The dire state of the New South Wales property sector has claimed three more building companies in the last few days, just a week after 20-year-old builder Wincrest collapsed with $12 million in debts.
Except London has already shown demand barely makes a difference once prices start to slip.
Except London has already shown demand barely makes a difference once prices start to slip.
Rate cuts boost home loan approvals
Home-loan approvals gained in December as consumers warmed to lower interest rates and Government packages aimed at helping people buy houses.
The number of home loans, seasonally adjusted, gained 6.4% in December from the previous month, according to the Australian Bureau of Statistics. Analysts surveyed by Bloomberg were expecting a 3.5% increase in the month, reflecting the easing credit conditions.
.....
"The sharp policy u-turn by the RBA and government incentives for first home buyers have triggered a rebound in the demand for finance,'' wrote Westpac chief economist Bill Evans in a note to clients.
"Recall that housing finance plunged during the first half of 2008, in the wake of the RBA's aggressive tightening of monetary policy."
"Housing finance has been in recovery mode for the last three months - albeit a modest recovery. The recovery stepped up a gear in December."
"We expect housing finance to rise further in the months ahead. However, as unemployment begins to lift significantly, the pace of recovery will be crimped."
Isn't the issue in the UK more that potential buyers are simply unable to get finance due to their banking crisis? A problem we don't seem to be having in this fair land, as demonstrated clearly by these latest housing finance stats.... and therefore demand does in fact matter?
FYI more comment/analysis on the rise in dwelling finance approvals: http://business.smh.com.au/business/rate-cuts-boost-home-loan-approvals-20090211-845k.html
Some selected snippets from the article:
Cheers,
Beej
In other words as the debt burden of our nation increases the interest rate has to go lower and lower just to get consumers to keep spending and to prop up the housing industry keeping the game of musical chairs alive until people hit a recession at 0% interest rates. The government seems to have full control of the housing market in other words and it is severely manipulated for the governments own ends.
Hate to say it but it looks like a complete Roby of savers with the Government using housing as an excuse to do so just to keep the housing market alive with the money coming out of savers pockets. The only fundamental on housing therefore seems to be credit and the ability of the masses to borrow, even if there is enough housing per person people will just buy as an investment and the taxpayer will subsidise the rental returns (hence negative gearing). Either way the housing market goes the government has a plan to get more borrowings into the market. The government just wants money via borrowings to keep flowing in and I'm slowly realising that every little policy it has done leans to this effect. So either the saver or taxpayer is paying the borrower/speculator.
Wow this sounds like a big Ponzi scheme doesn't it? Expect the contributors don't even have a choice - the system is designed to make them contribute either via inflation, reduced saving returns or via their taxes. Something is seriously wrong with the picture here in Australia.
FYI more comment/analysis on the rise in dwelling finance approvals: http://business.smh.com.au/business/rate-cuts-boost-home-loan-approvals-20090211-845k.html
Some selected snippets from the article:
Cheers,
Beej
A much nicer looking chart there gfresh, especially compared to how that one looked half way through last year!
Cheers,
Beej
hello robots old chum, you are dead right in what you say. I did a bit of a run on the weekend up to the central coast NSW (about a 1 hour north of Sydney). Really beautiful brick houses in top suburbs can be bought there for 300K. My mates house is 4 br 2 story brick and only 7 years old, he bought it for 335K 2 Months ago. That's really good considering it's only an hour from Sydney.hello,
nothing wrong here in Australia, you have the CHOICE to buy or rent,
and many here reckon renting is heaps better off, so i would say plenty of options available for everyone,
you can always save up and buy a place, easy
thankyou
robots
In other words as the debt burden of our nation increases the interest rate has to go lower and lower just to get consumers to keep spending and to prop up the housing industry keeping the game of musical chairs alive until people hit a recession at 0% interest rates. The government seems to have full control of the housing market in other words and it is severely manipulated for the governments own ends.
Hate to say it but it looks like a complete Roby of savers with the Government using housing as an excuse to do so just to keep the housing market alive with the money coming out of savers pockets. The only fundamental on housing therefore seems to be credit and the ability of the masses to borrow, even if there is enough housing per person people will just buy as an investment and the taxpayer will subsidise the rental returns (hence negative gearing). Either way the housing market goes the government has a plan to get more borrowings into the market. The government just wants money via borrowings to keep flowing in and I'm slowly realising that every little policy it has done leans to this effect. So either the saver or taxpayer is paying the borrower/speculator.
Wow this sounds like a big Ponzi scheme doesn't it? Expect the contributors don't even have a choice - the system is designed to make them contribute either via inflation, reduced saving returns or via their taxes. Something is seriously wrong with the picture here in Australia.
At the bottom of my message there is a link to a 4 Corners interview with Gerry Harvey, I like this guy.
Anyhow he challenges anyone to buy a house anywhere in AUSTRALIA and try and LOSE money in 10 years time, worth a look, here is the link and click on Gerry Harvey, it is 9.45 minutes into the interview where he makes that statement:
http://www.abc.net.au/4corners/special_eds/20090209/gfc/
At the bottom of my message there is a link to a 4 Corners interview with Gerry Harvey, I like this guy.
Anyhow he challenges anyone to buy a house anywhere in AUSTRALIA and try and LOSE money in 10 years time
Some economists have also argued that the printing of $$$ word wide is only replacing what has been lost so there won't be inflation. I don't know, 2 camps right now, one in deflation mode and one in inflation mode. I don't care, all I know is I buy a house and then rent it out and I have income, nothing has changed there.And I also heard Gerry Harvey say that as the governments are printing more money, there will be more money to be spent, and that must be good for the country......mmm.......can't agree with you sorry Gerry. He should talk to someone who lives in Zimbabwe and see if they agree!
hello robots old chum, you are dead right in what you say. I did a bit of a run on the weekend up to the central coast NSW (about a 1 hour north of Sydney). Really beautiful brick houses in top suburbs can be bought there for 300K. My mates house is 4 br 2 story brick and only 7 years old, he bought it for 335K 2 Months ago. That's really good considering it's only an hour from Sydney.
Gerry Harvey is a bit of a cowboy, like the bloke down the pub.
I remember a radio interview with GH about a year ago when he predicted that we in Australia would suffer no fall out from the American sub-prime stuff.And I also heard Gerry Harvey say that as the governments are printing more money, there will be more money to be spent, and that must be good for the country......mmm.......can't agree with you sorry Gerry. He should talk to someone who lives in Zimbabwe and see if they agree!
yeah, used to live near Woy Woy. My parents bought a house there $120K about 15 years ago, sold it for $220K about about 7 years ago. Reckon its on a downturn now - unemployment will hit the coast hard - too much pot.
At the bottom of my message there is a link to a 4 Corners interview with Gerry Harvey, I like this guy.
Anyhow he challenges anyone to buy a house anywhere in AUSTRALIA and try and LOSE money in 10 years time, worth a look, here is the link and click on Gerry Harvey, it is 9.45 minutes into the interview where he makes that statement:
http://www.abc.net.au/4corners/special_eds/20090209/gfc/
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