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Australias Real Estate Bubble (Read 8260 times)
Laugh till you cry
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Re: Australias Real Estate Bubble
Reply #15 - Feb 15th, 2014 at 4:24pm
 
Australia is in a trap of its own making. Interest rates are low and can't be increased because that will encourage capital inflow and rise in A$.

The bubble will become a boil and in the future people will consider 40 year mortgages an anachronism as they sign for 100 year mortgages.
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Please don't thank me. Effusive fawning and obeisance of disciples, mendicants, and foot-kissers embarrass me.
 
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John Smith
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Re: Australias Real Estate Bubble
Reply #16 - Feb 15th, 2014 at 4:27pm
 
Sir lastnail wrote on Feb 15th, 2014 at 1:20pm:
John Smith wrote on Feb 15th, 2014 at 1:12pm:
Sir lastnail wrote on Feb 15th, 2014 at 12:33pm:
Here we go again. The old "this time it's different" line is wheeled out once again. Like the dude said.



who said anything about different? Australia never had a property bubble burst and for good reason ... nothing has changed, it's not different ,and that is exactly why we won't have any imaginary bubble bursting


and there is no property bubble because the banks say so Cheesy LOL


and there is a property bubble because some yank who has so far gotten all his predictions wrong says so?
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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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it_is_the_light
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Re: Australias Real Estate Bubble
Reply #17 - Feb 15th, 2014 at 4:28pm
 
many blessings ,

there is no real estate

it is an illusion for you will never own any real estate

landless peasants ...

you will pay an annual duty or rates ...

if you do not pay these rates your house

will be taken from you

and as such you never own the real estate

so in fact , and consequently it is false estate

it is not real at all ..

many dupes believe it real and try to convince you

while you pay your rates , forever

yet the love within your heart is real

and so it is

in divine light

namaste

- : ) =

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ॐ May Much LOVE and CHRISTS LIGHT be upon and within us all.... namasté ▲ - : )  ╰დ╮ॐ╭დ╯
it_is_the_light it_is_the_light Christ+Light Christ+Light  
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Re: Australias Real Estate Bubble
Reply #18 - Feb 15th, 2014 at 5:17pm
 
Redmond Neck wrote on Feb 15th, 2014 at 8:02am:
This guys prophecy of impending doom in the real estate market has got me wondering what actually happens to existing mortgages if suddenly house prices crash by say 30%.

Will the banks be able to suddenly demand large increases in mortgage repayments as i think happened in America resulting in lots of forclosures?

This is very likely I think as I think most new home buyers are borrowing far too much relative to their ability to repay!





Actually if there is a property bust interest rates will nosedive and banks will be asking for less in repayments, in the US they ended up with almost zero interest rates but if you are tapped out to the max and property prices tank this could mean you owe the bank a hell of a lot more on your loan than the property is worth.

This isn't a problem if you are able to stay put but if you want to sell for whatever reason then you are screwed and bankruptcy would be the smartest course of action.

If you have to sell during a bust cycle then you will lose, if you are in for the long haul then you should be OK no matter what happens as prices eventually will rebound ... as long as you are not finally at the end of the great capitalistic pyramid scheme that is   Wink
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Re: Australias Real Estate Bubble
Reply #19 - Feb 15th, 2014 at 5:17pm
 
John Smith wrote on Feb 15th, 2014 at 4:27pm:
Sir lastnail wrote on Feb 15th, 2014 at 1:20pm:
John Smith wrote on Feb 15th, 2014 at 1:12pm:
Sir lastnail wrote on Feb 15th, 2014 at 12:33pm:
Here we go again. The old "this time it's different" line is wheeled out once again. Like the dude said.



who said anything about different? Australia never had a property bubble burst and for good reason ... nothing has changed, it's not different ,and that is exactly why we won't have any imaginary bubble bursting


and there is no property bubble because the banks say so Cheesy LOL


and there is a property bubble because some yank who has so far gotten all his predictions wrong says so?



