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Crikey - There is NO Australian Housing Bubble; Four Corners hypes Australia's property 'bubble'
Topic Started: 23 Aug 2017, 08:49 PM (4,168 Views)
Bardon
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Chris
25 Aug 2017, 04:59 PM
The demand is artificial not the purchasers, how could you not comprehend that ?
Which part of the buyers buying is artificial?
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Veritas
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Bardon
25 Aug 2017, 05:15 PM
Which part of the buyers buying is artificial?
What part of expanding demand through monetary policy do you not understand?
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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Rat
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Filthy Rodent

Veritas
25 Aug 2017, 06:21 PM
What part of expanding demand through monetary policy do you not understand?
Monetary policy is no more 'artificial' than anything else controlled by humans. By your logic, all demand for everything is 'artificial'. It's meaningless.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Veritas
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Rat
25 Aug 2017, 06:54 PM
Monetary policy is no more 'artificial' than anything else controlled by humans. By your logic, all demand for everything is 'artificial'. It's meaningless.
I didn't say artificial.

I said that demand can be expanded through monetary policy.

then again, Bardon knows as much about the role of monetary policy in housing markets as my dog knows about his father.

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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Rat
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Filthy Rodent

Veritas
25 Aug 2017, 07:11 PM
I didn't say artificial.
The discussion was about 'artificial' demand - whatever that means.

Quote:
 
I said that demand can be expanded through monetary policy.
So? It can be expanded lots of ways.
Consumer protection laws extended to small businesses. Banks not permitted to repossess due to non-monetary defaults (for example, a fall in the property value).
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Veritas
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Rat
25 Aug 2017, 02:49 PM
Some country has to lead the way. Why not Australia? But I'd say this approach will be increasingly adopted by other countries as they see the stability and profitably of our banking system
:lol
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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Chris
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Rat
25 Aug 2017, 06:54 PM
Monetary policy is no more 'artificial' than anything else controlled by humans. By your logic, all demand for everything is 'artificial'. It's meaningless.
That's not the premise of the argument at all.

The artificial component is derived from exponential growth in asset values driven by speculation and cheap easy credit thats all supported by massive tax payer funded subsidies.

Edited by Chris, 25 Aug 2017, 10:50 PM.
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Bardon
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Chris
25 Aug 2017, 09:25 PM
The artificial component is derived from exponential growth in asset values driven by speculation and cheap easy credit thats all supported by massive tax payer funded subsidies.
Which bit is the artificial bit?
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Foxy
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Zero is coming...

Bardon
23 Aug 2017, 09:52 PM
Its all created by buyer demand there is nothing else to see.
Just like Perth, up while we had heavy demand and the incomes to push prices up, now that is gone, well prices drop.

So Sydney and Melbourne have more demand than supply, up they go...

Cheap credit, easy banks, and away they go.

Just watch if you start to see the smart monkeys selling...

Peter

Like old Foxbat told me to in Perth 4 years ago...
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Bardon
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Foxy
26 Aug 2017, 02:15 AM
Just watch if you start to see the smart monkeys selling...
Or when the buyers stop buying and decide that the years and years of stunning price growth is now too high, which is the top and the start of the slump.
Edited by Bardon, 26 Aug 2017, 08:32 AM.
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