I no rite!? Gonna be epic lolz bro
The Australian housing bubble furphy
- Thread starter ziggy2214
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I no rite!? Gonna be epic lolz bro
Of course they will. Politicians have vested interests in property too.
I'll buy into the argument of flat or negative growth. But not a crash. As long as we've got finance for property, prices will sustain.
Of course they will if necessary and have done so repeatedly in the past. I have posted here about this very thing: http://www.somersoft.com/forums/showpost.php?p=734298&postcount=27
fingers crossed guys 
this time i think the piggy bank is empty. And if they do stimulate the market again, be prepared for increase in interest rates. it ain't gonna happen.
this time i think the piggy bank is empty. And if they do stimulate the market again, be prepared for increase in interest rates. it ain't gonna happen.
I have never found an empty piggy bank to be an impediment to a Labor party spending money....ever.
The piggy bank's not that empty. Government has $$ tucked away.
With rising wages and booming industries, no one has money. Maybe we'll actually have money if we entered a recession
That is not true, many of my friends got so much money save in the bank, including me which i can buy a property outright.
Wage is rising here in Australia. Is the buyer market and buyer are more caution and choosy. Like me, i went to auction around Melbourne city and inner suburb, i just look around, not really want to put my foot in just yet.
This is what I love about the current market. Lots of cashed up buyers on the sidelines waiting. Existing owners ferreting money away with higher repayments or parked in offset accounts. Fear prevailing everywhere. And this on the cusp of an unprecedented mining boom and a hit to our terms of trade that we've never witnessed before. If this is not one of those once in a lifetime buyers markets you've all read about then I don't know what is.
Just wait until we have the wages breakout that is anticipated and then see what happens to property prices. As soon as it gains momentum, all those sideline watchers will jump on board. They're always late to the party anyway. Its the late masses that drive the booms.
Cheers,
Michael
yes it could go off like a powder keg once the slack in the economy is gone. how much slack is there I don't know but with unemployment already quite low it's not hard to see things at the end of this year starting to heat up, particularly once the shock of christchurch and japan are behind us. A spring boom?
i think it's just canberra.
When I was selling last year my agent said to meet the market because things would get worse. That's what I did, but I'm a realist.
I'll say it again....
I was prepared to drop the price, and suggested it, but as I said; HE said it was of no use to do that because there had been no offers. No real activity or interest. The market is flat.
He actually said to leave the price as it was until the end of this month, and then we will review it.
This is on top of me asking them in the beginning what they think is a fair and reasonable asking price to have it priced to sell in a short time. They didn't have to sell me the listing and pump up the price, because it is my PM's agency that is handling the sale.
In short - THERE ARE NEXT TO NO BUYERS IN THAT AREA AT THE MOMENT.
I think I've explained it enough times now.
Canberra's turning into a strange place - it's getting very expensive to live here, and I think we're starting to see the divide between the well-offs and just-getting-bys getting larger.
The cost of living here seems pretty high generally, and we are seeing some big $$ roles being offered into the IT market. A former colleague just picked up a perm role with a major IT provider for almost $190k per year, and my contracting income equates to over $250k per year, and I'm hearing similar stories anecdotally from many others.
This of course makes things harder for the less well off, who without wages growth are going to struggle more and more.
Thoughts from any other locals?
Hey; first time you and I have agreed on something!
Actually though; it's not that people don't have any money; it's that they won't be qualifying for any finance. People are still earning money, but still spending more than the income.
I don't think people's spending/savings habits haven't suddenly improved all that much since before the GFC, and now the banks are a lot tougher, so even less will get funding of any significant amount. I'd like to know what the ratio of spending to income is now in Aus - a few years ago it was at 105%, with the USA at 110% apparently.
In short; no deposits, no finance from most banks for many, I'd say.
Someone had a go at me for an anecdotal story on this just recently, but anecdotal is real life examples. Might not be everywhere real life, but real nonetheless.
Anecdote; we are trying to sell an IP over in Kalgoorlie currently (and in Frankston as well). Got an offer on the one in Kal and the paperwork from the agent...
The deposit was $500 - which I questioned. The agent said that not only was it a common occurance over there, but it was even moreso right now - people were using equity money for deposits and finance, less and less people actually coming forth with any cash and not a lot of new bank loans.
This is at the lower end of the scale too; same as our Frankston unit - which is also struggling to get any buyers at any level..
Considering that the majority of purchases are at the lower end, I'd say this is a good indication of the lending market/finance eligibility right now.
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Just remember a buyers market is a very short window of opportunity....
I am madly trying to buy more proeprties at the moment.
I agree with the comments that most people in Australia are affected by the living costs.
Also having money in the bank does not translate to wealth.
I am madly trying to buy more proeprties at the moment.
I agree with the comments that most people in Australia are affected by the living costs.
Also having money in the bank does not translate to wealth.
I think there is opportunity but it would be the right property to purchase than just to buy something because the window is open.
Having that much money in the bank - is very handy but does not really translate to good investing practices. As an individual not company, i prefer to have only a maximum amount of money in the bank that would cover me for 1 year expenses that's it - anything more would be for me just poor utilization of funds.
frankston is a different market altogether. Demographics and income levels as well as net worth of buyers.
i remember a dude who went there IT contracting and bought 5 houses in 2 years coz they wasn't that much to spent on lifestyle. Yeah all the government systems like centrelink are hosted in canberra.
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