House Prices -- The Worst Is Yet To Come
FOR IMMEDIATE RELEASE
HOUSE PRICES -- THE WORST IS YET TO COME, SAYS INVESTOR AND TOP SELLING AUTHOR OLLY NEWLAND
Statistics released yesterday by Auckland's largest real estate agent Barfoot and Thompson, which show house prices in a "big slide", come as no surprise to property investor and top selling author Olly Newland.
The figures show top end properties losing as much as $500 a day in value. Mr Newland accurately predicted these events in his latest book, "The Day The Bubble Bursts" released in June 2004 and written earlier this year. In the book Mr Newland correctly predicted the growing woes of expensive homes (page 90), the continuing slippage of the median price (page 79), the scandal of leaky homes and collapsing balconies (page 62) and the effects of continuing interest rate rises.
Mr Newland continues to predict that for some people things will only get worse with a "one-two-three whammy" hitting those who believe the hype merchants and spruikers who continue to push the line that endless profits from property investment are a foregone conclusion.
Increasing interest rates, falling capital values and a glut of cheap rentals will all combine over the next 12-18 months "to send some investors to the wall", he says.
Mr Newland's further predictions include: a massive over supply of cheap shoddy and unsaleable apartments, a sudden capitulation by novice investors all scrambling to get out of the housing market at the same time, a big rise in forced sales with problems for the banking industry faced with a flurry non-performing loans, and the disppearance of the spruikers and "Johnny Come Lately" property gurus who have shamelessly taken advantage of people's naivity in promising "instant wealth" for the asking.
Mr Newland's other best sellers include, "The Rascals Guide to Real Estate" ( 2002), "Lost Property " (1994), "The Property Boom" (1982), and "The Coming NZ Property Boom" (1978). These books are published by Empower Leaders Publishing and distributed in New Zealand by Addenda Publishing Limited.