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Why housing won't help the Australian economy's rebalancing act; ABS 8731.0 - Building Approvals, Australia, June 2014
Topic Started: 31 Jul 2014, 02:03 PM (1,856 Views)
Blondie girl
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It all goes back to supply & demand really....

If foreign developers get too excited it can cause a drama.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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Dr Watson
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Jimbo
3 Aug 2014, 12:03 PM
I could go to the only supermarket in town and buy all the bread. I could then set up a stall outside and sell it for double the price. The price hasn't been driven up by lack of supply.
What a load of absolute nonsense.

Investors do not own 100% of residential property. They own about half of it (roughly). They do not have a monopoly. If you were to buy 50% of the bread, bread would still be available elsewhere and a buyer could bypass your stall and buy it cheaper elsewhere. You would be forced to lower your price or you would go out of business.

I think whether properties are owned by investors or occupiers is a moot point. The supply-demand ratio is still the same.

If you want more affordable housing, you need to alter the supply-demand ratio or increase the price of credit.

We need more housing or we need fewer people or higher interest rates.
Edited by Dr Watson, 4 Aug 2014, 09:30 AM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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stinkbug
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Dr Watson
4 Aug 2014, 09:21 AM


Investors do not own 100% of residential property. They own about half of it (roughly).
It's actually even less than this. For the last several decades in Australia, investors have owned about a third of the property (and rent it out), home owners with a loan on the property own about a third, and home owners with no loan own about a third. This has varied by a few percent, but not much.

I am of the view, though, that over the next few decades the number of owners will decrease and the number of investors will increase.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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newjez
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skamy
3 Aug 2014, 06:47 PM
The biggest problem here is that the people who believe in bubblo-economics, would love to think that there is a housing bubble in Australia similar to that observed in a few places eg Ireland, Dubai and parts of the US.

If they believe this they then think that a solution to the problem can be found in a recession with mass unemployment and redistribution of wealth from the young to the rich (ie what has happened in US and elsewhere). This event will apparently just turn up and they can sit on their arses and do nothing.

This then turns activism against real injustices and poverty into a waiting game of doom and gloom fantasyland speculation.

There is no bubble in the Australian market (one may emerge in Sydney a few years down the track).

IMHO bubble-o-dreamland has been a lazy excuse that has avoided any of the real issues being tackled. In fact the opposite new measures to inflate property prices are being proposed. While, the supply backlog caused by the fear-mongering has the potential to increase prices markedly.


Yes skamy, but you did think Perth land prices tripling in a year was perfectly normal, so your credibility has pretty shaky foundations.

(You may need another sock, as I don't think you can get past this. All credibility is gone I'm afraid)
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Jimbo
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Dr Watson
4 Aug 2014, 09:21 AM
If you were to buy 50% of the bread, bread would still be available elsewhere and a buyer could bypass your stall and buy it cheaper elsewhere. You would be forced to lower your price or you would go out of business.
Why would I be forced to lower the price of my bread? I own half the towns supply, once the other 50% has been sold I hold all the supply.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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skamy
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newjez
4 Aug 2014, 04:45 PM
Yes skamy, but you did think Perth land prices tripling in a year was perfectly normal, so your credibility has pretty shaky foundations.

(You may need another sock, as I don't think you can get past this. All credibility is gone I'm afraid)
Your opinion does not bother me. i have enough credibility to survive using a source that I was unaware of its inaccuracy. You never provide data nor do research, you are better known for your sleaze than your expertise.


You are the one who loses credibility when you act like a child going on and on about others mistakes.

You are continuously wrong and have been since I started posting here with your grandiose claims of crashes. I don't know how many times you have posted gleeful phrases of imminent catastrophe for the Australian economy.


You are the classic case of jumping up and down about the speck in someone else's eye and failing to notice the great big plank in your own.
Definition of a doom and gloomer from 1993
The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
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Dr Watson
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Jimbo
4 Aug 2014, 05:42 PM
Why would I be forced to lower the price of my bread? I own half the towns supply, once the other 50% has been sold I hold all the supply.
You're drawing a parallel between bread and property investors. You claim you can double the price of your bread and people will just have to accept that. A property investor cannot double the price of his property and expect someone to buy it. If I doubled the price of my house, I doubt anyone would pay that much. They could find another similar property elsewhere — in the same suburb or even the same street — and much cheaper. Property investors do not have a monopoly. If you have a monopoly on bread then what is the relevance of your analogy?
Edited by Dr Watson, 5 Aug 2014, 11:17 AM.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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SittingOnDeFence
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skamy
3 Aug 2014, 06:47 PM
If they believe this they then think that a solution to the problem can be found in a recession with mass unemployment and redistribution of wealth from the young to the rich (ie what has happened in US and elsewhere). This event will apparently just turn up and they can sit on their arses and do nothing.



What exactly do you think is happening now? Are the young prospering greatly? Youth unemployment is up - blue (and white ) collar jobs are going overseas.

Who exactly are "the rich"? The banks? They've making massive profits anyway. Mining Companies? BHP won't (and haven't) hesitated to sack people to keep costs down, I'm sure the same applies to the rest.

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A Lurker
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Jimbo
4 Aug 2014, 05:42 PM
Why would I be forced to lower the price of my bread? I own half the towns supply, once the other 50% has been sold I hold all the supply.
There are plenty of non-bread substitutes to bread. If you tried to double the price (many) people will just eat something else and you won't sell all your bread. If current bread suppliers thought they could get more $$ for the bread without affecting demand the price would have already increased.
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