Property could fall 30%- LOL

The property was sold just over 1.5
https://www.realestate.com.au/property-house-nsw-carlingford-133769262

 

That's what the market is whether like it or not!
Didnt get it - The Chief said "Nah"

 

I can't see why at some stage we can't allow immigration with tight checks and quarantine. If businesses rely on skilled OS workers, then they can pay for the quarantine period. Anyone entering the country would have a check prior to boarding at departure, and at landing. It will happen at some stage later this year.

I think we may be in for a decline followed by an 18-24 month stalling period. I'd anticipate more young people would move back home, share accommodation and the like putting stress on rental properties especially in cities. But then again who has that magic crystal ball.

 

Won't this force hand on sales? Or do you anticipate that people will be ready to buy at market rates or higher. No doubt people are going to be forced to sell if there is a lack of demand for rentals, but who is going to buy them?

 

Is that not a bargain anyways? Location is pretty good for a block that size

 

I think the risk is also if you travel to another country and then they have an outbreak and close there international boarders then you could be stuck there at your cost for as long as it takes. A 3 week holiday could turn out to be a 12 month disaster.

 

How many does it affect? What countries are involved? What is this worth to the economy? What are the costs of implementing it? What is the cost to the economy if it goes badly wrong?

Many questions to ask and answer before any decision is able to be taken. This is not a simplistic matter with significant consequences should it go wrong. Opening borders either to departures or arrivals should be a judgement call based on some evidence and if the risk is too great for the reward, why take the chance?

 

I think these 2 comments are meant to be in another thread (travel thread)

 

You are right but it wasn't deliberate honest . I was only responding to the thread that was there at the time I started composing the post - I'm sure that it will be moved in due course (and this post deleted).

 

If rental vacancy forces rents lower as we are seeing, this wont' necessarily impact the purchase prices. Yields are a relative concept: so if rental yields fall as interest rates simultaneously fall and the relationship between yield and rates is maintained, then prices don't have to fall to re-balance. I would suggest interest rates have fallen below where they needed to go to balance buyers and sellers, and the fall in yield.

 

What about people who are below 10% capital, or even 15%? I'm not even sure what the numbers are

 

Those people are in trouble, unless they have great incomes and serviceability.

 

I have been anxious to buy another property even before I get my current build done. But I'm cautiously waiting now.

After my build I'm looking at 67.5%. Knowing if I couldn't rent out either I'd still comfortably pay the loans. Realistically in this climate I don't think its a great idea going over 80%. It's not like 2000 where we could max out at 95% knowing growth was outstripping savings and interest on loans.

 

I think it will lower prices. Most people are looking for those magic numbers and if the rent part of those numbers gets lower but the property price doesn't drop then smart investors won't buy. They will have to add to much to cover the mortage payments.

 

https://www.smh.com.au/business/ban...-to-stop-financial-cliff-20200707-p559vi.html

The Home Loan Holiday is here to stay.

 

“We all want to avoid any form of a cliff, so this is all about how do we make sure we achieve an orderly transition,"

We .. as in the big 4..
Avoid any form of a cliff.... that we created in the last few years.. that puts our capital... and our underwriters at risk.

Fake morality at work.

 

Moving forward, will the banks be as keen and eager to approve mortgage loans based on the same income multiple of previous years? Particularly the last 12-18 months when it was relaxed after the last Federal election. Changes to this alone as was demonstrated, had a large effect on property affordability and prices. Coupled with everything else.....

 

In 12 months time...

This is the last time we are going to extend loan deferrals 4 months. And this time we really mean it.