Australian Politics Forum - Australias Real Estate Bubble

Datalife

Gold Member

Offline

Australian Politics

Posts: 2405
Gender: male

Re: Australias Real Estate Bubble
Reply #30 - Feb 16^th, 2014 at 2:57pm

A couple of differences between Oz and the US, we still have housing demand, not sure the statistics now but only a short while ago vacancy statistics in most states were as low (in the ACT for eg) as 1%. In comparison for eg in Detroit there are something like 47000 vacant houses.

Also, a big difference is that in the US a homeowner merely needs to hand over the keys to the bank to get out from under a negative equity without any residual debt, in Oz that is not possible and the banks will sell your property and still hound you for the difference. No get out of debt for free deals.

Back to top

"If they’re out there in the high seas, what you would do is seek to turn them back through the agency of the Australian Navy".

Kevin Rudd on 2GB, July 12, 2007

IP Logged

Laugh till you cry

Gold Member

Offline

Posts: 16619
In your happy place
Gender: male

Re: Australias Real Estate Bubble
Reply #31 - Feb 16^th, 2014 at 3:30pm

Datalife wrote on Feb 16^th, 2014 at 2:57pm:

A couple of differences between Oz and the US, we still have housing demand, not sure the statistics now but only a short while ago vacancy statistics in most states were as low (in the ACT for eg) as 1%. In comparison for eg in Detroit there are something like 47000 vacant houses.

Also, a big difference is that in the US a homeowner merely needs to hand over the keys to the bank to get out from under a negative equity without any residual debt, in Oz that is not possible and the banks will sell your property and still hound you for the difference. No get out of debt for free deals.

In modern society with purported labour mobility as an objective, a house is a millstone around the worker's neck. Better to rent and find a new rental when one moves.

This is also supported by the theory of economic rationalism where a person should seek the best reward for his services. Unfortunately most punters don't like moving.

Back to top

Please don't thank me. Effusive fawning and obeisance of disciples, mendicants, and foot-kissers embarrass me.

IP Logged

red baron

Gold Member

Offline

Australian Politics

Posts: 10204
Blue Mountains
Gender: male

Re: Australias Real Estate Bubble
Reply #32 - Feb 16^th, 2014 at 3:57pm

Two schools of thought on that one, Laugh till you Cry. Rents in Sydney are going ballistic.

If you can get into a mortgage, then some years down the track, you will be far better off than the renter, who sees their rent getting higher, higher and higher...I've been around a long time and I think your argument has as many holes in it as Swiss Cheese. Cheesy

Back to top

« Last Edit: Feb 16^th, 2014 at 4:18pm by red baron »

IP Logged

Datalife

Gold Member

Offline

Australian Politics

Posts: 2405
Gender: male

Re: Australias Real Estate Bubble
Reply #33 - Feb 16^th, 2014 at 4:05pm

Laugh till you cry wrote on Feb 16^th, 2014 at 3:30pm:

In modern society with purported labour mobility as an objective, a house is a millstone around the worker's neck. Better to rent and find a new rental when one moves.

If it suits you fine, I prefer to own. Plus ownership has given me a lot of flexibility, I had a place in the city when I was working, sold it and got a place in the country where I retired and have no debt at all.

Enjoy your landlord inspections, another benefit no doubt.

Back to top

"If they’re out there in the high seas, what you would do is seek to turn them back through the agency of the Australian Navy".

Kevin Rudd on 2GB, July 12, 2007

IP Logged

Laugh till you cry

Gold Member

Offline

Posts: 16619
In your happy place
Gender: male

Re: Australias Real Estate Bubble
Reply #34 - Feb 16^th, 2014 at 4:52pm

Datalife wrote on Feb 16^th, 2014 at 4:05pm:

Laugh till you cry wrote on Feb 16^th, 2014 at 3:30pm:

In modern society with purported labour mobility as an objective, a house is a millstone around the worker's neck. Better to rent and find a new rental when one moves.

If it suits you fine, I prefer to own. Plus ownership has given me a lot of flexibility, I had a place in the city when I was working, sold it and got a place in the country where I retired and have no debt at all.

Enjoy your landlord inspections, another benefit no doubt.

Exactly exemplifies labour mobility. You left the labour market and your house.

Some people don't want to give up city life because there are more resources and facilties.

Back to top

Please don't thank me. Effusive fawning and obeisance of disciples, mendicants, and foot-kissers embarrass me.

