Anyone read this article yet????

I thought it was quite a good article. Especially this paragraph:

"The facts are, as we suspected all along, the case for a housing shortage in non-existent. It does not exist. There is no housing shortage.

That's because it is price that is the major problem in the housing market. Prices are at unsustainable levels brought about by the manipulation of demand and supply by the various levels of government.

As soon as the manipulation ends, price discovery will lead to a collapse in the housing market."


He's simply asking for evidence or proof. of which there is none.
 
Prices are at unsustainable levels

That one always cracks me up. We've had affordability crisis during the 60's 70's, 80's and 90's. That's just from my recollection, too. Maybe it's been going on longer than that.
Who could forget the protest rally at which Robert Menzies was asked by a protestor "Watchya gonna do 'bout 'ousing?"
His reply .. "I'd put an "H" in front of it, for start" :D
3 decades (just in my lifetime) and still the bubble has burst. Assuming there is actually a bubble, in the first place.
 
I was intrigued to read his point of view, but he lost me when he matched ignorance with ignorance. That he believes homeless people are the local hobos living on the street shoots any credibility of being able to analyse and speak informatively on a topic in the foot.

Cheers
Greg
 
That might be true, but it doesn't say he only a CFD trader. He might also have huge interest(s) in property for all we know.
Yep - fair point.

He's simply asking for evidence or proof. of which there is none.
Or he might simply be watching from the sidelines to what is happening to housing prices in some parts, and wishing he could convince people to invest in CFDs instead. ;)
 
I think thats drawing a long bow prop.

I don't think the average property buyer/investor would be open to the idea of investing in CFD's. Maybe a small percentage would.

Just buying straight equities is scary enough for most of them.

Or he might simply be watching from the sidelines to what is happening to housing prices in some parts, and wishing he could convince people to invest in CFDs instead. ;)
 
I believe it was said with tongue firmly in cheek. :rolleyes:

I was intrigued to read his point of view, but he lost me when he matched ignorance with ignorance. That he believes homeless people are the local hobos living on the street shoots any credibility of being able to analyse and speak informatively on a topic in the foot.

Cheers
Greg
 
There are many billions at stake, which is the real reason we keep reading about a shortage of homes, and even land.
These are just fabrications from people who have an interest in this shortage.
Then regurgitated by others who think by doing so make them experts as well.
Just like the mindless brain excrement of Peter Schiff, as he tries to feather hhis own nest.
 

As soon as the manipulation ends, price discovery will lead to a collapse in the housing market."


He's simply asking for evidence or proof. of which there is none.

seems he is deluded as many in thinking that government could actually fix their inefficiencies and bureacracy if they put their mind to it
 
http://www.dailyreckoning.com.au/pr...s-from-a-chronic-housing-shortage/2009/08/24/

It makes sense (well I havnt read into the article link it posted)

If its the case that chronic housing shortage is just an illusion then should I attend any seminar from the guru?:confused:
I have a read in that site each day,sometimes it's the small bits of info
you find in that site that help with all investments,but i agree on this quote from that site..imho willair..

To argue that a housing gap and therefore ever-rising property prices can be based on the number of homeless people is utter nonsense. We don't think we've ever come across such statistical foolishness.
For a start, there is a big difference between the desire for a dwelling and the demand for a four-bedroom home in the suburbs, or a two-bedroom townhouse in the inner city.
Put it this way, we haven't seen too many house auctions, but odds are first home buyers aren't facing stiff bidding competition from the local hobo http://www.dailyreckoning.com.au/
 
Didn't take long for a rebuttal from Christopher Joye.

From the comments section on this article.

"Hired Goon
Posted 26 Aug 2009 9:58 PM
I hope prices crash soon! My wifes been nagging for years to buy a house but I keep telling her prices will crash. I've been telling her this for years and in that time prices in my home town Adelaide have risen by 120%. And still rising! On top of this my nasty landlord keeps jacking up our rent. Now we have a baby and renting is a pain with a small child, having to let the landlord poke round the house when he wants is very annoying. I'd love to get on the property ladder, but how can I afford to buy? I lost a fortune on the stock market on supposedly low-risk food and energy shares (haven't told the wife about this - she'd kill me!) and my savings are going backwards with low interest rates. I met a lot of people like myself on the Aussie Property Forum ( http://z3.invisionfree.com/Australian_Property ) and we all agree... prices need to crash! Anyway, I hope prices fall so I can absolve myself for the pain I've caused my family by forcing them to rent. In the meantime, I'm resigned to complaining about it on the intarwebs! Please let house prices crash? Pleeeaase??? Thanks, HG."

Would this be our own doom and gloom, Hired Goon,
actually feel sorry for the guy.

Cheers

Pete
 
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The pink line below is the cumulative population increase divided by the cumulative no. of dwellings built in Australia since 1981.

Note there have been enough dwellings built to house 1.65 persons each.
Currently Australia's median household size is 2.6.

Does this fact support a lack of housing?

Only if there's a dramatic increase in the no. of 1 person households, and a moderate increase in the no. of 2 person households.

If there's more demand for one person households, that would explain much of the affordability crisis, as one wage doesn't service a big mortgage.

If there is a shortage, I'd argue a significant part of it is being caused by the asset rich cash poor aged, who traditionally move into retirement accommodation. Unfortunately, there's not enough 'affordable' retirement accommodation being built, so we have lots of single aged people occupying family sized homes. This trend will get worse as the demographic baby boomer bulge gets older.

govt regulation of retirement accommodation features heavily in its excessive cost to a significant % of the population.


 
."

Would this be our own doom and gloom, Hired Goon,
actually feel sorry for the guy.

Cheers

Pete
One would think so.i do pity these people for several years now they have been waiting for the penny to drop and prices go backwards,willair,,

I lost a fortune on the stock market on supposedly low-risk food and energy shares (haven't told the wife about this - she'd kill me!) and my savings are going backwards with low interest rates.
 
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