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12-24-2008, 10:51 PM | #1 |
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2009 Real Estate in Countries that have yet to fall
I'm writing this thread for people who've overstretched themselves buying houses in countries where real estate hasn't yet dropped. If you brought your house in the 1950s for a few hundred pounds, then you are probably OK.
I have been following the World-wide real estate market since I worked as an Agent in the late 1990s. There are countries now where Real Estate is still increasing in price, (like Australia & Russia). Prices in these countries WILL start to decrease very soon. I believe the main reason why prices haven't declined yet is that sellers won't go down in price, so only small numbers of houses are actually selling now & these sales are boosting the prices. (ie, market manipulation) If you have have a high mortgage, then you should consider selling now - especially if you will still make a profit. This is because once prices drop, & you lose all your deposit you will be unable to buy another house, even at cheaper prices & lower interest rates! For example, once prices drop by 10% then that's your 10% deposit gone! (OK, I'm being simplistic with my math, but you see my point). If you have over-stretched yourself to buy the house, you won't be able to keep paying it off once you lose your job, or become sick, or have more children, etc. So it would be better to sell it now for a high price, than to wait until its repocessed by the bank. The problem is that sellers become greedy & will wait in the hope of making profits. They need to be aware that its impossible to sell at the peak of the market, because the peak is only apparent after prices have dropped! Also, they shouldn't listen to the agent's lies. All agents want is their commissions - understand that agents will use their pet valuers who just mirror their valuation. They will send you to a pet mortgage broker who will give anyone a mortgage, so thay all get their undeserved commissions!! So do your own research & read the Housing Panic blog -http://housingpanic.blogspot.com - for a full picture! |
12-24-2008, 11:01 PM | #2 |
Avalon Senior Member
Join Date: Sep 2008
Location: Washington state
Posts: 743
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Re: 2009 Real Estate in Countries that have yet to fall
Yes, mine was 220k at the top of the bubble. I sold for 45k less in October.
alys |
12-27-2008, 04:08 AM | #3 |
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Re: 2009 Real Estate in Countries that have yet to fall
Sorry to hear that Alys. But clrarly the worst is yet to come & people who hang on to their houses WILL end up worse off:
http://www.infowars.com/?p=6836 - Houses values falling at worst pace since depression in the US. http://www.infowars.com/?p=6834 - General decline in all sales - “This will go down as the one of the worst holiday sales seasons on record,” |
12-27-2008, 12:02 PM | #4 |
Avalon Senior Member
Join Date: Sep 2008
Location: Sydney, NSW, Australia
Posts: 2,280
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Re: 2009 Real Estate in Countries that have yet to fall
A hard balance.
One needs a house, and IMO owning is better than being slave to a landlord. Cashing out now is just putting your money at the risk of hyperinflation and bank closure. I could be wrong, but I thought that if you are in debt, your main aim is to get the debt under control - or dont you think that conventional wisdom applies anymore? A.. |
12-27-2008, 05:01 PM | #5 |
In The Mists
Join Date: Sep 2008
Location: Toronto
Posts: 1,133
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Re: 2009 Real Estate in Countries that have yet to fall
having the basics for survival in your hand is infinitely preferable to a mitt full of cash.
cash is going south, stuff is going north. If you own a place, which can be used to grow some food, and which provides some fresh water, and have some means to generate any power you need, and have a community committed to mutual aid and protection, no matter how loose, then you have it going on. It may be advisable to keep SOME cash for trade, but be prepared for it's value to fall until it's almost useless, and then your stuff will be the new cash, especially any extra stuff in the basics category, like food, water, clothing, tools, seeds, gold/silver, skills/labour, etc. |
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