Lots of people are building houses and need somewhere to build them.
So what is it then: Are loads of people building new homes for themselves? or are loads of people sitting on the edge of bankrupcy about to sell their home for peanuts?
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.
The model you describe every day on APF in all kinds of formats with the notion of delving into what happen yesterday is going to happen tomoorow draw is broken.
Driving the economy on the expansion of household debt has been a godsend for boomers and a lot of gen x'ers for20 years but the household balance sheets are now packed to the gills.
Mortgage servitude is the only alternative to rental servitude. Most people would agree that buying their home was the most long term beneficial decision that they made. Why do you pretend otherwise? Why do you wish for a house price crash? Do you really think that will bring down the big bad banking system?
House price crashes hurt new young buyers more than anyone else.
Is it any wonder that parents help their kids we did. I think the large deposits and LMI requirements are quite unnecessary. The Australian market performed resiliently for banks with much more lenient lending. Young people today are being penalised for a crash that never happened.
If this is pointed out to the banks, they use folk like you and your crash mongering, as an excuse to charge massive insurance premiums.
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.
Of course their are other factors including artificial demand via immigration but this is the main player!
So what you are really trying to tell me is because your personal view point or political is against Immigration you do not factor this into the equation, or simply ignore it.
Well it is going to be a bad few years ahead for you as Abbott & Co are about to let in a flood of migrants and are going to attempt to turn wealthy Chinese into wealthy Australian citizens.
It does not matter if you don't like it, or disagree with it politically you can vote at the next election, but it will happen. If you fail to prepare for this outcome or how to take advantage of it that is you're lost opportunity.
As per the ABS rents increased in Perth during the past quarter and over the year. Care to explain that?
Perhaps all is not as you think it is Veritas.
I can explain it by saying that the ABS is wrong.
Further, I think the data from the likes of REIWA, SQM and others which, as you know, all tells a story of rents falling in Perth, is correct.
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
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