..you are clearly one of those bears I was referring to in my post who are embittered with self worth doubts as a result of seeing the Credit Suisse wealth study indicating their relative poverty which has resulted from their doom and gloom attitude of imagining the evils of debt and forever expecting a crash in house prices.
I mentioned one of the chosen solutions adopted by the gloomers to such studies - denigrate the study. You have chosen another solution to ease your inferiority complex arising from the study - abuse.
Veritas, I'd be interested to hear your take on the population spread in Australia versus Ireland. Do you think our elevated house prices might be due to too many people cramming into Melbourne and Sydney? Have they achieved a more even distribution of people in Ireland? Or is this not even relevant to house prices?
The tiny dark brown dots on the map of Australia are the most intriguing ... so many people wanting to cram into such a small area ... why?
Where is the bar scale for the map of Ireland? Or is Ireland as big as Australia?
Where is the bar scale for the map of Ireland? Or is Ireland as big as Australia?
Don't worry doctor, I just googled the answer for you.. Australia is 109x the size of Ireland.. Blow the map of Australia up 109x and you will be far less deceived
Don't worry doctor, I just googled the answer for you.. Australia is 109x the size of Ireland.. Blow the map of Australia up 109x and you will be far less deceived
I think you've been smoking something and it wasn't tobacco.
Our inner-city house prices keep defying gravity because there are only two places to be: Melbourne or Sydney. People will pay through the nose to be there. Until that changes — and we achieve a more even population distribution, enabled by extra hubs — we'll be stuck with a distorted property market. I mean, in Victoria, you could make Geelong, Ballart or Bendigo — or all three — into centres of commerce. But where is the vision? Where it is the political will? Where is the money? Where is the hope?
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
Why the hell would news like this make you sick? Isn't this good news, or would you prefer if we were not wealthy?
Some people are strange.
Some people are strange, and others just plain moronic.
Stop and think for a second, at the peak of their housing booms were Americans, Spanish, English and Irish the wealthiest they had ever been??? And how are they travelling now, are they still as wealthy??
That's the problem with wealth based on an asset value, people like you believe it to be tangible wealth but it's not because of many factors. You can't say your net worth is the value of your home(s) at any given time unless you own it outright and have a signed contract of sale for a certain value. Without this your net worth is just conjecture and if you have millions of dollars in IO IP properties your net worth could be next to nothing, or worse, negative territory.
Because it's an asset class that involves speculation it can rise fast but it can also fall heavily and when it does so does everyone's net worth. Do you get this or are you a true believer?!
But lap it up, I'm sure this type of data should really excite someone like you.
I think you've been smoking something and it wasn't tobacco.
Our inner-city house prices keep defying gravity because there are only two places to be: Melbourne or Sydney. People will pay through the nose to be there. Until that changes — and we achieve a more even population distribution, enabled by extra hubs — we'll be stuck with a distorted property market. I mean, in Victoria, you could make Geelong, Ballart or Bendigo — or all three — into centres of commerce. But where is the vision? Where it is the political will? Where is the money? Where is the hope?
Thats called 'thinking' so wont work. Would also upset the polies golden house price coroborrie, personally and for state revenue which relies heavily on stamp duty income. Never mind upsetting the land banker barons who form jerk circles with afore mentioned politicians.
Houses and land are personally owned property and are "real" tangible assets.
Would you prefer to own abstract paper assets which represent property held by other people? Bank accounts represent abstract money lent to banks, held and employed by banks for their own purposes. A $100 currency note represents abstract money which the government declares is exchangeable for an abstract $100. Bonds represent abstract money held and employed by the bond issuer for their own purposes. Share certificates/registry entries represent abstract money held and employed by company directors for their own purposes.
Why have you gone off on some pointless non-sequitur about the abstractness of fiat money and non-tangible assests? All wealth and ownership is 'abstract'. The value of your home is 'abstract', as is your ownership of it. The latter is there only by decree of the sovereign, itself an 'abstract' concept . Your "home is my castle" justification for ridiculous valuations is typical of the nonsense spouted around here that tries to pass for a logical argument. The sober reality of this though is that you end up sounding a silly as one of those dribbling goldbug conspiracy theorists.
The point I was making is that the abstract wealth tied up in housing wealth is illiquid, meaning we can't convert that capital easily to more productive uses should the need arise; let's say tanking commodity prices. Neither is it fungible or portable - we can't just say "hey theres too many units of housing in melbourne, lets shift a few to sydney", so again we have this problem of allocating capital to put it to its best use.
In summary the only positive effect of high property prices to the broader economy is the retail spending fillip it provides via the wealth effect - and anyone with half a brain can see that's a zero sum game.
Mustapha Mond
17 Oct 2014, 01:43 AM
Like art?? Peter
Pete, if you can go market maker for a fixed Monet <--> Picasso conversion rate then let's play ball
"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.
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