Toorak house prices plummeting

The margin seems large because these properties have been overpriced now for a long time. When greed takes over logic then this is the result........
There was a time when the Aussie dream was to get married, save 20% deposit , get a loan , buy a house, and have it paid off within 10 years.
The Aussie dream now is nothing like that , not everyone needs to get married ( and that's ok : ) , you don't need a deposit, and it could take two lifetimes to pay off your mortgage.
There are more foreclosures now than ever before. In the USA they are at an epidemic rate !

We all need somewhere to live but beyond a certain point the huge cost of these houses doesn't give you that much more comfort or pleasure. This correction in prices shows that the value is all in the eye of the beholder!

brianward, yes value is always in the eye of the beholder, but i think it is pretty ignorant of you to say that the huge cost of houses doesn't give you that much more pleasure. Have you ever lived on both sides of the coin? Do you know what living in a mansion in Toorak is like, driving a ferrari, having cash security...only to lose it because of tough economic times like now? I don't think you do, so maybe best you don't make such outlandish assumptions.

and DArgy, greed has nothing to do with the house prices in Toorak. House prices are strictly governed by the forces of supply and demand. When people want something, they will pay a premium for it, and hence drive the price up. This is not greed, it's fair market practice.

Well boo hoo for the Ferrari driver who now has to drive a Holden ! What a weak argument !
I'm not saying there shouldn't be wealthy people, I certainly can acknowledge the hard work that has gone into achieving a certain lifestyle. But of course there is an element of as BrianWard said "The value is all in the eye of the beholder! "

It certainly is not a fair market when prices are pushed up as far as they have been in recent times.
Have you given a thought to first home buyers ? And don't tell me that the government grant helps them because most of the time that is integrated in the price.

There was a time when people in their early twenties could afford to pay a 20% deposit and buy their own home, on an average income. Most people these days don't leave their parents home until they are in their thirties and beyond, and still have difficulty getting into the market. This isn't fiction look around you !

Sorry but I certainly don't feel sorry for Mr Toorak driving his Ferrari who now has to settle with selling his mansion for 2 million instead of 2.3 .........

Rubbish, spoken like someone who hasn't lived both sides of the argument. What's the saying? Put yourself in the shoes of the other person?

Having been on both sides of the coin, I know what it is like, and I think I have some insights into statements like "beyond a certain point the huge cost of these houses doesn't give you that much more comfort or pleasure". I'm not going to give my point of view on this, because it does come down to personal opinion. My point with brianward is how can he have an opinion if it is ill informed and backed by a lack of knowledge of the issue.

Going from a Ferrari to a Holden was never the issue DArgy, I suggest you read the initial comment I made. What really made me comment here was the fact that brainward made a statement that I don't think he can argue. Sure he has the right to his opinion, but I think too many people argue about things when they only know one side of the story (it's human nature I guess). Yes value is in the eye of the beholder as we all keep saying, but lets be honest here, unless he has lived the high life, how would he know if it gives him materially anymore value.

you wrote:
"It certainly is not a fair market when prices are pushed up as far as they have been in recent times.
Have you given a thought to first home buyers ? And don't tell me that the government grant helps them because most of the time that is integrated in the price."

What is fair? What do you expect fair to be? I think fair is market forces pushing the prices of houses up and down. Survival of the fittest. If you want to buy a house, be better than the next guy, get a good job so you can afford that nice house. Don't expect handouts. We live in a society where competition rules, and it's as simple as that.

you wrote:
"There was a time when people in their early twenties could afford to pay a 20% deposit and buy their own home, on an average income. Most people these days don't leave their parents home until they are in their thirties and beyond, and still have difficulty getting into the market. This isn't fiction look around you !"

There was a time blah blah blah. Yes we all know way back when everything was rosy. But listen to your own words, you need to adapt.

you wrote:
"Sorry but I certainly don't feel sorry for Mr Toorak driving his Ferrari who now has to settle with selling his mansion for 2 million instead of 2.3 ........."

I'm not asking you to feel sorry for anyone, just don't argue things you know nothing about.

I know more than you think, so I suggest you stop being so narrow minded and stop your outrageous assumptions !

What do you mean "things I don't know about" and "blah blah blah " about the past. Grow up!!!!!

Yeh I wouldn't say no to owning a Ferrari or a mansion in Toorak, but I know what true happiness is, do you ?

perhaps we should agree to disagree then? I don't think I'm being outrageous, or narrow minded, just argumentative. Isn't that what these forums are for?

Ok, that's fine .... and whether you're comments were outrageous, narrow minded or argumentative is in the "eye of the beholder" : )

As our Ancient philosophers said:
We cannot learn without pain.
--Aristotle

To be at once exceedingly wealthy and good is impossible.
--Plato (c. 428-348 BC)

and finally

There's nothing certain in man's life except this: That he must lose it.

--Aeschylus


Welcome to the forums samop : )

Let's remember that everyone has an opinion and no one knows everything ok? Stick to the topic and don't judge people for their opinoins, just argue about the merits of the ideas!

Very wise words BrianWard