More bollocks ....
When I purchased my first property in 01 there was plenty of Houses available for 3 to 4 times average income and interest rates similar to now, the FHB at only 7k provided a bigger % of the purchase price than it does now.
What subsequently happened was a temporary credit bubble that is now popping along with the worlds economy ..... you can talk up Aussie RE as much as you wish but you cant hide that prices have already fallen and you can be sure Aussie RE wont continue " to rise for years " while the worlds economy continues to contract along with our crashing resources industries.
Beej you maybe good at RE mumbo jumbo sales talk but you completely ignore our currently globalised economy - Im nearly convinced you work in the RE industry?.
Keep talking it up, its entertaining
Gen-Y have not been sucked into this ponzi scheme only 5pc of them have taken the mega gamble despite the Governments desperate ploys.
One way or another RE will return to its long turn average on a Price to Incomes ratio.
Hello Robi,
Are you suggesting Australias youth who reject the pyramid scheme grab their surfboards and head to Bali or something ?
Maybe the REIV can employ the endless supply of Melbourne thugs into " talkin em into " buying ?
Nah NC, you've convinced everyone that the world is about to crumble; I'm sure they'll make millions selling bomb shelters and long life foodhttp://www.news.com.au/heraldsun/story/0,21985,24796417-661,00.html
Von Harvey might give em jobs flogging Plasmas and PS3s ?
This is no different to the late 80s when my generation (Gen-Xers) were in the same position Gen-Y is now, and saying all the exact same things. No one will have to force them all though, over time as "real" prices fall back a bit, and their incomes increase, and their need for the stability of owning your own home increases (due to families etc etc), Gen-Y will start buying in greater numbers, "pyramid" scheme or not. In fact my bet is this is already starting to happen right now - future stats will show.
Houses are not like shares. I can decide anytime I want to sell all my shares and not buy anymore. Ie I could completely eliminate my direct exposure to the share market (as many people/institutions have in fact just done! Hence a crash.....).
However, you can't just "decide" you don't need somewhere to live! You have to either rent, or own, or share (meaning someone else rents or owns). Unless you think Gen Y will happilly live on the street in cardboard boxes......
That's why the housing market is not in fact a pyramid scheme (that is such a lame "Gen-Y whinging" sounding line by the way!), as there is TRUE underlying value (and ongoing demand) in land and housing, both fundamentally (they provide something people need) and fiscally (they can provide a source of income/cash-flow into the future or eliminate the need for outgoing cash-flow into the future).
The only real argument is exactly what is the inherent value (and fair MARKET price therefore) of any particular single piece of real estate at any particular point in time that someone is looking to acquire it. Remember also that median stats only provide a one dimensional view of a complex market (like the XAO does for the stock market). Hence we have a market, which despite the wishes of so many here, has not, as yet, shown any signs of some huge/major crash..... Although it is certainly presenting some great opportunities right now if you are canny, and keep an eye on the long term
Cheers,
Beej
:s around their knees!
Repeatedly we hear how serious things are, can only get worse, we are in for a tough time, watch property plunge, will wait until it drops etc etc
However it has been said this is different to many times before and in a negative sense it has been quite horrific!
But there is another perspective to consider and the huge difference is how as a world Central Bankers are throwing every measure , more than ever before, to turn this around. Rates are plunging, so is oil , so is inflation apparently - but could another perspective be that with this amount of stimulus, and maybe a crunch we had to have purging the system, we are seeing the beginnings of yet another bubble that will be future inflation fear driven that will favour real estate yet again. Remember that the sub prime devastated real estate in the US and there is talk of offering a stimulus to this industry in the US to kickstart it again. As soon as some positive signals emerge in this market it could be hell for leather yet again because of coming off such lows.
The next few years, and in real estate it has always to be seen long term, if you don't pick it and wait too long in the wings you will be shocked at what you miss out on. Wait for the traction of the stimuli - when that happens we will be in for the mother of all booms and blow your affordability theories as booms always defy logic. Hark the prophet has spoken and give me the cuedos 3/4 years time in the meantime I am too busy researching the market to be bothered by any negative put downs. As much as things change they remain the same - there is nothing new under the sun and I am looking forward to the dynamics of an incredibly strong turnaround that will catch the economists with their pant
Notice 3/4 years to get the cuedos - in other words you guys are slow learners and will wake up then - far too late as usual - - the astute are looking and ready to buy in a shorter time frame - and no I am not expecting more falls - moving to stability with some sectors ie Melb ready to RISE in the next 6-9 months. If you can't read a post correctly what chance have you of reading the market. In life I learn from the successful experienced players and benefit - seems a lot of you younger turks know it all so this is all new to you - open your eyes and ears and start to see the opportunities!
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