Iron ore futures below $40, spot and aud holding up.
See what tomorrow will bring.
So much for a quiet week.
I don't know what the current bursting bubble will eventually be labelled as by economic historians?
But at some point in the not too distant, it will be obvious when it started, why it started and why it was always going to end.
My own label would be the "free money" bubble.
It started when money ceased to be tied to anything and grew when people realised that they could borrow to buy something today and sell it in the future for more than enough to cover their debts and retire in comfort.
It ended when people realised that the above is actually impossible unless you happened to get in very early.
Pretty much like every other bubble that ever existed.
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.
I don't know what the current bursting bubble will eventually be labelled as by economic historians?
But at some point in the not too distant, it will be obvious when it started, why it started and why it was always going to end.
My own label would be the "free money" bubble.
It started when money ceased to be tied to anything and grew when people realised that they could borrow to buy something today and sell it in the future for more than enough to cover their debts and retire in comfort.
It ended when people realised that the above is actually impossible unless you happened to get in very early.
Pretty much like every other bubble that ever existed.
I blame Maggie.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
She didn't start the can rolling, but she gave it a bloody hard kick.
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.
Its laughable isn't it. These Gala's will still be posting here in 5 years with the same delusional wishes.
Perthite et al will never get it.
The amount of money they have spent on rent while waiting for the big one is will never be regained from any downturn.
In the mean time, despite all the headwinds Perth RE and rents still remain very solid, dipping marginally as the market takes a breather.
All the time, more pressure is being brought to bear on this market as South Africans and Brits continue to to flood the city.
But don't worry, they will continue to post their Perth Cataclysm stories as regular as they pay their rent.
Not necessarily true.
The herd-folk may believe everything a real-estate agent tells them, and bid accordingly.
However, an astute (patient) individual, who is determined to drive a hard deal can, and will, achieve a purchase well below market as the conditions deteriorate. You need only find one genuine seller, who must get the property sold, to achieve this. But this requires patience, hard-work, and determination. It appears that some of these 'Galah's' have those virtues. So I wouldn't be so sure that they will fail.
This part of the game has only just started. The bears sense weakness, and they are getting bolder. They are hungry after many years of hibernation. They will be able to smellout the weak and hit them with unconditional cash offers (30% below market). Remember, they only need to get one. Just one. Watch out, the bears are coming out of their dens in Perth. Noses to the air, belly aching for a meal...
actually I'm a realist and I am prepared. If you are prepared you can make a lot of money off those who are unprepared. Fortune passes everywhere That's the trouble with most people today, no sense of humor.
Ever heard of Karma Frankrider?
You sit out your life hating on other folk who try to set themselves up to own their own homes and maybe have an IP to see them through their retirement. You bury gold in the hope that these people will fall on hard times and you will get to be the vulture picking over their bones along with the other cash rich bottom feeders.
If you thought that house prices needed to fall and stay down you would not be claiming that you could profit by such an event. You seek to profit as you know any downturn would be temporary and you seek profits from the certain return to current prices and onward and upwards from there.
It ain't gonna happen in this rich country and the only ponzi that will see a return to median is gold - just look at all that price growth in the past decade - what sustains it? absolutely nothing. There are no new big sources of demand for gold - there is no no shortage of supply. The only thing that sustains it is folk like you holding out for property crashes throughout the world. What is gonna happen when people wake up to the fact that this is not going to happen and they are holding their money in a yield-less asset in a world economy with some great yield opportunities.
While you wait on the downfall of others you will instead get a front seat to watch Karma in action.
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 herd-folk may believe everything a real-estate agent tells them, and bid accordingly.
However, an astute (patient) individual, who is determined to drive a hard deal can, and will, achieve a purchase well below market as the conditions deteriorate. You need only find one genuine seller, who must get the property sold, to achieve this. But this requires patience, hard-work, and determination. It appears that some of these 'Galah's' have those virtues. So I wouldn't be so sure that they will fail.
This part of the game has only just started. The bears sense weakness, and they are getting bolder. They are hungry after many years of hibernation. They will be able to smellout the weak and hit them with unconditional cash offers (30% below market). Remember, they only need to get one. Just one. Watch out, the bears are coming out of their dens in Perth. Noses to the air, belly aching for a meal...
The point is that there are good bargains in Perth and there have been good bargains since 2007 when the market crashed. Prices are still below 2007 prices. These silly eejits are hoping for even bigger bargains and they are on a hiding to nothing.
The people of Perth have held onto their homes since 2007 - they have had fabulous earnings throughout the downturn and they have deleveraged enormously. Yet Perthite thinks we are like Ireland who were in a time of zero savings rates, huge debt growth and ridiculous price growth. ( 8 years before the Irish crash the prices in Dublin quadrupled whereas in the 8 years prior to today the prices in Perth did not grow at all).
