For Those Who Like To Dabble In Real Estate

[icyfroth]

I was shocked to see this headline when I was browsing through the news this morning:

Bloodbath to hit Australian real estate, global property analyst Jordan Wirsz says

AUSTRALIA'S love affair with property is about to be tested amid predictions prices will plummet by as much as 60 per cent, with capital cities hardest hit.

That’s the Armageddon-esque warning from leading US real estate analyst Jordan Wirsz, who believes Australia is heading towards a property bloodbath as the global economic downturn spreads to China and eventually here.

http://www.news.com.au/money/property/bloodbath-to-hit-australian-real-estate-property-analyst-jorda...

[the_hawk*]

Hi Icy I wouldn't put to much faith in US experts, after all they didnt see it coming in their own market and our housing market is very different.

There market fell over because of a very high number of very high risk loans and a very high number of properties came onto the market at the same time due to repossessions and the market couldn't cope with the surplus properties, then add the general down turn of their economy

While I dont believe our economy is any where as good as our government would like us to believe it is still a little better than the US.

The market that would be hit the hardest in any downturn will be the top end of town in the very over priced upmarket areas

For the general market to collapse 60% we would have to move into a magor depression and house prices would not be a huge issue compared to that situation

Thats just my opinion

[vintage-star]

Weren't most property loans financed by two huge lenders that collapsed due to the sliding economy?...... One of themI, I think, was called a woman's name beginning with "M"...... I am sure someone knows it.

[monstersinthedungeon]

They were very strange names, Vintage, I think it was something like Fanny May and Freddie Mac?

[vintage-star]

Yes!..... I think you are right Monters, they

monopolized the real estate lending industry......thanks for that. 🙂

[icyfroth]

I actually wouldn't have the wherewithal to invest in property, but I wonder about the large swathes of land being cleared for housing development.

Who's got so much money to invest?

[vintage-star]

Hello Icy, there are a lot of people with the money to invest and for those people the market is pretty good atm........some investors are from overseas and many are just ordinary people here in Australia.....I don't claim to know heaps about this subject but have heard that the real estate industry in Australia is expected to improve this year!

[not_an_eloi]

don't know why you'd be draggin' up an item dated  January 20, 2012

[icyfroth]

don't know why you'd be draggin' up an item dated  January 20, 2012

Oh!

I didn't even look at the date, eloi, thanks for bringing that to my attention.

Why would they put that in the news a year later?

[freakiness]

don't know why you'd be draggin' up an item dated  January 20, 2012

Perhaps because twitter has been spammed with old news corp stories for the past 2 weeks.