Welcome Guest [Log In] [Register]


Reply
The Perth Property Crash Thread; Let us enjoy the inevitable collapse as it unfolds in WA
Topic Started: 13 Aug 2014, 12:28 AM (89,638 Views)
Mike
Default APF Avatar


lanie
20 Aug 2014, 11:22 AM
Too little too late -

All I can say is - I didn't rack up a 50k uni debt to become a miner or a real estate agent lol or be locked into a rip off house for 25 years unable to move

You guys can keep Perth all to yourselves I'm moving to the US in November yay.

Gonna renounce my citizenship as soon as I'm there and use that money to buy a house immediately instead of waiting till I'm 30 lol.

God Perth. ... what a small rip off of a city. Glad I'm gonna get out before being locked into slavery.

But won't you miss your family and friends! You can't come back if you do that...

Nope. 99% of them are racist Bogans. Cry me a river lol. Have fun squabbling over you derelict dilapidated investment properties that you force everyone to live in while you barely scrape by servicing loans with negative equity all to say you own 3 properties lol. Sick of hearing that talk around the BBQ making money you can't access earning just more than the cash rate. No wonder Perths turned to shit 20 years of a mining boom and what manufacturing industries did you establish with the cash? Oh that's right. Nothing. Nothing but throwing all that money straight back into housing. Niceeeeee

Check yourselves before last quarters sales volumes wreck yourselves ;)
Don't let the door hit you on the way out.

What makes you think the Americans will want you, not easy to become a US citizen.
http://mike-globaleconomy.blogspot.com.au/
Profile "REPLY WITH QUOTE" Go to top
 
Foxy
Member Avatar
Zero is coming...

stinkbug
20 Aug 2014, 08:03 AM
That's no different from any other market. 98% of Australian property investors own only 1 or 2 properties. 70% own only 1.

The cycle happens not only because of economic factors, but also because of silly investor behaviour.

This is when bargains are to be found.

EDIT: I had an example but removed it, because it will likely start arguments.
Give us the example, now bitch.
:D
Peter
Blondie girl
19 Aug 2014, 10:20 PM
Ditto
What do you think my situation is about? I've had parents who began in property over 40+ yrs, Ive got 3 boomer brothers to get assistance, in what they do & a husband who is also property mad.

However, what's been fascinating is the fact that people who have sucessful biznesses treat PI as a bizness, when you treat investing impartially & objectively it's a combo to really reckon with.

I'm aware of 1st & 2nd generation of wealthy people I do find two things evident..especially when it involves old money... If those who inherit don't top it up & know the logistics, they tend to be more selfish & lazy in their outlook as opposed to those who get a satisfaction of actively investing. Someone of these vampires will be eager to inherit when the oldies kark it & believe me some are quite horrid snobs. The reality is if it wasn't for their gran parents making the initial $ they wouldn't having their toys that they take for granted.

You once stated that " no property is ever equal".

That is absolutely true, there's no set rigid rules in PI, peoples situations also differ in what works for them.

That's why a lot of people do the mistake of assuming & judging what they "think" is correct.

My hubs & I do make a particular point of not telling associates & friends what assets we have, it's a big no no friends & $ do not mix well.

Another thing with Perth?

Not everyone is dependant on the FIFO life. There's soe morons on this forum who think its the end :to:
ATM people like me will just ride the rents & decrease if required, I believe in maintaining the IPs which my man does a superb job & we have honestly saved do much in repairs & maintenance if we just let the agent get whoever to charge exorbitant fees to do handy work & general repairs.
Also, open your eyes in what you consider as potentials in property.

My father understood in looking for the most crappy house in prime location it does work, the hard part is getting that opportunity to do so.
Blondie you are so right it hurts.
Most people do not know what to do and at the first problem run like startled goats.
Slow and steady wins the race.
A good cake recipe in the hands of a master baker will produce great cakes.
So Blondie Girl let's eat cake.
Peter
:bye:

lanie
20 Aug 2014, 11:22 AM
Too little too late -

All I can say is - I didn't rack up a 50k uni debt to become a miner or a real estate agent lol or be locked into a rip off house for 25 years unable to move

You guys can keep Perth all to yourselves I'm moving to the US in November yay.

Gonna renounce my citizenship as soon as I'm there and use that money to buy a house immediately instead of waiting till I'm 30 lol.

God Perth. ... what a small rip off of a city. Glad I'm gonna get out before being locked into slavery.

But won't you miss your family and friends! You can't come back if you do that...

