Welcome to the Australian Ford Forums forum.

You are currently viewing our boards as a guest which gives you limited access to view most discussions and inserts advertising. By joining our free community you will have access to post topics, communicate privately with other members, respond to polls, upload content and access many other special features without post based advertising banners. Registration is simple and absolutely free so please, join our community today!

If you have any problems with the registration process or your account login, please contact us.

Please Note: All new registrations go through a manual approval queue to keep spammers out. This is checked twice each day so there will be a delay before your registration is activated.

Go Back   Australian Ford Forums > General Topics > Non Ford Related Community Forums > The Bar

The Bar For non Automotive Related Chat

Reply
 
Thread Tools Display Modes
Old 03-12-2018, 11:14 PM   #811
Franco Cozzo
Thailand Specials
 
Franco Cozzo's Avatar
 
Join Date: Aug 2009
Location: Centrefold Lounge
Posts: 48,228
Default Re: Australia housing bubble

Quote:
Originally Posted by DoreSlamR View Post
It’s ok, WA will prop up the rest of the country....again
About time they contributed after Melbourne and Sydney have been carrying Perth for the last 170+ years

It's cute that WA thinks it's paid the tab over the last 20 years.
Franco Cozzo is offline   Reply With Quote Multi-Quote with this Post
7 users like this post:
Old 07-12-2018, 01:21 AM   #812
zipping
FF.Com.Au Hardcore
 
zipping's Avatar
 
Join Date: Jul 2009
Location: melbourne
Posts: 4,642
Default Re: Australia housing bubble

It’s the first time in a decade since I’ve seen the RBA so animated. Don’t think this was by accident. It was carefully orchestrated signaling.

Reserve Bank paves way for further cuts in official interest rates.

The Reserve Bank has paved the way for further cuts to the official interest rate and could even resor*t to quantitative easing — “printing money” to buy government bonds — to ward off a potenti*al downturn.

In a major speech last night, RBA deputy governor Guy Debelle declared the central bank was prepared to “go fast, go hard and not die wondering” by stimulating the economy — a nod to the Rudd government’s $52 billion cash injection to insulate against the global financial crisis.

He also warned that a lending slowdown could hurt the economy, in a sign the bank is fretting about the potential fallout from an emerging slump in house prices*. “There is a risk that a reduced appetite to lend will overly curtail borrowing with consequent effects for the Australian economy,” Dr Debelle said.

READ NEXT

No deadline for trade deal: Payne
AMANDA HODGE
Noting the Reserve Bank had “repeatedly” said the next move in interest rates was more likely up than down, Dr Debelle said there was “still scope for further reductions in the policy rate”.

“It is the level of interest rates that matters and they can still move lower,” he added, in remark*s that could foreshadow a sharp reappraisal of the outlook by the Reserve Bank board when it next meets in February, after the summer break.

The official interest rate has been unchanged since August 2016, when former governor Glenn Stevens reduced the cash rate to a record low of 1.5 per cent — the final in a series of cuts that has seen the rate fall from a 10-year peak of 4.75 per cent in late 2011.

The plain-speaking Dr Debelle, a currency and bond market veteran, said the Reserve Bank was also prepared to create new money to buy government bonds from private banks, a policy pursue*d vigorously — and controversially — by central banks in the US, Japan and Europe to try to keep interest rates low.

“Quantitative easing is a *policy option in Australia, should it be required,” he said, adding it could be even more effecti*ve here than abroad becaus*e of the scarcity of Aust*ralian government bonds.

His comments come against a backdrop of deteriorating econo*mic data: house prices and building approvals have been falling, while the national econo*mic growth rate dropped from 3.4 per cent to 2.8 per cent, it emerged this week, surprising economists.

Analysts at rating agency Fitch said yesterday the Reserve Bank’s growth forecasts were “overly optimistic”.

“We are bearish on the Australian economy, which differs sharply from the RBA’s upbeat outlook,” it said, dumping its expectati*on the RBA would lift rates any time in 2019. Speaking at the Australian Business Economists’ annual dinner, Dr Debelle said the federal government had room to borrow and spend to stimulate the economy, if needed.

