I noticed you didn't address the AFFORDABILITY ISSUE even though Interest rates are at 30 years lows?
Wonder why that is?
Those buying apparently don't have an affordability issue. When they do they will stop buying and prices will peak.
In Brisbane where I live prices of good family homes are very affordable for most young couples, that's not a problem. If prices in your preferred area are beyond your means why not look in your second or third preference areas, or save more or borrow more. If you look you will find a solution that suits you.
Those buying apparently don't have an affordability issue. When they do they will stop buying and prices will peak.
In Brisbane where I live prices of good family homes are very affordable for most young couples, that's not a problem. If prices in your preferred area are beyond your means why not look in your second or third preference areas, or save more or borrow more. If you look you will find a solution that suits you.
Rufus the statement was:
Quote:
“Sydney is now officially unaffordable, despite the Reserve Bank keeping interest rates at a 30-year low,” said Domain Group chief economist Andrew Wilson, who undertook the modelling.
Even with record low interest rates................
Quote:
Dr Wilson said these repayments directly affected the housing market’s performance as home buyers struggled to upgrade and take on more debt
Struggle to take on more debt.
Quote:
“All these factors add to unaffordability and would lead to a plateau, if not a decline, in house prices,” Mr Kunnen said.
Wow no longer rising prices?
Quote:
The deterioration in housing affordability in follows a decision by major lenders to increasing their variable rates out of line with the Reserve Bank’s official cash rate.
Yep the Banks raising outside of the RBA's Official cash rate.
ALL inconvenient truths that point to the obvious conclusion........................................Just not obvious enough for you.
I'm not here to solve your problems. You might be unlucky enough to be wanting to buy into a housing market at it's peak, but that's happened to plenty of people before you, and it will happen again and again.
That's your problem, not mine. I've solved all of my problems as they arose including wanting to buy in a hot market.
You do have some options, but you do seem rather intellectually lazy so discussing them is probably a waste of my time.
Cheers....
Take risks - if you win you will become wealthy, if you lose you will become wise
I'm not here to solve your problems. You might be unlucky enough to be wanting to buy into a housing market at it's peak, but that's happened to plenty of people before you, and it will happen again and again.
That's your problem, not mine. I've solved all of my problems as they arose including wanting to buy in a hot market.
You do have some options, but you do seem rather intellectually lazy so discussing them is probably a waste of my time.
Cheers....
Thats funny Rufus.
I breakdown the Argument for you and you still avoid it.
Simply because it shatters your "House Prices Always Will Rise" narrative
"M2 money supply expanded an annual 13.3 percent in 2015, beating the government's money supply target of around 12 percent, due to a raft of easing measures."
So on the face of it a 13% target is either less or not much change.
I think we all realise by now that China has a very big problem. They know aspects of the economy are completely out of wack and somehow they need to keep in power while making things like steel coal iron ore etc etc more efficient while simultaneous keeping most people happy.
The situation of the zombie firms is more or less like a comedy, the work force might not even be working, and may or may not be being paid, the local authorities/banks are not allowed to close the companies, but they are expected to finance them, and until the government gets around to releasing money to help the local authorities nothing is being done. If it was bad in the Uk during the 1970's China has taken it to a whole new level of weird.
Local and provincial governments have a perverse incentive to let zombie companies stagger on, notes Minxin Pei, a government professor at Claremont McKenna College: In an economy with too many companies, those that outlast the competition eventually stand to win.
“If I kill my zombie and you don’t kill yours, I sacrifice,”
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