Article: Property prices may decline - FNB

Read the article, they got the opinion of 5 people and 2 said prices will go down and 3 up...LOL!
 
So where were the banks when house prices were being stupidly over-inflated years ago? Enjoying the fat returns on home-loans of course! :mad:

If this prediction becomes fact, then suckers like us who purchased our first place in the past 5 years are facing further knocks
 
Ninja'd said:
Is this good or bad?
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Good for buyers
Bad for owners

If this was even remotely plausible I'd sell my place and wait for the property market to plunge then buy again. I doubt very much it will though but I did sell my flat for almost 5 times what I paid for it, that was over 8 years.
 
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Yup... read the article properly this time..

Its a bunch of ppl spouting theories etc etc and ultimately saying "Angaas".....
 
flarkit said:
So where were the banks when house prices were being stupidly over-inflated years ago? Enjoying the fat returns on home-loans of course! :mad:

If this prediction becomes fact, then suckers like us who purchased our first place in the past 5 years are facing further knocks
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Yeah this is going to piss a lot of people off if it comes to light.
 
I don't suppose the banks will adjust the bonds accordingly? Thought not.
 
Fudzy said:
Is the bond based on the value of the house or the amount borrowed?
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As far as I understand, on the amount borrowed to pay for the cost of the house (i.e. the value when purchased). It is irrelevant if the the cost goes up or down on a later stage.

It is good if house prices go up and bad if they go down :cry:.

I wonder if this will have an impact on the cost of renting a house as well. Owners that still have to pay off their house might be more reluctant to rent out their house at lower prices since they will have less income from rent to pay off the bond.
 
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flarkit said:
So where were the banks when house prices were being stupidly over-inflated years ago? Enjoying the fat returns on home-loans of course! :mad:

If this prediction becomes fact, then suckers like us who purchased our first place in the past 5 years are facing further knocks
Click to expand...

:mad:
 
BBSA said:
It is mush cheaper to buy an excising house than to build a new one, so I doubt this prediction will come true.
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Yeah, much cheaper to buy than to build. That will keep prices in check no matter how some might be wishing it down. Now new car prices... those are crazy in SA.
 
supersunbird said:
Yeah, much cheaper to buy than to build. That will keep prices in check no matter how some might be wishing it down. Now new car prices... those are crazy in SA.
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Actually just thinking about it.....

I bought my house recently for R950k... to build it as is from scratch would cost about R1.4m.... so there is LOTS of room for growth of house prices actually.
 
B.O.F.H. said:
Actually just thinking about it.....

I bought my house recently for R950k... to build it as is from scratch would cost about R1.4m.... so there is LOTS of room for growth of house prices actually.
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Unless of course the Chinese come here and make it cheaper to build houses :whistle:.
 
BBSA said:
It is mush cheaper to buy an excising house than to build a new one, so I doubt this prediction will come true.
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When some where warning of a house price crash in the US a few years back, this is also what many said.......
 
The price of houses has not moved up in real terms over the last 5 years thus I would not attach much value to the 25% 'overvaluation'. I expect the prices to remain stagnant over the next 3 years.

The credit act has given a shock to the system that will take a while to absorb.

But in a market like this what you lose on a sale you'll make up in your next purchase.
 
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