Harry Dent, a widely respected economist and demographer who has predicted a range of economic events including the 2008 global financial crisis,


Can't give the link but it seems he is one of very few that saw that 2008 event coming. If I remember correctly, the Australian economist Steve Keen was another and he has also predicted the coming real estate crash.

They could be right.

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BatteriesNotIncluded
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Re: Australias Real Estate Bubble
Reply #20 - Feb 15th, 2014 at 5:29pm
 
John Smith wrote on Feb 15th, 2014 at 9:44am:
cods wrote on Feb 15th, 2014 at 9:05am:
well China has just doubled its population...

Cheesy Cheesy Cheesy Cheesy

China's population is actually on the decrease, but lets not let facts get in the way of a good story  Grin Grin Grin

I can't believe cods just said that,... BUT, that graph of Chinas population will make interesting reading from here on in and I dare say the 21st century will be looking at it in many an analysis!
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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Re: Australias Real Estate Bubble
Reply #21 - Feb 15th, 2014 at 5:39pm
 
Quote:
Actually if there is a property bust interest rates will nosedive and banks will be asking for less in repayments,


No, unless you have signed up to 'variable' (as opposed to an agreed interest rate) the payments remain the same.

Quote:
in the US they ended up with almost zero interest rates but if you are tapped out to the max and property prices tank this could mean you owe the bank a hell of a lot more on your loan than the property is worth.


Correct, and that is when they call in the whole loan for payment, which many could not do.....and foreclosure ensues.

I have a niece in law over in the US and her experience makes the point.  She was unemployed, no regular income.......a Bank gave her a loan to buy, and she did.......the GFC..............she was told to pay up...........zero chance of that.  The Bank took possession, sold at a loss.............she walks.  Zero point making her bankrupt.  Nothing to gain.

Quote:
If you have to sell during a bust cycle then you will lose, if you are in for the long haul then you should be OK no matter what happens as prices eventually will rebound ... as long as you are not finally at the end of the great capitalistic pyramid scheme that is


.....and you have ignored what the Banks can do if the value of the property reduces below the amount of the loan.
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Re: Australias Real Estate Bubble
Reply #22 - Feb 15th, 2014 at 5:42pm
 
ian wrote on Feb 15th, 2014 at 11:20am:
in the worst recession this country has ever had prices didnt crash.

Global economy says what??????????????????????????????????????
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*Sure....they're anti competitive as any subsidised job is.  It wouldn't be there without the tax payer.  Very damned difficult for a brainwashed collectivist to understand that I know....  (swaggy) *
 
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Re: Australias Real Estate Bubble
Reply #23 - Feb 15th, 2014 at 9:45pm
 
it_is_the_light wrote on Feb 15th, 2014 at 4:28pm:
many blessings ,

there is no real estate

it is an illusion for you will never own any real estate

landless peasants ...

you will pay an annual duty or rates ...

if you do not pay these rates your house

will be taken from you

and as such you never own the real estate

so in fact , and consequently it is false estate

it is not real at all ..

many dupes believe it real and try to convince you

while you pay your rates , forever

yet the love within your heart is real

and so it is

in divine light

namaste

- : ) =



just to add to that you only really have land rights over your land to about 1 meter in depth. Below that the government has the ownership allowing a mining company to stake its claim Sad
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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John Smith
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Re: Australias Real Estate Bubble
Reply #24 - Feb 15th, 2014 at 10:15pm
 
Sir lastnail wrote on Feb 15th, 2014 at 9:45pm:
it_is_the_light wrote on Feb 15th, 2014 at 4:28pm:
many blessings ,

there is no real estate

it is an illusion for you will never own any real estate

landless peasants ...

you will pay an annual duty or rates ...

if you do not pay these rates your house

will be taken from you

and as such you never own the real estate

so in fact , and consequently it is false estate

it is not real at all ..

many dupes believe it real and try to convince you

while you pay your rates , forever

yet the love within your heart is real

and so it is

in divine light

namaste

- : ) =



just to add to that you only really have land rights over your land to about 1 meter in depth. Below that the government has the ownership allowing a mining company to stake its claim Sad


that sort of twisted logic also means you have also never own cars, motorbikes, boats or anything else you pay an annual fee to use  Cheesy Cheesy Cheesy Cheesy Cheesy
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Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.
 
