Auctions to be abolished

N

ned261

wow ... in response to the Great Australian Scream article here http://www.theage.com.au/opinion/great-australian-scream-20090421-ae0e.html, we have several ultra intelligent suggestions such as this one below:

"It may seem simplistic and I'm sure there are a lot of reasons it won't work (I'm new to the housing market), but couldn't house prices be controlled by the government setting up an independant valuation system where houses are valued by a government valuer, rather than a real esteate agent looking for commission. Also, abolish auctions and 'dutch auctions' so that prices are set and adhered to, rather than bidding wars pushing prices up past the actual value of the house. This will change the definition of 'value' when it comes to housing prices which is currently inflated by emotion and the ease of borrowing huge sums of money." :eek: :eek: :confused:

http://blogs.theage.com.au/yoursay/archives/2009/04/taking_it_for_g.html
 
wow - someone who doesn't believe in free market economy.

communism - here we come.

clearly this person's view point will change when they actually buy a house...
 
unfortunately, I am seeing more and more of this nanny state rubbish amongst younger generations.

I understand they want the world to be fair's fair and all, but I don't think they have the life experience to appreciate that govts rarely do anything as efficiently or well as private interests.

If they did, then they wouldn't have outsourced housing the poor to the private sector.
 
"Prices set and adhered to"....

Now I ask you where's the fun in that?!!
Would this then extend to garage sales, art auction houses, Ebay etc?
 
Sounds like Japan. Walk into any realestate office and ask how much is that block of land and out comes the calculator and the price list per 'tsubo' Japanese measurement set by who knows who and adhered to by all. Same situation when renting. Once you know how much per tsubo and the amount of tsubo per office space price is easy to work out. One big problem is some areas are still at the pre bubble price so sit vacant for 5-10 years, because no one will negotiate the price.

Why would some let their place be vacant for 5 years is quite simple to understand. 10 years ago they borrow money against the value of the property. Now if they accept a lower price than the regulated price for the area then the value must be less than they borrowed against. This would then mean a bad investment and no one wants to have a bad investment, especially if they want to borrow more money. They just go to another lender and say the property is worth so much per tsubo and borrow against the value of 10 years ago. It's not like this in all areas but quite a few still follow this way of thinking.
 
WinstonWolfe said:
unfortunately, I am seeing more and more of this nanny state rubbish amongst younger generations.

I understand they want the world to be fair's fair and all, but I don't think they have the life experience to appreciate that govts rarely do anything as efficiently or well as private interests.
Click to expand...

Could it be more simple than that. Maybe the younger generation has tainted views on the world because the older generation has sugar coated everything for them. If you have a look at the school system, where there is no fail, just "developing." Then take a look at the many who want sports to be "fair" for all. All this does is teach mediocrity. Where do they learn to "reach for the stars" and become all they can be?

Well I am sorry to break any bubbles, but life is not fair. There are clearly winners and losers in every area. Sometimes failling at something teaches you many lessons. Some, of course, don't learn their lessons and go on failling over and over again, while others go on to do great things.

If life was "fair" it would be predictable, and what would the fun be in that?
 
WinstonWolfe said:
unfortunately, I am seeing more and more of this nanny state rubbish amongst younger generations.

I understand they want the world to be fair's fair and all, but I don't think they have the life experience to appreciate that govts rarely do anything as efficiently or well as private interests.

If they did, then they wouldn't have outsourced housing the poor to the private sector.
Click to expand...

Oh come on, you cann't put this all on the 'younger generation'. The idea of communism and other ideologies have been around alot longer then I have or even my parents. It is all old concepts, it is just the the younger age group in any generation tend to be the ones who jump on this band wagon, because they don't yet have the experience or knowledge to see the flaws - only the allure of 'equality for all'.
 
rugrat said:
Oh come on, you cann't put this all on the 'younger generation'. The idea of communism and other ideologies have been around alot longer then I have or even my parents. It is all old concepts, it is just the the younger age group in any generation tend to be the ones who jump on this band wagon, because they don't yet have the experience or knowledge to see the flaws - only the allure of 'equality for all'.
Click to expand...

Come on rugrat, you are just confirming what I have said. If you were alive in Australia before 1960, you would have known welfare was anathema, as was Communism.
 
WinstonWolfe said:
Come on rugrat, you are just confirming what I have said. If you were alive in Australia before 1960, you would have known welfare was anathema, as was Communism.
Click to expand...


I am just saying that it is not 'just' the younger generation. I know plenty of 'ignorant' people who are well above that age group - they are in their 40's, 50's, 60's and even 70's. I am related to some of them :rolleyes: and they definitely have this attitude. furthhermore there are still whole countries out there who adhere to these beliefs (think china, vietnam) - and it tends to be the younger generations in those societies that challenge the norm there.
 
talking about communism - isn't that's what governments around the world doing right now? Handing gazillions of dollars all over the shop? If you have problems you go bankrupt in capitalism?

Or even FHOG, isn't this a little piece of communism by itself? It's a free market after all right? If you can't afford, well.. don't buy.

Sometimes I think if we would not think about houses as a way of getting rich (sometimes quick), but about shelter for people, maybe regulated prices wouldn't be so bad?

Maybe I'm wrong though.
 
rugrat said:
I am just saying that it is not 'just' the younger generation. I know plenty of 'ignorant' people who are well above that age group - they are in their 40's, 50's, 60's and even 70's. I am related to some of them :rolleyes: and they definitely have this attitude. furthhermore there are still whole countries out there who adhere to these beliefs (think china, vietnam) - and it tends to be the younger generations in those societies that challenge the norm there.
Click to expand...

well, the problem with communism is history shows it only increases the std of living for a few.....the more equal few. some of the world's richest men grew up in and were members of the Communist ruling elite...same in China.

and you might have some extreme left leaning relies, but the problem is no country can afford a lot of them. just look at the mess govt has made of housing supply and affordable housing in Australia. Contrary to populist left leaning opinion, house prices aren't where they are purely due to free markets. They are due very much to the RBA holding rates too low too long, PI tax breaks, and welfare mesmerizing people into not living frugally enough to save a deposit for a house.

there's no free lunch canteen.
 
Formula:

The strength of one's conviction in having all housing prices set and applied by Govt is in direct proportion to the lack of amount of house that person owns.
 
BayView said:
Formula:

The strength of one's conviction in having all housing prices set and applied by Govt is in direct proportion to the lack of amount of house that person owns.
Click to expand...

Quoted for truth.
Citation: the forum we are not permitted to mention.
 
While I don't agree with this particular viewpoint, which I believe to be naïve and simplistic, do you really believe property is a true supply/demand market? A free market…

A true supply/demand market free market is similar to the markets of south east asia.

A market of engineered scarcity as is land is not a true free market at all. A market where debt in the form of a loan is used as payment, where that debt can be an exponentially increasing figure based on seemingly arbitrary and changing banking regulation, is not a free market.

A market where the government intervenes in manipulating supply in the form of regulation and choking new development, as the same time as manipulating demand through neg gearing and grants; is not a free market.

These comments highlighted re auctions in the blog comment are wrong. But it doesn’t mean the current system is right.
 
J Martin said:
A market of engineered scarcity as is land is not a true free market at all. A market where debt in the form of a loan is used as payment, where that debt can be an exponentially increasing figure based on seemingly arbitrary and changing banking regulation, is not a free market.

A market where the government intervenes in manipulation supply in the form of regulation and choking new development, as the same time as manipulating demand through neg gearing and grants; is not a free market.
Click to expand...

very well said indeed....
 
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