By: almurrie1@y7mail.com
24/08/2009
5:37 pm Yahoo! Profile:
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Exactly Lasty
Like all the old mouldy English row houses that are sold cheap, and make the median figures look bad (low), but also need hundreds of thousands spent to make them livable. A good property with a garden in GB will still cost many times more than the equivalent in Aus.
Also try buying a Brownstone in NY and see how much change you get from 10 mill.
Still a huge demand for rare, exclusive properties and the US which still has the most millionaires in the world.
Al |
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By: lasty49
24/08/2009
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Before we start on the Australia's housing market being the most expensive, there are other factors needed to be addressed,the main one being
COST OF LIVING !
As long as Australians can service their debts monthly and live comfortably nothing will change.
Australian homes/land areas are larger than most world standards.Has this been taken into account?
More bang for your buck.
When making comparisons to other nations ALL facts have to be taken into account not just some.
To compare Australia to the US or UK because of their housing slumps has only taken one thing into account.. We all speak English. |
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By: click99a2000
24/08/2009
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Actually Australia has the dearest housing in the world, due almost entirely to the incompetence & the "we know whats right for you" attitude of our state governments & of course the actions of the federal government to buy votes at any cost, as long as the spin in the press is favorable
See http://www.demographia.com/dhi.pdf
for thorough details of the gross distortions done to the housing market by the politization of the planning profession. |
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By: puyi
23/08/2009
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Mark Russell, SMH
August 23, 2009
Australia is the third least affordable country in which to buy housing, ranked only behind Spain and Ireland.
Local house prices rose 4.2 per cent in the June quarter, meaning they are now only about 1.4 per cent below what they were a year ago.
The Rudd Government's doubling of the first home buyers' grant have buoyed the property market.
But the Government's chief adviser on housing affordability, Julian Disney, says these grants have caused a housing bubble and reduced affordability. ''We are paying too much for housing and people are getting much too overcommitted,'' Professor Disney said.
He agrees with the IMF assertion that Australian homes are overpriced by up to 20 per cent.
''Housing affordability will continue to get worse, but the problem is it is already very bad … It's an overinflated balloon and we need to gradually deflate it.''
''This top-up of first home buyer grants by the states has been largely counter-productive … We have to be very careful that we're not restoring our economy by luring lower-income households into mortgages they can't afford over the long term.''
Yet federal Housing Minister Tanya Plibersek said the Government was pleased with the success of the first home buyers' grant.
A recent housing affordability study found that nationally houses were 5 per cent less affordable between April and June, with median prices rising from $386,400 to $419,900. The monthly repayment on a typical first home mortgage increased from $1843 to $1983, a 7.6 per cent jump.
Researcher Fujitsu Consulting says the number of households struggling to meet monthly home loan repayments could double from about 500,000 to more than 1 million by next June if interest rates rise by a predicted 2 percentage points and unemployment worsens. |
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By: tommyknockersbegone
19/08/2009
1:03 am |
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By: jaymarcel
18/08/2009
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I know of many Australians in their 50's who are still renting & have to find nearly $2000 per month just to pay the rent, & own nothing of value.
They can't afford to have a holiday or stop working & still commit 5 days a week at work yet are not any better off than when they were in their 20's.
Wake up get your own house! |
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By: jaymarcel
18/08/2009
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Hi rodney, interesting post & a good point. As you know my views are not in line with this thinking though. I see a mortgage as a good way of saving, or should I say not spending on stuff that is not needed, as we all know the more you earn the more you spend & this also transposes to the more you have in the bank the easier it is to buy excess stuff you don't need, as in fast food / smokes/alcohol (for me its magazines, for the girlfriend its shoes & handbags). Now if you have a mortgage this tends to tie up that easy to spend cash which is usually wasted, getting plastered rather than just having a couple of beers or eating out everyday of the week rather than once a week or buying every magazine instead of your favorite.
And in 20 years max you have a free place to live that if your lucky has also gone up in value. Now this is when you can waste as much money as you like or even work less hours, start this at 20 & at the age of 40 your in total control & remember that your mortgage repayments also go down over time so each year will get easier & free up more cash. |
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By: rodneysaviour2
18/08/2009
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The Government`s Financial Carrot
Some, (including myself) shall indeed benefit greatly from the continued rise in interests rates. However, many others shall suffer greatly as a result.