“Fiscal space is really important; we still have that in Aust*ralia,” he said, backing former treasurer Wayne Swan’s controversial $52bn fiscal stimulus of late 2008 and early 2009, which gave $900 payments to households, help for first-home buyers, discount roof insulation and a school hall building boom.

“Fiscal stimulus in Australia in my view was absolutely necessary and was a critical factor behind Australia’s good economic outcome*s,” Dr Debelle said.

Adam Boyton, chief economist of the Business Council of Australia, said maintaining fiscal “firepower” was critical. “When it comes to the budget, that means not just getting back into surplus but reducing debt too,” he said.

In a speech that focused on the perils of excessive debt and leverage, Dr Debelle said the jury was still out on how much was too much. “We still don’t really have a great handle on what level of leverage is dangerously excessive for governments, households, banks and corporates,” he said. “Leverage significantly magnifies the effect of any shock that hits the economy; it might not start the fire, but it will pour petrol on a burning platform.’’

Standard measures of household leverage, which showed total mortgage debt was 27 per cent of the value of housing in June, could provide false comfort, he suggested. “(They are) very much dependent on the value of the denomina*tor, house prices in this case, and we know they can declin*e quite rapidly,” he said.

The similarity of the big four banks, reeling in the wake of the financial services royal commission, was “not so obviously benefici*al”, leaving the door open to ideas that they should maintain higher levels of capital.

“Their similar behaviour and similar reaction functions to events such as falling house prices run the risk of amplifying the downturn in the housing *market,” Dr Debelle said.

“Those such as Anat Admati still make the argument that furthe*r reduction in leverage is necessary.’’

Stanford’s Professor Admati slammed the banking regulator APRA in The Australian this week for “outrageously inadequate” minimum capital standards.
zipping is offline   Reply With Quote Multi-Quote with this Post
Old 07-12-2018, 02:48 AM   #813
snap0964
FF.Com.Au Hardcore
 
Join Date: Feb 2005
Location: Sth Coast NSW
Posts: 1,512
Default Re: Australia housing bubble

Quote:
Originally Posted by hayseed View Post
Correct.. & the Aussie Gooberment doesn't have big Budget Surplus to help us ride it out this Time..
I reckon We're in for a Hard Landing, next Time..
ScoMo and Friedy might deliver a surplus come 2Apr - too little too late I'd think, the damage will already be done. But then they might be doing a Wayne Swan, or it might end up a belated April fool joke.

I've got a good idea - let's put in a Mining Tax - we'll rake the $$$ in
snap0964 is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 07-12-2018, 07:00 AM   #814
Work Horse
Budget Racer
 
Work Horse's Avatar
 
Join Date: Dec 2004
Location: Melbourne
Posts: 2,425
Default Re: Australia housing bubble

Quote:
Originally Posted by snap0964 View Post
ScoMo and Friedy might deliver a surplus come 2Apr - too little too late I'd think, the damage will already be done. But then they might be doing a Wayne Swan, or it might end up a belated April fool joke.

I've got a good idea - let's put in a Mining Tax - we'll rake the $$$ in
Important to distinguish between a Government deficit/surplus for a fiscal year and total Government debt accumulated over several years.

Politicians will try and confuse the two to make themselves look good.

Government debt (the amount we have to pay back) was at $174.5 billion in September 2013. Government debt is now about $341 billion. So both major parties have run up this debt.

Is Government debt a good thing or a bad thing?

Ask 5 different economists you will get 6 different answers.

IMHO the housing bubble is deflating. How fast and far it will deflate is the reason this thread is still going.....
__________________
12.1@112Mph 285rwkw on n2o Cleveland Power
Work Horse is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 07-12-2018, 10:14 AM   #815
zipping
FF.Com.Au Hardcore
 
zipping's Avatar
 
Join Date: Jul 2009
Location: melbourne
Posts: 4,642
Default Re: Australia housing bubble

Quote:
Originally Posted by Work Horse View Post
IMHO the housing bubble is deflating. How fast and far it will deflate is the reason this thread is still going.....
Potentially, things could get ugly imo.

