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Beyond the expected

Property prices going down. Dinner party bores take note

By johnboy - 28 July 2011 11

Well look at that.

The Canberra Times reports that median property prices in the ACT fell 2.8% in the past 12 months.

Markets are at their most dangerous when there are idiot investors who believe prices can never go down, because that belief leads them to over-leverage.

Canberra has sadly been afflicted by vast numbers of such idiots for a very long time.

What’s Your opinion?


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11 Responses to
Property prices going down. Dinner party bores take note
Watson 1:54 pm 28 Jul 11

Classified said :

Watson said :

Well duh. I could’ve told you that was going to happen because I finally exchanged contracts on my first house!

Congratulations!

I wouldn’t worry about this, it’s a pretty minor drop in prices, and will be meaningless over the years and decades to come.

Thanks. 🙂

And yeah I know, I’m just being cheeky. Having a self-absorbed chuckle at the irony of this, after such steep price rises for a decade.

Classified 1:18 pm 28 Jul 11

Watson said :

Well duh. I could’ve told you that was going to happen because I finally exchanged contracts on my first house!

Congratulations!

I wouldn’t worry about this, it’s a pretty minor drop in prices, and will be meaningless over the years and decades to come.

Watson 12:37 pm 28 Jul 11

Well duh. I could’ve told you that was going to happen because I finally exchanged contracts on my first house!

Jungle Jim 12:01 pm 28 Jul 11

Holden Caulfield said :

Isn’t there advice on how one can challenge their UCV included with each rates notice?

I just happen to have my rates notice in front of me and yes, there is. You can object to your rates assessment at a cost of $64 (except where the objection relates to the valuation on which as assessment of rates is based, in which case it’s $20) within 60 days of receiving the notice and you can also object to the unimproved land value at a cost of $20, again within 60 days.

arescarti42 11:56 am 28 Jul 11

“Canberra has sadly been afflicted by vast numbers of such idiots for a very long time.”

Not just Canberra, the entire nation.

My favorite was the bus driver on a recent Today Tonight episode who had borrowed $1.35 million in order to buy a $1.5 million investment property on the gold coast, which was now worth $800k, wiping out his $150k deposit and leaving him in negative equity.

He made some comment like “we’re not millionaires, we don’t have huge incomes or anything”.

Cracked me up.

Spoono 11:47 am 28 Jul 11

I can’t believe the nutty prices for mediocre units in Canberra, not far off house prices

Holden Caulfield 11:27 am 28 Jul 11

Good news for those wanting to buy, but not so good for those first home buyers who are waiting for a bargain to show up in the inner north. Y’know those who couldn’t imagine the horrors of living in Belconnen or the like. There seem to be a lot of them around, too.

Sadly, 15-20K off a 650K+ entry level property still leaves one with a pretty sizeable mortgage.

Holden Caulfield 11:21 am 28 Jul 11

Isn’t there advice on how one can challenge their UCV included with each rates notice?

troll-sniffer 11:14 am 28 Jul 11

dtc said :

Can I challenge the 14% increase in my land value, according to my latest rates notice?

Median prices are always dodgy – for example, if there were lots of sales in Forde during the year then the median price will be lower than a year when there were no new developments coming on line (I appreciate Forde is not ‘cheap’ as such, but its average price is probably below the $551k median)

Three year rolling average I believe, so this correction won’t show up until the next change in valuations, though statisticians or gubmnt employees in the know are welcome to set me straight.

dtc 11:08 am 28 Jul 11

Can I challenge the 14% increase in my land value, according to my latest rates notice?

Median prices are always dodgy – for example, if there were lots of sales in Forde during the year then the median price will be lower than a year when there were no new developments coming on line (I appreciate Forde is not ‘cheap’ as such, but its average price is probably below the $551k median)

EvanJames 10:31 am 28 Jul 11

Doubtless they”ll be whining at the government for Compensation or somesuch. Until we have governments who can hold fast against greed and stupidity, we’re all in for a rough ride.

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