It’s interesting to read the increasing number of media “releases” about the parlous state of the real estate market. Apartments off the plan, nearing completion or finished looking for a buyer are just something to step aside from. Run a mile. It reminds me of a particular high rise that was “amped up” off the plan and sold as “solid gold” when it plainly wasn’t. When settlement was due, the bubble on this kind of shit had well and truly burst. A lot of buyers walked away from their $200,000+ deposits, accusing marketers, promoters and the developer of sprouting bullshit n’ lies. Plenty of real, provable cases of apartments eventually changing hands for, in some cases, 70% less than the original contract.
Every time some turd in government talks about messing with negative gearing, naturally investors will do a tortoise and pull their heads in. Imagine developing 300 apartments aimed at the investor/rental market and having some numpty in Canberra blurt that crap!
But I digress. The cat is out of the bag, Pandoras Box opened and even the rats are jumping ship. Some friends who took my advice and sold for $1.55m just watched their old house change hands for $1.1m after 18 months as their purchaser’s business faltered.
This is REAL folks. Real estate is on the nose and the correction to normality has well and truly matured.
As I’ve said before, I will re enter the market when the downward graph passes through the line that starts in mid 2001, plus compounded CPI, and even then, it may dip below that compound CPI as people lose their nerve, put their hands firmly in their pockets and WAIT. It’s a game of chicken.
The Reserve Bank is a freakin’ One Trick Wonder that’s run out of ideas, and the various Governments and multiple Prime Ministers that have presided over this 18 year mess have ruined millions of lives.
I keep hearing of finacially unsophisticated people being conned by just bad brokers and Bank Johnnies into massive lines of credit on the supersonic increase in equity in their largest asset. Many of these Lines are now under water through irresponsible and criminally negligent practices. But, as we saw with the U.S. led GFC, no one did any serious gaol time.
“Nappy Land” is awash with negative equity, with Agents being “politely asked” by Banks and other Lenders to avoid the “Mortgagee In Possession” logo lest a stampede ensue. It’s too late. There’s a LOT of talk online and the “Average Joe” is only now beginning to understand the massive impact this has now and will have on them.
I’m so glad I have not one cent in this sector. It’s an unfolding, living nightmare.