Property prices

[Budgie]

Hello

ive done a bit of research on property prices over that last few years and it seems that the prices are going down, especially with the more expensive houses. Which makes me nervous about buying a property in Perth, spending 20 years paying it off and then coming to downsize and selling it for less than we paid for it. Does anyone have any market insights? We are thinking about buying something in Sydney instead, renting it out and renting in Perth for ourselves. Does this seem overly cautious?

Thanks xx

[ali]

Hello

ive done a bit of research on property prices over that last few years and it seems that the prices are going down, especially with the more expensive houses. Which makes me nervous about buying a property in Perth, spending 20 years paying it off and then coming to downsize and selling it for less than we paid for it. Does anyone have any market insights? We are thinking about buying something in Sydney instead, renting it out and renting in Perth for ourselves. Does this seem overly cautious?

Thanks xx

 

I think it depends where you live, prices in our area don't seem to have stayed static rather than going down. I think you are being a little over cautious, the housing market has always had peaks and troughs - we sold our first home in the UK for what we paid for it - we were lucky as there was a lot of negative equity. Our second home prior to moving we sold for a profit.

 

Remember long term renting is also not without risks - whilst the rents are cheaper now, as things improve they will rise. Friends of ours who rented initially, had their rent increased every time they renewed the lease, the owner may also decide to sell.

[Budgie]

I think it depends where you live, prices in our area don't seem to have stayed static rather than going down. I think you are being a little over cautious, the housing market has always had peaks and troughs - we sold our first home in the UK for what we paid for it - we were lucky as there was a lot of negative equity. Our second home prior to moving we sold for a profit.

 

Remember long term renting is also not without risks - whilst the rents are cheaper now, as things improve they will rise. Friends of ours who rented initially, had their rent increased every time they renewed the lease, the owner may also decide to sell.

 

Ithanks for the reply, I agree but the reason for my concern is that house prices over the last 15 years in Perth have really rocketed due to the mining boom, now that seems to have slowed down considerably will prices return to be low again especially due to the housing building boom over that time, even more supply than 15 years ago and now people who moved to Perth for that boom can't work and so move elsewhere? I'm not there in it like you are obviously which is why I really appreciate another perspective but it's as though a false market was created there and I'm not sure how it can sustain even after the drops we've already seen.