Risk for small business is especially horrendous.

And the government is making that risk worse and worse. Electricity prices through the roof. Taxes upon taxes, mostly crazily levied on inputs. Red tape exploding. Green tape exploding even worse.
zipping is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 07-12-2018, 10:54 AM   #816
Work Horse
Budget Racer
 
Work Horse's Avatar
 
Join Date: Dec 2004
Location: Melbourne
Posts: 2,425
Default Re: Australia housing bubble

Quote:
Originally Posted by zipping View Post
Potentially, things could get ugly imo.

Risk for small business is especially horrendous.

And the government is making that risk worse and worse. Electricity prices through the roof. Taxes upon taxes, mostly crazily levied on inputs. Red tape exploding. Green tape exploding even worse.
I'm in small business 20 years now, it's always "swings and roundabouts" with the economy you have to ride it out.

Our governments have some levers they can pull which effect Australias economy, including housing. Australia is a small player in the world economy. Our economy is influenced more by factors outside the Australian Governments control.IMHO
__________________
12.1@112Mph 285rwkw on n2o Cleveland Power
Work Horse is offline   Reply With Quote Multi-Quote with this Post
Old 08-12-2018, 02:19 AM   #817
snap0964
FF.Com.Au Hardcore
 
Join Date: Feb 2005
Location: Sth Coast NSW
Posts: 1,512
Default Re: Australia housing bubble

Quote:
Originally Posted by Work Horse View Post
Important to distinguish between a Government deficit/surplus for a fiscal year and total Government debt accumulated over several years.Politicians will try and confuse the two to make themselves look good.
That's why ScoMo is crowing it'll be the first surplus in over 10 yrs.
Quote:
Originally Posted by Work Horse View Post
Government debt (the amount we have to pay back) was at $174.5 billion in September 2013. Government debt is now about $341 billion. So both major parties have run up this debt.
I thought the overall debt now was estimated to be closer to $500 billion.
Quote:
Originally Posted by Work Horse View Post
IMHO the housing bubble is deflating. How fast and far it will deflate is the reason this thread is still going.....
Well Stuart Wemyss seems to think otherwise, he has been pretty accurate in the past, https://www.prosolution.com.au/calli...e526c8e9e59ac7
snap0964 is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 08-12-2018, 02:46 AM   #818
MITCHAY
FF.Com.Au Hardcore
 
Join Date: Apr 2005
Location: Canberra
Posts: 13,297
Default Re: Australia housing bubble

Yep it might be a budget surplus but we are still about $500 billion in the hole.

Low rates are very good for me. Not sure it works for everyone else or country though.

These idiots only care about politics though rather than make things better for ordinary people.
MITCHAY is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 08-12-2018, 06:08 AM   #819
prydey
Rob
 
prydey's Avatar
 
Join Date: Sep 2006
Location: Woodcroft S.A.
Posts: 21,221
Default Re: Australia housing bubble

Quote:
Originally Posted by MITCHAY View Post
Low rates are very good for me. Not sure it works for everyone else or country though. .
If rates go up, spending will likely go down, which is no good for the economy. Would likely also cause an increase in govt spending (dole, subsidies etc).

It makes no sense that Australia has some of the highest rates in the world for utilities etc.
__________________
UA2 TREND 4WD BI TURBO
prydey is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 08-12-2018, 07:10 AM   #820
Charliewool
Bolt Nerd
Donating Member3
 
Charliewool's Avatar
 
Join Date: Jan 2005
Location: Ojochal, Costa Rica (Pura Vida!)
Posts: 14,258
Default Re: Australia housing bubble

