I would be very surprised if commentary of the vested interests our political leaders have in property prices gained any traction ... Though is very evident these interests inform policy
I remember a few years ago Labor put up a new fella, a working class champ they said. 34 years old. The media found out he had 6 IP in his portfolio, and Labor quickly dropped the champ moniker.
Too repeat, the Pollies are all into it. Our treasurer, Slim ball Hockey has about 10 mill in IP's.
And that is why they will always be pro Property Investors. EOS.
I thought it may have originally been incompetence on Xenophon's part, but after discovering that he owns eight IP's it's now clear to me what's driving him. Anyway, this is why it's better to surf the system than to swim against it. The renter who waits for a crash could be waiting a long time. You can't fight this level of concentrated, vested interest and power. Whether we like it or not, it is what it is and we have no option but to buy property and play their game.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
I thought it may have originally been incompetence on Xenophon's part, but after discovering that he owns eight IP's it's now clear to me what's driving him. Anyway, this is why it's better to surf the system than to swim against it. The renter who waits for a crash could be waiting a long time. You can't fight this level of concentrated, vested interest and power. Whether we like it or not, it is what it is and we have no option but to buy property and play their game.
Wonder if we could get daily updates on those figures? Any trend up or down just could be the nation's single most useful indicator on likely future housing price movements ...
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
im suprised they dont propse anyone under age of 30 is not allowed to buy a car or coffee or go to travel...
Instead a "car, coffee and travel " fund ( of an assumed value of 80% of after tax income) is with-held from youth for "their own good" that matures on their 30th birthday and must be used within 2 months on an approved mortgage scheme or forfeited forever..
I've often thought that all renters should just reduce discretionary spending to zero. Basically, shop at Woolies, make breakfast, lunch and dinner at home, buy a cheap coffee machine, stop watching all movies, wash clothes at home, learn how to sew and repair clothes, disconnect the internet, get a library card and stop buying books. Sell the car(s), walk or ride a bike. Basically, other than the essentials, spend no money into the economy.
Once consumer spending drops by 30%, and unemployment rises to 18%, I wonder if the bulls will still be trumpeting the 'save and get on the property ladder' line?
I've often thought that all renters should just reduce discretionary spending to zero. Basically, shop at Woolies, make breakfast, lunch and dinner at home, buy a cheap coffee machine, stop watching all movies, wash clothes at home, learn how to sew and repair clothes, disconnect the internet, get a library card and stop buying books. Sell the car(s), walk or ride a bike. Basically, other than the essentials, spend no money into the economy.
Once consumer spending drops by 30%, and unemployment rises to 18%, I wonder if the bulls will still be trumpeting the 'save and get on the property ladder' line?
The youngies do seem to enjoy having a lifestyle that's 'better' (in their eyes anyway) than their olds' was at the same age though? ...
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
I've often thought that all renters should just reduce discretionary spending to zero. Basically, shop at Woolies, make breakfast, lunch and dinner at home, buy a cheap coffee machine, stop watching all movies, wash clothes at home, learn how to sew and repair clothes, disconnect the internet, get a library card and stop buying books. Sell the car(s), walk or ride a bike. Basically, other than the essentials, spend no money into the economy.
Once consumer spending drops by 30%, and unemployment rises to 18%, I wonder if the bulls will still be trumpeting the 'save and get on the property ladder' line?
There was once a subversive fellow by the name of David Collyer who attempted to co-ordinate a response among renters and he found that the co-ordination was the hard part. He provided the hymn book but could not get his flock singing in harmony. I think it's a better option to join in and play the game. The cards are too heavily stacked against you.
There was once a subversive fellow by the name of David Collyer who attempted to co-ordinate a response among renters and he found that the co-ordination was the hard part. He provided the hymn book but could not get his flock singing in harmony. I think it's a better option to join in and play the game. The cards are too heavily stacked against you.
My point being, if 99% of buyers could afford to buy a house by curtailing their discretionary spending to zero, then sure they could buy a house, but the resulting collapse in employment would mean not having an income to service the loan.
i.e. the bull admonishment for potential buyers to stop spending money and save for a deposit is self defeating. If renters were to take this bull(shit) advice to heart, en masse, the economy would go into a severe recession, taking house prices down with it.
Ultimately, that is what will happen anyway. Once house prices reach a certain price level, potential buyers will be forced to curtail discretionary spending, leading to contracting retail sales, leading to lower employment, particularly among younger people that are the mainstay of retail employment, which will doubly add to their woes of saving for a deposit, i.e. higher deposits and lower incomes.
My point being, if 99% of buyers could afford to buy a house by curtailing their discretionary spending to zero, then sure they could buy a house, but the resulting collapse in employment would mean not having an income to service the loan.
i.e. the bull admonishment for potential buyers to stop spending money and save for a deposit is self defeating. If renters were to take this bull(shit) advice to heart, en masse, the economy would go into a severe recession, taking house prices down with it.
Ultimately, that is what will happen anyway. Once house prices reach a certain price level, potential buyers will be forced to curtail discretionary spending, leading to contracting retail sales, leading to lower employment, particularly among younger people that are the mainstay of retail employment, which will doubly add to their woes of saving for a deposit, i.e. higher deposits and lower incomes.
Isn't this already happening? Hence we have a rather high youth underemployment and underemployment rate? With lot's of Gen Y living at home indefinitely?
The two standout expenses that are still going strong amongst the younger are:
1. Food 2. Overseas Trips
Everything else has been curtailed. Quite a few people around that don't own a car. We don't buy an iSomething every month - that's a false stereotype. I know quite a few that hoard cash.
Let me assure you that this isn't one of those shady pyramid schemes that you've been hearing about. No sir, our model is the Trapezoid which guarantees each investor an 800% return within hours. Those who can, do. Those who can't, teach. "It's an itchy blanket, it's designed to remind you how lucky you are"
Isn't this already happening? Hence we have a rather high youth underemployment and underemployment rate? With lot's of Gen Y living at home indefinitely?
The two standout expenses that are still going strong amongst the younger are:
1. Food 2. Overseas Trips
Everything else has been curtailed. Quite a few people around that don't own a car. We don't buy an iSomething every month - that's a false stereotype. I know quite a few that hoard cash.
Yes, it is already happening. Or, more correctly, it has already begun. As long as we continue to allow foreign investment and high immigration, over the next few years we will see. 1. Rising house prices. 2. Falling ownership. 3. Rising unemployment (particularly youth unemployment). 4. Low or falling interest rates.
We are trapped now. The government and the RBA made a one way bet on houses and holes, throwing the rest of the economy under the bus.
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