Our findings are striking. Since the end of 1995, Australian home values have experienced total capital gains of 283 per cent, massively outstripping any other peer country.
So I wonder when CJ and SK will get a room together?
Alex, I do not think your change of the topic title is correct. I very much doubt that CJ would have written the headline, where is certainly did saying that many bulls are fools.
So I wonder when CJ and SK will get a room together?
Shows what click starvation does for you.
Australian median dwelling prices are due for a period of stagnation, but I doubt it will happen the way bears think it will. The recent growth is mainly because people in two very big cities have refused to give up their back yard. We are already seeing that that is changing from the boom in inner-city apartments. That 3x1 on a 700sqm block in North Ryde will continue to go up in price - perhaps even faster - but the median dwelling will go from being a 3x1 in North Ryde to being a 2x2 unit in Chatswood.
The solution? get the fuck out of Sydney.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
CJ said it: "The current boom, which is pushing valuations higher than they have ever been before, is different from its predecessors in 2007 and 2010 because it is being driven by a speculative investment craze the likes of which we have not seen since 2003.
Extraordinary foreign-buyer demand and the advent of geared self-managed super funds are two additional “knuckle-balls”.
Moody’s is right to also raise concerns about the recent increase in risky lending. Investment loans, which now account for about 40 per cent of all new lending, have higher probabilities of default and loss severity than owner-occupied credit.
This is partly because over 50 per cent of all investment loans are interest-only products that result in no pay-down of the original principal sum.
The bottom line is that the banks and the RBA need to get serious about Australia’s brewing housing risks."
Go for it you Back flippin bubble popping dude!
WHAT WOULD EDDIE DO? MAAAATE! Share a cot with Milton?
Cocaine in Colombia is $3 a gram Cocaine in Australia is $300 a gram
Please explain this.
Longer supply chain and relatively small market.
Oh, and medically cocaine is not a narcotic, it is a euphoric.
Different drugs have different prices in different geographic locations.
------------------------------ " ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility." - Alan Glynn
Australian median dwelling prices are due for a period of stagnation, but I doubt it will happen the way bears think it will. The recent growth is mainly because people in two very big cities have refused to give up their back yard. We are already seeing that that is changing from the boom in inner-city apartments. That 3x1 on a 700sqm block in North Ryde will continue to go up in price - perhaps even faster - but the median dwelling will go from being a 3x1 in North Ryde to being a 2x2 unit in Chatswood.
The solution? get the fuck out of Sydney.
I agree that this city has grown at a rate that has made the current blocks too large - especially round areas like Ryde with short commutes, but disagree that it justifies current valuations.
The rental yields on these places are pathetic; realising true value by turning a dog box on a quarter acre block into a duplex or townhouse requires a large capital outlay and considerable nouse and smarts to negotiate with builders and regulatory bodies - all i see round here is leveraged buy to lets, and knockdows for a bogan box to flog to overseas buyers to house their offspring.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
I agree that this city has grown at a rate that has made the current blocks too large - especially round areas like Ryde with short commutes, but disagree that it justifies current valuations.
Justify shmustify. It is what it is.
I could have gotten a bigger salary by moving to Sydney when I graduated, but I looked at the cost of accommodation and said "fuck that." 30-odd years later, nothing has changed. Sydney is still too expensive. Most of the capitals and regional cities in Australia have housing costs well below the multiples for similar-sized cities elsewhere in the world, exceptionally so when you look at what you get for your money.
It's not as if people don't have options.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
I could have gotten a bigger salary by moving to Sydney when I graduated, but I looked at the cost of accommodation and said "fuck that." 30-odd years later, nothing has changed. Sydney is still too expensive. Most of the capitals and regional cities in Australia have housing costs well below the multiples for similar-sized cities elsewhere in the world, exceptionally so when you look at what you get for your money.
It's not as if people don't have options.
Funny, it reminds me of when i was in the UK - of you earn a salary in the public service you get given a 'London Loading' payment over and above your base, supposedly to cover the increased cost of living in the capital. It was pretty pathetic as i recall, especially considering your accommodation costs there are probably double compared to somewhere up north like Birmingham or Leeds.
miw
4 Sep 2014, 08:42 PM
Justify shmustify. It is what it is.
My point was that like most housing collapses, seeds of truth about a city like Sydney (like the land parceling one i described, plus fabulous weather/beaches, good public services, good looking women, stable government etc. etc. ) gets slowly morphed into a justification for an endless loop of speculative house price rises (in Sydney's case also buoyed by a mining boom and great ToT) until the minsky moment hits and everyone realise there's no money to pay the wages for people to live in them or developers to develop them, and it all goes tits up. That moment is fast approaching.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness. "Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
My point was that like most housing collapses, seeds of truth about a city like Sydney (like the land parceling one i described, plus fabulous weather/beaches, good public services, good looking women, stable government etc. etc. ) gets slowly morphed into a justification for an endless loop of speculative house price rises (in Sydney's case also buoyed by a mining boom and great ToT) until the minsky moment hits and everyone realise there's no money to pay the wages for people to live in them or developers to develop them, and it all goes tits up. That moment is fast approaching.
You could be right, but I have been waiting for that moment for 30 years.
The truth will set you free. But first, it will piss you off. --Gloria Steinem AREPS™
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