By any metric the price young people are paying for land outstrips the boomer good times by many multiples. House prices have nothing to do with it.
Boomers have surfed a Greenspan inspired asset boom of epic proportions and have the naivety and total self absorption to think it was something to do with their own magnificent skills. The funny thing is this exactly the game Greenspan and the finance industry played – romancing the boomer. Whisper sweet nothings in their ear, play to their ego and secret their equity away.
It will be interesting when they get old and sick and the government starts taking their assets to fund their outrageous nursing home costs. Watch the cries for medical system reform then.
You have swallowed a pile of doomer garbage that the best ever returns in housing are already gone to the previous generation. People said this at the tail end of the 70 recession,then again at the tail end of the 90s recession and here we are all over again with another pile of fools falling for the same self pitying stories.
You have no idea what will happen to housing but if history repeats and prices grow with growing wealth and population in the same manner as it has for hundreds of years,this generation of buyers in Australia today are likely to see some very strong price increases,maybe even dwarfing those of their parents.
Do some proper research (ie not the doom and gloomers who are selling you their fast outdated tales of Armageddon) and step outta the "woe is the lot of young people today" mantra that you are bleating. Take a good look around and you might just see how lucky you are to be young in this country today. In 10 years time I guarantee you will look back at this time as full of golden opportunities from mining shares to blocks of gold or homes in outer bumfuck. I bet any one of these will do well for ya, all are at really good prices today. Even the daftest investor will probably make money over the next decade as the world recovers from the GFC.
Greenspan or whatever, it was the rising from the slumps that makes the money, no one individual was responsible -you can be part of today's opportunities or you can cry to your mama that life is not fair. Your choice.
I have provided well for my future but more than that I am confident of a loving family. WTF is up with you and your attitude towards the older people in your life, will you seriously refuse to provide for the health needs of your parents or grandparents? how sad is that for you?
Veritas
7 Aug 2013, 01:33 PM
Lets pretend Perth doesn't exist.
Now answer the question.
Fraudster.
Oh this is the best yet ha haha
let us pretend perth does not exist ?????? are you loosing it completely Veritas.
Of course Perth exists ya silly duffer. Sydney and Melbourne are both more mature markets than Perth and it is likely that without concerted government efforts to build satellite towns and infrastructure for affordable homes then yes, fewer and fewer first time buyers will be able to afford to buy in these cities. This is what happens as cities grow in population and wealth. It is the focus of the article by Judith Yates that you are so fond of. At the turn of the century they built terraces in Paddington for the workers, now we need to ensure that we are still building lower cost housing for the next generation. Perth does this quite well ie areas like Clarkson, Butler, Alkimos etc with good train links and very affordable prices. There are also movements of jobs and businesses to Joondalup etc to provide local employment. Sydney however, has real problems with this and I would love to see a concerted effort by the government to do something about this and invest in low cost housing and good transport links or to provide subsidies to businesses to move out of the city,to take some pressure of the Sydney housing market and provide entry level homes.
What are your thoughts on how we can help new home buyer? Do you have anything beyond your usual crash spruiking propositions to rob the previous generation of home owners.
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.
You have swallowed a pile of doomer garbage that the best ever returns in housing are already gone to the previous generation. People said this at the tail end of the 70 recession,then again at the tail end of the 90s recession and here we are all over again with another pile of fools falling for the same self pitying stories.
You have no idea what will happen to housing but if history repeats and prices grow with growing wealth and population in the same manner as it has for hundreds of years,this generation of buyers in Australia today are likely to see some very strong price increases,maybe even dwarfing those of their parents.
Do some proper research (ie not the doom and gloomers who are selling you their fast outdated tales of Armageddon) and step outta the "woe is the lot of young people today" mantra that you are bleating. Take a good look around and you might just see how lucky you are to be young in this country today. In 10 years time I guarantee you will look back at this time as full of golden opportunities from mining shares to blocks of gold or homes in outer bumfuck. I bet any one of these will do well for ya, all are at really good prices today. Even the daftest investor will probably make money over the next decade as the world recovers from the GFC.
Greenspan or whatever, it was the rising from the slumps that makes the money, no one individual was responsible -you can be part of today's opportunities or you can cry to your mama that life is not fair. Your choice.
I have provided well for my future but more than that I am confident of a loving family. WTF is up with you and your attitude towards the older people in your life, will you seriously refuse to provide for the health needs of your parents or grandparents? how sad is that for you? Oh this is the best yet ha haha
let us pretend perth does not exist ?????? are you loosing it completely Veritas.