Quote:
Originally Posted by prydey View Post

It makes no sense that Australia has some of the highest rates in the world for utilities etc.
It’s because we are willing to cop it!.. “she’ll be right mate”, off to work we go!
Have a whinge down the pub over a beer about it, (or on a forum!)... and that’s as far as it goes!
We are a nation of friggin masochists, I swear!
Meanwhile the “elected ones” pull their snouts out of their troughs just long enough to vote “aye” to some BULL **** motion that benefits either themselves or friggin minority factions!
Watch France this coming weekend.... This is going to be scary stuff!!
But at least they have the balls to stand up to their government and say “enoughs enough”!!
It’ll NEVER happen in Oz though, because we somehow enjoy being bent over and reamed!!
Pura Vida...
__________________
Current vehicles.. Yamaha Rhino UTV, SWB 4L TJ Jeep, and boring Lhd RAV4
Bionic BF F6... UPDATE: Replaced by Shiro White 370z 7A Roadster. SOLD
Workhack: FG Silhouette XR50 Turbo ute (11.63@127.44mph) SOLD
2 wheels.. 2015 103ci HD Wideglide.. SOLD
SOLD THE LOT, Voted with our feet and relocated to COSTA RICA for some Pura Vida!
(Ex Blood Orange #023 FPV Pursuit owner : )

Last edited by GasoLane; 08-12-2018 at 09:09 AM.
Charliewool is offline   Reply With Quote Multi-Quote with this Post
9 users like this post:
Old 08-12-2018, 10:30 AM   #821
Franco Cozzo
Thailand Specials
 
Franco Cozzo's Avatar
 
Join Date: Aug 2009
Location: Centrefold Lounge
Posts: 48,228
Default Re: Australia housing bubble

Quote:
Originally Posted by Charliewool View Post
It’s because we are willing to cop it!.. “she’ll be right mate”, off to work we go!
Have a whinge down the pub over a beer about it, (or on a forum!)... and that’s as far as it goes!
We are a nation of friggin masochists, I swear!
Meanwhile the “elected ones” pull their snouts out of their troughs just long enough to vote “aye” to some BULL **** motion that benefits either themselves or friggin minority factions!
Watch France this coming weekend.... This is going to be scary stuff!!
But at least they have the balls to stand up to their government and say “enoughs enough”!!
It’ll NEVER happen in Oz though, because we somehow enjoy being bent over and reamed!!
Pura Vida...
Enjoy the prostate massage on behalf of the Government, makes the finger experience at the doctor much easier
Franco Cozzo is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 08-12-2018, 11:39 AM   #822
prydey
Rob
 
prydey's Avatar
 
Join Date: Sep 2006
Location: Woodcroft S.A.
Posts: 21,221
Default Re: Australia housing bubble

Quote:
Originally Posted by Charliewool View Post
It’s because we are willing to cop it!.. “she’ll be right mate”, off to work we go!
Have a whinge down the pub over a beer about it, (or on a forum!)... and that’s as far as it goes!
We are a nation of friggin masochists, I swear!
Meanwhile the “elected ones” pull their snouts out of their troughs just long enough to vote “aye” to some BULL **** motion that benefits either themselves or friggin minority factions!
Watch France this coming weekend.... This is going to be scary stuff!!
But at least they have the balls to stand up to their government and say “enoughs enough”!!
It’ll NEVER happen in Oz though, because we somehow enjoy being bent over and reamed!!
Pura Vida...
I don't think rioting is the answer.
__________________
UA2 TREND 4WD BI TURBO
prydey is offline   Reply With Quote Multi-Quote with this Post
Old 08-12-2018, 12:47 PM   #823
mcflux
Banned
Donating Member1
 
mcflux's Avatar
 
Join Date: Dec 2004
Posts: 8,313
Default Re: Australia housing bubble

Quote:
Originally Posted by Franco Cozzo View Post
Enjoy the prostate massage on behalf of the Government, makes the finger experience at the doctor much easier
Finger?
mcflux is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 08-12-2018, 12:53 PM   #824
Franco Cozzo
Thailand Specials
 
Franco Cozzo's Avatar
 
Join Date: Aug 2009
Location: Centrefold Lounge
Posts: 48,228
Default Re: Australia housing bubble

