Why Australia's housing sector is different..
- Thread starter mech81
- Start date
I'm sure there would be a fair few vendors in Brisbane and Perth that would suggest otherwise.
Here's an interesting point raised in that commentary -
So just for argument's sake, let's assume that this is true. (I know, damned lying statistics and all that, but bear with me here just for the heck of it.)
Then this would suggest that there is a serious disconnect between reality and many people's perception!
Now, if affordability has actually improved but we all genuinely believe the opposite, it isn't accidental: Some sort of agenda is being pushed to misinform the wider population, surely?
But who would do such a thing?
I think it must be ever-tricky property investors, engaging in their typical mass-reverse pyschological engineering.
By making everyday people think they can't afford to buy, these profiteerers artificially increase the number of renters, thereby forcing rents up across the board, and profit from their unceasing wickedness.
It's just so fortunate for property investors, isn't it? that -
Government of every stripe and level back them up with punitive property-related taxes and nil public transport infrastructure enhancement;
Real estate agent cabals push renting instead of buying every time;
Developers continue to make more off keeping their money in savings accounts rather than speculating on successful construction investment; and,
The media and academia are (given where their money comes from) ultimately in the pockets of them all.
Viva la revolucion, I say! (Alright, I was just taking the **** again. Sooorrryyy!)
So just for argument's sake, let's assume that this is true. (I know, damned lying statistics and all that, but bear with me here just for the heck of it.)
Then this would suggest that there is a serious disconnect between reality and many people's perception!
Now, if affordability has actually improved but we all genuinely believe the opposite, it isn't accidental: Some sort of agenda is being pushed to misinform the wider population, surely?
But who would do such a thing?
I think it must be ever-tricky property investors, engaging in their typical mass-reverse pyschological engineering.
By making everyday people think they can't afford to buy, these profiteerers artificially increase the number of renters, thereby forcing rents up across the board, and profit from their unceasing wickedness.
It's just so fortunate for property investors, isn't it? that -
Government of every stripe and level back them up with punitive property-related taxes and nil public transport infrastructure enhancement;
Real estate agent cabals push renting instead of buying every time;
Developers continue to make more off keeping their money in savings accounts rather than speculating on successful construction investment; and,
The media and academia are (given where their money comes from) ultimately in the pockets of them all.
Viva la revolucion, I say! (Alright, I was just taking the **** again. Sooorrryyy!)
That very slight improvement in affordability over the past 16 months is nothing compared to the continual worsening of affordability that occurred over the preceding 20 years!
Of course affordability improved a little bit since December 2009. That's more or less when the bubble peaked and house prices stopped going up.
Now the national median house price is falling.
Then why were the prime top-end well located, highly desirable beach-side properties the ones that fell hardest in 2008, before the government stepped in with stimulus and the lowest interest rates in Australian history to get the ball rolling again?
Aaron mentioned good Tony. To most, "prime" is not necessarily the beach front property. Its the ones that are close to good schools, amenities, transport and other all round facilities.
Beach front properties are a niche market not a mass market. So like the holiday homes, they will be the first to drop as demands decreases first for them. We know how u feel about overpriced property....
You are assuming that comparisons 20 years ago was the 'norm'.
Could it be that 20 years ago property was actually 'cheap' (i'm talking mid 1990's here), in very recent periods its been 'expensive', and the 'norm' is somewhere inbetween.
Especially considering that in the modern workforce there are two income earners, so the market pricing mechanism adjusts for this factor over time (hence why periods 30 years ago might not be relevent, when the majority of houses had only a single income earner).
and income levels are rising.
So affordability is increasing, over time the two will interact with each other, and some form of market balance will occur.
One cannot look at future pricing through just a single prism, there are numerous push/pull factors that all interact, and influencing the natural pull/push factors is market pyschology.
If it weren't so humorous I'd be crying!
Nice read. I was yet to purchase my first house when the Sydney boom-bust took place. I saw a work colleague play his cards right and build an IP portfolio very quickly. I saw another work colleague (a good friend even now) get himself into a lot of trouble due to lack of knowledge and greed (he bought with the minimum deposit at the time, things were looking good, market went up and he refinanced and blew the money on toys, the banks were too happy to throw money at him at the time... then things turned around)
The former did very well for himself out of that cycle. The latter swore never to put his money in real estate ever again and to this day he has only rented. Although, hopefully he will change his mind in the coming years... if only he'd held on to that property back then, he'd be sitting on some nice equity right now...
So what you're saying is you've got nothing. Figures.
Ah, so the definition of prime, is anything that didn't fall in value.
If it fell in value, it can't have been prime.
So the original statement 'Good, well located properties don't fall in price.'
Just means properties that don't fall in price don't fall in price.
Nice tautology.
Well if no one else is saying it then I'll say it. While Australia's internal economy looks pretty rosie and we believe our population growth will support property, the rest of the world is looking decidedly green around the gills.
Whether the US expands their debt burden now or not, they are paying 40% more in repayments than they have earnings, whatever they do wont last long. Europe can't go on bailing out it's countries for ever, and China could easily get caught up in a USD crisis or just implode under the weight of all those office block they've been building.
I'm not saying it's a foregone conclusion, but some commentators must have their head in the sand to think that it wont happen.
Do you enjoy twisting people's words, or does it just come naturally?
I wonder how many investors in this forum think of beachfront properties as good investments.
No, I don't have the figures, and I'm sure you'll have a go at me because of it, but I don't have the figures for common sense either, but I guess you will find a way to have a go at me for that too.
My friend, you are in the wrong forum, despite the fact that you have already racked up more posts than me in your short visit.
One thing that I notice about you tough, is that you seem to look for equality... an even distribution of wealth amongst the population. For the "haves" to provide for the "have nots".
Unfortunately for you, Australia is not that place. If you want to fight capitalism, you are in the wrong country, I'm afraid.
Feel free to move to a socialist country. We did... not because of the appeal, but to enjoy traveling cheap for a few years. I can assure you, we don't envy the scandinavian taxes, although we do enjoy being able to get the advantage of negative gearing even from here due to the tax treaties between Denmark and Australia.
I know you will find a way to turn this around, but I can only hope you listen when spoken to. This is an investment forum. There is a lot to learn here, for those who want to learn. This is not the place to whinge about your views on governments and how they manage the country's economy. This is a place where people take the governments tax laws into consideration and use that knowledge in order to achieve a better position in life (financially). If that doesnt' rock your boat, then why are you here?
Careful now. You'll end up on his blog as one of the people attacking him for taking a leisurely sTROLL at somersoft.
There are plenty of people @ Home here that have a different opinion about property, that even dont mind using strong words and sometimes good data.
Examples include Looooooooong time folks like Sunfish, and somewhat newer like Hobo Jo
Clearly, therefore the issue isnt with the contrarian view, its not only "tolerated" but sometimes even discussed
, yes its true.
It may be the tone of "voice" and word pictures that IDH inadvertently uses that may come across as "taunts" of a Manly Supporter in a St George Club House.
I note that the visitor count on IDHs blog has almost quadrupled in the last 24 hours......
ta
rolf
Examples include Looooooooong time folks like Sunfish, and somewhat newer like Hobo Jo
Clearly, therefore the issue isnt with the contrarian view, its not only "tolerated" but sometimes even discussed
, yes its true.It may be the tone of "voice" and word pictures that IDH inadvertently uses that may come across as "taunts" of a Manly Supporter in a St George Club House.
I note that the visitor count on IDHs blog has almost quadrupled in the last 24 hours......
ta
rolf
Unfortunately Tony, you can twist words all you want. Some suburbs would go up and some go down during the GFC. Which sort of investment doesnt have an up and down cycle. But some properties prices just stay as they are due to their superb location and proximity to good facilities. I'm not sure how many ppl are overall being irritated by your sheer push to make your views clear about housing in Australia and the investment side involved. Leave it as that.
Dan, you are wasting your breath. He's just come in here to let us know how our investment strategies have made countless numbers homeless and how we should be paying our taxes instead of deducting it off our interest from our investment mortgages.
.Toe - Don't disagree with you there at all. I think part of the flattening prices currently in Australia (as a generalisation, as some ppl will twist my words) is due to overall global confidence in whats happening in the states and Europe. Since Australia's economy is dependent on the global economy, how the above pans out is very related to the housing market here.
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