hysteria

In the 8 years since I have been in the property market I have never seen the level of media and social hysteria as there is right now with regards to property prices. Especially in Melbourne.

And poor Ruddy seems to be copping it left right and centre. It is such a huge issue it could bring down the government (at the next election)

People are freaking out blaming

- Chinese
- Rudds Policies
- Baby Boomers
- Developpers
- "stupid market forces"

Everyday the age or the herald sun runs a property piece and they get hundreds of posters going NUTS!

This is Abbots big weapon and he didnt even see it coming. He should be debating house prices not health care.

(I vote green btw)
 
(I vote green btw)

Then, considering population growth's contribution to the housing supply shortage, can you elaborate how the Greens population policy section below, translates into something actionable......

Some question to help:
- what popn growth rate do the Greens want and why haven't they spelt it out?
- do they want popn caps for the capitals....if so what are they?
- when they cap a capital's population, what criteria will they use to determine who gets to live in the city and who has to go?
- what cap do they want on mining and agricultural production and exports?
- what's their preferred annual humanitarian migrant intake rate, with and without global climate change?
- why the focus on helping women overseas with family planning, when it is the men doing the raping?
- what practical strategy do the Greens possess to effectively increase the understanding of African men regarding their reproductive responsibilities? And do they seriously think this will reduce the incidence of rape, in lawless states run by the blokes with the most guns?

IMHO, what's even more hysterical than the Melbourne media's obsession with property, is the Green's attitude towards mass humanitarian migration due to climate change.



from Greens Population Policy

Goals

The Australian Greens want:

  1. reduction of Australia’s use of natural resources to a level that is sustainable and socially just.
  2. recognition that use of resources in production for export is as damaging to the environment as production for domestic consumption.
  3. human settlements which are:
    • designed and built to minimise environmental harm and maximise social well-being; and
    • located in areas where their ecological impact is minimised.
Measures

The Australian Greens will:

  1. support, through extensive community consultation, a population policy directed towards ecological sustainability in the context of global social justice.
  2. work to achieve a sustainable relationship between humans and the environment by taking action:
    • in Australia, including planning, consultation and a whole of government approach, to improve equity in consumption levels and resource and technology use; and
    • globally, to improve social and economic equity and promote programs that empower women.
  3. implement the 1994 United Nations International Conference on Population and Development Programme of Action as endorsed by the Australian Government, by:
    • increasing our contribution to programs that empower women and increase their access to a wide range of safe family planning options; and<
    • increasing our overseas aid budget to 0.7% of GNP by 2010 as recommended by the United Nations, directed to the poorest, which often include women, with a focus on clean water and sanitation, education and high quality accessible health services, including sexual and reproductive health services.
  4. ensure that Australian family planning programs, both domestically and overseas, are adequately funded to deliver services in the context of reproductive health programs which increase the power of girls and women to determine their own reproductive lives, and increase the understanding of men of their reproductive responsibilities.
  5. prepare contingency plans for possible large scale humanitarian migration as a result of climate change.
 
I just like the greens overall. This is not meant to be a political debate. I am a reluctant voter.

I vote green because i am an inner city, cafe latte sipping, highly educated, pseudo intellectual chardonnay socialist. Thats the Green belt if you didnt know. Fitzroy and Northcote have ahigh percentage of green voters.

I have no opinion either way with regards to housing policy - Im just happy I have 2 houses within 6 km of the city!

My Advice to young people. Be happy you that you may be the first generation not obsessed with housing. Be creative, move around, go back to basics.

If you have your health, your sanity and people to love then that is the most important thing.

Easy for me to say because I am relatively wealthy but the truth is I have always thought that the property, middle class aspirational stuff is just a game.

Try not to be bitter, play the cards you hold and try to be happy. Most things in life are a state of mind.
 
the media has been causing a massive freenzy in regards to houses.

i have been attending a few auctions lately and i have to admit, when a asian person wants the house they will buy the house, competing with these types of people become impossible.

Good for them that they are able to afford it, but my point is when strong investors like this are hitting the market with such force prices are going to keep climbing and agents are going to keep smiling.
 
The interesting thing is that like the greeks and the italians before them many chinese cant afford it in a conventional sense.

They just buy! then they live 8 to a house, work two jobs, put the kids through school and the kids help out.

Kudos to them for thinking creatively and working hard.

This is the world in which we ALL live and you 20-30 year old need to accept and adapt. SACRIFICE! Geez i really do need a holiday - lol.
 
I just like the greens overall. This is not meant to be a political debate. I am a reluctant voter.