Nope. 99% of them are racist Bogans. Cry me a river lol. Have fun squabbling over you derelict dilapidated investment properties that you force everyone to live in while you barely scrape by servicing loans with negative equity all to say you own 3 properties lol. Sick of hearing that talk around the BBQ making money you can't access earning just more than the cash rate. No wonder Perths turned to shit 20 years of a mining boom and what manufacturing industries did you establish with the cash? Oh that's right. Nothing. Nothing but throwing all that money straight back into housing. Niceeeeee

Check yourselves before last quarters sales volumes wreck yourselves ;)
Have you been to America??

https://www.youtube.com/watch?v=oRoak7URh8s
Peter
Edited by Foxy, 20 Aug 2014, 12:42 PM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
Profile "REPLY WITH QUOTE" Go to top
 
Veritas
Default APF Avatar


Mike
20 Aug 2014, 11:45 AM
Don't let the door hit you on the way out.

What makes you think the Americans will want you, not easy to become a US citizen.
Australia has very favourable visa relationships with the US, almost uniquely so.

Something to do with the Iraq war as I recall.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?

The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly.
Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Profile "REPLY WITH QUOTE" Go to top
 
skamy
Member Avatar


lanie
20 Aug 2014, 11:22 AM


You guys can keep Perth all to yourselves I'm moving to the US in November yay.

Aww what bad timing, you missed the bottom in Perth and now you are gonna miss the bottom in the US.

The housing market is not so hard to understand, people usually buy the best house that they can afford. Anyone at anytime can get off that ladder you don't have to go to the US to do it.

You can buy a great place at a huge discount in Mandurah, Yanchep etc and almost new homes in places like Clarkson for not a lot of money. But, I hear you say, that is boganville. So the people who can only afford homes in Clarkson are bogans, interesting.

What makes you think that the cheap homes you see in the US are not owned similarly by people on lower incomes? The US does bogan so much more perilously than Australia.

Edited by skamy, 20 Aug 2014, 12:38 PM.
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.
Profile "REPLY WITH QUOTE" Go to top
 
zaph
Default APF Avatar


skamy
19 Aug 2014, 05:46 PM


because the whole bear fantasy of a housing fire sale relies on the assumption that there are lots of people making poor financial decisions.

It is also very common for a recovering housing market to have a lot of investors as investors provide the price floor.
Quote:
 
This is just an arrogant assumption.

It's not an assumption about the amount of properties held - stinkbug has provided facts - if you want, I can dig up a link.

My assertion that most investors are not very good is based on what I hear, read and first posts on somersoft. A lot of new posters on SS ask "I'd like to buy an IP to save tax" - not particularly smart.

Quote:
 
The opposite is in fact true. Investors mostly sacrifice spending on PPOR to invest in better long term financial outcomes. They are not idiots, there are significant advantages to investing in property. Young people who invest often live with their parents or very cheaply and get help with the mortgage for a few years to help them get a home. Older people invest longterm and have a lot of wealth to do this with.


This is just an arrogant assumption.

Quote:
 
You just made a assumption about other people for which you have no basis in fact.


This isn't a double blind cross over placebo study, or a chohcrane review. You also made plenty of assumptions.

Quote:
 
Why do you do this?


Do what? Speak my mind?

Quote:
 
The truth is that the majority of Australians are savers not spenders, they are not grandiouse spenders and they carefully invest.


Really?
Profile "REPLY WITH QUOTE" Go to top
 
skamy
Member Avatar


zaph
20 Aug 2014, 12:36 PM


It's not an assumption about the amount of properties held - stinkbug has provided facts - if you want, I can dig up a link.

My assertion that most investors are not very good is based on what I hear, read and first posts on somersoft. A lot of new posters on SS ask "I'd like to buy an IP to save tax" - not particularly smart.




This is just an arrogant assumption.




This isn't a double blind cross over placebo study, or a chohcrane review. You also made plenty of assumptions.


Ok I made assumptions too, but mine were not arrogant as I was not assuming others were fools.

We all know that there are fools and tyros who make mistakes, but to assume that all our investors are idiots is very far from the truth. I also think there is a bit of elitism there that "working class and middle class people are just not bred to be investors" type of attitude, which I dislike.

There are three trends driving more egalitarion property investment levels in Australia, the first is a trend in cities like Sydney for young people to start home ownership with an investment property. They can afford a home they would otherwise struggle with due to having a rental income to help with the mortgage and a tax deduction with REDUCES (not removes) losses.

The second is a trend for older people who have paid down their mortgage to invest in a property so that it can provide them with an inflation linked income on retirement.

The third is using super in SMF for investment property , this one is not IMHO sustainable and could endanger the stability of the market if it grows out of hand.

