"We had to get a home" - desperate homebuyers camp out for three days to buy in Sydney; The only way to secure a property as Sydney house prices continue their inexorable rise
Tweet Topic Started: 4 Sep 2014, 08:26 AM (9,955 Views)
The business of camping out is usually a sure sign a manic top has been reached. That was the case in the US property bubble I believe. If it's happening in Sydney it's not a positive indicator at all.
It indicates fear in the market. The fear is in the demand side at the moment. I was in the UK in 1988 and I was watching asking prices go up by 3% a week. The Sun newspaper ran a headline along the lines of "beg, borrow or steal from your granny, get on the property ladder now".
Things are a bit different in that the UK bubble was fueled by an impending change to tax laws causing too many people to chase too few properties.
Perth experienced the same with land releases in 2005/6.
Fear makes people spend more than they maybe would do under normal circumstances.
To to sustain the bubble we now need record low interest rates to continue, poor supply, higher than average world wages, Chinese investment demand, NG and buyers fear of missing out.
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.
No thanks, already got one IP I brought 10 years ago which is nice and positively geared. Hopefully pay off my mortgage by around 30 then easy street until retirement, probley get a job at a fish n chip shop or bunnings, somewhere close to home so I can spend heaps of time with family and friends, spending all the money I'm saving on them because of my decision to buy property.
But you were saying it was a no brainer - that the bears are all wrong. You can't lose. Go on, buy another. and another. Go on, you know you want to. It makes so much sense. You've convinced me.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
But you were saying it was a no brainer - that the bears are all wrong. You can't lose. Go on, buy another. and another. Go on, you know you want to. It makes so much sense. You've convinced me.
I could keep investing and making more money just like I could work until I'm 80 and keep making money. But I feel I've set myself up enough so i can stop investing, work an easy job full or part time until about 50 during that time heaps of time with family, friends and kids
Folks have some empathy for each other. No need to make this forum a discussion about haves and have-nots or whether a boom or bust is coming. What we need is a stabilisation neither boom or bust . There are multitude of reasons people will keep on buying even at these inflated prices. Emotional feeling of security , not willing to move every few years while renting, building wealth and so on.
But most of the activity is currently screwed by Negative Gearing, restricted supply of land and growth in population outpacing supply of new dwellings. Forget any change in Negative Gearing as most politicians themselves hold investment property portfolios. Do you guys seriously think they will come up with policies that will lead to reduction in their net wealth in the long term. Dream on. Apartment supply is growing at a rapid pace in metropolitan cites, but there is a significant issue with new housing supply. We need policies to provide incentives to investors just for new housing. Currently everybody is bidding for existing homes and hence the price inflation. This will help a price correction over a long term without causing significant pain to exiting owners.
I could keep investing and making more money just like I could work until I'm 80 and keep making money. But I feel I've set myself up enough so i can stop investing, work an easy job full or part time until about 50 during that time heaps of time with family, friends and kids
My, such bravado and bluster for a young man! Have you considered a little pornography now and then? Great for relieving the stress of being an undereducated, overleveraged bogan.
Plus you never know, shout and moan loud enough and you might be able to drown out the sound of the negative equity and deflation that's knocking at your door.
"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.
Enough with the silly talk. Housing prices in Sydney were stagnant for years after 2003. And even now it is not booming. The only reason we haven't had a significant housing slump over the last 10 years (as everyone predicted) was because prices were never as inflated as reported.
I often ask people if they had bought a house for $250,000 in early 2009 and sold it for $817,000 today and you did nothing to it - plus if you didn't live in you would have also been paid 5% pa in rental income - would it have been a good buy. Of course it would! - but that's what would have happened if you hadn't bought a house but bought Commonwealth Bank shares instead. They are the people who sell the mortgages!
Enough with the silly talk. Housing prices in Sydney were stagnant for years after 2003. And even now it is not booming. The only reason we haven't had a significant housing slump over the last 10 years (as everyone predicted) was because prices were never as inflated as reported.
I often ask people if they had bought a house for $250,000 in early 2009 and sold it for $817,000 today and you did nothing to it - plus if you didn't live in you would have also been paid 5% pa in rental income - would it have been a good buy. Of course it would! - but that's what would have happened if you hadn't bought a house but bought Commonwealth Bank shares instead. They are the people who sell the mortgages!
Yes, housing is not the only thing in a bubble. Bank shares are similarly so.
The big four have about $350 billion in market capitalisation, much of which is owned by superannuation funds and insurance companies. This represents about 15% of Australian savings, much of which would be at risk when the bubble pops, dragging down the shares in FIRE with it.
------------------------------ " ... 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
My, such bravado and bluster for a young man! Have you considered a little pornography now and then? Great for relieving the stress of being an undereducated, overleveraged bogan.
Plus you never know, shout and moan loud enough and you might be able to drown out the sound of the negative equity and deflation that's knocking at your door.
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