Nearly everyone here seems to have gone property crazy.
Many people I know are going out to look at property this weekend, from my work perhaps as many as 25% have suddenly decided to go to inspections. This is mainly for investment/speculation purposes. One person only sold a few months ago because he felt the market was tanking but now wants to buy 3 investment units!
Lots of stories about houses going at above asking price and the low rates seems to have suddenly fire up their greed. Nearly all agree that property is very expensive but the consensus is that rising prices is all that matters. Like all good bubbles the concepts of value and risk appear to be totally absent.
I also know of two people who have been marketing their property for the past month (expressions of interest) and are now hoping to get at least the ridiculous high end asking price. Both are bankers and the last time I spoke to them they were massive bulls which I find very interesting. I’ll post an update when I next see them. I know one is looking at rentals in the same area.
Watching this bubble inflate further is very interesting; this should be a big weekend.
IMO as soon as wealthy Asian investors sniff a more compelling bargain elsewhere, this little bubble will be over & there will be a sharp fall in values to more closely match domestic affordability. The question will be how much, but for parts of Greater Western Sydney, I think 15% - 20% is not out of the question.
Watching this bubble inflate further is very interesting; this should be a big weekend.
But two years ago you were saying house prices were unaffordable and couldn't get any higher, and you were basically calling the bulls idiots for pointing out that interest rate cuts would spark a new property boom. Do you now accept that the bulls were right and you were wrong?
But two years ago you were saying house prices were unaffordable and couldn't get any higher, and you were basically calling the bulls idiots for pointing out that interest rate cuts would spark a new property boom. Do you now accept that the bulls were right and you were wrong?
Two years ago there was no 888 visa. Are you saying the bulls predicted the introduction of the 888 visa?
Two years ago there was no 888 visa. Are you saying the bulls predicted the introduction of the 888 visa?
It's not just Chinese buyers in Sydney. I've never been busier writing business for people buying in country NSW and Victoria. Even in Qld it's starting to get hot although I've not seen any crazy prices here yet.
It's convenient to blame it all on the Chinese, but they aren't the only ones buying.
Any expressed market opinion is my own and is not to be taken as financial advice
It's not just Chinese buyers in Sydney. I've never been busier writing business for people buying in country NSW and Victoria. Even in Qld it's starting to get hot although I've not seen any crazy prices here yet.
It's convenient to blame it all on the Chinese, but they aren't the only ones buying.
Doing business with any taxi drivers?
It's not just 888 visas, but they certainly tipped the balance at the right time. There is a lot of ammunition, fiscal and monetary, to drive house prices up, so it is almost impossible to make bearish predictions when the government/RBA still have unspent stimulus tools.
In my opinion, there are unsound economic fundamentals underlying current property prices that are simply a coincidence of circumstance. High commodity prices fueled by credit booms and subsequent unprecedented monetary stimulus in the US and Europe have sustained an otherwise unsustainable capital and current account. But once those 'once in a lifetime' conditions are no longer, we will be left with an economy with hollowed out industry and a wunch of bankers and ticket clippers in the Financial Services industry and not much else.
I'm glad the country folk are jumping onto the last spin of the property boom wheel. They are usually the last holdouts, missing the first two spikes before rushing in where angels fear to tread. I think it has something to do with sleazy property seminar entrepreneurs. Once the city gets jaded with their schtick, they head out to the countryside. After all, the REAL profits are in the seminar business, not the property investment business.
It's not just 888 visas, but they certainly tipped the balance at the right time. There is a lot of ammunition, fiscal and monetary, to drive house prices up, so it is almost impossible to make bearish predictions when the government/RBA still have unspent stimulus tools.
In my opinion, there are unsound economic fundamentals underlying current property prices that are simply a coincidence of circumstance. High commodity prices fueled by credit booms and subsequent unprecedented monetary stimulus in the US and Europe have sustained an otherwise unsustainable capital and current account. But once those 'once in a lifetime' conditions are no longer, we will be left with an economy with hollowed out industry and a wunch of bankers and ticket clippers in the Financial Services industry and not much else.
I'm glad the country folk are jumping onto the last spin of the property boom wheel. They are usually the last holdouts, missing the first two spikes before rushing in where angels fear to tread. I think it has something to do with sleazy property seminar entrepreneurs. Once the city gets jaded with their schtick, they head out to the countryside. After all, the REAL profits are in the seminar business, not the property investment business.
no taxi drivers, no seminars.
Any expressed market opinion is my own and is not to be taken as financial advice
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy
