What Happens If The Market Crashes AFTER You Buy A House?

[@MortgageBrokerAustralia]

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[@thekingspin9846]

Global demand to live in Australia has spread like wildfire since 2005, no shortage of people queuing up internationally for property that we don't have enough supply for at least the next century.

[@MortgageBrokerAustralia]

Absolutely, it has been unreal since 2005! It's pretty amazing to see such strong interest from all over the world. The supply challenge is real, and it looks like it'll be a hot topic for us for quite some time. Thanks for pointing that out - it’s a conversation worth having for sure

[@Janna773]

Meantime this irresponsible ‘investor’ trend is destabilising and disadvantages the local community. Homes should be for living, not for investing! Giant scam. Those driving prices up will face the consequences.

[@stuart249]

@@Janna773I use to think that same way, but when I did more research I realised that private ownership and investment in realestate has been one of the back bones of a free and capitalist society. Marxist Communism advocates for outlawing private ownership which puts all control in the hands of government. I believe If we give up the right to own and invest in property we will lose our rights as a free nation. What we need is more supply and ban foreign investment (or at least make it compulsory to rent out a vacant house owned by overseas investors) laws can change to help calm the market to sustainable levels, but investors are not evil. They are supplying homes for people to rent. We can’t change the system but we can learn how to become successful in it while not losing our morality. Homes are for living in and homes are an excellent investment.

[@RNA0ROGER]

I live rural so I'd love to see the market come apart, less council rates and broadly less pain for the locals here. But this market is really a bubble created by policy but fueled through cashed up migrants and limitless tolerance for risk by creditors. Like any top fuel dragster this market is drinking a huge amount of these migrants and they have no lack of choice regarding where they can live. If there is no chance in policy and this fuel supply begins to be depleted its game over for the market.

[@MortgageBrokerAustralia]

Yeah it's true that increased housing supply, especially through government schemes, could help address affordability concerns in rural areas. Lets hope to see some action around this policy soon - www.dss.gov.au/housing-support-programs-services-housing/developing-the-national-housing-and-homelessness-plan#:~:text=The%20Plan%20will%20be%20a,needed%20to%20address%20housing%20challenges.

[@LinuxGalore]

if you look at the history of property crashes in Australia, a great example is the end of the Victorian gold rush. Following the gold rush, commercial property crashed and home prices went down only slightly. What happened long term, where Victorian home prices stayed the same for nearly 30 years. So I would say home prices will lose some value and stay there for 10-15 years while the real world catches up.

[@MortgageBrokerAustralia]

Thanks for sharing that bit about the gold rush and its effect on property - really puts things into perspective. Shows us that even if prices dip, they tend to find their footing over the long haul. Thanks for watching and your comment; it's a solid reminder to keep our eyes on the long game!

[@mitchymitch3213]

What I'm currently seeing at the moment for certain areas in Melbourne is similar homes being sold above and below market values in the same area. Which is making the overall median house prices plateau. Which is why overall gains have been lower than other states.

[@lasserbream]

My work mate ask for advise to buy a property with less deposit, but when I told them the pros and cons he his says it's not worth it and the reason why? is because he has to pay lenders insurance even though you can claim it back after you pay off the mortgage, and now his paying the price for not get into the market.

[@MortgageBrokerAustralia]

Exactly! Investing in the property market is more about the time you spend in it, rather than trying to time your entry perfectly. Buying a property with a smaller deposit often means paying lender's mortgage insurance, which can be seen as a con.... BUT, it's important to remember that this allows you to enter the market sooner, which can be beneficial in the long run. Missing out now could mean paying a higher price later as the market continues to grow.

[@Janna773]

@@MortgageBrokerAustralia Lenders mortgage insurance is a con. Utterly. It’s taking ‘insurance’ on a loan you have to 100% repay anyway. It’s ridiculous and no one should sign up for that, ever.

[@ivanrey6092]

Australian market follows the us market with a delay of 3 to 6 months, and the bubble we are living at the moment is because those monopolic societies that buy most of the new houses that come into the market before the normal australian citizen can get to it, if we limited those "investing monopoly" into the number of houses they can buy, then we will haver more houses available and on better price

[@MortgageBrokerAustralia]

Hey there! Thanks for sharing your thoughts! Yes it is true, that a system where more regular Aussies can own homes at an affordable price is the ideal scenario.

[@RossLippiatt]

I still need a place to live, typically renting is similar cost initially but doubling and tripling over time, where as buying locks in todays price. This is video is a good quick review.

[@MortgageBrokerAustralia]

Very true, while rent can increase significantly over time buying a home locks in the purchase price, potentially making it more economical in the long run.

[@Janna773]

@@MortgageBrokerAustralia What about interest rate increases? Right now I know many friends and family members paying significantly more because of interest rates. I don’t think it’s accurate to say buying will be more affordable than renting.

[@Freestyle80]

its more realistic for the market to go down like 10-20% in which case it shouldnt matter to you if you wont sell or rent it out

[@MortgageBrokerAustralia]

Hey Freestyle, completely agree and thats at an extreme end - like I mentioned in the 1990s recession prices only fell 8-10% in Sydney and Melbourne www.afr.com/wealth/personal-finance/property-lessons-from-1990s-recession-20201109-p56cry but if you can hold, property is about the long game. Thanks for watching

[@tessajones9393]

I'm just trying to pay down our mortgage. We bought a small place in Brissy with a small mortgage as we want to live stress-free. I'm bingeing your videos because it's been a while and then I see this one bwahahahaha. Dude, I want a zen debt-free life, why did you hit me with possible truths like this? I'm not emotionally attached to our home though, I'd sell and buy a chateau in France in a heartbeat if we owned this outright. 🤑🤣

[@MortgageBrokerAustralia]

Haha chateau in France 😜 But seriously I love the focus on a stress-free lifestyle! You're right that owning your home outright opens up a ton of possibilities. Thanks heaps for watching!!!

