In Utopia everyone would buy a house the day that they leave home and there would be no rental properties whatsoever. Unemployment would be 0.00% and Dimshit would ride a unicorn that craps gold bars too and from his office every day.
But the reality is very different to Utopia isn't it?
Kids leaving home inevitably rent a house with their mates for a few years once they enter the workforce. Young couples usually rent together before buying a house. Divorcees usually rent at least one house on the breakdown of their marriage. Low income earners and the unemployed usually rely on rental accommodation.
New migrants to the country tend to rent as they settle, regional people sending their kids to Uni prefer them not to live on the street, and student accommodation on site or in Nedlands is expensive and competitive.
Companies rely on the rental market for relocating employees at all levels of the organisation.
So if it does not fall to the private investor who will meet this demand? The State Government? Think about the State Governments in Australia taking up 100% of rental demand. How much would that cost? What could they better do with that money in terms of infrastructure, schools, hospitals and services? And not just the upfront costs, the rates, land tax, R&M?
The fact is that State and Federal Governments need private property investors and that is why people are incentivised to buy in, and taxed on the way out.
There is no law that say all citizens must invest, but those inclined to will. If you take away property as a vehicle you are essentially left with listed shares. If you took all money invested in property and moved it to shares what would that do to share prices?
I was thankful to the landlords who gave me their properties to live in cheap as a teenage. I couldn't have afforded to move out without them. Simple as that.
The problem is the negative cost increases. It's great to supply houses and get the tax incentives for doing it but to get the added benefit of capital gain is where the whole model f***s up. Cake and eating it has ruined this country and many others. There is no other factors in economics to day that affects our lives and economic health other than the current housing bubble. Fix that and you fix all our problems.
The problem is the negative cost increases. It's great to supply houses and get the tax incentives for doing it but to get the added benefit of capital gain is where the whole model f***s up. Cake and eating it has ruined this country and many others. There is no other factors in economics to day that affects our lives and economic health other than the current housing bubble. Fix that and you fix all our problems.
It looks like the problem with Perth is You can buy an established house cheaper than you can build.
Established houses need to increase.
Or land and building costs need to fall.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
There seems to be an over-representation of people wanting new in Perth. Is that the poms and Saffas?
I struggle a bit wif tha thought of buying a new house these days - Full of all that pine framing whacked together by labourers wif nailing guns. 'N tha builders 'n subbies 'n tradies all just generally doing wotever dodgies ta cut costs wif tha theory being tha final coat of paint will make it all look OK anyway - Well, for 6 years or wotever at least until tha builder's liability for it has expired - Assuming he ain't gone broke in tha meantime anyway.
Tha builders will tell me I'm wrong of course.
But being a bit of an old skeptic, I tend ta work on tha theory that if a joint's bin there for 40 or 50 or 60 years already 'n hasn't fallen down or rotted away yet, there's a half reasonable chance it'll still be there in another 40 or 50 or 60 years - Leastways if it gets tha basic maintenance done on it. (Although I will admit those old earthen ware sewer lines they put in the damn things can pretty much bite a bloke on tha arse pretty much anytime.)
I struggle a bit wif tha thought of buying a new house these days - Full of all that pine framing whacked together by labourers wif nailing guns. 'N tha builders 'n subbies 'n tradies all just generally doing wotever dodgies ta cut costs wif tha theory being tha final coat of paint will make it all look OK anyway - Well, for 6 years or wotever at least until tha builder's liability for it has expired - Assuming he ain't gone broke in tha meantime anyway.
People are basically stupid.
They think they are getting some free money from the government for buying a new house which they won't get if they buy an established place.
They have no idea what it is that they are buying either. Not like buying a new car which is an identical copy of thousands of others which have been road tested and reviewed. They are buying a cad drawing and hoping that a gang of hoons will stick some aerated blocks together which resemble the cad drawing.
They have no idea what the street will look like when it's finished, no idea what the neighbours will be like.
When they move in, they will be moving into a building site with construction going on all around them for the next three or four years.
Then the developer will move on and take their anti litter and graffiti squads with them to their next new suburb.
Maccas, KFC and all the other joints will move in opposite the high school which is a ten minute drive away and the "local" train station will be a 20 minute drive with nowhere to park when you get there. Ten years on and the young families who bought these places will have divorced and their disfunctional teenage kids will roam the streets at night spraying *u nt on road signs and corner house fences (who buys a corner block?).
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 struggle a bit wif tha thought of buying a new house these days - Full of all that pine framing whacked together by labourers wif nailing guns. 'N tha builders 'n subbies 'n tradies all just generally doing wotever dodgies ta cut costs wif tha theory being tha final coat of paint will make it all look OK anyway - Well, for 6 years or wotever at least until tha builder's liability for it has expired - Assuming he ain't gone broke in tha meantime anyway.
Tha builders will tell me I'm wrong of course.
But being a bit of an old skeptic, I tend ta work on tha theory that if a joint's bin there for 40 or 50 or 60 years already 'n hasn't fallen down or rotted away yet, there's a half reasonable chance it'll still be there in another 40 or 50 or 60 years - Leastways if it gets tha basic maintenance done on it. (Although I will admit those old earthen ware sewer lines they put in the damn things can pretty much bite a bloke on tha arse pretty much anytime.)
Herbs its about understanding what is out there & as someone from property and building mad family members, I have seen what has happened over the last twenty odd yrs. The first house I got built was a brick/tile with yes jarrah timber for the roofing to now with even quicker the soft termite loving wood that is pine. What is also happening is for Perth I have noticed lots of rendering and its more popular than face brick for the modern design home, the thing is it does require painting maintaenance face brick does not. What about clay versus concerte tiles? concerte tiles fade.... What about the drama of limestone in older props?, what about buying an established property and if the initial painting and preparation has not been done right one inherits pain in the ass stuff.
Could go on but there will always been maintenance whether old or new....
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.
The fringes need to crash, or the centre needs to boom. As it stands prices to lifestyle / amenity / employment is out of whack.
Come on Matthew, you have more of a shout in you than that.
You need to understand.
It is all...
Supply and demand.
Nothing more, nothing less.
Get with the program.
Perth is nothing more and nothing less than a city totally dependant on primary production of the feed stocks of humanity. Watch the film DUNE.
Perth has been through a once in a century boom.
Unless you are planning on living for another 99 years Matthew, you need to adjust to the new normal or you will go to your grave a bitter twisted broken old man.
It's over, let it go.
I am sitting back in Margaret River getting ready for the Cape to Cape.
Will be doing a little gardening, some small repairs maybe even buying some new plants today.
Newjez you're IQ seems to have taken a dip lately.
Please quote where I talk about month on month gains in the OP. I don't, I talk about year on year results, or long term trends not seasonal spikes as you are well aware.
Observe the Year on Year comparison which continues to expand with each passing weak. Also note when I made the OP housing stock was 16,750, it is now down 2,256 properties for sale. That as about as accurate as you get in this game.
Stock for sale compared to the same time last year is now down 1,147 properties.
Yet you want to jump on a monthly increase even though stock levels have plunged by thousands, very cynical of you.
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