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Sir lastnail
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Re: Australias Real Estate Bubble
Reply #25 - Feb 15th, 2014 at 10:45pm
 
John Smith wrote on Feb 15th, 2014 at 10:15pm:
Sir lastnail wrote on Feb 15th, 2014 at 9:45pm:
it_is_the_light wrote on Feb 15th, 2014 at 4:28pm:
many blessings ,

there is no real estate

it is an illusion for you will never own any real estate

landless peasants ...

you will pay an annual duty or rates ...

if you do not pay these rates your house

will be taken from you

and as such you never own the real estate

so in fact , and consequently it is false estate

it is not real at all ..

many dupes believe it real and try to convince you

while you pay your rates , forever

yet the love within your heart is real

and so it is

in divine light

namaste

- : ) =



just to add to that you only really have land rights over your land to about 1 meter in depth. Below that the government has the ownership allowing a mining company to stake its claim Sad


that sort of twisted logic also means you have also never own cars, motorbikes, boats or anything else you pay an annual fee to use  Cheesy Cheesy Cheesy Cheesy Cheesy


the government doesn't give a sh.t about your ownership of consumables. What is important is the usage and not the ownership for which you are legally obliged to pay.

and light is correct. Try and not pay your rates for a few years and see how long you own your house Wink
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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Bobby.
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Re: Australias Real Estate Bubble
Reply #26 - Feb 16th, 2014 at 12:51am
 
Hi Nail,
I don't trust him:

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Re: Australias Real Estate Bubble
Reply #27 - Feb 16th, 2014 at 11:47am
 
Redmond Neck wrote on Feb 15th, 2014 at 8:02am:
This guys prophecy of impending doom in the real estate market has got me wondering what actually happens to existing mortgages if suddenly house prices crash by say 30%.

Will the banks be able to suddenly demand large increases in mortgage repayments as i think happened in America resulting in lots of forclosures?

This is very likely I think as I think most new home buyers are borrowing far too much relative to their ability to repay!


Nightmare vision of impending property crash

American economist and demographer Harry S Dent jnr says there is a bubble in Australian house prices and we should brace ourselves for a spectacular collapse starting this year.

Dent is in Australia to speak at seminars and to promote his book, “The Demographic Cliff”. He says that house prices are unsustainable and will fall by at least 27 per cent in Sydney and Melbourne over the next several years.

    Your real estate is so high it has to come down.

Dent told Money in a video interview that the trigger for the collapse of Australia's house price bubble will be the bursting of the Chinese house bubble.

How high can property go?

Dent says Sydney and Melbourne property markets are being held up by foreign buyers and that cannot last forever.

“China has a bubble [in house prices] that makes Australia's look like nothing,” he says.

“I think China's bubble is going to burst and I cannot see any way that Australian property prices can keep going up," he says.

If his forecasts do not come true it will be because governments “wave the magic wand and kick the can down the road again”.

The Reserve Bank of Australia and most Australian economists say there is no bubble in Australian house prices. But Dent is sticking to his guns.

“Nobody in real estate development or government can afford to say that 'we have got a bubble',” he says. “They will always say it is not a bubble”.

But what of our special factors - we are a very large country with a unique economy and most of the population concentrated in a few conurbations - don't they count against the general rules for bubbles and their ending. Dent says he has studied every bubble in history and every time a bubble comes whether it is in tulip bulbs, gold, stocks or housing they are always described by those on the inside as being different, and unlikely to burst.

“I am saying that China has the biggest [bubble] and that is going to trigger [the bursting of] your bubble. Your real estate is so high it has to come down in the next few years."

Read more: http://www.theage.com.au/money/investing/nightmare-vision-of-impending--property...


