Australian property 'calamity' is coming

Discussion in 'Australia, NZ, Pacific' started by scarlet witch, May 30, 2017.

  1. Sallyally

    Sallyally Well-Known Member

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    I was just explaining to him, my outlook on life in my street and explained that we retired and built our house to enjoy the space around , not too many people and traffic, etc, and a veiled reference to people exploiting dual occupancy development.
    He took all this in and then said as if its an undisputed idea"but the demand is there". As I said they are nice people.
     
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  2. Sallyally

    Sallyally Well-Known Member

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    It's a hard world now and we've been telling kids that they need a degree to find work. They seem to prefer being a barista in the city rather than a fruit picker in the bush. There have been horrible stories about labour procurers ripping off ill informed workers from Fiji, Asia etc, so I can understand them being put off seasonal work.
     
  3. slipperyfish

    slipperyfish Well-Known Member

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    The world is harder in some ways but perhaps we have all just become softer on the back of our prosperity and good fortune that things just seem hard due to the fact that we just don't desire to do them more so than the fact that they are actually hard.

    Workers being ripped off has been going on since Moses was a boy. Human nature is a funny thing, some individuals will give you the shirt off their backs. Then there are some that will rob a blind man of his walking stick.

    If you really are honest with yourself and sit back and think long and hard about it you will quickly realise that money is the evilest drug on earth, making people do the humanly unthinkable for a dollar more.
     
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  4. Sallyally

    Sallyally Well-Known Member

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    "Or steal wheat from a blind chook". Is there more virtue in manual labour? A job is a job. I think the problem is that we expect too much. We expect that there is an easy way to prosperity , security and peace.
    That the love of money is the root of all evil doesn't answer all the questions. Religions have a lot to do with the humanly unthinkable too.
     
    Last edited: Jun 6, 2017
  5. slipperyfish

    slipperyfish Well-Known Member

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    I don't think we just expect, we think it is a birth right, because we were lucky enough to be born in Australia we simply deserve these things.

    The lifestyle that previous generations have worked hard to create for all of us who enjoy the fruits of their sacrifice is something that requires maintenance and renovation, much like the homes we have been talking about in this thread. If we do not step back and constantly maintain and improve the foundations will eventually crumble or the walls will rot and weather.

    If we were in another thread we might touch on how these foundations are currently under threat and how our apathy has created the perfect environment for the erosion of our society and way of life. BUT that would be if we were in another thread.
     
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  6. Sallyally

    Sallyally Well-Known Member

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    Yep, agree. We take our good fortune for granted.
     
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  7. kazenatsu

    kazenatsu Active Member

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    I think the property bubble, in Australia's biggest cities, has been in large part immigration fueled.
    More people, more competition for limited space, especially with affordable housing options being all taken up, drives up prices.

    One question is whether the jobs are going to still be there to support these prices. Because we've seen these type of boom and bust cycles in other places in the world and they aren't pretty.
     
  8. truthvigilante

    truthvigilante Well-Known Member Past Donor

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    It all depends on the distribution of wealth. If the big guys keep sucking it up there certainly will be tough times ahead. If we keep wealth distribution broad, then no problem.
     
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  9. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    Housing market sentiment falls in every state: NAB survey
    Confidence in the Australian housing market has fallen in every state for the June quarter, according to National Australia Bank.

    [​IMG]
    http://www.abc.net.au/news/2017-07-13/housing-market-sentiment-drops-in-all-states-says-nab/8705044
     
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  10. Sallyally

    Sallyally Well-Known Member

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    A friend sold her investment property recently and doubled her money in ten years. That's scarey isn't it?
     
  11. scarlet witch

    scarlet witch Well-Known Member Past Donor

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    We sold a property for double in Brisbane.. almost ten years ago... we only had it for 5 years at the time.
     
  12. Sallyally

    Sallyally Well-Known Member

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  13. LeftRightLeft

    LeftRightLeft Active Member

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    We need to be careful of not confusing facts with statistics. The only real drop was in local investors. Why? Maybe because the government is reigning in the banks on interest only loans. These were very popular for local investors. Very hard if not impossible but also not practical to first home buyers, owner occupiers or over seas investors.
     
    Last edited: Jul 18, 2017
  14. truthvigilante

    truthvigilante Well-Known Member Past Donor

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    In my thinking interest only for home owners including first home buyers is that it provided a buffer, which also essentially relied on capital growth. Furthermore, most would have a redraw facility, so in the past worked well in most parts of oz but poor old mining towns. Yeah, it makes sense for investors who receive no benefits from principal payments therefore reliant on capital growth solely. So if governments are nailing interest only loans it would actually take the buying power away from investors.

    Have they restricted interest only investor loans? I may have missed something here and know there was talk around it.
     

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