The sad fact is that the efforts made by government to keep money flowing through the economy in the short term shall in fact result in less money circulating in the long run.
Most obvious is that those on relatively low incomes who would otherwise have avoided entering into long term and significant debt, (read take out a mortgage) were greatly encouraged to do so by the offer of a financial incentive presented in the most attractive means possible by the government.
As has been posted here previously by steve_b_wilson and others, though this incentive was "marketed" as one that would benefit the individual it was in fact one that was wholly designed to benefit the country at the expense of the individual.
However. Though it could be said that this "GET YOURSELF INTO DEBT" incentive has indeed prevented an immediate and catastrophic collapse in the property market and has also therefore, (to some extent) staved off the perils which would be associated with such collapse in the long term it has done much to ensure that many members of the populace shall be fighting to support their own lifestyle much harder than they would have otherwise have had to.
Simply put. As the cost of loans,(mortgages) rise significantly in the next 12 months or so, those who "grabbed the financial carrot offered by the government" shall find that more of what they earn will have to be committed to paying off what they now earn. Many shall be forced to sell at a loss..The property market shall crash.. Retail shall suffer and unemployment shall rise.
Without doubt I believe that we shall all start to see the truth in steve_b_wilson`s cry -
AUSTRALIA - ECONOMIC DISASTER LOOM! |
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By: jaymarcel
17/08/2009
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Good morning everyone, I see many of you have made the most of your weekend by posting junk on here again. As we all read in the news over the weekend positive news is still flooding in all over & anyone that lost in the sharemarket & rushed to sell property in a panic has missed out, and will lose again now that property is in recovery.
I won't do my usual thing & post a list of the many ID's culprit as it is now becoming so boringly obvious (due to them having their IDs cancelled & having to start new ones including steve) & when they went on here a couple of days ago calling us spenders selfish I did laugh as us spender are the ones that have kept the great Australian economy going & now recovering from what could have been a disaster. Not only have we avoided a depression thanks to the spenders of this great nation but we avoided a recession too also maintaining the property market at its true value.
As you say almurrie all the negative dribble that has been posted on these forums over the last couple of months as been from the losers, the ones who lost big in the sharemarket the ones who sold property the ones left with nothing but just many IDs.
They are probably all round Steve Keens house crying together.
What negative lives they must live. |
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By: almurrie1@y7mail.com
16/08/2009
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So no one feels inclined to sell their house because the economy is in such a TERRIBLE state? I guess all this talk about gloom and doom and massive job loss and prices plummeting have been taken for what it is. Absolute rubbish.
Bad luck for those that held off waiting for prices to go down. Scaremongering by some to make ignorant people lose a lot of money so the unscrupulous rich make more. Good on the government for helping young people, BUT there is the option still of locking in rates for 5 years and if you can't afford these rates then don't buy. Just make sure you have enough for the rent rises that are coming when interest increases take off.
Al |
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By: puyi
16/08/2009
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First home buyers scrambling to keep up
SMH
Chris Vedelago
August 16, 2009
HOME buyers are facing vastly inflated prices in Melbourne's most affordable suburbs as prices soar on the back of the first home owners grant and low interest rates.
Prices have blown out by at least the value of the $17,000 grant in nearly half of lower-priced suburbs, with a growing number of first-time buyers now spending far more than they receive from the grant.
The surge will fuel concerns that a price bubble is forming as cashed-up buyers fight over limited stock. The International Monetary Fund warned this week that Australian house prices were already overvalued by up to 15 per cent.
New figures from property analysts Residex show that price rises have swallowed up the full grant amount in 66 of the 150 suburbs with a median value below $500,000 in the nine months to June. That's up from just 10 suburbs in March. |
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By: puyi
16/08/2009
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Bridget Carter | August 15, 2009
Article from: The Australian
THE rate of first-home buyers being refused loans by their brokers and banks has almost doubled in the past year, according to the real estate industry, with a recent rise in mortgage insurance being the latest kick in the guts for those with property ownership aspirations.
Gary Lees, general manager for Raine & Horne Financial Services, said that the rate of those being refused had tripled in the past nine months.
Alex Simpson, 25, of Sydney, had an approval in February for a 95 per cent loan, to buy a property priced near $400,000, but since then the banks have required a larger deposit, which has scuppered her plans to buy.