Friend, whether they do or not, a Big Reckoning is coming, from the sounds of it from them fancy experts and such with degrees. Here's what I have heard around the cafe chit chat and what I make of it all. Boomers are doing fine, although I aint a boomer, being older and such, and we've done well too friend, and I bought my first house here decades ago for less than the cost of a European Car, and exchanged it over the years to my fine apartment here in the CBD of Brisbane Town which is now worth near one million dollars friend, so I believe it's been good. Must be the largest bubble in history though. Prices here have gone up 1200% over the last 30 years or such.
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Re: Australias Real Estate Bubble
Reply #28 - Feb 16th, 2014 at 2:42pm
 
Billy Jack wrote on Feb 16th, 2014 at 11:47am:
Redmond Neck wrote on Feb 15th, 2014 at 8:02am:
This guys prophecy of impending doom in the real estate market has got me wondering what actually happens to existing mortgages if suddenly house prices crash by say 30%.

Will the banks be able to suddenly demand large increases in mortgage repayments as i think happened in America resulting in lots of forclosures?

This is very likely I think as I think most new home buyers are borrowing far too much relative to their ability to repay!


Nightmare vision of impending property crash

American economist and demographer Harry S Dent jnr says there is a bubble in Australian house prices and we should brace ourselves for a spectacular collapse starting this year.

Dent is in Australia to speak at seminars and to promote his book, “The Demographic Cliff”. He says that house prices are unsustainable and will fall by at least 27 per cent in Sydney and Melbourne over the next several years.

    Your real estate is so high it has to come down.

Dent told Money in a video interview that the trigger for the collapse of Australia's house price bubble will be the bursting of the Chinese house bubble.

How high can property go?

Dent says Sydney and Melbourne property markets are being held up by foreign buyers and that cannot last forever.

“China has a bubble [in house prices] that makes Australia's look like nothing,” he says.

“I think China's bubble is going to burst and I cannot see any way that Australian property prices can keep going up," he says.

If his forecasts do not come true it will be because governments “wave the magic wand and kick the can down the road again”.

The Reserve Bank of Australia and most Australian economists say there is no bubble in Australian house prices. But Dent is sticking to his guns.

“Nobody in real estate development or government can afford to say that 'we have got a bubble',” he says. “They will always say it is not a bubble”.

But what of our special factors - we are a very large country with a unique economy and most of the population concentrated in a few conurbations - don't they count against the general rules for bubbles and their ending. Dent says he has studied every bubble in history and every time a bubble comes whether it is in tulip bulbs, gold, stocks or housing they are always described by those on the inside as being different, and unlikely to burst.

“I am saying that China has the biggest [bubble] and that is going to trigger [the bursting of] your bubble. Your real estate is so high it has to come down in the next few years."

Read more: http://www.theage.com.au/money/investing/nightmare-vision-of-impending--property...


Friend, whether they do or not, a Big Reckoning is coming, from the sounds of it from them fancy experts and such with degrees. Here's what I have heard around the cafe chit chat and what I make of it all. Boomers are doing fine, although I aint a boomer, being older and such, and we've done well too friend, and I bought my first house here decades ago for less than the cost of a European Car, and exchanged it over the years to my fine apartment here in the CBD of Brisbane Town which is now worth near one million dollars friend, so I believe it's been good. Must be the largest bubble in history though. Prices here have gone up 1200% over the last 30 years or such.


and so has the debt my friend. You need a constant growth rate in debt to fuel the bubble but who's paying it off including interest ?


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In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.
 
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Re: Australias Real Estate Bubble
Reply #29 - Feb 16th, 2014 at 2:50pm
 
The rising prices of real estate is unsustainable in Australia and in particular Sydney.

I predict a U.S. style of the Ma and Pa Housing crash. The prices of Sydney real estate are unrealistic and when the crash comes, and it will...the fallout will be nuke like.

The real estate prices in no way reflect the income capacity of the every day citizen.


Brother put your crash helmets on because this will be monumental, when this 'pyramid' comes crashing down. I call it a pyramid and an upside down one and that structure is starting to lean big time.
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