. No point in waiting until this is over and it booms again.

 

Based on the information you have provided it doesn’t sound like you have much of a choice though. It’s not just the 10% you will forfeit as others have said. In your scenario of a property price crash you could be liable for the losses of the vendor in addition to the 10% plus the stress and legal fees which will be the worst part imo

 

Hopefully, apparently there is a legal way out to avoid liability for further price falls.

 

Care to share this ?

As normally all the conditions stated in the contract are the only options (unless negotiating a seperate "deal" with the vendor)

Either way this is going to be expensive

It's almost as bad as reading the "should I fix my home loan" thread

 

You're assuming property prices will drop ... no guarantees there either.

You could always make a sob story re finance and ask for a token amount (perhaps equal to agents fee) off the agreed price of your current contract ... the vendor my accept ... a bird in the hand and all that jazz