Seriously these Perth bears have rocks in their heads.
WA is set for 4% growth this year, the investments of the mining boom are returning a production boom. Exports are far higher than they were prior to 2007. It may not be the most profitable boom right now. However, as the world economy recovers and energy use and construction returns to pre GFC levels WA will make a motza anyone with a modicum of common sense can see this.
I get really annoyed with the charlatans that sell nonsense to young people like Perthite and Veritas. These young people will be embittered for life when they realize the lemons that they have been sold.
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 point is that there are good bargains in Perth and there have been good bargains since 2007 when the market crashed. Prices are still below 2007 prices. These silly eejits are hoping for even bigger bargains and they are on a hiding to nothing.
The people of Perth have held onto their homes since 2007 - they have had fabulous earnings throughout the downturn and they have deleveraged enormously. Yet Perthite thinks we are like Ireland who were in a time of zero savings rates, huge debt growth and ridiculous price growth. ( 8 years before the Irish crash the prices in Dublin quadrupled whereas in the 8 years prior to today the prices in Perth did not grow at all).
Seriously these Perth bears have rocks in their heads.
WA is set for 4% growth this year, the investments of the mining boom are returning a production boom. Exports are far higher than they were prior to 2007. It may not be the most profitable boom right now. However, as the world economy recovers and energy use and construction returns to pre GFC levels WA will make a motza anyone with a modicum of common sense can see this.
I get really annoyed with the charlatans that sell nonsense to young people like Perthite and Veritas. These young people will be embittered for life when they realize the lemons that they have been sold.
I get annoyed when people with a vested interest in a dying market will do anything to talk it up. Nothing more dangerous than a wounded bull. Best to stand back and let it die naturally.
I don't know what the current bursting bubble will eventually be labelled as by economic historians?
But at some point in the not too distant, it will be obvious when it started, why it started and why it was always going to end.
My own label would be the "free money" bubble.
It started when money ceased to be tied to anything and grew when people realised that they could borrow to buy something today and sell it in the future for more than enough to cover their debts and retire in comfort.
It ended when people realised that the above is actually impossible unless you happened to get in very early.
Pretty much like every other bubble that ever existed.
Well it all depends on ones personal finAncial situation.
The danger will always be buying at or close to the top those who feel it more would be novice investors and first time prop buyers. As you are well aware, those who borrowed to their max can be hit with that double whammy where falling values and the rising repayments can lead end up with the negative equity ..
The Gold and Sunshine Coast and Cairns are expected to do ok with house prices Brissie seems to be positive too being the only capital city market that will not suffer a decline in the median house prices.
For those who do have the $, cash rates are too damn low and the sharemarket is not always a favourite, so it's about trying to get with property markets with more growth potential.
lulldapull
29 Sep 2015, 12:22 AM
Perth's job market today resembles that of a third world country's.
It'll go back to being a sleepy country town it always was.
That's very crappy comments about Perth. Sleepy to certain degrees yeah, but not 3rd world.
skamy
29 Sep 2015, 11:52 AM
The point is that there are good bargains in Perth and there have been good bargains since 2007 when the market crashed. Prices are still below 2007 prices. These silly eejits are hoping for even bigger bargains and they are on a hiding to nothing.
The people of Perth have held onto their homes since 2007 - they have had fabulous earnings throughout the downturn and they have deleveraged enormously. Yet Perthite thinks we are like Ireland who were in a time of zero savings rates, huge debt growth and ridiculous price growth. ( 8 years before the Irish crash the prices in Dublin quadrupled whereas in the 8 years prior to today the prices in Perth did not grow at all).
Seriously these Perth bears have rocks in their heads.
WA is set for 4% growth this year, the investments of the mining boom are returning a production boom. Exports are far higher than they were prior to 2007. It may not be the most profitable boom right now. However, as the world economy recovers and energy use and construction returns to pre GFC levels WA will make a motza anyone with a modicum of common sense can see this.
I get really annoyed with the charlatans that sell nonsense to young people like Perthite and Veritas. These young people will be embittered for life when they realize the lemons that they have been sold.
I have to say I've had it great when came to familial assistance and then having to feel the fear and yes excitement in establishing properties over the time since I started out. I can get what goes through some peoples minds and it can be quite daunting. Is property still the sound investment it once was? Well I'm going to say there's two parts there's negs and positives.
Is the threat of a bubble real? Yes it is for those like in the US during the GFC many home owners simply walked away from their properties, I had an interesting opportunity to meet someone who really went through some crap financially and he's managed to find his feet again through a commercial project that's he is involved in. In Oz we can't just walk in the bank, we don't have those non-recourse mortgages as some U.S. States do. So, the bank here can sell the home and if the proceeds don't cover the mortgage you're liable for the shortfall.
The personal bubble also exists when some are stupid with their money go nuts and not plan long term.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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