'The worst is yet to come': House prices fall by fastest rate in six years

A 5% correction now at the top end represents many years of lost after tax wages.
Code brown for empty nesters downsizers and greedy boomers expecting the young to mortgage our futures for their Aspen holidays. Hope you all get your come uppance

 

5% correction for many investors after the Boom Sydney has just had is peanuts. I've had properties increase in over 70% value since the boom. More than happy to give back 5 or 10% if I bloody must

'Come up-ance' in equity? Most certainly have.

Life is short. Don't be too bitter

 

Many investors yes
But many more who levered up in 2017 will be facing substantial losses during forced sales.
Can't negative gear unemployment
Can't hold onto a loss making investment if no prospect of capital gains
Bring on the discounted audis

 

Just not sure why you're hoping for investors to get their "come uppance".

I hope as many people can kick ass and do as well as possible. The whole wishing others do badly is way too bitter and sour grapes for my liking. Anyway, each to their own.

 

The only winners are the issuers of credit... banks. The rest of us are forced to play the game by their rules.

 

Doubt it's their rules but you either play the game and have a chance to build some wealth for your retirement or earlier, or you don't play and have zeeeero chance. Many businesspeople/investors have done well with the aid of finance for their ventures. The choice is easy for me.

 

Excellent point. I think a lot of people forget this.

 

Make opportunities or make excuses. It's a choice

 

Finance a game, wealth is a game, work is a game, money is the currency of the game. Most of us are being kept on the treadmill by the thing called targeted inflation. There also a massive incentive for the government to keep house price to atleast keep up with inflation and wage growth so people can slave for the ATO til they are useless.
We all have to play the game if want to be part of society. The fact is that you are already part of the game whether you like it or not so would be wise to get on with it and learn to play it well enough to buy your freedom early like some of the members here.

 

Spot on mate. The second you are born, you've entered the game. No choice. You can either fight for your freedom and a better life or work your entire life till 70+ and retire on very little.

That's it. Its not complicated.

 

But will the Druie drop in slow motion? Time will tell..... I see that Mt. Druitt's house median price is above the median house price of every capital city except Melbourne and Sydney. Hmmmm... not cheap considering its thought of as "housos" territory....
And Liverpool is at 800k....

 

Yeah, but if you are smart you play by your own rules and not the way others expect you to. It's very liberating

 

Well operating outside the box and buying your freedom back IS playing by your own rules

 

Agree that it may mean losses for some, but not sure where unemployment skyrocketing is coming from. Sydney is at or near nil cyclical unemployment with an unemployment rate of ~4%. Its keeping the market relatively resilient.

I'm not sure thats going to dramatically change...if it did though, the resilience underpinning the market may go (the falls have been modest at best, relative to the YoY gains).

 

ROFL. The banks have done worse than the poorest performing houses with a 20% negative capital gain in the last 3 years. But no-one is claiming that is the end of the world. I have done much better using bank credit than the providers with 40% gain on some property, some is just starting to boom and I don't give a crap if the one with a potential to fall 5% does, after going up 40%. I prefer a 35% gain to a 20% fall bank shares have done over the last 3 years.

 

That sounds like some sort of hip-hop dance move,

I.e. “It was packed at the club the other nite, lots of girls from way out west doing the Druie-drop in slow motion”

 

Locked out average income earners from home ownership? Don't think so...

First-home buyer numbers continue to increase in Victoria - realestate.com.au

Cheers,
Michael

 

Didn't see Melbourne (or Sydney) mentioned. Seemed to be all about Geelong ?!?

 

Dancing to that repetitive riff: 'Time Will Tell'.