Anyway, on topic and to today's savvy investors, not only are the property owner occupiers shredding $800-$1000 in equity a week in mediocreland burbs the investor-flippers are going down like nine pins....Victorian homeowners' $300m blow
VICTORIAN homeowners have lost more than $290 million over the past three years selling properties for less than what they paid for them.
That can't be, there is a housing shortage and its a lack of sellers to 10 quintillion buyers and endless pools of credit will make property worth 5,000x the average income by christmas 2014.
Alarming figures that point to a hidden crisis in the property market reveal 5427 vendors lost an average of $54,000 on investments gone wrong in the three years to July.
The Melbourne CBD, Southbank and Docklands are the state's leading loss-making suburbs.
One out of every 20 properties sold in those locations had lost their owner money, according to the data from a property research firm.
But the losses are not limited to the flats-dominated inner-city market, with the figures also showing vendors losing millions in popular family areas.
These suburbs include Point Cook, Roxburgh Park, Frankston, Reservoir, Carrum Downs, Glen Waverley, Hawthorn and Elwood.
Residex, a property information firm that collates data on real estate markets throughout Australia, compiled its analysis after sifting through the results of 268,000 sales recorded with the Valuer General.
It is the first time the firm has crunched the numbers on Victoria, meaning it could not make historical comparisons.
The losses are even more startling given that the city's median house price rose by around 30 per cent over the same period.
Real startling. Wait! No one saw this coming?
Buy Corn futures? Watching this unfold is worthy of popcorn, butter and a comfy couch.
By the time the market bottoms at the end of next year, Residex expects the city's median house price to have shed 15 per cent. Families living in a $500,000 home can expect to see $75,000 wiped from its value.
"The adjustment process in Melbourne is just beginning," Mr Edwards said.
Aha, the old "adjustment process". He is just going to pull a lever and stop this next year. The Spanish, Irish, and Americans didn't have his secret 'lever' powered by the red matter and boosted by Roger Ramjet's proton energy pill.
Knowing full well that they have this lever and the global economy is ticketyboo 1 quintillion are going to buy this year to take a modest $75K haircut before the 1000x annual increase. Like getting granny's enema, you just neeeeed to do it.
"I won't be surprised to see Melbourne suffer more than any other capital city in Australia. It has got the highest volume of surplus stock in the country and as the manufacturing industry further turns down the city will suffer from more unemployment than any other capital."
There is a housing shortage mate.THERE IS NO SURPLUS STOCK!
"There is a surplus of high-rise developments and they tend to lose value before they gain value," she said. "Nine times out of 10, off-the-plan developments are overpriced. They are priced on speculative value.
"When you go to sell you are also in a situation where no one wants to buy your lived-in apartment because there are always brand new ones coming on to the market in those postcodes."