Thing is trawler, our minimum wage will buy you a palace in india or bangladesh or wherever, so as far as they're concerned, they're being paid a fortune. Hence the maximum effort.Well IMO a lot of the problem Australia has is highlighted by the response to the quarantine guy in Perth, many are saying they should increase the pay, so they dont have to have a second job driving Uber.
I bet if you tripled their pay, they would still do a second job, if time allowed.
The problem is most Aussies have become lazy, the people who come from real underpriviliged countries can see the opportunity and will jump at it.
Eventually they will leapfrog the Aussies, so who is wrong?
Just my opinion.
Thing is trawler, our minimum wage will buy you a palace in india or bangladesh or wherever, so as far as they're concerned, they're being paid a fortune. Hence the maximum effort.
My thoughts exactly. So the question is, what happens next? The only thing we can be certain of is that the politicians will at least try to keep the bubble pumped, and whilst australians might be out of ammo (credit), cashed up foreigners sure aren't, and there's a hell of a lot more of them too. Interest rates (credit) are only one type of ammo that they've run out of - they still have several others.So what have been the drivers to property price increases over the last decade:
1. Mass Immigration - increase in demand, inability to meet supply
2. Allowing the other 6billion people on this planet to buy shelter which is meant to be for Australians
3. Availability of cheap credit - ability to pay more for less, driving up demand
4. Sociology - this is one of the biggest driving demand, Aussies feel that property only ever goes up and for the last 30years they have been correct.
What changed with Covid:
1. Mass Immigration came to a halt, should have seen prices correct, but alias our gonuts come to the table with
2. Massive injection of capital from RBA and Govnuts, and when I mean massive, I mean massive, never in the history before us, have we seen the govnuts pump borrowed money into one sector, this was via bank mortgage amnesties - backed by the govnuts, RBA injection of $200B, jobkeeper and jobseeker, along with govnuts grants to businesses, govnut grants on stamp duties and renovations.
So we had a classic example of demand being reduced (people needing homes/shelter) and demand being increased (people looking to make money with only 2 options left, shares or property).
So fundamentals are out the door, when govnuts interfere.
My question, is if the govnuts think the economy is going great, why are interest rates at almost zero, and if the economy is going crap are IR to be -2% - then why work, the banks will pay you to borrow.
The reserve bank and in the ineptitude of our elected official is staggering, but the complacency of Australians also staggers me, the majority believe that property is a means to wealth, without realising that without a community to live in that is safe, house prices mean nothing.
I feel that it is going to be sometime before we see a reset to good old fashion values and my children will be able to work hard and buy shelter.
Only time will tell, and there lies the problem to your question, time. 1yr, 5yrs, 10yrs in the future.So the question is, what happens next?
AgreedInterest rates (credit) are only one type of ammo that they've run out of - they still have several others.
Personally I don't care to hold anything backed by the promises of politicians other than hard assets like precious metals and even Bitcoin.Took the words right out of my mouth.
So in the meantime, if the politicians hold - we hold.
No doubt some will , but most will have the blinkers on and continue to hold like most of the population. Because they will have the conviction of thinking " the market always goes up and never has or will ever go into a bear market".I don't disagree with you at all - but you think the politicians won't get their money out of dodge before anything really happens?
Hmmmm, better watch what my kids bring around for dinner!As I've said before, only once the politicians start selling up should we be thinking about doing the same. In the meantime, there's really only inheritance.
Again I agree, but pollies are dumb and don't have any comprehension of market and market forces.I don't disagree with you at all - but you think the politicians won't get their money out of dodge before anything really happens?
They aren't talking about us in planet Perth jbocker, they are talking about trying to jump on the roundabout in Sydney or Melbourne, where real Australians live.Hmmmm, better watch what my kids bring around for dinner!
If all prospective property buyers in Sydney and Melbourne organised themselves the same way, I have no doubt they could bring about the same result, but getting people to not join the ponzi scheme is difficult. Everyone wants to buy a certain winner.2 months ago, did the hedge funds in the USA think that they could be disrupted by a group of forum users against the $$$$$$ they had until control, NO.
Mmm talk is cheap though.Again I agree, but pollies are dumb and don't have any comprehension of market and market forces.
2 months ago, did the hedge funds in the USA think that they could be disrupted by a group of forum users against the $$$$$$ they had until control, NO.
Times can change fast, pollies can change just as fast, ask Mr Chump, Past President of the largest economy in the world, months later cannot find a reputable lawyer to stand by his lies.
Pollies will lie to protect themselves, not something you can bank on.
Mmm talk is cheap though.
Everyone always look at things like CEO's selling or buying their holdings in the very company they run as a very reliable signal to follow but don't do the same with politicians at a macro level. It kind of baffles me to be honest, if people can recognise why to do this with a chief exec buying/selling whatever they're in control of, why is it not also a good idea to do with politicians and whatever they're in control of?
You know full well the crash in the market was caused by the virus.So follow the politicians? Yeah right!!
After Scummo won the election he came and said buy, buy, buy, .Nine months later the stock market crashes 40%.
I wonder if the polllies sold their shares before before hand, surely they had "inside information"?
Instead we heard the Australian economy is robust and strong. "Look here, don't look there".
Wanna know the real reason why housing is protected? Because this country has nothing else and when that goes (and it will eventually get hit) we are in deep excrement. In the last 8 years our manufacturing base has been decimated entire industries have disappeared, exports in the last 5 months have smashed, education income has disappeared, tourism and hospitality non existent, small businesses going by the day, retail well the list goes on and on....
Feel sorry for our kids...
You know full well the crash in the market was caused by the virus.
One republican senator sold about 60 million worth of stock just a couple of days before trump closed the U.S border. Nancy pelosi just bought a whole mountain of tesla calls literally the day before biden executive ordered federal vehicles to be electric. This kind of stuff is absolutely endless.
Are you seriously going to sit here and genuinely argue that politicians don't insider trade basically constantly?
Again, why does this logic apply with chief exec's buying/selling what they control but not politicians buying/selling whatever they control?
I've "been there, done that" with working 7 days a week and so on in the past.Working min wage or 15 hour days is not sustainable for a whole lifetime.
I think you and I are looking at housing differently, I see it as a basic requirement for building and maintaining a productive and safe society, and left in the hands of greedy pollies and banks will not meet its primary need, shelter, I did not see it as an asset class to trade for profit as a general rule. That is for the building and development of businesses which in turn can help provide for need one shelter through employment and wage growth.Mmm talk is cheap though.
Everyone always look at things like CEO's selling or buying their holdings in the very company they run as a very reliable signal to follow but don't do the same with politicians at a macro level. It kind of baffles me to be honest, if people can recognise why to do this with a chief exec buying/selling whatever they're in control of, why is it not also a good idea to do with politicians and whatever they're in control of?
That kind of sums up what I said to a friend, who asked how did you get set up, I said for most people it isnt easy.I've "been there, done that" with working 7 days a week and so on in the past.
It's very doable for a while but nobody in their right mind would plan on doing it for a lifetime.
Incidentally that's a common element among everyone I know who's reasonably comfortable financially. They've all gone through a few years where life's a blur amidst the chaos of work, work and more work. Most seem to try and bring it to a halt once the house is paid off.
There might be a way for the ordinary person to get ahead without that, but it's the common element from what I've seen.
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