Read young man read ---I already told you that I thought the government needs to ensure entry level priced building occurs in Sydney
How does the government do this? Do they subsidise house building? Or how about this, they could introduce a scheme where people buying their first house get some monetary subsidy, or grant. Yes, they could call it a First Home Owners Grant or something like that. And the grant should increase in line with house prices. That will make housing affordable!
After long consideration, I have to disagree with the title of this post. Property bulls are not intentionally destroying the country's future. Property bulls are just short sighted economic rationalists. The system has been designed to encourage speculation in property. Turning down free money is irrational. Not considering where that free money is coming from may be myopic, but that doesn't make turning it down rational.
There comes a time in the life of every Empire where the plunder is so great that even the lowliest worker comes to believe that wealth is a right, not a reward. At that point the society's focus shifts from creativity and ambition to speculation and greed. The good news is that empires take a long time to decline. The bad news is that it isn't pretty.
I agree with the sentiment of the OP's initial post, but I think a little more venom should be reserved for State and Local Government supply policy, transportation policy and inner city development policy.
Failures here, combined with relaxation of lending standards and the pandering of Local Government to special interest groups further stifling supply has led to the result Australia has today.
Many of the baby boomers and many X'ers were simply able to take advantage of this set of circumstances whilst it lasted, and can continue to because they have the equity. When property bulls berate others, as expected you get a highly charged emotional response because many people feel stolen from.
A lot of our younger people don't have a leg to stand on unless they have inheritance or parents willing to stump up the money, and there is nay surer a sign of a bubble in property prices than that.
The only thing keeping property humming along at a stable rate at the moment is international investment, resulting in the theft of a basic staple of Australian aspirationalism from the younger generation.
At the end of the day, high property prices do favours for no one, as it drains away capital from more productive businesses that can lead to genuine wealth and employment creation for Australia.
At the end of the day, high property prices do favours for no one, as it drains away capital from more productive businesses that can lead to genuine wealth and employment creation for Australia.
There's also the fact that the returns on a lot of the borrowed funds used (or NOT according to some - With it just being a supply 'n demand thing ... ) to push up our housing prices go to OS investors. So those returns don't even stay in the country. Which makes us sound like bits of suckers I suspect?
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
No need for me to ignore it; 'Cause I didn't actually understand an acronym of what either of you said ...
Reminds me of reading adverts for comms type thingies; 'N from lonely hearts types ...
Ok I will translate the sexual acronyms... Just to corrupt your not sooo innocent mind as it is...
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.
If that is true why is it that cities like Dallas and other cities in southern usa are not going up much and never did despite being growing cities with good economies. Can u please explain that? Also how these markets remain affordable with nice houses around 200k, people with good incomes and because of this much more disposable income. Tell me skamy why does it cost 260k for a small patch of sand here when in Texas cities it costs 60k? There and there only is your problem. We can have affordable housing if we had liberal land policies with less vested interests. Will wait for your answer.
American housing is cheaper as it has just had a really big crash, prices are recovering as we speak, so if you want to nab a bargain now seems to be the time.
Dallas actually has a higher price to rent than Perth and not far off that of Sydney -so maybe it is not as good a bargain as it looks at first glance. In Perth we earn 25% more on average that they earn in Dallas and Americans pay much higher ongoing property taxes with reduces their disposable income in the same way as a bigger mortgage would in Oz. So I think on average folk in Perth will have more dollars in their pockets of disposable income than the Texans.
We do have liberal land policies, it is just that it has not been economical to build over the last few years. Last year you could buy land anywhere in Perth for an absolute song. This year land is flying off the shelf and we are struggling to keep up and prices are getting pushed up.
You have this naive view that if the government releases a load of land, developers will magically appear and build houses until there is no money to be made at all and houses are suddenly cheap as chips in the best areas of the city. It is a load of old codswallop.
If you actually read my posts you will see that I do believe that the government needs to ensure that land is available for entry level housing, but it will involve more than giving land away at bargain basement prices to developers or low income folk will never see the benefit of it.
genX
7 Aug 2013, 10:47 PM
How does the government do this? Do they subsidise house building? Or how about this, they could introduce a scheme where people buying their first house get some monetary subsidy, or grant. Yes, they could call it a First Home Owners Grant or something like that. And the grant should increase in line with house prices. That will make housing affordable!
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.
Sorry, it's too late for you, you will have the mental age of a 9 year old for the rest of your life and you will continue to be an anchor on our society. I don't mind supporting people with mental disabilities, but letting them buy houses is just asking for trouble.
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