Here we go folks. If you have a lot of equity in your home, or you own investment properties and have built up equity….sell NOW!
Major players in the world of economic crystal balling are calling the WHOLE MARKET in an ever increasing rate of fall. We are now looking at an annualised 8+% fall in the major markets. If major markets with attractive fundamentals (close to CBD, transport, beach, attractions, facilities) are going to take an 8+% hit per annum over the next 2 years, then outlying, marginal markets, already under mortgage stress, will take a massive pounding!
My forecast for outlying ‘Nappy land’ areas, and apartments in general, is a 20 to 25% fall by the end of 2020.
If you have an $800,000 property, it will be worth (maybe, if there are ANY ‘un-spooked’ buyers left), from $600,000 to $640,000. Can you afford to throw two hundred thousand dollars into the street? At $700.00 a week , that’s five and half year’s rent!
Residential property is now officially ‘on-the-nose’. Get out!