"House prices could fall by more than 40 per cent" - Are you kidding?????

Same goes for some of the Horrible Advice from Scott Pape (Barefoot Investor).

Don’t get me wrong he has some good fundamentals, especially for those bad with money.

But for the uneducated who take his 20% deposit as gospel! Very very few people who leverage LMI would be behind someone who saved 20%.

I speak to people who say “nah need 20%”. I thoroughly enjoy showing them how inflation and capital growth work.

 

He posts depressing vids on Youtube every day

 

No point getting hung up in these predictions.... if these guys knew what they’re talking about they wouldn’t be telling us

 

I have some sympathy for the people making these predictions about a 40% crash.

They were right to be concerned about over-valuation. However, to predict a 40% crash is to assume complete inertia - as though governments and central banks will sit back and watch it happen.

Intervene they did, and we didn't get they 40% crash - we got a rebound instead. That said, our currency has been whacked over the past year as real estate improved.

If you take currency into account, real property prices haven't bounced back quite so hard. This is why real estate is the ultimate inflation hedge.

Watching real estate over the past 2 years actually further enforces the point that you have to have exposure to real estate. Imagine you didn't have property, and instead your wealth was in your salary and your cash savings: these people who did not get into property are genuinely poorer as they watched their money lose value. Those who got into property were buffered from this process.

 

Apparently property prices in Isaac (Queensland) fell 80 per cent during its worst period, many mining towns probably suffered similar fates on the road to riches or ruin?

 

Take a trip to the Isaac region. You'll realise why.

 

@Rolf Latham, your boat is longer than mine

 

One in particular seems to have wiggled away. My other doom and gloom amigo skilled migrant seems to have migrated away too.

 

Haha that was 2 that came to mind.
And the other I erased his name from my memory but his doom and gloom lasted about 37 pages of why real estate was a dud investment.

No surprise he has been unsighted of late.

 

Almost everyone is right at some point. That's easy. what is a lot more difficult is to have the courage to try and be right at certain points in time where you can capitalise on markets. Also some of the doom and gloomers have absolutely no interest to invest. They have a deeply ****** socialist agenda which is very clear ( and poisonous imo).

 

Has anyone gone on realestate.com lately and hit the map view and looked over Melbourne? The market is completely flooded! Oversupply like I've never seen before.

Real estate agents have 4 people on every street selling. The idiots will crash the whole market!

 

There is no oversupply when broader market is considered rather than specific segments (CBD new high-rise apartments, for example). Second, if there was an oversupply - prices wouldn't be rising so steeply. It's a basic law of economics.

While listings have increased relative to several months ago, this is coming from very low levels. Hopefully, these new listings will soak up some of the current demand so prices won't be rising by 6 per cent in one quarter...

 

I am watching this thread LMAO..... how people quickly forget that the market sentiment can change. Another shock and boom it drops....

I for one look it as a great market to sell...but you would be crazy to buy in this market. If you were to have bought it would have been early to mid last year. People have forgotten that the markets went backwards 15%.....very interesting.

 

Any market is great to sell if you get a great price.
Just like I'll buy in any market if I can get great price...