Tuesday, 4 March 2008

[PropertyInfo.023] Horrible news about Sydney house value drops and people losing their properties

In case you are not aware, there are 2 articles on the Daily Telegraph:Landslide: Sydney house values drop and Grim repo man calls on 75 homes a week which talked about how Sydney house values have dropped in the past few years, and more than 75 NSW homeowners every week face losing heir properties due to unable to meet mortgage payments.

Some of the contents are quit shocking:

"Since the peak of the boom in early 2004, Sydney's southern suburbs has dipped the most in value, with the median price falling $82,750 over the ensuing 15 quarters, according to Australian Property Monitors figures."

"Other areas where the Australian dream is souring include Canterbury Bankstown which has registered $65,000 in losses, Sydney's south west $44,500 and Sydney's west $25,000."

"Among some of the worst losses studied, a home in New Cambridge St, Fairfield West bought for $780,000 in November 2004 sold in July last year for $415,000, a loss of 46.8 per cent."

"At Bond Place, Oxley Park, a unit bought for $455,000 in August 2005 sold last May for $250,000."

"At McAndrew Close, Lurnea, a house bought for $420,000 in December, 2004 sold last June for $267,000."

"Suburbs in the city's west, southwest and northwest were the hardest hit, with Blacktown becoming the repossession capital of Sydney - 84 writs in 2007. It was followed by Guildford (49), Fairfield (48), Merrylands (45), Auburn (42), Greystanes (37), Mount Druitt (37), Bankstown (32), Cabramatta (31), and Kellyville (27)."

"In Tregear, a home at 9 Gauss Place was repossessed and sold in August 2007 for $135,000 - 55 per cent less than the $300,000 paid for it in 2002. At 52 President Ave, Caringbah, a unit bought in 2004 for $421,950 was repossessed and sold in 2007 for $257,500."

"A Mount Druitt property purchased in September 2006 for $325,000 was repossessed and sold exactly a year later for $212,000."

"Since the previous interest rate rise last month, there has also been a jump in the number of homes listed for sale across the state by residents hoping to get a decent price before the banks were called in."

Today RBA is going to meet today and everyone is expecting the interest rate to rise again in tomorrow's announcement. Hope this would be the last one for a while, no one would want to have more house value drop or rent increases!

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