Why house prices set to jump up to 15pc

[MrCrumbpacker]

As a hedge against inflation, a falling dollar may well see nominal prices rise, but you have to ask yourself, what is the point.

I doubt it will be long before the Australian government ( like many others) sees a falling dollar as a good way to fool the public into believing they are getting richer through nominal asset gains, but everything else will just get more expensive, and people's pensions and savings will be quietly sacrificed to keep things appearing more rosy than they are.

I can't help feeling that the main stream media, as an organ of the state has done a very good job convincing us that our current situation is a result of their diligent stewardship, brilliant and cautious banking sector etc etc, when the truth is we don't have a subprime problem here simply because we don't call it subprime, but low doc.

The government has burnt through the financial legacy left to them by the previous gang, and has managed to hide much of their profligacy due to the the resource boom.

But hey, this is Australia, greatest bloody country in the world as we all know, it is different here, as long as we keep believing it.

 

[Aaron_C]

The government has burnt through the financial legacy left to them by the previous gang, and has managed to hide much of their profligacy due to the the resource boom.

How have they hidden it? They are $200bn in debt from $50bn in net assets. Glaring for all to see....

 

[HotRod]

Watching Q&A the other night, there was a venture capitalist on the panel and he was going on how we still have the lowest deficit per capita (or something like that) compared to all other countries. he seemed quite happy with the approach.

Still doesn't change the fact the this government has managed to blow $200B to $250B in money in 5 years of power and live in fairy land where they will deliver a surplus this year.

Imagine how much extra they could do with $12B each year, the amount we pay in interest on our debt.

 

[MrCrumbpacker]

How have they hidden it? They are $200bn in debt from $50bn in net assets. Glaring for all to see....

Yeah true I guess, but they still seem to have convinced their listeners that is neither here nor there.

 

[MrCrumbpacker]

Watching Q&A the other night, there was a venture capitalist on the panel and he was going on how we still have the lowest deficit per capita (or something like that) compared to all other countries. he seemed quite happy with the approach.
t.

Government debt is only low because they have spent all the savings, and private debt is frightening, and reliant on the housing market.

I understand from a city source that the housing market here is approaching the value of the German market, a country of 80 plus million, who build things to a very high standard.

 

[Aaron_C]

Yeah true I guess, but they still seem to have convinced their listeners that is neither here nor there.

Well yes the rusted on supporters wouldn't accept empirical facts, whether the net debt position was $200bn or $2,000 bn.

 

[Ausprop]

I understand from a city source that the housing market here is approaching the value of the German market, a country of 80 plus million, who build things to a very high standard.

the valuation exercise would be interesting to review... would an aussie 1950's house be valued at nil or $200k? i.e. book value or replacement. how old is typical German stock? is size comparable?

 

[MrCrumbpacker]

the valuation exercise would be interesting to review... would an aussie 1950's house be valued at nil or $200k? i.e. book value or replacement. how old is typical German stock? is size comparable?

I presume current market value. Re German stock. obviously a lot of it is considerably older than the "idea of Australia".

In my experience,when it comes to lending by the banks, they are extremely prudent and conservative compared to most countries, born from their previous experience of lassitude and its consequences.

20/30 % down, and rigorous checks re income etc. Most property is owned by corporations. You can get a good two bed unit in central Berlin for 70K euro, or buy a block of 10 refurbed units for the cost of a Paddington terrace. Expect borrowing costs under 4%, and yields between 9 and 13%

Most people rent, there is no stigma, no "renter scum " attitude, most rent long term, and are happy to fit kitchens etc. The building standards make Australia look medieval, high u value, triple glazed, solid double skin brick and block down to ballast strata etc.

Germany isn't some backwater, in fact I would put it at the forefront of developed countries, with an extremely high standard of living, and a highly developed culture, pushing the envelope of industrial development.

Difficult to compare with Australia.

 

[Aaron Sice]

Most people rent, there is no stigma, no "renter scum " attitude, most rent long term, and are happy to fit kitchens etc. The building standards make Australia look medieval, high u value, triple glazed, solid double skin brick and block down to ballast strata etc.

they also have snow.

big change from "mild temperate with sun most of the year" to "freezing with puddles and cloud cover most of the year".

BCA energy standards in this country are moot.

 

[Graemsay]

In Germany, fitting your own kitchen in a rental property is the usual practice. Tenants tend to have much more security of tenure, and stay in a property much longer than in Australia.

I believe that Germans tend to rent, and then buy later in life.

I'd be interested to see how the age of housing stock compares between Germany and Australia. The west of the country got pulverised in World War 2, and there are very, very few old buildings left in places like Cologne, for reasons that are apparent in this photo.

I believe that German building techniques are ahead of the UK, which puts them a long way in front of Australia. For example, British houses tend to use insulated cavity walls, whereas the approach there would be to put the insulation on the outside of the building, which is more efficient. Though it's the Scandinavians who have the reputation as hardcore house builders.

If you're interested in high-end German kit homes then take a look at Huf Haus and Hanse Haus.

 

[HandyAndy888]

In Germany, fitting your own kitchen in a rental property is the usual practice. Tenants tend to have much more security of tenure, and stay in a property much longer than in Australia.

I believe that Germans tend to rent, and then buy later in life.

I'd be interested to see how the age of housing stock compares between Germany and Australia. The west of the country got pulverised in World War 2, and there are very, very few old buildings left in places like Cologne, for reasons that are apparent in this photo.

I believe that German building techniques are ahead of the UK, which puts them a long way in front of Australia. For example, British houses tend to use insulated cavity walls, whereas the approach there would be to put the insulation on the outside of the building, which is more efficient. Though it's the Scandinavians who have the reputation as hardcore house builders.

If you're interested in high-end German kit homes then take a look at Huf Haus and Hanse Haus.

That bridge is farked!

 

[Graemsay]

That bridge is farked!

A lick of paint, and it was OK.