2008 The good, the bad and the ugly
What exciting times we live in!. At the start of this year and up until about April, the real estate market was booming and everyone was making lot's of money, but could it all last? Of course not, otherwise we would have been paying $500k for a basic 3 bedroom home in Moorooka or Salisbury and no one would have been able to afford to buy a home. So along came the bust, which always follows the boom, as sure as night follows day.
A new market is certainly upon us and sellers are struggling to come to terms with the fact their property value has decreased by about 10% since April and we are hoping it has now bottomed out. Buyers are still very reluctant to make an offer if the listed price is too far away from what they are thinking as they don't want to offend the Seller, so we have a "stand-off" situation happening at the moment, unfortunately, this will not change until the Seller's realize the market is not going to improve in the short term and if they are serious about selling they need to meet the market.
Are we in a recession?. I guess it depends on who you listen to! Would it really hurt us all to stop spending and start paying off those credit cards etc. I think not.
We certainly have some of the most expensive real estate in the World and that is very unfortunate for all of us, but that cannot change as our high home ownership rates continue to rise, but what can change and will change is the deposit and income you now need to obtain the home loan as lending institutions tighten their belts.
Being a "baby boomer" and paying 18% interest on my 1st mortgate, with two young children in the 1970's was still much much easier to manage than it is today as the home cost was only approximately 2.5 times of your yearly earnings eg: if you earned $10,000 per year the medium price in Brisbane was $25,000 now unfortunately it is a whopping 7.5 times your yearly salary. We also had to have at least 10% deposit, and our first homes were not that flash. A huge change is thirty years, but is it for the better. I sometimes wonder.
Our family has had a very big year this year and it continues with my daughter Natalie (photo below) leaving for the Cayman Islands to ply her trade as a Chartered Accountant (tax haven) for the rich and famous, we will miss her terribly but wish her well. Bev's eldest daughter Helen was married a couple of week's ago on the Coast (see photo of her daughter Gabby Jane and Mandy's (her sister) little girl Poppy Kate, both very cute kids. It was a great occasion with all my 7 brothers and sisters in attendance, also Mum (82yrs old) danced the night away, we had a fantastic time, sore feet and sore heads the next day. It is great to all be together every now and again as we are scattered from Darwin to Melbourne.
Don't forget if you would like to crunch some numbers you can call our Finance Expert Leah Blackford on 0406 429 041 and she will only be too happy to help. If you would like any information re selling or buying please give me a call on 0411 664490.
A new market is certainly upon us and sellers are struggling to come to terms with the fact their property value has decreased by about 10% since April and we are hoping it has now bottomed out. Buyers are still very reluctant to make an offer if the listed price is too far away from what they are thinking as they don't want to offend the Seller, so we have a "stand-off" situation happening at the moment, unfortunately, this will not change until the Seller's realize the market is not going to improve in the short term and if they are serious about selling they need to meet the market.
Are we in a recession?. I guess it depends on who you listen to! Would it really hurt us all to stop spending and start paying off those credit cards etc. I think not.
We certainly have some of the most expensive real estate in the World and that is very unfortunate for all of us, but that cannot change as our high home ownership rates continue to rise, but what can change and will change is the deposit and income you now need to obtain the home loan as lending institutions tighten their belts.
Being a "baby boomer" and paying 18% interest on my 1st mortgate, with two young children in the 1970's was still much much easier to manage than it is today as the home cost was only approximately 2.5 times of your yearly earnings eg: if you earned $10,000 per year the medium price in Brisbane was $25,000 now unfortunately it is a whopping 7.5 times your yearly salary. We also had to have at least 10% deposit, and our first homes were not that flash. A huge change is thirty years, but is it for the better. I sometimes wonder.
Our family has had a very big year this year and it continues with my daughter Natalie (photo below) leaving for the Cayman Islands to ply her trade as a Chartered Accountant (tax haven) for the rich and famous, we will miss her terribly but wish her well. Bev's eldest daughter Helen was married a couple of week's ago on the Coast (see photo of her daughter Gabby Jane and Mandy's (her sister) little girl Poppy Kate, both very cute kids. It was a great occasion with all my 7 brothers and sisters in attendance, also Mum (82yrs old) danced the night away, we had a fantastic time, sore feet and sore heads the next day. It is great to all be together every now and again as we are scattered from Darwin to Melbourne.
Don't forget if you would like to crunch some numbers you can call our Finance Expert Leah Blackford on 0406 429 041 and she will only be too happy to help. If you would like any information re selling or buying please give me a call on 0411 664490.
posted by Lyn Rowe at
14:56
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