The state of the economy at the street level

[sptrawler]

I think that claim is a houso-scare. High income earners who divest from property will reinvest somewhere else in the economy. Last time I checked, shares were quite cheap

It's quite ironic really - it's housing debt that got us in the sheet in the first place, yet Mr Symond wants my taxes to sponsor even more debt for housing?

I personally think it will cause a greater contraction of house prices, but I think that is a good thing.
If house prices aren't brought back, in Melbourne and Sydney which make up the majority of properties, wages will have to rise to support the current prices. That would cause inflation to take off, and hurt everyone. Just my opinion.

 

[luutzu]

I personally think it will cause a greater contraction of house prices, but I think that is a good thing.
If house prices aren't brought back, in Melbourne and Sydney which make up the majority of properties, wages will have to rise to support the current prices. That would cause inflation to take off, and hurt everyone. Just my opinion.

Yea, making everyone millionaires with funny money isn't a good idea.

Was talking to an oldish tradie yesterday during our breaks between lifting roof trusses... btw, nothing beats getting off our azzes and do some real work now and then... best sleep ever

Anyway, he was suspecting that these gov't incentives to raise property prices was them getting out of their pension obligation, shifting the cost onto the younger generation with crap load of debt.

With property in the million or two bracket, pensioners would downsize, bank the million or two. Wit that kind of cash, no pension for you and you.

For the kids and grandkids though... borrow to their eyeballs, pay stamp duties, speculators flipping properties [more stamp duties], creating jobs and commissions.

When it all come crashing down... it's Labor's [the opposition's mess] and other people's kids problems.

The bankers get bailed out; Privateers then swoop in; guys like Aussie John grin as they "fight for the Aussie battlers" arguing for more gov't subsidies to get the prices up again.

 

[sptrawler]

Well Luu, I think that property prices took off and kept rising, because of greed pure and simple.
Real estate agents started it, by constantly upping valuations, everyone new someone who had made a packet on their house so everyone wanted a piece of the action.
With the mining boom wages rose, people could borrow more so they paid more, bit of a ponzi scheme IMO.
It had to implode sometime, the elastic band can only stretch so far.
Those who didn't jump on board, will do o.k, my oldest son is looking at buying 100acres the price has halved.
I will be able to chase the grandkids around on one of the quads.

 

[luutzu]

Well Luu, I think that property prices took off and kept rising, because of greed pure and simple.
Real estate agents started it, by constantly upping valuations, everyone new someone who had made a packet on their house so everyone wanted a piece of the action.
With the mining boom wages rose, people could borrow more so they paid more, bit of a ponzi scheme IMO.
It had to implode sometime, the elastic band can only stretch so far.
Those who didn't jump on board, will do o.k, my oldest son is looking at buying 100acres the price has halved.
I will be able to chase the grandkids around on one of the quads.

100 acre? cool. Any trees and grass on the lot, or just sand?

Sydney property might have another unintended crush if the NSW gov't recent planned high speed rail network goes ahead.

Stretching North, South, West some 300km from Sydney. That's going to expand the suburban sprawl a fair bit.

BUt given the previous record, might take another 10 years to kickstart the first track though.

 

[sptrawler]

100 acre? cool. Any trees and grass on the lot, or just sand?

It is in the S/W about 200k's South of Perth, farming land, paddock, trees, dams etc, the son want to try the self sufficiency gig lol.
There is plenty of work down there, and it is closer than the Goldfields, so easier for us to visit.

 

[luutzu]

It is in the S/W about 200k's South of Perth, farming land, paddock, trees, dams etc, the son want to try the self sufficiency gig lol.
There is plenty of work down there, and it is closer than the Goldfields, so easier for us to visit.

With land that size, could start his own colony I'm still trying to imagine how big that is.

 

[Smurf1976]

It is in the S/W about 200k's South of Perth

That's down somewhere near Busselton then?

 

[sptrawler]

That's down somewhere near Busselton then?

Inland near Donnybrook, close to gnomesville. Lol

 

[Smurf1976]

Inland near Donnybrook, close to gnomesville.

Well that's better then.

My past experiences on the WA coast have tended to involve being blown around, drenched or threatened by lightning whereas the weather always seemed nice inland so inland sounds good.

 

[SirRumpole]

Construction industry in crisis nation-wide.

https://www.abc.net.au/news/2018-12...re-a-construction-industry-in-crisis/10638228

 

[sptrawler]

Construction industry in crisis nation-wide.

https://www.abc.net.au/news/2018-12...re-a-construction-industry-in-crisis/10638228

Funnily enough these companies are the ones who have to lift wages, so the worker can generate some retail growth, just shows how much manure we really are in.IMO

 

[Wysiwyg]

That article is surprising but the rush on property brought every man and his dog into the industry. Be interesting to see how many of those companies that went bust were fly-by-nighters. The boom / bust cycles are something we should all be learned from.

Says me who bought at the peak of a property boom.

 

[sptrawler]

Ed Harry the menswear store, sounds as though it has bitten the dust.
https://www.perthnow.com.au/busines...-of-menswear-retailer-ed-harry-ng-b881074843z

 

[Smurf1976]

Ed Harry the menswear store, sounds as though it has bitten the dust.

There's a clearance sale of remaining stock about to get underway apparently.

It's a national chain I think. Well they're in a few states at least, it's not just some small operation.

 

[sptrawler]

There's a clearance sale of remaining stock about to get underway apparently.

It's a national chain I think. Well they're in a few states at least, it's not just some small operation.

I'm really getting an uneasy feeling, hope I'm wrong.

 

[luutzu]

I'm really getting an uneasy feeling, hope I'm wrong.

Na, your guts might be right this time Homer. Big time

We're about to be properly stuffed.

With protests almost everywhere... the coming crash should lit up a few places ey.

 

[sptrawler]

Na, your guts might be right this time Homer. Big time

We're about to be properly stuffed.

With protests almost everywhere... the coming crash should lit up a few places ey.

I hope not, but I think a reality check is on the cards, the underlying current I'm feeling is people are nervous and comfort food is doing o.k
I may go to TAFE, to get my plumbing license, it could be useful.

 

[SirRumpole]

Disturbing report of poor design and inferior materials used in Opal Tower.

https://www.abc.net.au/news/2019-01...gation-what-the-report-actually-says/10717830

 

[PZ99]

Disturbing report of poor design and inferior materials used in Opal Tower.

https://www.abc.net.au/news/2019-01...gation-what-the-report-actually-says/10717830

I like this bit: The engineers concluded that a "progressive build-up of load on the structure as [the] apartments became occupied" also culminated with the crack at level 10.

Considering the tower only opened 4 months prior to that - it was unlikely to be fully occupied.
A full house could've really brought down the cards. I daresay the above defects would be widespread in multiple buildings. Once repaired, Opal could be the safest tower in the West.

That's if it doesn't use alucobest cladding. Stand by for the weight restrictions for new tenants

 

[SirRumpole]

That's if it doesn't use alucobest cladding. Stand by for the weight restrictions for new tenants

They would have to make sure that when kids jump on their trampolines they don't do it at the same time.