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Thursday, February 26, 2009

Never been a better time to buy? REALLY?


Experts' tip: Now's the time to buy a house
If you are secure in your job and have enough money saved, now is the time to buy a house, say real estate experts. No one should try to pinpoint the bottom of the housing market and if the price is right, the timing is perfect, says BNZ chief economist Tony Alexander.

Has anyone ever noticed that those with a direct interest in the property market are ALWAYS saying it’s never been a better time to buy? Are you crazy? Property valuations have dropped by nearly 10% and they are predicted to plunge another 20% - only a moron would buy now with so much uncertainty in these turbulent overheated property markets. The reality is that we are on the property Titanic and we’ve hit a credit crunch iceberg. While the rest of us are scrambling for the lifeboats, the owners of the property Titanic are still trying to sell us on the ocean views.

The game is over, this economic meltdown is something that as a generation none of us have ever experienced. George Soros is right, Capitalism is dead.

9 Comments:

At 26/2/09 7:20 am, Anonymous Mark said...

Properties are lower in value than they have been for some time and interest rates have dropped hugely. Why is it not a good time to buy? Seems like an ideal time to me.

 
At 26/2/09 7:33 am, Anonymous ron said...

Buy it at $100 000 and watch it drop to a value of $80 000, regardless of mortgage rates that's still a dumb call.

 
At 26/2/09 7:43 am, Anonymous Mark said...

Well, no one has a crystal ball.

 
At 26/2/09 7:47 am, Anonymous sdm said...

They are predicted by a few people, not all, to fall another 20%.

I don't see it happening.

The word on the street is that Februarys numbers were OK, but there are a lot of people waiting for Bollard to move in March (next week, I think?) If he drops, which he probably will, and Mortgage rates get below say 5.2 (or hell, could we see a rate with a first number being a 4??!!), things might be ok.

Bomber and others are sitting, it seems, cheerleading this thing as the end of capitalism. Such an argument doesn't make sense. Capitalism hasn't caused this mess. In fact, arguably a capitalist critique could have predicted it (long period of high growth....not sustainable). Government intervention in the market has been a factor - encouraging lending institutions to lend to everyone. But the willingness to take on debt has caused plenty of trouble.

Property is my field. I am at the cold face. My gut feeling is that the bottom is close. I am seeing investors come back to the market - and I'll say this, I am about to put my money where my mouth is and buy.

 
At 26/2/09 8:39 am, Anonymous Anonymous said...

This is hilarious. We have Bomber telling people not too buy because the property market will fall further yet happy to borrow money to invest in equities. You can't have it both ways!

 
At 26/2/09 10:34 am, Anonymous Anonymous said...

The prices are still far detached from fundamentals,they will fall further guaranteed!

 
At 26/2/09 6:30 pm, Anonymous Anonymous said...

You are a moron if you bought a year or two ago. Not if you buy now.

 
At 26/2/09 8:59 pm, Anonymous Anonymous said...

"only a moron would buy now with so much uncertainty in these turbulent overheated property markets"

Given your calls on the election result and the oil prices this is obviously a signal to leverage up and buy.

 
At 28/2/09 11:17 pm, Blogger karlos said...

I think anyone owning property will be better off in the long run, provided they can hold on to it for long enough. Are you in a stable job? Go for it.

 

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