Quote:
Originally Posted by mcflux View Post
Finger?
Tuck your knees up and face the wall

In she goes!
Franco Cozzo is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 08-12-2018, 01:10 PM   #825
.:4:.
Kicking back
 
Join Date: Dec 2013
Location: Western sydney
Posts: 8,213
Default Re: Australia housing bubble

Yeah utilities arent the cheapest, im not going to elaborate on that and open a can of worms. But technology has come leaps and bounds making things cheaper to be more energy efficient. For example a 35w downlight kit costs $6 wholesale, but an 8w led down light costs $8 wholesale. So the immediate cost is slightly more, but for the added life span of the led fitting youre looking at 5 or 6 replacement halogen dichroics over a few years and the extra power consumption, so cheaping out in the short term costs more in the long run. Granted a house with downlights has more then one, but that means the savings multiply. Its just being proactive not making yourself sound like a victim.
.:4:. is offline   Reply With Quote Multi-Quote with this Post
Old 08-12-2018, 01:18 PM   #826
Charliewool
Bolt Nerd
Donating Member3
 
Charliewool's Avatar
 
Join Date: Jan 2005
Location: Ojochal, Costa Rica (Pura Vida!)
Posts: 14,258
Default Re: Australia housing bubble

Quote:
Originally Posted by prydey View Post
I don't think rioting is the answer.
I never said rioting was the answer!
I see their government has back peddled pretty smartly on the proposed diesel tax though?... Power of the people?
__________________
Current vehicles.. Yamaha Rhino UTV, SWB 4L TJ Jeep, and boring Lhd RAV4
Bionic BF F6... UPDATE: Replaced by Shiro White 370z 7A Roadster. SOLD
Workhack: FG Silhouette XR50 Turbo ute (11.63@127.44mph) SOLD
2 wheels.. 2015 103ci HD Wideglide.. SOLD
SOLD THE LOT, Voted with our feet and relocated to COSTA RICA for some Pura Vida!
(Ex Blood Orange #023 FPV Pursuit owner : )
Charliewool is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 02-01-2019, 12:44 PM   #827
BENT_8
BLUE OVAL INC.
 
BENT_8's Avatar
 
Join Date: Feb 2006
Posts: 8,607
Default Re: Australia housing bubble

https://www.msn.com/en-au/money/home...id=mailsignout

Hmm..back in 08 we had the GFC to blame for the short term cooling of the housing market, there is no financial crisis now and were seeing bigger falls.

I think the reduction of foreign investment has brought reality back into the equation.
BENT_8 is offline   Reply With Quote Multi-Quote with this Post
Old 03-01-2019, 06:05 PM   #828
vztrt
IWCMOGTVM Club Supporter
 
vztrt's Avatar
 
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,816
Valued Contributor: For members whose non technical contributions are worthy of recognition. - Issue reason: vztrt is one of the most consistent and respected contributors to AFF, I have found his contributions are most useful to discussion as well as answering members queries. 
Default Re: Australia housing bubble

Quote:
Originally Posted by BENT_8 View Post
https://www.msn.com/en-au/money/home...id=mailsignout

Hmm..back in 08 we had the GFC to blame for the short term cooling of the housing market, there is no financial crisis now and were seeing bigger falls.

I think the reduction of foreign investment has brought reality back into the equation.
Essentially the same thing as the GFC has happened. Money lending has become tighter so less people buying. I believe there have been changed to interest only loans again to slow the house prices dropping.
__________________
Daniel
vztrt is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 04-01-2019, 10:56 AM   #829
BENT_8
BLUE OVAL INC.
 
