Please explain why you think the Swedish banking bailout happened?
What caused it.
Happy for you to post links.
Go research that yourself, there is plenty online about banks taking taxpayers money, I am sure you will find a story that fits with your world view.
I just object to liars spreading disinfo by claiming property crashes here there and everywhere. So I corrected them.
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.
A banking system in crisis after the collapse of a housing bubble. An economy hemorrhaging jobs. A market-oriented government struggling to stem the panic. Sound familiar? It does to Sweden. The country was so far in the hole in 1992 — after years of imprudent regulation, short-sighted economic policy and the end of its property boom — that its banking system was, for all practical purposes, insolvent.
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
Doesn't take a genius to work out the spike was because the stamp duty threshold was chaneed. Just like when the FHOG were pulled back.
Also doesn't take a genius to look up what happens when sales collapse. Prices follow.
I like how the article has a nice spin on it even though it's a signal perth markets are about to experiencing a double whammy.
Pull back of stamp duty exemptions. Watch all those 500k houses magically fall to 430k I saw so many vendors push so hard 4 week's before with homes at 499k just flogging everything off. Now those same units are going for 429k lol talk about losing 15% for such a minor thing... then couple that with the sales volume collapse. Last time it happened prices fell/stagnated 15%-5 years
More important now than ever to avoid WAs market unless your experienced and have the capital to back it up.
I feel bad for anyone who bought in the last 6 years. Just treading water... and with the 'buy small and upgrade later' attitude so many of then have jumped into inappropriate investments locked in with no escape.
Poor old perth. So glad we got out before the mess.
'the median first home buyer purchase is now at $432,00'
But ... but... mike and that guy pretending to be a girl! they said that's wrong! lol
So I was 2k off. Ah well... I must be an idiot haha.
I do still know where to buy to make money ;-) but I'm not going to share that one haha CAPITALISM BABY!
For my next trick land sales have TANKED I see Perth losing at least another 15% now off its medium. at least 30% off 'premium' homes and 30% off units, apartments and villas.
If you don't know how to negotiate don't touch Perth for at least 6 months. Around mid year next year.
The government will probably step in. But not where you think. They know the budgets tight and they will most likely introduce macro rules to squeeze investors out. Perth doesn't have a big a problem as Sydney or Melbourne BUT the macro rules will still mess up Perth. It would be wonderful if they had sector and state specific rates but it doesn't work like that. Once the macro rules are in it will effect Perth even though it doesn't need it since its already in a dive without them. Their effect will be to further exacerbate falls. Unfortunate but its what happens when you only have 1 leaver.
We all know the mining booms over. The 'cliff' everyone spoke of us well and truly jumped off.
The king hit so to speak on WA will be the US
The US will start its rate rises in June next year signalling recovery. POW. Money moves overseas and investors leave Australia. Why get 3-4% yield in Perth when you get 10-20% in the US.
Thats a Left (stamp duty) Right (Macro rules) Left (Mining cliff) Uppercut KO (US rate rise)
Thats it. Game over. Nice knowing you Perth.
Its crazy still, I had a lady walk in yesterday, give me 10k and buy an off the plan unit, even after I showed her vacancy rates, price collapses in units (WOoooo we look at 580 hay street. 30-50% losses!) and she still said 'gimmie gimmie gimmie off the plan at last years prices' lol I mean... seriously Perth mom and dad investors aren't really investors lol. Her justification was 'my dad made money this way so all she has to do is buy as much as she can'. Why take the advice of the 28 yr old dude driving a merc. Its not like he's smart or knows what he's doing. Looks out the window and she was in a 90's Toyota camry with no assets bar a house with a 20 year loan left and living on a couple of hundred a week. lol I've already started moving clients investments overseas because its about building real wealth not speculating.
In the spirit of the thread title, property sale listings on the market up almost 20% yoy.
Spin that bulls
According to SQM :Perth specifically has recorded an 18.9% yearly increase in stock levels – a capital city which we believe has been experiencing a downturn for some time now.
That doesn't sound too good eh Skamy?
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
In the spirit of the thread title, property sale listings on the market up almost 20% yoy.
Spin that bulls
According to SQM :Perth specifically has recorded an 18.9% yearly increase in stock levels – a capital city which we believe has been experiencing a downturn for some time now.
That doesn't sound too good eh Skamy?
When the property market is in a downturn people don't try to sell and listings drop. Thy don't pay for advertising if they dont think it will sell.
You are looking for bad news in the wrong place here
The likelihood of stressed sales in Perth is pretty low. If people don't think they can sell they will wait.
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.
When the property market is in a downturn people don't try to sell and listings drop. Thy don't pay for advertising if they dont think it will sell.
You are looking for bad news in the wrong place here
The likelihood of stressed sales in Perth is pretty low. If people don't think they can sell they will wait.
What kind of nonsense is that?
People are trying to sell.
People are not buying, therefore stock on the market increases.
In this way, downward pressure is exerted on prices.
You don't need stressed sales. All you need is people accepting a new, lower price for their property reflecting market demand.
Example:
1. I put my property on the market for 500k 2. 3 months, no bites 3. I drop the price to 480k, no bites again. 4. Someone offers me 450k and I take it adopting the view that if I don't, prices could go lower.
In most cases, the only result will be less profit for the vendor. Its not a stressed sale.
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
People are not buying, therefore stock on the market increases.
In this way, downward pressure is exerted on prices.
You don't need stressed sales. All you need is people accepting a new, lower price for their property reflecting market demand.
Example:
1. I put my property on the market for 500k 2. 3 months, no bites 3. I drop the price to 480k, no bites again. 4. Someone offers me 450k and I take it adopting the view that if I don't, prices could go lower.
In most cases, the only result will be less profit for the vendor. Its not a stressed sale.
This is just not how the market works Veritas.
When a market is booming there are often record numbers of homes listed on the market as everyone gets confident to buy, upgrade etc. At the moment people will be wondering whether or not to sell, if they do no think the market is good they wont list. There is no need for listings to keep increasing as the unemployment is low and as you know a home purchase is most peoples biggest investment. Thy wait for a good sale.
Have you been to home opens? Did you get a response to your low ball offers?
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.
Wait until Balwyn property crashes, then buy on the cheap?
Do you think property will be well priced if there is a correction of 30% in your area?
You keep crapping on about a crash, but I've never seen you put forward a constructive solution to help people deal with the realities of the market place. More importantly, what do you plan to do if it doesn't work out the way you hope?
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