Outback said:
My daughter payed exactly 1 Million for a nice 2 bedroom garden apartment a few years back near Manly NSW & now that same joint is worth $850,000 or less today .
As our financial collapse evolves her home value will also .
Bad times ahead !
Jack
It's all perspective...the property is still the same property as when she bought it so any loss is just theoretical at this point...if she wants to trade up to a bigger property, it's likely that will be correspondingly cheaper as well, so it's swings and roundabouts for the most part...
The only time you really loose is if you are forced to quit the housing ladder and take the physical cash loss...
Depending on the laws in Australia, folks who take large mortgages and then can no longer keep up with the repayments say through job loss are the ones who are likely to suffer the most, but otherwise weather the storm and the markets will rebound even if it takes a decade like it did here in the UK...