What if Aust prop went the US way?

[VYBerlinaV8]

I wish the price of motor vehicles in Australia went the way of the USA

For the price of a new 911 Carrera S in Australia, I could move to the US for two years, and go touring in a new 911 Carrera S bought new in the US.

One day, I might just do this.

 

[Aaron Sice]

considering how exposed aussie banks are to property, you can expect a taxpayer funder bailout here ala the USA as well.

plus a bank-funded lobby group that successfully passes a law that says you cant sell for a loss, or at all, and the aussie public would swallow it like they always do.

 

[oracle]

I think due to Australia being immensely commodity rich country (coal, iron ore, LNG, uranium) as well as abundance of farmlands producing more food than we consume, having plenty of cattle to export and last but not the least tourism with so much natural beauty.

All of above with only a small population and our closeness to the growth hub for next 50-100 years (Asia) therefore even if we go into recession in future we should be able to bounce back out of it pretty quickly. We just happen to have a lot of stuff that the rest of the world needs.

There is a reason why they call us the lucky country. You can't have so many things working for you if you weren't lucky.

How long will this luck last.. I believe we should definitely be safe for next 25-30years.

Coming back to the question of whether Australia will have a US style property crash. I don't believe so...but I do not expect property to experience boom until wages and rents rise significantly from current levels.

Cheers,
Oracle.

 

[Ideo]

I'm cf+ with most of my properties in regional areas that are self-sufficient and are also mine towns.

I'd be in a spot of bother with one, but I could cover losses on that.

The main thing to keep in mind is that there is a fundamental shortage of housing in oz.

 

[barney8]

We'd(the government) would keep granting skilled visas/business/student visas until the problem went away.

Student visas are particularly popular, because they pay the rent and do menial work, pay for the higher education system, then either leave or only stay if we really really need them.

NSW have been doing just that right at the moment.(read somewhere about loosening vocational visa requirements).

 

[Peter 14.7]

I'd just hold the portfolio. It pays for itself anyway.

Ditto

Peter 14.7

 

[Peter 14.7]

Remember the interest has to drop as well.
For an interest rate of 2.5% .....wouldn't be that bad

Agree

Peter 14.7

 

[Peter 14.7]

What would all you investors do if Aust prop prices went the US way. A number of articles seem to suggest that we should be prepared for a big fall.


What would happen to your portfolio?

Welcome, and the first thing to learn is you cannot compare one country RE with another Country RE. Too many variables.

Those who write these articles get press from the claims aka free marketing. I am yet to see an article written, that is reported, that says "in the end there will be little change because the Australia's economy, REA, mindset, supply and demand is unchanged.

Peter 14.7

 

[luce.rocks]

If it came to pass that Aus property went the same way as US property, I'd stop mooching off my husband, get a job, maximise our serviceability, and start buying.

 

[luce.rocks]

Actually, if Aus property went the same way as US, I wouldn't care because I'm winning Oz Lotto tonight

 

[CHam]

Actually, if Aus property went the same way as US, I wouldn't care because I'm winning Oz Lotto tonight

Bet you didn't......