Massive house prices - requires massive wages. Massive wages - means cost of business results in it going overseas
What happens when Australia has lost most of its capacity to turn a buck? Do we really think the economy is invincible? Do we really believe our housing market is the only market in history never to crash????
The Ponzi we have created as a rope around our necks will teach us a lesson many countries have already learnt.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
Timo, For the first time i agree with you. Markets cycle. But until the royalties and income stops from the minerals it just can not happen. Timo when i was a kid and went to Marble Bar gold hit $960 an ounce, but iron ore was a break even at best deal. Over the 35 years of my business life i have seen ups and downs. All i wanted was to get a cattle farm and retire. Look at cattle, they are selling for the same price as they did 20 years ago. The market is stuffed. Back in the 70's my dad looked at buying cattle stations, he did not he bought into pubs instead. Now those cattle stations were sold in the 70's for a song in the 90's they peaked right up, now they are back down. So on a long enough time line you are going to be right on a lot of your points. In the mean time what do you do?? We just bought a small tourist place at Margaret River, the kids want to get a start in business, it was 9 months ago at the very bottom of the market for these assets. Now 9 months later the Australian dollar has dropped from $1.10 to the U.S. dollar to .89 cents to the U.S. dollar. We are seeing a huge upswing in tourist numbers to Margaret River. The local operators are saying the best bookings for 9 years. So Timo there are always opportunities. Some financial commentators are saying our dollar could drop as low as .60 cents again. I don't know maybe?? Seek and you shall find. May i ask what is it you wish to achieve? Peter from Mount Lawley
Timo, For the first time i agree with you. Markets cycle. But until the royalties and income stops from the minerals it just can not happen. Timo when i was a kid and went to Marble Bar gold hit $960 an ounce, but iron ore was a break even at best deal. Over the 35 years of my business life i have seen ups and downs. All i wanted was to get a cattle farm and retire. Look at cattle, they are selling for the same price as they did 20 years ago. The market is stuffed. Back in the 70's my dad looked at buying cattle stations, he did not he bought into pubs instead. Now those cattle stations were sold in the 70's for a song in the 90's they peaked right up, now they are back down. So on a long enough time line you are going to be right on a lot of your points. In the mean time what do you do?? We just bought a small tourist place at Margaret River, the kids want to get a start in business, it was 9 months ago at the very bottom of the market for these assets. Now 9 months later the Australian dollar has dropped from $1.10 to the U.S. dollar to .89 cents to the U.S. dollar. We are seeing a huge upswing in tourist number to Margaret River. The local operators are saying the best bookings for 9 years. So Timo there are always opportunities. Some financial commentators are saying our dollar could drop as low as .60 cents again. I don't know maybe?? Seek and you shall find. May i ask what is it you wish to achieve? Peter from Mount Lawley
Well the sooner money stops being ploughed into a overpriced unproductive government tampered assets class aka australian property, perhaps people will look to invest in opportunities which actually add something to our nation.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
Massive house prices - requires massive wages. Massive wages - means cost of business results in it going overseas
What happens when Australia has lost most of its capacity to turn a buck? Do we really think the economy is invincible? Do we really believe our housing market is the only market in history never to crash????
I agree with you.
The policy intent from this Government has been that property will be 'propped up' to some degree by policy. Whether this will be enough to bring in volumes of first home buyers again is another story entirely.
However, today we have an announcement today aimed squarely at the abolition of many forms of middle class welfare. Without middle class assistance, discretionary spending that could have been saved for first time property purchases will start to evaporate. Only when the details come through over the next couple of quarters will we know how far they will go to use taxpayer funds to help prop housing.
Well the sooner money stops being ploughed into a overpriced unproductive government tampered assets class aka australian property, perhaps people will look to invest in opportunities which actually add something to our nation.
Another thing to think about Timo, Those houses that people build and buy, what do they do with them when they die?? A lot of people only get to live in their big houses for a few years. The government encourages investment into the housing stock of the country. The last thing the government wants is to have to be directly housing the people. So the government incentivises a totally loss making enterprise. So the chimps build their own houses and grow their own bananas. Timo you are so right with what you say. It's just to use your terms, "a rigged game". And that's what it is. Good luck for 2014. Peter
Simple, in private industry one has many Chiefs, they can tend to go in all different directions. Occasionally by sheer accident they do synch.
Private/ Public partnership means including the mafia.
The popular fiction spread by Milton Friedman is.....
Government = evil, Private = good.
This ain't necessarily so.
You wish to understand the difference between private and government. Then just look at the difference between the Great Depression and the productivity of WW2.
There is a reason for this. In private industry everybody is the enemy including the customer. For starters they hide/hog information, something that can be distributed very cheaply is made very, very expensive.
This was the theme of the movie the Man who fell to Earth. Innovation is the enemy! How did the Great Depression occur, quite simply private industry first and foremost seeks to maximize its own profit to the disadvantage of everybody. Private industry will cut off the the nose to spite the face.
In the 6 post war2 years Britain built housing for 7.5 million people, a seventh of the entire fucking population. Actually post war Britain government built more housing than the Soviet Union did.
As Stockland will tell you, we don't want too much built because the price will fall.
Quote:
Quinn gives a glimpse into the developer mindset when he acknowledges that in its current housing projects, Stockland releases lots in line with the local demand. "If we oversupply the local markets what we are going to do is put prices through the floor."
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