Property News That Will Scare You Silly

Is it just me – or has the world gone mad – starting with the property markets? Some news for your consideration.

If you were wondering just how bad things can get, the very same day President Obama committed $800 billion to fixing the world’s woes, the median price for a home sold in Detroit, Michigan in December was…………….. 7,500 dollars. Good grief ! I can barely buy a motorcycle for that much money, so if you are interested in a “bargain,” Detroit’s the place. Chicago Tribune. Suburbs in the US are already turning into slums as the foreclosure rates continue climbing.

At the other end of the scale, Palazzo Chupi are offering what has the be one of the most revolting penthouses this side of a Salador Dali nightmare for………… 41 million dollars. 360West11th.  Talk about the gap between the haves and the have nots. Although, as the “credit crunch,” bites, England’s most expensive neighborhood is hit by foreclosures, bankruptcies and derelict properties.

Still, no worries really, despite the fact that your home  will be worth considerably less this year than it was last year, you can take comfort from the fact that every home in the UK will get broadband internet access. That should solve any worries you have about making sure you can get BBC iTV…………..

And British government Inc has conjured up yet another £50 billion to buy bank’s “bad assets” which will free up credit and boost the economy, so you can expect your home to only fall 24% in value instead of 25% in 2009.

Or maybe not. If you thought the residential property crash was bad, wait until the commercial property crash gets fully underway. Australia government Inc has just agreed to throw $4 billion AUD at the problem, as foreign banks withdraw funding: it is estimated that there will be a minimum £70 billion loss in the UK’s commercial property market in 2009; and almost every commercial property fund on the planet has been frozen.

Hold on to your hats, 2009 should be an interesting year……….