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Australia in for a property "bloodbath" economists predict

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Your Investment Property | 23 Jun 2015, 06:46 AM Agree 0
While the heads of two major real estate agencies believes there is no housing bubble in Australia, two economists believes Australia is in for a “bloodbath” caused by a sharp correction in prices
  • Paul | 24 Jun 2015, 09:35 AM Agree 0
    And even more economists have ridiculed this prediction.
  • Jerry | 24 Jun 2015, 01:13 PM Agree 0
    Where is the reduction in net migration?...we are in the middle of the Big Australia Policy with 35 million population. A lack of infrastructure has seen prices really jump in Sydney. Otherwise prices are increasing below the historical norms on average. New Hospitals and new train stations increase demand and prices...but that's normal. Demand for property is not the problem...high unemployment is a much bigger problem...Low Coal prices are really the biggest problem for keeping the welfare state going.
  • Terry | 25 Jun 2015, 05:14 PM Agree 0
    The bubble will burst no doubt just like it has in the last 100years of bubble and bust. But to what extent? Markets like the Gold Coast always suffer badly with extreme swings. The Sydney market however tends not to fall as much and a fall over 15 percent would surprise. With falling full time employment masking the unemployment figures I tend to agree a fall will occur. If you can sustain your low cost mortgage hang on and don't sell especially in the Sydney market which recovers some of the loss quickly other markets may take many years. If negative gearing ends a drop of up to 25 percent is definitely on the cards.
    • KP | 26 Jun 2015, 02:39 AM Agree 0
      lol they'll neven can negative gearing, too many politicians own investment properties ;)
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