The future of Australian property prices

[sptrawler]

I have family in Europe, property investing can be profitable just as it can be here. Of course they have rules that we don’t understand or think frustrating, but it’s all about knowing the market.

Spot on everything is relative, I have a cousin in England, I suggested he come out here for wages and conditions. He laughed and said he is one of the high paid long haul truck drivers, on 27,000 pound, so he was killing the pig.
Guess it all depends on what you are used to.

 

[wayneL]

Spot on everything is relative, I have a cousin in England, I suggested he come out here for wages and conditions. He laughed and said he is one of the high paid long haul truck drivers, on 27,000 pound, so he was killing the pig.
Guess it all depends on what you are used to.

I still have lots of friends and family over in the UK, so have kept a few tabs on the market there. Some people have done very well but I don't know of many who have crashed and burnt.

it is the typical story, similar to here, over leveraging and all that sort of thing. Mainland Europe is a whole another set of tenancy laws so it's not so sure about there.

 

[sptrawler]

I still have lots of friends and family over in the UK, so have kept a few tabs on the market there. Some people have done very well but I don't know of many who have crashed and burnt.

it is the typical story, similar to here, over leveraging and all that sort of thing. Mainland Europe is a whole another set of tenancy laws so it's not so sure about there.

40% death duties puts a lid on UK property investment. Lol

 

[wayneL]

You have perfectly stated the essence of the problem.

However, what did you make of Labor's negative gearing proposals at the last election ?

To be honest I don't know what to make it, apart from it may have been one of those promises to be broken... As happens with every campaign weather the incumbent or the opposition.

 

[wayneL]

40% death duties puts a lid on UK property investment. Lol

My wife's side of the family is acutely aware of that :O

 

[Gunnerguy]

40% death duties puts a lid on UK property investment. Lol

But only over about AUD$1.3M.

 

[JohnDe]

But only over about AUD$1.3M.

£679000 ?

 

[sptrawler]

But only over about AUD$1.3M.

It would be interesting if they re started it here. ?
My guess is it will be re introduced at some time, it will just require a Government that can't lose, or is certain to lose.

That isn't many houses.
Also you may find the $1.3m includes the PPR. So christ knows how it helps much.

 

[divs4ever]

Another step in the government's push to make retirees "unlock the capital in the PPOR" and wean folks off old age pensions.

awesome .. wean the voters away from major parties ( maybe the government super entitlements need trimming as well )

 

[sptrawler]

Another step in the government's push to make retirees "unlock the capital in the PPOR" and wean folks off old age pensions.

Not to mention, reducing intergenerational wealth transfer, for the plebs.

 

[divs4ever]

You have perfectly stated the essence of the problem.

However, what did you make of Labor's negative gearing proposals at the last election ?

considering how many ALP big-wigs are property-owners/landlords , i was surprised that proposal survived passing over the trash can

 

[SirRumpole]

considering how many ALP big-wigs are property-owners/landlords , i was surprised that proposal survived passing over the trash can

Maybe it tells you more about the Labor Party than you care to admit.

 

[qldfrog]

Maybe it tells you more about the Labor Party than you care to admit.

I like your unrepentant trust and belief .it must be a comforting feeling but i have the belief that underneath, you keep having this endless nag of reality stabbing you again and again.
The good thing with you SirRumpole is i am sure you are a true believer, not the case for many of the woke leftist here.i admire that even if i believe you are a generation too late and have not grasped yet what labour and socialism represent in 2020.
Socialists like Trudeau, Macron or Jacinta...and whoever will be the labour 3.0 in Australia at the next election.
She will probably win so we will see what becomes of negative gearing then?

 

[SirRumpole]

I like your unrepentant trust and belief .it must be a comforting feeling but i have the belief that underneath, you keep having this endless nag of reality stabbing you again and again.
The good thing with you SirRumpole is i am sure you are a true believer, not the case for many of the woke leftist here.i admire that even if i believe you are a generation too late and have not grasped yet what labour and socialism represent in 2020.
Socialists like Trudeau, Macron or Jacinta...and whoever will be the labour 3.0 in Australia at the next election.
She will probably win so we will see what becomes of negative gearing then?

Labor is quite capable of making mistakes Froggy, the thing is that the current lot have made too many to ignore, so why not give the other side a chance to stuff things up in new and exciting ways.

 

[Jeda]

I like your unrepentant trust and belief .it must be a comforting feeling but i have the belief that underneath, you keep having this endless nag of reality stabbing you again and again.
The good thing with you SirRumpole is i am sure you are a true believer, not the case for many of the woke leftist here.i admire that even if i believe you are a generation too late and have not grasped yet what labour and socialism represent in 2020.
Socialists like Trudeau, Macron or Jacinta...and whoever will be the labour 3.0 in Australia at the next election.
She will probably win so we will see what becomes of negative gearing then?

