evelinoz
2021-10-30 07:49:59
- #1
I bought my first property in DE at the beginning of ’84, the interest rate was between 7+8%. I repaid 3% and made an extra repayment each year.
One year after I sold it with a very good profit, real estate prices plummeted; it was the Asian crisis at the end of the ’90s. And real estate was then ridiculously cheap compared to today despite high interest rates.
In my country, I have already experienced two burst bubbles, the biggest in 2014/15. The market has not yet recovered from that. Back then, the mining boom ended, and everyone who had a dollar left owned at least a second property; people were in a buying frenzy (the shelves for the most expensive coffee machines could not be restocked fast enough). Many people have second properties as additional retirement provision and because of negative gearing (less income tax).
Yes, and because here as well as in the UK, you can look up all sold properties online, usually with prices and the sales history, you can see how prices have developed, up, down, up, down. For example, a house around the corner was sold in Nov 2012 for $490k and now in July for $440k. The hardest hit are always the luxury properties here.
And yes, the baby boomers are my age group, 60-70, so those born after the war. And these baby boomers (in the big city) themselves did not have many children, mostly one or none at all. That means, for example, in my family environment there are only 2 boys (my grandchildren) who will eventually inherit the properties of several people in DE/UK/AUS/CY because there is no offspring. And yes, my local neighbors inherited this year, a mother had a house in a posh area, they bought a new apartment in Perth with a view over the city, the river, etc. No gardening, no maintenance on the house, etc. They are about 60 years old and no longer have to work.
One year after I sold it with a very good profit, real estate prices plummeted; it was the Asian crisis at the end of the ’90s. And real estate was then ridiculously cheap compared to today despite high interest rates.
In my country, I have already experienced two burst bubbles, the biggest in 2014/15. The market has not yet recovered from that. Back then, the mining boom ended, and everyone who had a dollar left owned at least a second property; people were in a buying frenzy (the shelves for the most expensive coffee machines could not be restocked fast enough). Many people have second properties as additional retirement provision and because of negative gearing (less income tax).
Yes, and because here as well as in the UK, you can look up all sold properties online, usually with prices and the sales history, you can see how prices have developed, up, down, up, down. For example, a house around the corner was sold in Nov 2012 for $490k and now in July for $440k. The hardest hit are always the luxury properties here.
And yes, the baby boomers are my age group, 60-70, so those born after the war. And these baby boomers (in the big city) themselves did not have many children, mostly one or none at all. That means, for example, in my family environment there are only 2 boys (my grandchildren) who will eventually inherit the properties of several people in DE/UK/AUS/CY because there is no offspring. And yes, my local neighbors inherited this year, a mother had a house in a posh area, they bought a new apartment in Perth with a view over the city, the river, etc. No gardening, no maintenance on the house, etc. They are about 60 years old and no longer have to work.