IP Logged

John Smith

Gold Member

Offline

Australian Politics

Posts: 74446
Gender: male

Re: Australias Real Estate Bubble
Reply #35 - Feb 16^th, 2014 at 5:51pm

Sir lastnail wrote on Feb 15^th, 2014 at 10:45pm:

John Smith wrote on Feb 15^th, 2014 at 10:15pm:

Sir lastnail wrote on Feb 15^th, 2014 at 9:45pm:

it_is_the_light wrote on Feb 15^th, 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

- : ) =

ॐ

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

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

o light is wrong ... I own my house, the rates are simply a service fee that comes with owning a house, much like owning a car means you pay rego.

Back to top

Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

IP Logged

John Smith

Gold Member

Offline

Australian Politics

Posts: 74446
Gender: male

Re: Australias Real Estate Bubble
Reply #36 - Feb 16^th, 2014 at 5:54pm

Laugh till you cry wrote on Feb 16^th, 2014 at 3:30pm:

Datalife wrote on Feb 16^th, 2014 at 2:57pm:

A couple of differences between Oz and the US, we still have housing demand, not sure the statistics now but only a short while ago vacancy statistics in most states were as low (in the ACT for eg) as 1%. In comparison for eg in Detroit there are something like 47000 vacant houses.

Also, a big difference is that in the US a homeowner merely needs to hand over the keys to the bank to get out from under a negative equity without any residual debt, in Oz that is not possible and the banks will sell your property and still hound you for the difference. No get out of debt for free deals.

In modern society with purported labour mobility as an objective, a house is a millstone around the worker's neck. Better to rent and find a new rental when one moves.

This is also supported by the theory of economic rationalism where a person should seek the best reward for his services. Unfortunately most punters don't like moving.

you think so laugh? I've got a tenant who in the last 15yrs paid in excess of $180 000 rent for the premises she lives in ... if she had bought it when she moved in, she would have paid $180 000 and accumulated at least another $200 000 in capital growth .... instead she paid the landlords mortgage, while the landlord got the growth

Back to top

Our esteemed leader:
I hope that bitch who was running their brothels for them gets raped with a cactus.

IP Logged

Laugh till you cry

Gold Member

Offline

Posts: 16619
In your happy place
Gender: male

Re: Australias Real Estate Bubble
Reply #37 - Feb 16^th, 2014 at 5:55pm

John Smith wrote on Feb 16^th, 2014 at 5:51pm:

Sir lastnail wrote on Feb 15^th, 2014 at 10:45pm:

John Smith wrote on Feb 15^th, 2014 at 10:15pm:

Sir lastnail wrote on Feb 15^th, 2014 at 9:45pm:

it_is_the_light wrote on Feb 15^th, 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

- : ) =

ॐ

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

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

o light is wrong ... I own my house, the rates are simply a service fee that comes with owning a house, much like owning a car means you pay rego.

It's not a service fee. It's a tax related to the value of the property.

Service is incidental and not guaranteed.

Back to top

Please don't thank me. Effusive fawning and obeisance of disciples, mendicants, and foot-kissers embarrass me.

IP Logged

Sir lastnail

Gold Member

Offline

Australian Politics

Posts: 30084
Gender: male

Re: Australias Real Estate Bubble
Reply #38 - Feb 16^th, 2014 at 8:41pm

John Smith wrote on Feb 16^th, 2014 at 5:54pm:

Laugh till you cry wrote on Feb 16^th, 2014 at 3:30pm:

Datalife wrote on Feb 16^th, 2014 at 2:57pm:

A couple of differences between Oz and the US, we still have housing demand, not sure the statistics now but only a short while ago vacancy statistics in most states were as low (in the ACT for eg) as 1%. In comparison for eg in Detroit there are something like 47000 vacant houses.

Also, a big difference is that in the US a homeowner merely needs to hand over the keys to the bank to get out from under a negative equity without any residual debt, in Oz that is not possible and the banks will sell your property and still hound you for the difference. No get out of debt for free deals.

In modern society with purported labour mobility as an objective, a house is a millstone around the worker's neck. Better to rent and find a new rental when one moves.

This is also supported by the theory of economic rationalism where a person should seek the best reward for his services. Unfortunately most punters don't like moving.

you think so laugh? I've got a tenant who in the last 15yrs paid in excess of $180 000 rent for the premises she lives in ... if she had bought it when she moved in, she would have paid $180 000 and accumulated at least another $200 000 in capital growth .... instead she paid the landlords mortgage, while the landlord got the growth

isn't that what you parasites want and then on the other hand you don't want people to rent your dumps. Go figure !!

Why not abolish all middle class welfare for property hoarders and speculators and then see you how smug you are. And whilst they are at get rid of the first home buyers scam. Stop foreign investors buying up joints. No more government guarantees on bank deposits etc etc No more kicking the can down the road period for the property sector.

