Sydney property prices drop Here's what comes next

[@zenmachine50]

hi there greedy boy. you know what they say in technical analysis - "follow the trend until the bend at the end". well I think this is what we are seeing here. might only the be small decline but could be the beginning of the end. why? because of leverage. Debt magnifies gains on the way up but it also magnifies loses on the way down. OK lets say you own a $1m home out right ie 100% equity. A 1% decline in price really means a 1% drop in the value of your home - $10,000. No big deal to your net worth. Now let's say your net worth is only $200,000 and to get a $1m property you have to borrow $800,000 ie 20% equity and 80% debt here is what happens... a drop of 1% in property prices means a lose of 1% of you equity PLUS 1% covered by debt. so instead of a lose of $2,000 you are now up for an additional lose of $8,000. your net worth has then gone from $200,000 to $190,000 or dropped 5%!!! But 10 grand.. not such a big deal now lets look at what happens when the price drops 12% as mentioned in the video. 12% of $1m is actually $120,000. your equity then has gone from $200,000 to $80,000 ie it has dropped 60% It is at this point you have got to start worrying.. But guess what there is more. you still have to pay interest on the loan... and suddenly your tenant leaves Now you are in real trouble! Now you have to service an $800,000 loan and your equity in the property has gone from $200,000 to $80,000 and is disappearing even more by the day. Maybe it could go completely and of course when this happens greedy boy will be nowhere to be seen.

[@1968krug]

Great info videos no question, I just feel hose silly dramatic video promo images promoting videos detract from people that have quality content to share, the promo images are tacky and cheapen the image of the broadcaster, so many people seem yo do it

[@InfinityIsland2203]

I dont understand this obsession with getting into enourmous debt to buy recently overprised property. There are way easier options to grow wealth if you can barely or not at all afford to overpay for a dogbox, even in Australia. Even major lazy etf investments return above inflation percent.

[@bradwatson8763]

You said a few videos ago it was going to boom again? Are you eating that humble pie 🥧

[@2mallikharjuna]

He just read the news whatever shit comes in media

[@michaelmallal9101]

My R/E agent said he made big sales last Saturday in Sydney.

[@davidlim4299]

Been waiting for this!

[@michaelswonderfulworld]

Nothing is selling in my area , prices are dropping 100k on a 1.3mil houses

[@Jake.steve3658]

What does it mean.. properly prices will do .says this guy😂

[@jobinjoseph11]

Don't get excited..

[@jobinjoseph11]

When there is a strong prediction of a buyers market, people hold on tight causing low stock, which increase the demand again!! Then what, another unnecessary booooom...

[@Milpile1]

They hold on tight, if they can afford it.