BENT_8's Avatar
 
Join Date: Feb 2006
Posts: 8,607
Default Re: Australia housing bubble

Quote:
Originally Posted by vztrt View Post
Essentially the same thing as the GFC has happened.
Without the hysteria which is my point, things are worse now despite the lack of media attention that the GFC received.
BENT_8 is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 04-01-2019, 10:59 AM   #830
Smoke Pursuit
FF.Com.Au Hardcore
 
Join Date: Dec 2004
Posts: 22,967
Valued Contributor: For members whose non technical contributions are worthy of recognition. - Issue reason: DASH/bfiipursuit has been alot of help over the years I have frequented this forum, lots of thoughtful and informed posts, very much a valued contributor. 
Default Re: Australia housing bubble

Let’s not forget the banking royal commission and the fact that banks have been forced to re write their lending criteria, and lvr’s. Can’t say there is no financial crisis when there actually is.
__________________
2022 RAM Laramie 5.7 V8 Here & awesome!
2023.50 Ranger Wildtrak 3.0 Premium Pack, 20 inch wheels.
2024 Everest Sport 3.0 V6 Touring Pack
Smoke Pursuit is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 04-01-2019, 11:05 AM   #831
Syndrome
Ford screwed the Falcon
 
Syndrome's Avatar
 
Join Date: Sep 2013
Posts: 6,840
Default Re: Australia housing bubble

Anybody who purchased in the last two years must be crapping bricks
__________________
Falcon: 1960 - 2016

My cars

Current ride
2016 FG X XR6 - 6 speed manual

Previous rides
2009 FG XR6 - 6 speed auto
2006 BF MkII XT ESP - 6 speed auto
2003 BA XT V8 - 5 speed manual
1999 AU Forte - 5 speed manual
1997 EL Fairmont - 4 speed auto
1990 EAII Fairmont Ghia - 4 speed auto
Syndrome is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 04-01-2019, 12:58 PM   #832
Bossxr8
Peter Car
 
Bossxr8's Avatar
 
Join Date: Dec 2004
Location: geelong
Posts: 23,192
Default Re: Australia housing bubble

Quote:
Originally Posted by Syndrome View Post
Anybody who purchased in the last two years must be crapping bricks
Not everyone. Property prices rose 8.2% in this area in 2018. Other regional areas such as bendigo and ballarat were similar. Regional areas are doing ok, and some of the smaller capitals. Its mostly melb and syd copping it.

That’s not to say those rises won’t decrease, but the experts are saying some of those outside the big 2 won’t go backwards, just go neutral at worst.

Syd and melb should decrease because they were so overpriced anyway.
Bossxr8 is offline   Reply With Quote Multi-Quote with this Post
Old 04-01-2019, 01:15 PM   #833
FTE217
T3/Sprint8
Donating Member2
 
FTE217's Avatar
 
Join Date: Jan 2005
Location: Australia
Posts: 15,871
Default Re: Australia housing bubble

Quote:
Originally Posted by Syndrome View Post
Anybody who purchased in the last two years must be crapping bricks
Those who over extended themselves, thats life.
__________________
Tickfords T3/TS50 '02
Sprint8 manual Sept 24 '16
Daily Macan GTS
"Don't believe everything you read on the internet. Abraham Lincoln"
FTE217 is online now   Reply With Quote Multi-Quote with this Post
Old 04-01-2019, 01:58 PM   #834
vztrt
IWCMOGTVM Club Supporter
 
vztrt's Avatar
 
Join Date: Sep 2005
Location: Northern Suburbs Melbourne
Posts: 17,816
Valued Contributor: For members whose non technical contributions are worthy of recognition. - Issue reason: vztrt is one of the most consistent and respected contributors to AFF, I have found his contributions are most useful to discussion as well as answering members queries. 
Default Re: Australia housing bubble

Quote:
Originally Posted by BENT_8 View Post
Without the hysteria which is my point, things are worse now despite the lack of media attention that the GFC received.
During the GFC the government stepped in and garenteed loans so the money would keep flowing.