Why so fearful? deriding past present and future governments, sounds confusing. remember it was Hawke, Keating governemnt that pulled us out of the financial muck setting us up for 30+ years of prosperity. most of your wealth came from the Hawke labor government acheievements

 

[sptrawler]

Labor is quite capable of making mistakes Froggy, the thing is that the current lot have made too many to ignore, so why not give the other side a chance to stuff things up in new and exciting ways.

That is the whole issue, neither Labor or Liberal in Australia, are hard left or hard right.
They can't be, we have entrenched welfare system and public services, at best they are slightly left of centre or slightly right of centre.
It doesn't make a huge difference who gets in, it has to be funded how they fund it is what people should be thinking about.
IMO being a Labor supporter or a Liberal supporter is nonsense. ?
It's like people getting all out of shape about losing penalty rates, for those who only work on weekends, my wife used to.
But in the next breath, cheering on fanatically, those that raised the pension age and made it near impossible to get disability.?
Like I said it makes very little difference, minor tweaks here and there, just chose which tweaks you prefer.

 

[sptrawler]

Why so fearful? deriding past present and future governments, sounds confusing. remember it was Hawke, Keating governemnt that pulled us out of the financial muck setting us up for 30+ years of prosperity. most of your wealth came from the Hawke labor government acheievements

We are getting off topic, but just to give a workers point of view, who lived and worked through that period.

1. It wasn't Hawke and Keating that pulled us out of the muck, it was the workers who pulled Australia out of the muck, because of the 'wages accord' real wages were cut by about 18%.
These days, you hear endlessly that there has been no wages growth, it has only kept up with CPI, with the accord wages growth was actively kept under cpi.

2. They floated the dollar and it dropped from being worth US $1.25 to US 50cents, so if you like a drop in buying power, try that one.

3. The Button plan was introduced and tariffs were reduced on imported products, that were there to protect our manufacturing, by the time Keating left the job most tariffs were down to 5% and the steady demise of our manufacturing commenced.
Now everyone goes on about the fact we don't manufacture anything, how could we, when our workers had to compete with products being imported with no tariffs from third world countries and we are talking back in the 1980's, 1990's.

I'm not saying it didn't change Australia, but to hold it up as something miraculous, is a bit rich IMO.
It just supercharged Asia's manufacturing growth and changed our economy from a manufacturing/ agricultural base, to a mining based economy which supplies the raw materials to Asia's growing manufacturing base.
Now our economy is similar to a South American economy and Asian economies are becoming similar to Europe and North America, fortunately we have a small population unlike Brazil.
But like I said probably getting off topic.

 

[Jeda]

We are getting off topic, but just to give a workers point of view, who lived and worked through that period.

1. It wasn't Hawke and Keating that pulled us out of the muck, it was the workers who pulled Australia out of the muck, because of the 'wages accord' real wages were cut by about 18%.
These days, you hear endlessly that there has been no wages growth, it has only kept up with CPI, with the accord wages growth was actively kept under cpi.

2. They floated the dollar and it dropped from being worth US $1.25 to US 50cents, so if you like a drop in buying power, try that one.

3. The Button plan was introduced and tariffs were reduced on imported products, that were there to protect our manufacturing, by the time Keating left the job most tariffs were down to 5% and the steady demise of our manufacturing commenced.
Now everyone goes on about the fact we don't manufacture anything, how could we, when our workers had to compete with products being imported with no tariffs from third world countries and we are talking back in the 1980's, 1990's.

I'm not saying it didn't change Australia, but to hold it up as something miraculous, is a bit rich IMO.
It just supercharged Asia's manufacturing growth and changed our economy from a manufacturing/ agricultural base, to a mining based economy which supplies the raw materials to Asia's growing manufacturing base.
Now our economy is similar to a South American economy and Asian economies are becoming similar to Europe and North America, fortunately we have a small population unlike Brazil.
But like I said probably getting off topic.

yes all the workers got together and said we'll show these mungrul politicians how its done. no more strikes fellas no more go slows no more s equipment failures to persuade those bastard bosses, we'll get this country back on its feet

 

[qldfrog]

Why so fearful? deriding past present and future governments, sounds confusing. remember it was Hawke, Keating governemnt that pulled us out of the financial muck setting us up for 30+ years of prosperity. most of your wealth came from the Hawke labor government acheievements

that is why I stress the difference, do you genuinely Keating or Hawke would have been in bed with the giant techs, would have destroyed the country with the covid scam, or let us be screwed by the Chinese in every trade talk for the last 20y ??
The left of the 80s and 90s was a different stature and at least well that is my belief, were genuine.

 

[qldfrog]

Labor is quite capable of making mistakes Froggy, the thing is that the current lot have made too many to ignore, so why not give the other side a chance to stuff things up in new and exciting ways.

no thanks as the socialists are even less opposed to the Reset than the other bunch; this is a fight to the death to defend our western society against the 1984's nightmare, and while I do not trust the liberals to defend our model too much, too much interests on the big corporate who got power on the LNP, as opposed to the socialists, they do not push for it...
Isn't the response to covid a clear demonstration of the ideology ?