Tuesday, November 08, 2005

How is your house sale going??

"good grief !!

I thought the penny would have dropped by now that selling houses in UK and hoping to start out in Oz flush with cash was a thing of the long dead past.

Has one not heard that house prices in Australia are overpriced as they are in UK, that major house price falls across the east coast of Oz have already begun.

That the Australian dollar is far too strong to be sending large quantities of Sterling over right now.

That mortgage rates in Oz are almost 8% and climbing

I will not go into the subject of work practices - just do not expect open arms, bags of money and promotion for washing up on Ozzie shores from windswept UK.

On my part - I have done the full circle, sold up in UK, Bought in Oz, sold up in Oz and now back in UK

FWIW - I would stop listening to smarmy estate agents and the bull on TV about house prices "never falling", and that the "lift" in house prices are just round the next corner. I would start listening to what the buyer is willing to pay and accept the fact house prices have fallen month on month across country.

We are now in a house price falling cycle, it is going to get nasty as more and more people are stung with job losses in UK. Credit debt increases, divorce and family breakup occurs, business bankruptcy and the death of the newbie BTL landlord. All these factors are going to cause prices to fall rapidly.

At the bottom end of the property ladder - cheap state housing projects and housing association "deals" will remove what is left of the FTB group from the housing market - stagnation followed by house prices plummeting are the obvious next step.

Selling at the price buyers are willing to pay in hard cash / mortgage in line with today's buyers in your area is the only way to go, swallow the loss if you have to and start out again in Oz with renting.

Put the money in the bank and wait out house price falls in Oz and buy up when the price is right.

As for those who are utterly mad enough to withdraw equity on a house and then watch the house prices falling month on month will really get to understand the meaning of the word negative equity D-E-B-T.

I can just hear it now .... "teacher" what do you call those people who go into debt re-mortgaging and then going to a new country and getting into more D-E-B-T at this stage in the property cycle when house prices have stagnated and ready to fall ?.

BTW - recovering debt via Australia is easier than you think

I sold off 2 houses in UK in '98, and bought houses and flats in Oz over the last 7 years "WHEN PRICES WERE A THIRD OF WHAT THEY ARE NOW, I sold the lot last year and returned to UK.

Take it from me, it is the guy with cash in the bank who is king in UK as well as in Oz when it comes to house buying - and will be for the next few years.

I am starting to cherry pick buying quality property again in UK for letting purposes, I am offering 20 - 30% below the offer price and I am getting results.

I have never regretted the move and the selling/buying property. Thank god I did it while property prices were in a sharp rising market in Oz with capital used for the purchases from sterling at a time when the Ozzie dollar was crap.

Those times are well and truly over.

The dread of falling house prices and related debt misery will seem like an endemic plague to homeowners with large mortgage DEBT and little capital and plummeting house prices - save yourself the hassle of negative equity and try thinking outside the box.

It takes balls migrating, and it takes cold hard reasoning to ensure financial freedom."

A great post I saw on a forum.
Chris Bell

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