Belowed is the artile translated by Google Translater
Even cancel the negative tax, prices still will not fall, but will not collapse.
Some foam excessively high price adjustment will be uncompleted, but will not be cheaper than the surrounding second-hand house prices, if the opening price of the new building is cheaper than the surrounding second homes, this is a signal that prices will fall.
The following discussion only investment house, regardless of the ups and downs have no effect on the housing market since.
1- real estate, especially second-hand housing prices, unlike the stock price will be controlled by large consortia large organizations, real estate is dispersed in private capital, the landlord owns the property pricing.
2- real estate investment, as long as the rent can be roughly the loan interest, the landlord can be long-term holders, can not be lower than the purchase price to sell.
3- Even empty rent, as long as the landlord still have other income to support the loan interest, the landlord still does not sell cheap.
4- If you hold multiple sets of investment property, rent can not afford to have, there is no other source of funds, must sell, which is the worst landlord sold the original price.
5- If you can not sell the original price, the landlord may choose to let the bank take away breach. (1 million house loan 800 000, 600 000 and finally sold, still owe the bank 200 000, as well the house back to the bank)
6- to give the house a bank loan valuation, is to prevent the occurrence of article 5, outrageous prices banks are refusing loans, as long as the bank can lend to you, it means the bank on the housing market still has confidence.
[When house prices will fall]
1- investment banks to tighten housing loans, investment house rent is no longer included in your repayment ability, do not refinance.
2- rental market is bleak, the rent does not go out a lot of investment, hold the landlord could not be sold at or returned to the bank, the bank will come up with a large number of defaults on real estate market auction.
3- large number of houses on the market, buyers are free to choose to bargain shop around, intermediaries like obstinacy when the buyer when God.
4- fewer buyers, landlords or sell price, no one wanted to buy the dips, because the unemployment rate surge, people have fled the city, why not have jobs to buy a house, like Perth, Western Australia, has Today million mansion now playing on the break, but you will buy it, hundreds of thousands to buy a mansion ghost town, light long grass prices, no one to rent.
5- company going bankrupt, banks insurance company closures, staff turnover serious, become Sodom, like Detroit did, house not money, who accounted for is who you go to Detroit it?
[Foam] prices only short-term adjustment
Everyone hold out hope that the decline in value immediately pick up a leak, how this market could crash it. Government intervention useless, heavenly government so the concentration of power, plus the purchase of real estate tax is still weighed less than the price, not to mention the Australian government, the abolition of negative gearing count root feather ah.
When housing prices began to fall, is the social collapse, when prices plummeted more will buy more, if one million fell 800,000 you buy it, and then fell to 600 000 to buy a case of it? House only buy or not to buy, there is a small part of the landlord to give you a specific reason prices pick up a leak, can hold live Why not bad money to give you Jianlou depreciation, gains this year to sell well on hold until next year, or the year after sell short wait for the next wave of market and then sell.
So now do not guess prices up or down, to analyze the financial, employment status, social status, political changes, if the deterioration of the economic downturn, rising unemployment, in such a place even have enough to eat, and prices fell another what significance does it.
Sydney, Australia, the country is now the case is affected by the relative economic slump, but some areas still good mix of tens of thousands of annual salary, look around friends are unemployed are facing layoffs, and many government policies are trying to save the economy in decline, want to reverse as soon as possible, so that the Australian out of the woods, the community did not despair, real estate naturally confident.