I vote green because i am an inner city, cafe latte sipping, highly educated, pseudo intellectual chardonnay socialist. Thats the Green belt if you didnt know. Fitzroy and Northcote have ahigh percentage of green voters.

I have no opinion either way with regards to housing policy - Im just happy I have 2 houses within 6 km of the city!

The Greens will disown you if they knew you had TWO houses!
 
Fitzroy and Northcote have ahigh percentage of green voters.

yup...got an ear full of that in my last two trips to Melbourne.

What I find amusing is how once they own property there, they become militantly anti-development.....which effectively freezes their proletariat brothers and sisters out of the area, ensures a nice neighbourly environment, and drives their asset prices through the roof.

hey, isn't that what lefties criticize Toorak and Sth Yarra residents for?
 
Last edited:
What a great piece of spin. I'll use this.

what I am oh so looking forward to, is how the banks prevent property deflation while maintaining profits and credit ratings...

all this while the RBA keeps bleating how it has to raise rates to prevent house prices going up.

credit tightening, high migration rate, a tsunami of asylum seekers, global warming, under supply of housing.....oh the polies will be changing population and housing policies more often than underwear......but, nothing a bit of insulation won't fix.

btw, has anyone heard or seen The Honorable Minister for Bilbies this month?
 
it may be spin but its also true.

There is one difference bewteen those who are unhappy with rising prices and those who are not. Home ownership. Sounds obvious but its interesting and shows how emotive the arguements are.

How many home owners do you think have replied (in the negative) to threads in newspapers regarding property bubbles. Very few. That shows us that those who are complaining are only doing so because they dont own a home - nothing to do with any high economi or moral pricipals.

So heres the thing. the obsession with ownership of property IS ridiculous...

Its a possession and a status symbol and illogical.

Having a roof over our heads is a seperate matter.

have people never heard the saying ;there is no such thing as security' and 'the only constant is change".

Therefore 20-30 year olds are in agreat position to rid themselves of this over the top obsession. Its a great time to reconsider ones values.

Plenty of happy people in the world who dont own a house!
 
Winston you are 100 percent correct. Its a club - its just that this club thinks its different!

I would never join a club that would have me as a member (anyway)! Maybe its time to move.
 
My Advice to young people. Be happy you that you may be the first generation not obsessed with housing. Be creative, move around, go back to basics.

That was what the x'ers were supposed to do. They were supposed to be the ones who saw the writing on the wall with downsizing and the end of lifetime employment and so on. Until they started growing older, having kids and 'wanted' their own homes.

The 'wanting' of property is a function of age.
 
So heres the thing. the obsession with ownership of property IS ridiculous...

Its a possession and a status symbol and illogical.

Having a roof over our heads is a seperate matter.

have people never heard the saying ;there is no such thing as security' and 'the only constant is change".

All true, but people AREN'T logical. They don't make rational decisions. They cling to 'security'. The same play on human emotions that makes Apple so much money also makes property a good investment.
 
There is one difference bewteen those who are unhappy with rising prices and those who are not. Home ownership.

It's a zero sum game if you only own your home. If you need to move because of your job, you must pay the NEW price and borrow as much for the new house as you owed on your old one. (You will have a higher LVR than when you bought the first, but that matters nought!)

I still live in a house I paid $10,000 for but if I wanted to move into something "nicer" I would need to borrow a qtr mil. Tell me how I'm better off?
 
I reckon the zero sum game is not 100 percent correct. heres why.

Financially having a house is better than not..

So although you need to buy back in atleast you have options

1. You can decide not to buy back in and use the money eslewhere ie to rent and then ivest the rest in shares, funds and business etc.
2. you can downsize
3. You can move to a nicer house worse suburb further out
4. You can move interstate or overseas.

(compared to the rest of the world Aussies are getting richer everyday. We have doubled our postions against the yanks. Thats like they losing half their wealth or us aussies all wining tattslotto!)

Another key for those wanting to live the dream is to have more than one house.

If I were starting our instead of buying a ppor I would not buy one 500k investment property. I would by 2 x 350k investment properties (700k in exposure) giving the same yield.

(Above assuming your dream house is 500k)

let compunding and inflation do some majic and in 5 years you are there!
 
The 'wanting' of property is a function of age.

Perhaps not. I think it's a function of the churn factor of rental properties in Australia.

People in European countries where renting is more common than in Australia don't pine for housing when they have families. They have more security in the properties they are renting.

I have family who rent in Copenhagen and in Paris, and they have been renting the same properties for as long as I've been alive - there is no tension that the rent will become so high that they have to move and no thought at all that the property may be sold and they be turfed out.
 
Top