It Has Never Been A Better Time to Buy. But You Never Know, IT MIGHT BE EVEN BETTER IN 6 MONTHS! Or It Might Not… (Part 5)
Previously, on the Earlybird blog, we have covered the causes for the current softness in the residential market.
The market is in a cyclical slump.
Mortgages are proving to be a real constraint on budgets and giving us lacklustre auctions, with clearance rates stuck at about 50%.
Down she goes... gently. Friday Flats, Thredbo
(But please don’t call it a credit crunch. That makes real credit crunches look like Godzilla visited Jurassic Park and had babies. For a real example, read about the Global Financial Crisis or watch The Big Short.)
Property price growth continues to track downwards on a gentle gradient, a little like Friday Flats. But while all the skiers enjoy the Thredbo season, let’s dig into what might happen in the next few months in this final post in this series that asks: IS IT A GOOD TIME TO BUY?
Investment Analyst | River X
6 年We can agree to disagree on whether it’s a credit crunch, since interest only refinancing isn’t due to peak for over a year on increasingly large principal loans, and LRBA loans are no longer being extended at all in many cases. Funding costs are trending very much upwards both here and abroad, particularly in countries with similar debt characteristics like Canada and NZ. Buying to live in a place is one thing if you have enough savings and don’t plan to upgrade or move for a significant period, but it doesn’t make much sense as an investor to jump in with prices going down at the same time as rental vacancies are either flat or rising. Very keen to hear your thoughts in another 6 months time.