Of course Perth exists ya silly duffer. Sydney and Melbourne are both more mature markets than Perth and it is likely that without concerted government efforts to build satellite towns and infrastructure for affordable homes then yes, fewer and fewer first time buyers will be able to afford to buy in these cities. This is what happens as cities grow in population and wealth. It is the focus of the article by Judith Yates that you are so fond of. At the turn of the century they built terraces in Paddington for the workers, now we need to ensure that we are still building lower cost housing for the next generation. Perth does this quite well ie areas like Clarkson, Butler, Alkimos etc with good train links and very affordable prices. There are also movements of jobs and businesses to Joondalup etc to provide local employment. Sydney however, has real problems with this and I would love to see a concerted effort by the government to do something about this and invest in low cost housing and good transport links or to provide subsidies to businesses to move out of the city,to take some pressure of the Sydney housing market and provide entry level homes.
What are your thoughts on how we can help new home buyer? Do you have anything beyond your usual crash spruiking propositions to rob the previous generation of home owners.
Lets try that again.
Leaving strong FTB demand in WA out of the equation, what are your views on the very low rates of FTB activity elsewhere in Australia?
Are these people just cashed up whingers waiting for the crash too?
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
I enjoy your posts Timo. Most are well written bear food. A lot of truth and honesty in them. Sometimes they feel a little ahead of their time for the level of bearishness. I think they'll read really well when the average punter is out for blood some time in the future.
Ooooohhh please
You might as well give Timo a great big X in the arse....
Bear suck up...go cuddle now..
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.
Having branched out a bit and started talking about housing on other forums, I'm coming to realise that there are fewer and fewer bears, and the reasons why the bubble is going to pop seems to be getting narrower and narrower and more contradictory. For example, they talk about all the vested interests propping ip the bubble, but there's nothing to indicate that the vested interests are going to suddenly withdraw their support - quite the opposite.
So really, all their reasons that the bubble must pop sooner or later, is really pointing out how unfair the system is... but how likely it is to stay that way
Property speculation is a type of gambling... But everyone knows that in gambling, the house always wins in the end.
Having branched out a bit and started talking about housing on other forums, I'm coming to realise that there are fewer and fewer bears, and the reasons why the bubble is going to pop seems to be getting narrower and narrower and more contradictory. For example, they talk about all the vested interests propping ip the bubble, but there's nothing to indicate that the vested interests are going to suddenly withdraw their support - quite the opposite.
So really, all their reasons that the bubble must pop sooner or later, is really pointing out how unfair the system is... but how likely it is to stay that way
To the contrary, your casual observations on forums are in stark contrast to the huge number of people who have had a gutful of the parasitic actions of property infestors. The woeful situation being faced by the economy is first and foremost the fault of the corrupt governments we have, then followed by the greed of property speculators.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
Having branched out a bit and started talking about housing on other forums, I'm coming to realise that there are fewer and fewer bears, and the reasons why the bubble is going to pop seems to be getting narrower and narrower and more contradictory. For example, they talk about all the vested interests propping ip the bubble, but there's nothing to indicate that the vested interests are going to suddenly withdraw their support - quite the opposite.
So really, all their reasons that the bubble must pop sooner or later, is really pointing out how unfair the system is... but how likely it is to stay that way
In other words they are whingers ... way ahead of you mate.
Having branched out a bit and started talking about housing on other forums, I'm coming to realise that there are fewer and fewer bears, and the reasons why the bubble is going to pop seems to be getting narrower and narrower and more contradictory. For example, they talk about all the vested interests propping ip the bubble, but there's nothing to indicate that the vested interests are going to suddenly withdraw their support - quite the opposite.
So really, all their reasons that the bubble must pop sooner or later, is really pointing out how unfair the system is... but how likely it is to stay that way
Well the recent auspoll said that 80 something percent of people see housing affordability as their number 1 issue, true these bears seem like a bunch of wimps for the most part, but they've been offered a solution in the Stable Population Party, granted, the response seems to be not that great, but we'll see what happens in a month.
Otherwise, the US, and by extension the rest of the world's economy is still relying on 80 billion a month QE, how long will that last?
How long will China be able to lie about it's finances? How long will it take for their bubble to pop?
Of course highly indebted bogans aren't going to run for the exits unless forced to.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
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.
You might as well give Timo a great big X in the arse....
Bear suck up...go cuddle now..
I don't think he's in your line of work Blondie
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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