"I didn't have that much and have had to continue saving or scale back what I can get," she said. "Something I would have been able to afford in October last year is now $40,000 to $50,000 more today. |
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By: the_pr.of_china_is_evil
15/08/2009
12:38 am |
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By: economicdisasterlooms
13/08/2009
5:09 am |
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By: jaymarcel
3/08/2009
9:55 am |
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By: economicdisasterlooms
1/08/2009
6:56 pm |
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By: puyi
31/07/2009
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Construction jobs under threat: Access
Friday July 31, 2009, 12:49 am
More than 80,000 jobs could be lost in the building and construction industry during the next three years, according to a study by Access Economics.
The study predicts apprentice numbers will fall by 10 per cent and the sector will contract during the period with the most severe impact to be felt in 2009-10 and 2010-11, followed by some consolidation in 2011-12.
The union's national construction division secretary, Dave Noonan, says a lack of available credit enabling business investment was a key factor in the industry's bleak outlook.
"The federal government has guaranteed banks, but this seems only to be translating into huge profits for the banks and not practical support for the economy," he said in a statement.
The study found the industry faces a serious and sustained downturn with 35,000 jobs lost in the past year.
Employment in the industry could fall by 8.2 per cent in the next three years, with a loss of 81,000 jobs, while output is expected to decline by 12.1 per cent over the same period, Access Economics says. |
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By: puyi
31/07/2009
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Good governance
From Wikipedia, the free encyclopedia
Good governance is a term used in development literature, which implies that public institutions conduct public affairs, manage public resources, and guarantee the realization of human rights.. [1] Governance describes the process of decision-making and the process by which decisions are implemented (or not implemented). |
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By: rstuarts2000
30/07/2009
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"In many ways, the biggest challenge to Glenn Stevens' desire for more home building and restrained prices comes from existing owners themselves.
Having paid through the nose to jump on the real estate gravy train, all the incentives are there for the majority of the population to call for policies that maintain, and increase, house prices."
Just like a giant ponzi scheme, people have paid to join and will only realise profits when the next generation pays even more to jump on board.
"The problem that Mr Stevens is warning us about is that one day, perhaps not too far away, the next generation won't have enough money to buy their tickets." |
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By: rstuarts2000
30/07/2009
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| "Glenn Stevens is extremely concerned that further increases in house prices could take Australia's housing bubble to the point at which it becomes completely unsustainable and bursts, throwing us into the same chaos as the US, just a bit later on. "These risks [of excess household debt] have been reasonably contained so far in Australia - but it would be prudent not to push our luck here," he said on Tuesday." |
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By: rstuarts2000
30/07/2009
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| "Australian urban housing is already among the least affordable in the world, and if the low interest rates Mr Stevens has given us, combined with Government grants, simply act to push up house prices then it will not do anything to improve the long-term affordability of accommodation. As soon as rates go back up to more typical levels, home loan repayments will be more unaffordable than ever before." |
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By: rstuarts2000
30/07/2009
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Even our very own Reserve Bank governor is getting cold feet over our housing market:
http://au.biz.yahoo.com/090730/31/27pa5.html |
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By: almurrie1@y7mail.com
30/07/2009
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Again blaming the FHBG. What about demand caused by low interest rates, and renters deciding that they will be their own boss! Nothing in the world will take away the demand for housing while a population is increasing. If houses are not built, existing stock goes through the roof. We actually need a lot of new houses unlike USA, and if they get built prices will stay steady, not collapse. Our internal economy is strong enough to get us through this world wide disaster. At least we can go find "gold" in the ground and sell it unlike most other countries.
Al |
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By: mentawaisurf
30/07/2009
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Gerry is right. Whenever marginal borrowers enter a market at record numbers (as we've seen with subprime in the US, rent-to-buy in the UK and recently with the FHBs surge in Australia's housing market) that signals the final tipping point from boom to bust.
"Lower end properties have actually risen between 200% - 300% of the actual value of the grant."
Gerry is actually referring to lower end properties that have jumped by 2-3 times the value of the enhanced FHOG ($14,000 - $21,000) which would be a jump in value of $28,000 - $63,000. Many of these FHB purchased on little or even no deposit, hence the creation of an unsustainable niche housing bubble. |
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By: s_step000
30/07/2009
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"Lower end properties have actually risen between 200% - 300% of the actual value of the grant."
Are you sure you are not overstating the problem?. Your statement above means without FHOG, the value of $400k house should be $200k. |
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