I remember lying down in the road in perth city for a laugh in the early nineties lunchtime on a weekday while on a pub crawl. When Perth dies, it really dies. The new blowins haven't worked this out yet.
The dumb thing is you could see this coming a couple of years ago. Meanwhile, state government chucked money at infrastructure like Fiona Stanley Hospital, the southern suburbs railway, Kwinana Freeway extension etc at exactly the same time as BHP and co were going mental developing mines. Up went labour costs and so did everything that wages buy. $12.00 for a pint of beer and $25.00 for a fried egg, a strip of bacon and a few beans. I was at the WACA for a few of the Scorchers games and they wanted $8.00 for a Mrs Macs (and people were buying them as well). Perth is crazy expensive for everything and housing is top of the list. This has hammered anybody who is on a fixed income like health and retail workers. That has to be one of the plus points of a mining infrastructure slowdown. Prices for everything will fall as higher wage earners see their pay packets shrink.
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.
The dumb thing is you could see this coming a couple of years ago. Meanwhile, state government chucked money at infrastructure like Fiona Stanley Hospital, the southern suburbs railway, Kwinana Freeway extension etc at exactly the same time as BHP and co were going mental developing mines. Up went labour costs and so did everything that wages buy. $12.00 for a pint of beer and $25.00 for a fried egg, a strip of bacon and a few beans. I was at the WACA for a few of the Scorchers games and they wanted $8.00 for a Mrs Macs (and people were buying them as well). Perth is crazy expensive for everything and housing is top of the list. This has hammered anybody who is on a fixed income like health and retail workers. That has to be one of the plus points of a mining infrastructure slowdown. Prices for everything will fall as higher wage earners see their pay packets shrink.
You think they should build infrastructure now?
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Not sure the state budget would allow it. My point is that building public infrastructure at the same time as mining infrastructure was in full swing was a bad bit of planning. It just created greater competition for workers and forced wages and everything else up.
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.
The dumb thing is you could see this coming a couple of years ago. Meanwhile, state government chucked money at infrastructure like Fiona Stanley Hospital, the southern suburbs railway, Kwinana Freeway extension etc
They call that the psychology of previous investment Jimbo. The Gold Coast over in qld has morphed from a tourist mecca into an extended welfare strip infested with druggos and violent crime.
The response of government? Build a multi-million dollar tramway to pretty the place up. But they have to conduct armed blitzes on it nightly because the druggos jump on without paying and treat it like a theme park ride. They can't afford more than a handful of police down there yet they can borrow for a light rail tramway?
No one here talks about GC house and unit prices anymore because they collapsed 7 years ago and never came back. The bulls talk about cycles but the cycle there seems to have stalled on the down leg.
Shadow was hopelessly wrong about the Gold Bull Market. What else is he wrong about?
I remember lying down in the road in perth city for a laugh in the early nineties lunchtime on a weekday while on a pub crawl. When Perth dies, it really dies. The new blowins haven't worked this out yet.
It happens every cycle and every cycle the new residents try to say this time is different - even getting a few of the younger locals to believe the hype ...
If this investment downturn keeps up its likely that what perth can look forward to over next 10 years is stagnant assets and wages alongside rising cost of living.. Will be relying heavily on rates remaining low and increased foreign investment
There's mixed stuff going on & its not all labeling that Perth is going down the toilet.
My thoughts & it's general common sense.
.not everyone survives on FIFO... To those FIFOwho were smart with their $ & made the most of their income in getting their crap together & not buy boy toys should be doing very very well financially.
.the fact is those who have worked their butt off in the North West should be in positions of financially being able to be own a rental property.
.for those who think Perth is overpriced, well try getting comparable rents in London, Singapore, Switzerland , Tokyo.
.yes the downturn in mining has caused big detailed deisign stages of projects to taper off.. & yes there's been many engineers & draft persons leaving WA ...yes there's far more rentals evident.
.Dont conveniently ignore infrastructure projects going on...Elizabeth Quay, A Paediatric & Adult hospital, sports stadium etc so infrastructure projects is still happening.
.the market SETS a value of the rental rate & house prices.
It's the survival of the fittest that rides the good & crappy times
It's called having a buffer in the event of a down turn.
Friggin hell, those have Made it with owning IPs deserve where they are.
To those who haven't ..don't complain .you choose your destiny.
Don't be too keen to nail in the coffin of residential property.
The market sets the value on a property, something is only worth what people will pay for it....
So.. Nothing to crow about this article..according to the economic principle.. It's just supply & demand.
Understand the market & learn not to fear it, when it just may be your advantage.something negative is one other positive.
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.
But the media insists on palming off Perth data of late to a seasonal slowdown.
Just does not stack up with prices stagnating or falling since November.
9 months is a while.
I don't get the seasonal slowdown argument at all. The increase in rental vacancies indicates that there is not a pool of buyers sitting and waiting to pay more for the same thing in September. Why would anyone wait to buy something that is supposed to go up in price every spring anyway? Is it spring in Sydney and Melbourne?
This is typical REIWA talk. Whenever they are forced to admit that the market is slow (they must hate that), they always finish up with some reason why prices are going to go up in a couple of months time. Spruiking I think it is called.
I also like they way that a drop in the median is always put down to falling top end sales rather than a real drop in prices.
Funny though how any increase in median is always described as "rising house prices" rather than an increase in top end sales.
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.
The consequence of the mining activity slowing down is that there are more properties for sale, and sales prices and rents going down in Perth. So, would it be right to assume that prices in Sydney will also start to go down soon too ? Most finance and insurance companies are based in Sydney. If the mining activity is slowing down, it means also less business for finance/insurance companies and banks in Sydney.
But the media insists on palming off Perth data of late to a seasonal slowdown.
Just does not stack up with prices stagnating or falling since November.
9 months is a while.
Maybe it is all the fine weather. People are going to Marges instead of looking at houses. Or all the job losses are scaring the hell out of people, the may be getting the investor ebbie gebbies. Peter http://www.youtube.com/watch?v=WS1I4gK3pT4
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