"Our results suggest that buying was financially more favourable than renting over much of the past three decades in all Australian capital cities."
Because we know that the last 30 years have been normal from a historical perspective......
And 30 years is such a Large time sample......
Oh wait we've had 26 years of uninterrupted growth....
LOL........
Rufus
9 Jan 2017, 09:22 AM
When Keen gave young people the advice to not buy and wait for the inevitable crash, he created increased demand for rental properties.
I often wonder what our market would be like if he (and a few others) hadn't started that shift away from PPOR ownership for the next generation. Did he inadvertently create this situation, would there be a higher % of home ownership amongst Gen X and Y if he hadn't pushed his views so strongly in the media?
When Keen gave young people the advice to not buy and wait for the inevitable crash, he created increased demand for rental properties.
I often wonder what our market would be like if he (and a few others) hadn't started that shift away from PPOR ownership for the next generation. Did he inadvertently create this situation, would there be a higher % of home ownership amongst Gen X and Y if he hadn't pushed his views so strongly in the media?
I believe the Keen scare lead the govt to double or triple the FHOG. Without that stimulus property may have crashed.
In a way yes. He convinced many thousands to wait for the crash. Those people still needed accommodation as they formed families, so renting was the option they chose rather than renting. I don't have a chart on me but my recollection is that investors had a very high presence in the market around 2009 because prices were reasonable and demand for rentals was growing.
What would happen to any necessary reusable product if the people who needed them stopped buying and chose to rent them instead. Investors will step up and fill the gap.
zaph
9 Jan 2017, 09:40 AM
I believe the Keen scare lead the govt to double or triple the FHOG. Without that stimulus property may have crashed.
Yes, but the % of homeownership amongst the younger generations is substantially lower than it used to be. Part of that is because they form families later in life now, but a look at social media sites like this one reveals that many who could have bought have delayed that purchase because they believed they would make a killing in the market.
That has added to the demand for rental properties. Once someone decides to buy a rental property, and it works out well for them, they are probably going to hold that property and perhaps add to their portfolio. What would the market look like if a new wave of investors hadn't been invited into the market by Keens influence amongst young would be buyers?
She opens with "Of course, for many, there is no choice at all. Lacking the substantial deposit required to enter the property market in many Australian cities, they rent by default."
Something you all fail to acknowledge or even understand.
Yes we know and understand that we have a captured market.
Jessie cold be up for a Nobel. Our last Economics Prize was in 94 to a Hungarian immigrant John Harsanyi. About time an Aussie-born journo chalked one up for the team.
I believe the Keen scare lead the govt to double or triple the FHOG. Without that stimulus property may have crashed.
You may have a point here. The very public statement may have forced the government's hand. But mostly to protect their own personal portfolios. Haha pricks!
When Keen gave young people the advice to not buy and wait for the inevitable crash, he created increased demand for rental properties.
I often wonder what our market would be like if he (and a few others) hadn't started that shift away from PPOR ownership for the next generation. Did he inadvertently create this situation, would there be a higher % of home ownership amongst Gen X and Y if he hadn't pushed his views so strongly in the media?
What is with your obsession for Steve Keen, it puts question marks over who you say you are and your reasons for posting. Keen is hated by vested interests, people who have a significant reliance on his personal message being drowned out and ridiculed.
There was a concerted campaign from banks, economists employed in property related businesses and RE groups. He stood up in a public arena and had a go which was silly because he made himself an easy target and mobilised governments and banks to counteract and stimulate the market.
Your fixation aside I think you put a stupid amount of credibility to Keen, his following and influence when it comes to renters and 'Doomers'. He is one of many voices, he certainly didn't have any real impact on my situation as I couldn't afford to buy the even if I wanted to. The only influence I can see he had was mobilising banks and governments to introduce policies to force the market upwards.
He got his 5 mins of fame as a genius which now heads towards a decade of ridicule because of an extremely personal vendetta by significant vested interests.
"The truth is that there are no good men, or bad men. It is the deeds that have goodness or badness in them. There are good deeds, and bad deeds. Men are just men."
What is with your obsession for Steve Keen, it puts question marks over who you say you are and your reasons for posting. Keen is hated by vested interests, people who have a significant reliance on his personal message being drowned out and ridiculed.
There was a concerted campaign from banks, economists employed in property related businesses and RE groups. He stood up in a public arena and had a go which was silly because he made himself an easy target and mobilised governments and banks to counteract and stimulate the market.
Your fixation aside I think you put a stupid amount of credibility to Keen, his following and influence when it comes to renters and 'Doomers'. He is one of many voices, he certainly didn't have any real impact on my situation as I couldn't afford to buy the even if I wanted to. The only influence I can see he had was mobilising banks and governments to introduce policies to force the market upwards.
He got his 5 mins of fame as a genius which now heads towards a decade of ridicule because of an extremely personal vendetta by significant vested interests.
The same reasons why Star Wsrs dynasty has lasted so long. The basic dichotomy of good vs evil is at the root of all suburbanites' fears. Ultimately, what Steve Keen says is nightmarish for the suburbanites who have put all on the black based on the typical themes they hear from the media, from the Joe Hockeys, at the seminars and the barbies.
It goes without saying that Steve Keen is as popular as chilled tofu at the BBQ.
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