Your name might be on the title, but as possession is 9/10th the law, where is your title held, as a debt slave?
Based on this silly logic, anyone with savings in the bank doesn't really own their savings. Anyone with an online share trading account doesn't really own their shares.
A homeowner's name is on the title, and the homeowner actually lives inside the property itself, and the only way they can be forced to leave is if the Sheriff, with a court order, forcibly evicts them. Possession, in this case IS the law, and the owner possesses the property, regardless of any mortgage they may have against it.
Guest
20 Jul 2014, 02:57 PM
The Australian housing bubble is recognised by most International monetary industries as the largest in the world.
Can you post a link to a few of these 'International Monetary Industries' (whatever that means) who claim Australia has the largest housing bubble in the world.
It sounds like the sort of unsubstantiated nonsense they preach at Macrobusiness.
In three years mortgage rates will be on their way to 2.5% (as we approach zirp).
Without getting caught up in "exact figures" in 3 years time.... 1 of us will be right..
If it's 3% or 6.5% in 3 years I'm not going to argue specifics
There maybe room for more downward in the very near term, I expect that to be relatively shortlived before mortgage rates rise...
This may not be from RBA (or international central bank moves either)
There are some people who seem angry and continuously look for conflict. Walk away, the battle they are fighting isn't with you, it's with themselves.
The first lesson of economics is scarcity: There is not enough of anything to satisfy all who want it. The first lesson of politics is to disregard the first lesson of economics. ~ Thomas Sowell.
Who was the fool, who the wise man, who the beggar or the Emperor? Whether rich or poor, all are equal in death.
Like Sober, you have posted an irrelevant price chart. My argument is based on price/income ratios. As I said before, please try to refute the point I'm actually making, rather than some other unrelated point.
Were price/income ratios in Ireland sustained at a relatively stable level during the decade prior to their crash?
No, they were not. Price/income ratios Ireland actually went through the roof in the decade prior to their crash.
Shoddy Your argument only hold up if we count dual incomes, as opposed to the single income that could afford to buy.
"Assuming house prices will behave as they have over the past decade (instead of the past 60 years) changes the equation significantly, though. For instance, over the 10 years to 2006, real house price grew so quickly — 6.5 per cent a year — that had that rate continued, the cost of buying a home at that time was in effect free.
By contrast, if our April buyers endure real house price growth akin to the average over the past decade (1.7 per cent a year) they would have been better off renting."
Based on this silly logic, anyone with savings in the bank doesn't really own their savings. Anyone with an online share trading account doesn't really own their shares.
A homeowner's name is on the title, and the homeowner actually lives inside the property itself, and the only way they can be forced to leave is if the Sheriff, with a court order, forcibly evicts them. Possession, in this case IS the law, and the owner possesses the property, regardless of any mortgage they may have against it. Can you post a link to a few of these 'International Monetary Industries' (whatever that means) who claim Australia has the largest housing bubble in the world.
It sounds like the sort of unsubstantiated nonsense they preach at Macrobusiness.
Crap.
ABS use to use the terms "owners" and those "purchasing a home" or some such.
Now it is "home owner" to describe both groups, even though they have the slippery little " outright ownership".
Whose interests does this serve?
Aspirational as it may be, not the intending home owner!
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
I disagree. Australian house prices have simply tracked incomes over the past decade. That's not what happens in a bubble. All bubbles that have ever burst were characterised by strong rises in price/income ratios over many years immediately leading up to the crash. There has never been a crash after a decade of relatively steady price/income ratios.
I disagree. Australian house prices have simply tracked incomes over the past decade. That's not what happens in a bubble. All bubbles that have ever burst were characterised by strong rises in price/income ratios over many years immediately leading up to the crash. There has never been a crash after a decade of relatively steady price/income ratios.
Your PDF is four years old, so I'm not sure it can tell us much about what is happening now.
I didn't read it, but if it really does say 90% of homes were selling for a profit (or breaking even) four years ago, then what's the problem?
A very narrow world you live in Shadow.
Even though you limit your analysis to the last 10 years, something only 4 years old can't tell us much
I have to (shiver) agree with The Pauk though, we have been a bubble since 2000.
Gold medal bubble blowers- Australia!
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Even though you limit your analysis to the last 10 years, something only 4 years old can't tell us much
Pauk produced a 4-year-old document to show what is happening 'now'. Four year old data can't tell us anything about what is happening now.
I presented data for the past decade to show what happened over the past decade. Data for the past decade does tell us what happened over the past decade.
Why are bears so incapable of logical/rational thought?
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