we have our house on the market at the moment, so i have given this alot of thought. the market at the moment is super ****e.
we bought our house three and a half years ago, we were 19, it was going to be our starting point so we could do it up a bit and sell for a bit of a profit and then build our dream home. We gutted it, pulled out lino and replaced with tiles, put in a new kitchen and bathroom, repainted EVERYTHING, added a patio with decking front and back, a 6x6 shed with extra concrete bit to add on a lean too if we ever wanted to, bore with automatic retic, solar hot water system, split system heating and a wood fire and put up a new back fence.
all up we have probably made $50,000 worth of improvements (but it was more like $30,000 as we did alot of the stuff ourselves so cut out labour costs). When we got the real estate agent to valuate, he valuated it only $10,000 more than what we paid over 3 years ago, after all those improvements. We have ended up putting it on the market at a price that allows us to get our money back that we spent and break even (so we aren't out of pocket, but we haven't gained anything either), and we're crossing our fingers tight that someone loves it enough to pay that much. I don't know if it will completely crash here, But yes, the property market isn't pretty at the moment and it hurts.
The market here and in the US, Uk & Canada is a repeat of about 20+ years ago. Droves from overseas were walking away from their homes due to the the money market. Interest rates 30+ years ago here were 17+% and it was hard paying off a house on those rates. It took a few years to turn around and for interest rates to drop.
I think in the next few years we will see the same thing happen here again where prices rise and jobs are few. Things seem to go in circles. As there is talk of interest rates going down in the next few month and stamp duty changed you will see more buyers around.
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