As for savings here are the facts
Quote:
 
The household saving ratio was 9.7 per cent of disposable household income in the March-quarter 2014 and relatively stable. There is no apparent move for households to reduce this level of saving and consumption growth remains modest even though Real net national disposable income rose by 1.3 per cent in the March-quarter 2014.
Posted Image
http://bilbo.economicoutlook.net/blog/?p=27982

http://www.kimbercapital.com.au/blog/retail-rehab/
Quote:
 
Consumers have gone into their shells and this has manifested itself through a higher savings rate, lower discretionary spending and a self-imposed period of austerity.

Quote:
 
http://www.treasury.gov.au/PublicationsAndMedia/Publications/2011/Economic-Roundup-Issue-2/Report/The-rise-in-household-saving-and-its-implications-for-the-Australian-economy
Households have been saving a significantly larger proportion of their disposable incomes in recent years than in the previous two decades. This turnaround in saving has been accompanied by a moderation in the household sector's borrowing behaviour, which has seen the household sector's gearing ratio stabilise after two decades of increases.


and
Stress levels ease as savings swell

To put it into context houshold savings in Australia was at around 10% in 2012(the most recent comparisons I could find), the UK, Canada and the US are at about 5% and before the crash in Ireland its savings rate had dipped to zero after several years well below 5%.

WA is exceptional good at saving,with an average savings level of $19,442 compared to the national level of $15,427 ( figures from 2013)

Edited by skamy, 20 Aug 2014, 01:58 PM.
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.
Profile "REPLY WITH QUOTE" Go to top
 
Frank Castle
Member Avatar
Business As Usual

Quote:
 
lanie
20 Aug 2014, 10:22 AM
I'm moving to the US in November yay.

Gonna renounce my citizenship ...

Hilarious - and what at a later stage if you decide to move somewhere else and then get pissed off with the new us tax regime following you around the globe, will you renounce your citizenship again and who will have you?
Quote:
 

The US is one of the few countries that taxes its citizens regardless of where they live
http://rt.com/usa/158736-americans-citizenship-us-refuse/
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
Profile "REPLY WITH QUOTE" Go to top
 
skamy
Member Avatar


Frank Castle
20 Aug 2014, 02:04 PM

Hilarious - and what at a later stage if you decide to move somewhere else and then get pissed off with the new us tax regime following you around the globe, will you renounce your citizenship again and who will have you?
So does Australia unfortunately.

He will probably cop property taxes on his new cheap US home and then lose the lower US income tax rates if he ever does come home
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.
Profile "REPLY WITH QUOTE" Go to top
 
lanie
Unregistered

Can't wait :) 7 friends already did it and they are loving it. One couples in Houston and ones in californ-I-a :D so we wont be lonely plus were friendly so its not hard to make friends. I have a couple of family members there too. They all love it. Everyone doesn't talk about how much property they have, they have access to much nicer produce and variety.

The job I have lined up shpuld use about 20% of my pay for a house I can get on a 15 year loan hopefully woo. Can prob pay it off in 7. Already saved everything I got while working at uni so 40k is getting me pretty far. I could have used it to pay off my uni fees or leave and keep the money. That's a no brainer.

Two friends both work for chevron so that's cool full Healthcare. I'll be a contractor for them with the same yay

Lol at 'don't let the door hit you on the way out' from people who have made it impossible to succeed without being their slaves. What a big fish little pond mentality. You basically want me to work for you. Design your bridges and roads. Build your infrastructure. But you won't pay me enough to live in the areas that see the fruits of my work.

Thanks but no thanks.

God baby boomers and gen X are a nasty bunch.

Free land free education free houses and grants and tax concessions then the balls to tell everyome under 30 'hey you're working till 70 and wage growth will see you in higher tax brackets plus were taxing your fuel more now that you had to buy further out... ' they make the young ones pay 10 fold and aren't allowed to live anywhere nice. Wow. No wonder so many people I know have left Perth. Especially with a corrupt sniveling little people like Mike haha.


"REPLY WITH QUOTE" Go to top
 
Jimbo
Member Avatar


skamy
20 Aug 2014, 01:56 PM
To put it into context houshold savings in Australia was at around 10% in 2012(the most recent comparisons I could find), the UK, Canada and the US are at about 5% and before the crash in Ireland its savings rate had dipped to zero after several years well below 5%.
That is great until you consider that household debt in Australia sits at 1.8 times disposable income. The US is 1.1% and the UK 1.5%.

The thing I never get my head around, is why would you have money in the bank at the same time as having debt?

When I was buying my home, every penny I had went to my mortgage.
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.
Profile "REPLY WITH QUOTE" Go to top
 
2 users reading this topic (2 Guests and 0 Anonymous)
ZetaBoards - Free Forum Hosting
Join the millions that use us for their forum communities. Create your own forum today.
Learn More · Sign-up for Free
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply



Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.

Forum Rules: The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.

Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.

Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.

This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.

For more information go to Limitations on Exclusive Rights: Fair Use

Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ

Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy