Weekly Auction Results
October 20th, 2008 | by winsonlee |
In hurry to get a property ? Planning to take advantage of the grant that is given by the government that will expire on the 30 June 2009 ? If you do realise that at this point of time we only feel a slight pinch from what happens in the US. US and Europe have a very close relationship when comes to economy. Where does majority of the products comes from ? China ? If US and Europe are in bad shape, this means that they will import lesser products from China. If China get hit, which will be the next country that will suffer ? Australia as we depends alot on commodity and if China get hit, they will no longer need as much commodity as they suppose to. Last week, home clearance rate in victoria has drop from 63% to 57%. During good times, the auction clearance rate is at 80%. Everything that goes up has already comes down. Petrol price used to be US 140 a barrel and now it has already gone down to US 70. Our AU currency used to be 0.94 and now it has gone down to 0.68. If you study the economy cycle properly, usually property is the last one that get hits. Last year itself median property price went up more then 20%. Do you think property are able to run away from the hurricane ? I bet not. The grant is just a false hope for the public to enter the market. If the property that you plan to buy is $400,000, $7000 is only 1.75%. After going up for more then 20%, do you think it wont drop more then 1.75% ? Property wont be picking up till the economy recovers. There are news out there saying that RBA will cut the interest rate till 2010. This means that the economy wont be picking up till then. Read the news and do your maths before taking any action.
