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- Aug 25, 2019
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Society/Culture Australian Property Prices to Crash?
- Thread starter CheapCharlie
- Start date
- Tagged users None
- May 20, 2014
- 20,990
- 26,800
- AFL Club
- Geelong
Might be tough to get a loan as valuers have started to refuse to inspect properties because they might catch the virus from homeowners.....
Indefinite job security to make repayments and a potential recession will effect it more likely.
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- May 20, 2014
- 20,990
- 26,800
- AFL Club
- Geelong
That will affect defaults moving forward. If you still have current payslips at the time of application you will still get a loan. Banks use auto vals for low LVR but if you are borrowing above 70% you are most likely going to need a proper valuation done and no valuation is no loan in the first place.
No.
it will effect buyers that were planning on purchasing and will delay taking on a mortgage.
Meaning a slow market for those using credit
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Last edited:
- May 5, 2006
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The Brown Dog.
It has been a while.
Aus needs a wicket.
Let's go to work
Wat?
As a valuer I can confirm this is not true.
Fair to say we ask the question on whether or not anyone is under quarantine.
Clearance rate over 70% here in Melbourne over the weekend and we're busy.
Any effects of the economic contraction will take a bit to hit the property market IMHO. We're only a couple of pay packets into the crisis.
Do you physically visit every property you value?
- May 20, 2014
- 20,990
- 26,800
- AFL Club
- Geelong
As a lender I can say it is, as it happened last week.
No, we can do desktops and kerbsides for low value and simple stuff.
But higher value, higher loan to value ratio and specialised properties need full access.
For no reason (ie. the occupant hadn't recent been to China, Italy, Korea etc. or was in quarantine)?
We've had situations where we can't get in due to the tenants being stuck overseas and the agents not having keys, but that's another story.
We certainly haven't outright rejected work for no good reason as it is against our contracts. A general fear of catching it is no excuse to reject instructions.
Plus why wouldn't you want the work?! Firms would be winding up in months (look at Landmark White following their data breaches as an example).
- May 20, 2014
- 20,990
- 26,800
- AFL Club
- Geelong
I don't know the full story behind it, just that it was cancelled because of it.
At this stage it would be pretty unlucky to run into someone confirmed positive.
I had a rental inspection on Friday and the agent has cancelled that as well.
At this stage it would be pretty unlucky to run into someone confirmed positive.
I had a rental inspection on Friday and the agent has cancelled that as well.
Fair enough, but probably best to get an idea as to why the val appointment was cancelled before declaring that valuers are closed for business.
No doubt there will be some inexplicable fear-based decisions along the way, but no point propagating fear on this front when it's business as usual for us.
Why? Interest rates are crashing.
What utter bullsh***.
What part is bullshit ? That previous poster quoted 380,000 new arrivals in Australia and for that reason it's impossible to have a property Armageddon?
Or that part where I said , the people arguing a property Armageddon bubble will burst . Because they "think" property prices are too high, mainly due to the fact that they feel they should be able to afford a cool inner city terrace but are priced out of it?
Seeds , you are so transparent.
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FWIW Hamingja, there is an article in the Fin about this very issue with a couple of blokes I know well from HTW and ValEx and their stats show that cancelled / postponed inspections are next to nothing at this point.
Unless we're in total lock down, we'll be inspecting properties.
IMHO, potential economic issues will be a bigger concern to us undertaking vals in the future than the virus.
Probably the second part. Housing unaffordability is at record levels across the country. Even worse than the 80s when interest rates were running close to 20%
This discussion around the 80s affordability has been done to death. In this thread particularly.
In the 80s a car, a tv a microwave, airline travel, a telephone line cost many times more then it does today.
Do some research and see what 80s goods and services equates to in today's dollars. That will give you a better representation of cost of living.
The ridiculously low interest rates of today is the equivalent of wages increase during an inflation economy.
Interest rates today and for the foreseeable future are ridiculously low for home owners.
Although if you don't have a mortgage now , you won't be benefiting from it.
Cost of rent is higher then maintaining a mortgage.
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Talking purely house prices compared to wages here. And yes even with record low interest rates housing unaffordability is at record levels adjusted for inflation.
One aspect of affordability, which is important and ignorant to dismiss is;
Cost of mortgage/money.
Go educate yourself and use a mortgage calculator to understand it and break it down.
Most of you would struggle worse with an average mortgage in 1990 then you would now.
I don't think you understand what you would have went without back then compared to today. You'd all die from boredom.
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Regardless of mortgage rates. Housing is less affordable today than 30 years ago.
Wow you are thought provoking...
Looks like it'll never be affordable.
What you gonna do? Whine and winge.
Meanwhile 110,000 Australians purchased their first home in 2018
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Not going to whine and whinge for myself. I own and am mortgage free. The fact that homebuyers are paying record amounts of their wage on housing and certain sectors of the community are locked out if property completely is disturbing to me. But that's my personality I guess.
Your personality doesn't make sense if you use it as a basis of discussion.
It's comes across as irrational and using personal "gut feel" and ideology.
I think we have a phony here.
And yes you are whiny
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