So much property bubble talk today

The " best " bubble story I've heard was on ABC radio , I think yesterday morning . They were interviewing someone I hadnt heard of before and they were talking about what would happen if the RBA bought in Macroprudential changes . The expert was saying that people would head for the door and he predicted the market would slump 20 - 30 percent . Tried to find a link , but couldn't find one .

Considering that those changes wouldn't affect people who already owned property I couldn't see the logic.

Out of interest I had a look at what happened in NZ when they brought in such changes . The predictions where that it would slow growth by 1-4 % which seems to be what has happened .

No price crash in NZ .:)

Btw , there are always negative articles about property if you look.

Cliff
 
The " best " bubble story I've heard was on ABC radio , I think yesterday morning . They were interviewing someone I hadnt heard of before and they were talking about what would happen if the RBA bought in Macroprudential changes . The expert was saying that people would head for the door and he predicted the market would slump 20 - 30 percent . Tried to find a link , but couldn't find one .

Considering that those changes wouldn't affect people who already owned property I couldn't see the logic.

Out of interest I had a look at what happened in NZ when they brought in such changes . The predictions where that it would slow growth by 1-4 % which seems to be what has happened .

No price crash in NZ .:)

Btw , there are always negative articles about property if you look.

Cliff

Thats true their are always negative articles about property bubbles. But in saying that today was the online news sites were bombarded with them. IMO witch means nothing their will be some sort of correction in Sydney and possible Melbourne but as for a halving of price? Cant see that happening
 
There will be a correction at some time . There always is . Just don't see it happening now or in the next year . I probably don't expect it for 3-5 years but predicting that far out at the moment is crystal ball gazing .

Cliff
 
well this article is not negative or positive

http://www.theaustralian.com.au/bus...omelending-curbs/story-e6frg926-1227070378900

anyone care to explain in plain English what this macro prudential tools are? ... i think all the negative news are coming off that...:eek:

Just regulated lower LVRs and higher servicing hurdles - in this case particularly for investors. Usually regulated at the overall bank level rather than individual loan limits so banks still get some discretion about how to stay within their overall limits. Stops the bank over leveraging if you like. Currently in fashion because of the sharp rise in the proportion of lending going to investors, which is also a function of the slowdown in lending to OOs.
 
You just need to make your own calls.

In 2012 there were equally many negative articles in Fairfax newspapers. If you listened to any of them, you'd be kicking yourself today.
 
I guess the Sydney and Melbourne prices will at some point come to a stand still and go down to be corrected. Would it be possible that outer smaller cities from Sydney and Melbourne would see more rises where investors look at other options, especially the Chinese that they will be reading all the bubble news predictions for Sydney and Melbourne ? I have a friend with an apartment in Newcastle, she said 2 units in the same block have sold for quite good amounts recently so maybe this is already starting to happen.
 
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