Is it too late.....

Plenty of people on the ground disagree with that.

NSW - The Signs of Sydney Slowdown....

Maybe the price drops just haven't filtered through into the numbers yet. With parts of the market still increasing and parts dropping at the same time, the parts that are increasing can mask the parts that are dropping.

The bubble pushers I am referring to are calling for a 50% drop in prices across the board when the great Australian Property Bubble bursts.

The expert who predicted the global financial crisis has a dire warning for Australia's property markets.

“I think it's probably going to go down at least 30 percent to kind of take off the bubble, [and] I think 50 percent down the road is even more likely,” Mr Dent said.​

Australia to suffer 'biggest property collapse since Great Depression'

Another pair have this to say:

“A bloodbath in the housing market, however, appears a near certainty due to the magnitude of falls required for housing prices to again reflect economic fundamentals. The largest residential land market bubble on record is truly incomparable and dwarfs earlier speculative episodes in the commercial and industrial land market.”​

Housing market ‘bloodbath’ a near certainty

I find these comments really irresponsible. Perth is obviously in a correction phase and Sydney is moving into a correction phase with Melbourne likely to follow by 2017. But this doesn't mean we are in a massive bubble that will burst resulting in the greatest wealth destruction we have ever seen.

 

I dont think we will see a bloodbath... unless we get higher rates, much higher unemployment and lots of excess supply happening simultaneously None of those things appear likely . Im calling the rest of this decade the soft decade, not the bloody decade

 

Lol, so we don't turn every thread into a bubble thread, let's just say O.P. it's not to late to invest when you believe the time is right.

@Perthguy, the doomsayers did say bubbles can takes years to see the full effect take place. If it's a bubble.

 

You might have jumped in without reading the original post.

It's been a bubble thread since the first post. So @Barny, should the OP wait until the bubble bursts before investing?

 

If that is his belief, then yes he should wait.
I really think the OP needs to see a financial advisor and do risk assessment, as he isnt a big risk taker. In the mean time, continue to read through the site as there is heaps of information that will help you with your strategy when you feel the time is right.

 

These guys must invest in shares where massive loses can occur in a single day, and predictions like this would have the sheep selling their worthless stock.

The value of a share at any given moment is well known. And if you have shares in a company there is nothing you can do to make that share more appealing than the next persons.

Property on the other hand is not a perfect science. Similar properties in the same suburb do not necessarily sell for the same value and cosmetic changes can greatly increase the appeal and therefore the value of an individual house.

You can't simply pick a couple of house prices and jump about declaring that the prices have started to drop. There needs to be a number of properties sold before a trend becomes evident this is why the boom and bust seems to sneak up on people and then kapow.

If we accept that Sydney is at the peak of the cycle then we would also need to accept that property prices will pull back however I cannot foresee the catastrophic losses predicted above, and certainly not across the board.

Property investing means always looking for opportunities even when the reports are all doom and gloom. Whether it's simply doing your homework, selling, buying elsewhere or drawing down equity for future use there is little time to sit around and do nothing if you want to be successful.

Regards

Andrew