Wealth creators my arse Cheesy

LOL

Back to top

« Last Edit: Feb 16^th, 2014 at 9:50pm by Sir lastnail »

debtclock_024.gif (29 KB | 20 )

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

IP Logged

Frances

Gold Member

Offline

Australian Politics

Posts: 3577
In a Castle in the Hills
Gender: female

Re: Australias Real Estate Bubble
Reply #39 - Feb 16^th, 2014 at 8:50pm

The bubble will burst at some time in the next year or two (sooner if Abbott keeps destroying jobs and industries) but I think that the worst that could happen is that prices will drop to about 40% of what they are now, plateau for a while and then recover, but only to about 60-70% of current values. The banks may resist foreclosing until there is some recovery, as if they don't, they probably won't recover all the money they are owed.

Rents may drop a bit too, but to nowhere near the same extent.

Back to top

Sure God created man before woman. But then you always make a rough draft before the final masterpiece.

IP Logged

it_is_the_light

Gold Member

Offline

Christ Light

Posts: 41434
The Pyramid of LIGHT
Gender: male

Re: Australias Real Estate Bubble
Reply #40 - Feb 16^th, 2014 at 8:56pm

John Smith wrote on Feb 16^th, 2014 at 5:51pm:

Sir lastnail wrote on Feb 15^th, 2014 at 10:45pm:

John Smith wrote on Feb 15^th, 2014 at 10:15pm:

Sir lastnail wrote on Feb 15^th, 2014 at 9:45pm:

it_is_the_light wrote on Feb 15^th, 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

- : ) =

ॐ

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

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

o light is wrong ... I own my house, the rates are simply a service fee that comes with owning a house, much like owning a car means you pay rego.

many blessings ,

try not paying your service fee .. see what happens .

you can put lipstick on a pig ,

its still a pig that you must pay rates for .

an illusion many have swallowed hook line and sinker ..

as it were .. and so it is

believe as you do so please there is no right or wrong

merely your interpretation of self inflicted

real estate dupery ..

so be it

namaste

- : ) =

ॐ

Back to top

ॐ May Much LOVE and CHRISTS LIGHT be upon and within us all.... namasté ▲ - : ) ╰დ╮ॐ╭დ╯

IP Logged

sherri Gold Member Offline Australian Politics Posts: 746 Melbourne, Australia Gender:	Re: Australias Real Estate Bubble Reply #41 - Feb 16^th, 2014 at 9:12pm Real estate prices can go up or down but the reality is it won't affect you unless you have a mortgage or need to sell or buy. Older home owners who have paid off the mortgage won't have to worry too much.
Back to top	IP Logged

Frances Gold Member Offline Australian Politics Posts: 3577 In a Castle in the Hills Gender:	Re: Australias Real Estate Bubble Reply #42 - Feb 16^th, 2014 at 9:15pm It will be a good buying climate if prices drop, but it won't be very good if you're selling, especially if you have a big mortgage......
Back to top	Sure God created man before woman. But then you always make a rough draft before the final masterpiece. IP Logged

Swagman

Gold Member

Offline

Beware of cheap imitations......

Posts: 15095
Illawarra NSW
Gender: male

Re: Australias Real Estate Bubble
Reply #43 - Feb 16^th, 2014 at 9:43pm

Frances wrote on Feb 16^th, 2014 at 8:50pm:

The bubble will burst at some time in the next year or two (sooner if Abbott keeps destroying jobs and industries) but I think that the worst that could happen is that prices will drop to about 40% of what they are now, plateau for a while and then recover, but only to about 60-70% of current values. The banks may resist foreclosing until there is some recovery, as if they don't, they probably won't recover all the money they are owed.

Rents may drop a bit too, but to nowhere near the same extent.

Abbott's not destroying jobs and there isn't a property bubble

Back to top

IP Logged

Sir lastnail

Gold Member

Offline

Australian Politics

Posts: 30084
Gender: male

Re: Australias Real Estate Bubble
Reply #44 - Feb 16^th, 2014 at 9:44pm

Frances wrote on Feb 16^th, 2014 at 8:50pm:

The bubble will burst at some time in the next year or two (sooner if Abbott keeps destroying jobs and industries) but I think that the worst that could happen is that prices will drop to about 40% of what they are now, plateau for a while and then recover, but only to about 60-70% of current values. The banks may resist foreclosing until there is some recovery, as if they don't, they probably won't recover all the money they are owed.

Rents may drop a bit too, but to nowhere near the same extent.

There will be a dead cat bounce followed by another fall. On the 2nd fall is when Harry Dent recommended to get ready to buy a bargain Wink

Back to top

In August 2021, Newcastle Coroner Karen Dilks recorded that Lisa Shaw had died “due to complications of an AstraZeneca COVID vaccination”.

IP Logged