Posted to Sydney Morning Herald (29/10/2011) on 30/10/2011 at 11:25 PM
Commenting on "Sydney up for auction: market faces litmus test"
http://smh.domain.com.au/real-estate-news/sydney-up-for-auction-market-faces-litmus-test-20111028-1mmm5.html
Posted to Sydney Morning Herald (29/10/2011) on 30/10/2011 at 11:36 PM
Commenting on "ANZ predicts house prices to keep dropping"
http://smh.domain.com.au/real-estate-news/anz-predicts-house-prices-to-keep-dropping-20111026-1mizi.html
It is unlikely buyers are rushing to real estate agencies or weekend auctions to buy properties. High interest rate seems to be coming down, but then this is no longer the determining factor to entice property buyers and investors. The fear factor is uncertainty in employment, due to international financial crisis and Australian governmental mismanagement.
Many organisations have been cutting staff numbers in hundreds and thousands recently, and Qantas will add over 1000. According to the latest ABS data, out of the 5.2% unemployed, 40% are in part time or contract employment. This excludes many who cannot get a job and are forced into operating their own businesses but making losses.
Even though there is more than enough cash floating around in the banks, many people are not qualified to obtain loans or obtain enough to buy a property. The banks treat the PAYG summaries as the holy-grail in determining the loan amount, despite some applicants may be asset rich.
While I hate to be branded as a doomsday prophet, I believe that we have not seen the worst of the financial tsunami hitting Australia yet, caused by more EU crisis, China’s soft landing, Australian industrial disputations, changing of guards in Canberra and more social uprising.
The property prices will continue to fall and may hit hard around the Christmas / New Year period. The next wave change will come round in March / April 2013.
Commenting on "Sydney up for auction: market faces litmus test"
http://smh.domain.com.au/real-estate-news/sydney-up-for-auction-market-faces-litmus-test-20111028-1mmm5.html
Posted to Sydney Morning Herald (29/10/2011) on 30/10/2011 at 11:36 PM
Commenting on "ANZ predicts house prices to keep dropping"
http://smh.domain.com.au/real-estate-news/anz-predicts-house-prices-to-keep-dropping-20111026-1mizi.html
It is unlikely buyers are rushing to real estate agencies or weekend auctions to buy properties. High interest rate seems to be coming down, but then this is no longer the determining factor to entice property buyers and investors. The fear factor is uncertainty in employment, due to international financial crisis and Australian governmental mismanagement.
Many organisations have been cutting staff numbers in hundreds and thousands recently, and Qantas will add over 1000. According to the latest ABS data, out of the 5.2% unemployed, 40% are in part time or contract employment. This excludes many who cannot get a job and are forced into operating their own businesses but making losses.
Even though there is more than enough cash floating around in the banks, many people are not qualified to obtain loans or obtain enough to buy a property. The banks treat the PAYG summaries as the holy-grail in determining the loan amount, despite some applicants may be asset rich.
While I hate to be branded as a doomsday prophet, I believe that we have not seen the worst of the financial tsunami hitting Australia yet, caused by more EU crisis, China’s soft landing, Australian industrial disputations, changing of guards in Canberra and more social uprising.
The property prices will continue to fall and may hit hard around the Christmas / New Year period. The next wave change will come round in March / April 2013.