[@serena-yu]

That's exactly what is happening in China. Properties have lost 23% of value, and Goldman Sachs predicts another 40% depression in the next 5 years to come in an optimistic case (pessimistic case will be 17 years and -80%). However it's a different case in Australia because the population of Australia will keep growing. With a growing population, property crashes will be temporary.

[@markyburgs]

compare Australias economy and house prices to the rest of the world, we are overvalued massively....

[@superpower612]

A crash is coming in 2026 according to the 18.6 year cycle. What if Australia isn’t so resilient this time. China bailed out Australia in 08 spending a heap in our economy.

[@MortgageBrokerAustralia]

Thanks for watching - It's true economic cycles are always worth keeping in mind. Hard to know the future, but it's smart to be prepared for a range of possibilities. Cheers!

[@Jensen8918]

China Didn't bail us out lol - excellent policy by Wayne Swan did.

[@lasserbream]

I guess you never bought a home before right?

[@samtannouri3665]

I have been hearing this crash for the last 20 years 😂

[@craigduffield3963]

From what I have seen for the last 40 years the government and RBA seem to work together to keep prices up,either with low interest rates or high immigration.High house prices don’t benefit anybody except investors,they need to take to stop negative gearing for any new investors entering the market and see if that slows down the price increases.

[@BasedinReality1984]

Even if they go down 10% They’ve still gone up 100% in the last 5 years. It won’t make much difference.

[@MortgageBrokerAustralia]

Yeah very true

[@tomcrusader6088]

No crash mate

[@ev0wat]

I’m in the construction industry and there’s guaranteed work for atleast the next 25yrs! Big long term road build projects, housing etc! There’s no crash happening only increases and more and more influx of migrants. Oh yea let’s not the new millennium we were supposed to die, oh and 2012 prediction🤦‍♂️ it’s all rubbish there’s no crash. Even if Australia owes China money, Australia has let the Chinese in, they do our manufacturing, we have China cars here now, we’re doing everything to pay them back.

[@AA.AA.399]

Common sense. Why sell if you can keep up the mortgage and the bills too😂😂

[@J3110M]

What happens to your loan in a market correction/crash? If the house is valued less, doesn’t LVR go above 1.0? Will the bank need more deposit to secure against the loan?

[@MortgageBrokerAustralia]

If the value of your home goes down and you owe more than the house is worth, don't worry too much. As long as you keep up with your loan payments, the bank usually won't ask for more money. The value of your home mostly matters if you want to sell it or borrow more money against it. Just make sure to keep paying your loan on time, and you should be okay. Thanks for watching!

[@J3110M]

@@MortgageBrokerAustralia thanks for the reply. I don't see how the bank would decide whether they ask for more money or not. Wouldn't it be based on a formula? Otherwise the bank is exposed to greater risk than they signed up for which we know banks would not like to do. I have 2 friends who had to give the bank an additional $25k+ because the value of their units went down. It caused them a lot of stress. I think people should be aware that it could happen.

[@mathewwebb4677]

No interest rates do not cause a housing market crash , get educated

[@sunseeker7099]

Latest report from PEXA demonstrates that 28% of properties were purchased with cash in 2023. So not much chance of a crash moving forward 😅

[@whatsnewtoday23]

History and data tells us that it is highly likely that 2026 will be the year.

[@Dodo-ck5tq]

We've all had this nightmare before, have we? Cute stories 🤣😂🤣

[@tessajones9393]

Transformers bro lol

[@MortgageBrokerAustralia]

Haha thanks for watching!!! 🙌

[@maycoltreminio9914]

It's Voltron, not transformers.

[@MortgageBrokerAustralia]

Yeah it is, Lego Voltron!

[@TradeemperorsAu]

At the end of the day you need a roof on top of your head! I wouldn’t worry till you are an investor.

[@MortgageBrokerAustralia]

Very true! Thanks for watching

[@sunseeker7099]

Comparative Market Analysis of similar properties within 2 km radius that have sold within the previous 3 months. It ain't rocket science 😂

[@ezza1236]

Bro why are you making videos like this, scarying us all

[@MortgageBrokerAustralia]

Hey Ezza, thanks for your comment and I completely understand your concerns. The intention behind these videos is not to scare anyone and as I mentioned even during the 1990s recession, property prices in major cities like Sydney and Melbourne only fell by about 8-10%. This historical perspective is crucial because it shows that while the property market can fluctuate, it has the resilience to recover over time. The key takeaway is that property investment is indeed a long game, and for those who can hold through the ups and downs, it often pays off. I appreciate you watching and engaging with the content! Thanks heaps

[@garryharrington8255]

i own my home no debt at all so u dont care if things go up or down dont care about you fools at all

[@susmusmanoj112]

TROLLOL 😂😂😂 WHAT ???

[@MrArtcollins]

I'd bet that you're not really 'garryharrington' but someone who hates him and wants to make him look like a cunt. a cunt who doesn't get capital letters! Lol..oh, o.k. Sorry Garry...I'm just bored atm...