Property prices beginning to drop

Yeah its a joke. Would there be an issue if they were cash bonuses for performance.

 

It was a travesty - she should've given cash.

 

From 2015, but still valid.

Battlers and plutocrats: How political connections reward Australia's super-rich

 

Game of mates. Everyone does it, just not to the same extent.

 

What are peoples thoughts now? Seems house prices are booming again. I will admit, I would never have predicted it at the start of the Covid outbreaks. I think Australia being relatively unaffected in comparison to other countries and the huge sums of free money in businesses pockets have contributed to the boom.
A few agents have told me that properties are selling at more than 30% than then worth.

 

He is baaack!

 

Must be 'some' agent! Properties always sell for what they are 'worth' to others! No one forces a gun to a buyer to buy one at 30% premium to their worth! Given the 75%+ clearance rate and the associated macro environment, I wouldn't be surprised if they gain 30% in this cycle.

hopefully a changed man!!

 

I don’t see falls, at worst subdued growth. Macro settings are asset inflationary. Credit taps are wound open and theres more millennials than boomers and they’re all wanting to buy houses.

 

Definitely no gun pointing going on, just people fleeing the major cities.

C'mon changed man no chance hehe

 

Well when this thread was created I guess it was peak panic season.

How things have changed dramatically since then huh? Feels like we are in a property boom in every damn city.

 

It was for some of us, some were thinking a property cliff scenario and others stood firm, saying not going to happen. Well It is certainly not happening in my current neck of the woods and that seems to be the trend across the country.

 

So what is driving demand? I certainly never saw this coming....

low interest rates
Government Stimulus/building grants etc

 

Speaking purely for myself, having made a decent return on a long held share in the video gaming industry I had the cash to pick up another. Unlikely to be a common driver though but I bet a few here and there are taking share earnings and directing it into RE.

 

That’s great

Property has been kind to me, its still rising where I hold/play

I forgot to add soaring iron ore prices

 

I think the stories we'll hear are varied but plentiful. Plentiful being the key word. There will be the person that made a killing on the stock market, the person that made their money on bitcoin, or the retailer that did crazy business cause of work from home driving demand, or the restaurant owner that suddenly got 5x the amount of customers because so many more people were ordering takeaway for 9 months... all supported by what I consider a well managed response by the Govt. A lot of stories but ultimately more positive stories than negative. I think that's what will drive things.

 

And the fact the virus just didn't impact the vast majority.

 

It could be a world wide phenomena

covid created no/low stock. Boom

 

Jurgen was right all along!

 

This is what happens when people move into the business of predicting rather than investing. It's simply impossible to know what will happen in the future. If recent events isn't dramatic proof of this then I don't know what is.

Stop predicting , start investing.