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Housing Crash puts Sellers in Debt Crisis

Discussion in 'Real Estate' started by TakeStock, 21st Aug, 2006.

  1. TakeStock

    TakeStock Well-Known Member

    Joined:
    14th Aug, 2005
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    140
    Location:
    Sydney
    Interesting article in the Sydney Morning Herald today describing how the property downturn has caused grief to those who have had to sell at a loss.

    "A THREE-BEDROOM brick-veneer house in St Clair sold for just $260,000 at the weekend - down about 42 per cent from its last sale at $450,000 in 2003 in a further sign of the depressed state of the Sydney property market.

    Only one person bid on the house in the city's west. The mortgagee sale was forced after the owners could not meet the interest payments on the $405,000 they borrowed to buy the house at the peak of the market."

    Read the entire article
    http://www.smh.com.au/articles/2006/08/20/1156012414995.html?from=top5

    Doom and gloom in the media regarding property...Yep, it's definitely time to start looking at property again, although I don't think there is any hurry.
     
  2. Jacque

    Jacque Team InvestEd

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    Sydney
    It will be telling to see what happens should the RBA raise interest rates again before the end of the year.

    Buyers went ballistic in 03 and the strain is now showing for those forced to sell. I've seen several examples of losses that are simply heartbreaking, but long term investors aren't suffering.
     
  3. yeslist

    yeslist Member

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    19th Aug, 2006
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    Location:
    canberra
    The current Canberra market seems like another world compared to Sydney.
    The bottom end is pretty hot in my area Weston Creek. The little houses are selling as soon as they hit the market. And the good news is that rents are increasing also. Things are pretty good for ACT investors in the home owner market ATM.
    Simon
     
  4. Alan

    Alan Well-Known Member

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    Ahh .......DIVERSIFICATION helps again.

    :)
     
  5. Jacque

    Jacque Team InvestEd

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    Out of interest, Simon, what's the median for houses in Weston Creek?
     
  6. Coffee

    Coffee Member

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    17th Sep, 2005
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