The State Budget faces a $1.7 billion hole that could last years after a collapse in iron ore prices amid signs they could fall further.
The price for WA's most important export has fallen 10.6 per cent in a month to its lowest since September 6, 2009. Every dollar fall in the average iron ore price costs the State Budget $49 million in lost revenue.
WA Treasurer Mike Nahan has already signalled that without an iron ore turnaround, he would have to look at more Budget cuts. Dr Nahan said the fall in iron ore prices would reverberate for years.
We have a full scale construction boom going on where people starved of mid to high end properties are building mansions on subdivisions at no expense spared. Mining didn't make up much of our economy in WA anyway.
We have falling rental vacancies (down a massive 122 in the last month from 6015).
Plus, big miners have some office towers in Perth.
And there is a new stadium.
And Krispy Kreme is coming.
Never been a better time to buy or invest.
Get in there.
Regards.
Mike Skamy.
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.
What will be the impact of a Scottish Yes vote to split from the Union.
The pound got hammered yesterday and a lot of fear in media reports from the UK. Can't be good the property market looking forward the next few years. Thoughts?
It's more interesting for me as I work for as Scottish company. Not sure how that will pan out, but our HQ are in Scotland, so if anything they may move the HQ south. I doubt we would be moved to Scotland, but I wouldn't mind if we did.
I've moved everything I can out of pounds. I still think they will vote no, but it will be damn close, and I think even a no vote will require some fundamental changes.
Initially it will be bedlam and the pound will fall. Long term, it could make the country stronger. You will have a guaranteed Tory govt, which I'm not happy about, but business will love.
There is a lot to be sorted out. Shame they couldn't have done that before. I can't actually believe this is happening without knowing what currency, taxes, debt they will have, not to mention all the other shite. It could take ten years to sort out. Will Scotland need to establish embassies? Defence? Health?
What I think will be the worry is when others see this happen, it could set off a chain reaction around the world. Even WA has talked about it many times. They could be creating a model which others will base their future on.
Interesting times.
But I doubt it will affect property much. If anything, all the work to make the break will expand GDP. After the initial shock, I would expect a mini boom.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
It's more interesting for me as I work for as Scottish company. Not sure how that will pan out, but our HQ are in Scotland, so if anything they may move the HQ south. I doubt we would be moved to Scotland, but I wouldn't mind if we did.
I've moved everything I can out of pounds. I still think they will vote no, but it will be damn close, and I think even a no vote will require some fundamental changes.
Initially it will be bedlam and the pound will fall. Long term, it could make the country stronger. You will have a guaranteed Tory govt, which I'm not happy about, but business will love.
There is a lot to be sorted out. Shame they couldn't have done that before. I can't actually believe this is happening without knowing what currency, taxes, debt they will have, not to mention all the other shite. It could take ten years to sort out. Will Scotland need to establish embassies? Defence? Health?
What I think will be the worry is when others see this happen, it could set off a chain reaction around the world. Even WA has talked about it many times. They could be creating a model which others will base their future on.
Interesting times.
But I doubt it will affect property much. If anything, all the work to make the break will expand GDP. After the initial shock, I would expect a mini boom.
Scotland will vote no.
The obvious reason for this is that to be deemed to be a proud Scotsman, you will always answer yes to a question from a Scottish pollster.
So when a Scottish pollster comes up to you in Govan and asks which way you are going to vote, what are you going to say?
The polls are meaningless.
Scotland has always been a separate country, with a border, its own flag and anthem. What does Scotland gain by voting yes?
The rest of the world looks on as though they are watching an extended version of Braveheart but they really haven't got a bloody clue.
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.
We have a full scale construction boom going on where people starved of mid to high end properties are building mansions on subdivisions at no expense spared. Mining didn't make up much of our economy in WA anyway.
We have falling rental vacancies (down a massive 122 in the last month from 6015).
Plus, big miners have some office towers in Perth.
Sweden has not crashed it has stagnated for several years, you are a sucker for these doom and gloom headlines read the articles and you will see that Sweden has a major undersupply issue.
Supply and demand is simplistic, there was no change in this ratio when the GFC hit for example Sydney or Perth. People became fearful of prices dropping so stopped buying and building. Now, in Sydney the sentiment has changed to one of fear of missing out. Perth is still a bit of both.
Sentiment has more effect on the property market than supply and demand, during booms the newspapers have a property section bigger than the whole paper. During downturns there can be hardly anything at all on the market.
Jimbo
4 Sep 2014, 11:41 AM
The UK housing market boom is very London centric with only very small gains in the rest of the country.
Also, the pound only buys around $1.78 at the moment when during the Perth property boom 2001 to 2007, the pound was buying between $2.50 and $3.00.
There are still lifestyle incentives for Poms to come here, but that has always been the case. However, they will not be bringing the big fat wads of cash that earned them the nickname "cashed up Poms" in the 2000's.
I am in Leeds at the moment and the market has definitely picked up.
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.
We have a full scale construction boom going on where people starved of mid to high end properties are building mansions on subdivisions at no expense spared. Mining didn't make up much of our economy in WA anyway.
We have falling rental vacancies (down a massive 122 in the last month from 6015).
Plus, big miners have some office towers in Perth.
And there is a new stadium.
And Krispy Kreme is coming.
Never been a better time to buy or invest.
Get in there.
Regards.
Mike Skamy.
Are you seriously telling me there are no krispy kreme in Perth? What sort of backwater is it?. Christ, what do the miners buy when they get made redundant? Market opportunity there.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Are you seriously telling me there are no krispy kreme in Perth? What sort of backwater is it?. Christ, what do the miners buy when they get made redundant? Market opportunity there.
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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