I agree, however I was commenting on the blatent self-plug.
Why Australia's housing sector is different..
- Thread starter mech81
- Start date
I agree, however I was commenting on the blatent self-plug.
If houses are so unaffordable, then...
1 - Why do we choose to build the largest homes in the world? If we couldn't afford them, wouldn't we build smaller ones instead?
2 - How do half a million families and individuals (approximately) manage to buy homes every year, if they can't afford them?
3 - How do we have one of the lowest mortgage default rates in the world if people can't afford their homes?
Sure, the house price to income ratio may have increased, but there are often two income earners per house now, the houses are generally much larger and better appointed than they were 20 years ago, and interest rates are structurally lower now, making repayments more affordable for a given loan size.
Depends on the area.
There is always going to be demand for units within 10kms of the city. I don't think there will be a correction in these areas - or at least nothing major.
Townhouses 40kms out with no public transport links? Overpriced and it wouldn't surprise me if they fell.
This is purely my own personal opinion.
There is always going to be demand for units within 10kms of the city. I don't think there will be a correction in these areas - or at least nothing major.
Townhouses 40kms out with no public transport links? Overpriced and it wouldn't surprise me if they fell.
This is purely my own personal opinion.
again, it's a cause for common sense not fundamental issues.
That's such a ridiculous statement and measurement.
The 5 year average turnover has been falling for years and sales are well down this year on the previous couple... what level does it have to drop to before you would consider the market to be generally unaffordable? Would there have to be no sales whatsoever?
I remember seeing this wording "structurally lower interest rates" on some ANZ marketing material... would be interested in your understanding of the terminology. I assume you are suggesting that there has been a structural change that means Australia will never again (or at least not in the foreseeable future) have interest rates at a significantly higher level than they are currently, what are the contributing factors to this development? What is the highest rates we will experience in this 'new paradigm'?
I will understand if you are too busy running APF to respond
Sales volumes are currently down slightly on 'boom' years but in line with long term averages, and default rates are very low, suggesting the vast majority of people are having no trouble servicing their loans.
In 1993 the RBA adopted an inflation target of 2-3%. Rates have been structurally lower since this important change to RBA policy.
I will understand if you are too busy running APF to respond
I'm never too busy for you hobo-jo, but I think Alex Barton runs APF... I'm just a regular member there, as you well know.
Can you really see a property bull like me running a property bear forum!
Oh, just noticed Different Here is banned. I guess I shouldn't expect a response then...
Where are you getting the long term averages from? Would you not agree that long term sales turnover should be rising inline with population growth/new housing? e.g. so if our turnover is the same as a long term average from 20 years ago then it's still a negative outcome...
We've had previous periods with rates sustained at a lower level (e.g. prior to the high inflation of the 1970s)... but RBA aren't the only influence on rates, especially when we borrow so much from overseas and the cost of doing so is rising:
http://www.macrobusiness.com.au/2011/09/the-rbnz-throws-cold-water-on-the-rba/
Infact I think there is an argument that the RBAs inflation policy could be detrimental to house prices in the near future. If the Fed cranks on the printing presses again, pushing up the prices of food, commodities and so forth then the RBA may infact need to raise rates and could further cripple the housing market by doing so.
I have little confidence in global central banks and governments to stem this systematic banking and sovereign debt crisis.
I guess you must have a little more faith.
Sorry I meant run your blog over there, I don't really know how it all works on that site, but running a blog myself I know how time consuming it can be.I'm never too busy for you hobo-jo, but I think Alex Barton runs APF... I'm just a regular member there, as you well know.
Can you really see a property bull like me running a property bear forum!
You can make a lot of $$$ running blogs.
Read this one the other day this guy said he makes around $500k pa from just one blog, and he has several of them.
This particular blog told people to quit their jobs and how there's no future in it. Not sure if he was serious he made $500k pa.
Read this one the other day this guy said he makes around $500k pa from just one blog, and he has several of them.
This particular blog told people to quit their jobs and how there's no future in it. Not sure if he was serious he made $500k pa.
I think it is naive saying that housing sales are down due to affordability alone.
There are a heck of a lot of other things happening in the world at the moment that have shafted sentiment and ergo most people are sitting tight to see what happens.
Saving rates are higher than they have been for decades ... perhaps points to the factor that people can afford - just don't want to at the moment due to other factors.
In 12 months I have made $600 from Google ads and around $150 from other various affiliate schemes. That's from 150 posts, maybe 30 mins per post (likely would be much longer, being conservative). 150 x .5hrs = 75hours, $750 / 75 = $10 per hour. Hasn't exactly been the most profitable venture, good thing I enjoy writing it
To make $$$, as well as writing things you enjoy writng about, you need to write things people enjoy reading too
Maybe try writing a blog about how life is cr@p.
Maybe try writing a blog about how life is cr@p.
Love your blog hobo-jo, keep it up. I'm told life begins at Google PR3
In 12 months I have made $600 from Google ads and around $150 from other various affiliate schemes. That's from 150 posts, maybe 30 mins per post (likely would be much longer, being conservative). 150 x .5hrs = 75hours, $750 / 75 = $10 per hour. Hasn't exactly been the most profitable venture, good thing I enjoy writing it
Similar threads