At this point in time and after the royal commission money has been tightened (personally this is a good thing). If the money dried up during the GFC then we would have seen the same thing happen as now...probably worse.
__________________
Daniel
vztrt is offline   Reply With Quote Multi-Quote with this Post
Old 04-01-2019, 02:14 PM   #835
.:4:.
Kicking back
 
Join Date: Dec 2013
Location: Western sydney
Posts: 8,213
Default Re: Australia housing bubble

The whole housing market debate about the current climate sort of falls into the category of people who annoy me and buy stuff then complain because they keep shopping afterwards and complain when what they bought goes on sale. If you need somewhere to live and have the means to purchase and plan to be there a while, its just a purchase. Markets affect people more who are using it as an investment. Buy sell kind of stuff. I am pretty sure the rental market isnt going to deflate as quickly as property prices. So there is still some merit in buying if you plan to live there. I lucked out to a degree being a fool at 25 buying my house because the market isnt going to see a loss as big as the appreciation my area has seen in the past 7 years. I have no plans to sell because i live there.
.:4:. is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 04-01-2019, 03:51 PM   #836
Cav
HUGH JARSE
Donating Member2
 
Cav's Avatar
 
Join Date: May 2005
Location: Yap-Hoon
Posts: 20,959
Default Re: Australia housing bubble

Some one is always whinging about something in the housing market.

I bought my first house at 17% interest rates.
Cav is offline   Reply With Quote Multi-Quote with this Post
This user likes this post:
Old 04-01-2019, 04:43 PM   #837
Bossxr8
Peter Car
 
Bossxr8's Avatar
 
Join Date: Dec 2004
Location: geelong
Posts: 23,192
Default Re: Australia housing bubble

Quote:
Originally Posted by Cav View Post
Some one is always whinging about something in the housing market.

I bought my first house at 17% interest rates.
Sure the interest was high, but they were so much cheaper to buy compared to the average wage. So you were still much better off.
Bossxr8 is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 04-01-2019, 04:50 PM   #838
prydey
Rob
 
prydey's Avatar
 
Join Date: Sep 2006
Location: Woodcroft S.A.
Posts: 21,221
Default Re: Australia housing bubble

Quote:
Originally Posted by Bossxr8 View Post
Sure the interest was high, but they were so much cheaper to buy compared to the average wage. So you were still much better off.
100%.

4% on $500k + is considerably more than when interest rates were near 20%
__________________
UA2 TREND 4WD BI TURBO
prydey is offline   Reply With Quote Multi-Quote with this Post
2 users like this post:
Old 05-01-2019, 10:03 AM   #839
mr smith
FF.Com.Au Hardcore
 
Join Date: Jun 2008
Posts: 1,138
Default Re: Australia housing bubble

Another risk people forget about is that if the value of the property falls lower than than the mortgage then the bank will want some cash. There will be nowhere to lend this from (other than friends or relos) and the bank will forclose the mortgage.
Falls were always on the cards and should have happened 10 years ago but shortsighted policies are now being felt.
There will be a dead cat bounce in a year or so and the big correction around 2022-2023.
mr smith is offline   Reply With Quote Multi-Quote with this Post
3 users like this post:
Old 05-01-2019, 12:21 PM   #840
Cav
HUGH JARSE
Donating Member2
 
Cav's Avatar
 
Join Date: May 2005
Location: Yap-Hoon
Posts: 20,959
Default Re: Australia housing bubble

Politicians should stop fiddling let the market burn and it will eventually put its own fires out.

Hey I got an idea.

The family home is not included in the asset test for the old age pension.

For a married couple the threshold is a little under $400,000. After that there is a sliding scale of reduction until the pension is no longer available.

So why not include the value of the family home in the asset test?

This will mean that oldies living in a huge home worth $$$ would be forced to sell and move into something smaller, thus opening up the market with more supply of family type homes and therefore reduce prices.

If this seems a bit onerous, the asset limit could be varied or how about we introduce a sliding discount scale on the % $$$? The longer they are on the pension, the lower the discount % becomes.
Cav is offline   Reply With Quote Multi-Quote with this Post
Reply

Thread Tools
Display Modes

Forum Jump


All times are GMT +11. The time now is 06:16 AM.


Powered by vBulletin® Version 3.8.5
Copyright ©2000 - 2024, Jelsoft Enterprises Ltd.
Other than what is legally copyrighted by the respective owners, this site is copyright www.fordforums.com.au
Positive SSL