Australian (ASX) Stock Market Forum

The state of the economy at the street level

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satanoperca said:
Everyone still wants a place to call home.

Maybe Perth prices are fair value, maybe they are cheap, maybe they are still over priced.

Regardless, markets always have a way to sort themselves out, the only variable that few can calculate with accuracy is time.
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You are right, but when it is a hot property market, everyone thinks property, how to save for it, where to buy it, keep an eye on prices, put things off.
When the herd turns, it is all bad news, property prices crashing, apartments with problems etc.
Then the people on the side lines say, we will save a little longer, we will take that holiday we put off.
It takes a lot to stop the slide, people have to believe it has bottomed, I don't think they do.
The Sydney, Melbourne market was awash with, buyers, easy money and foreign investors.
All of the above has dried up.
 
satanoperca said:
I personally think even country properties are overvalued, but I might be wrong, but then again there is some reason why everything is slowing down and a recession (a good thing for the long term longevity of this country) is on the horizon and just as the sun rises and sets, so do recessions.
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I agree with this as well. I feel country property is way overvalued.
 
My favourite ice-cream store shut down the other day. Terrible moment...

There are a lot of 'for lease' signs on shop fronts as well.

Bunnings was completely dead when I parked at the trade section today. I normally have to wait for a park. It was literally me and three other people in the whole store. Apparently they had ok trade on the weekend. People seem to be more selectively spending.

I am noticing the for lease signs though. But in my mind there are a lot of businesses that were just never going to make a tough cycle.
 
My 9nly worries is that price might go down, hourly rate, lease etc but insurances, water and council rates,etc will not
I own a warehouse and can not see how Business can pay my lease..and believe me, i am as cheap as could be after a 1.5y of no tenant period
BC, rates, water extortion (1k a year with 0 usage) ,fire safety obligation are huge costs. And could not care less about a recession
 
To stress this fact:
Completed yesterday relocation of small suburban queenslander onto already own land
Cost of actual building relocated rewired replumbered?
Around 95 to $100k inc 40k or so labour
Final cost 155k
55k in fees and mandatory compliance costs such as bushfire rating, environmental obligation
And that is using preexisting house capitalising on 1950s hourly rate and materials..hardwood not pine, etc
So by that example even with free land and labour, you need to pay 100k min for a 2/3 bedrooms in Oz
That is the min start price in Australia
 
qldfrog said:
To stress this fact:
Completed yesterday relocation of small suburban queenslander onto already own land
Cost of actual building relocated rewired replumbered?
Around 95 to $100k inc 40k or so labour
Final cost 155k
55k in fees and mandatory compliance costs such as bushfire rating, environmental obligation
And that is using preexisting house capitalising on 1950s hourly rate and materials..hardwood not pine, etc
So by that example even with free land and labour, you need to pay 100k min for a 2/3 bedrooms in Oz
That is the min start price in Australia
Click to expand...
Just shows how things have changed frog, I did exactly the same thing in 1982, purchase the house had it transported 200klm, restumped $14k job and finish.
 
moXJO said:
My favourite ice-cream store shut down the other day. Terrible moment...

There are a lot of 'for lease' signs on shop fronts as well.

Bunnings was completely dead when I parked at the trade section today. I normally have to wait for a park. It was literally me and three other people in the whole store. Apparently they had ok trade on the weekend. People seem to be more selectively spending.

I am noticing the for lease signs though. But in my mind there are a lot of businesses that were just never going to make a tough cycle.
Click to expand...

Whereabouts are you located? Bunnings around here (Inner SE Melbourne) seem to be busy most of the time.
 
Just chatting with some og my Komrades, all are experiencing accounts receivables issues more than they have for many years.
 
Something to share argue with others.
Noticed today diesel is cheaper than unleaded North Brisbane
From memory, last time i saw that was after the GFC
So diesel aka industrial demand down?
 
qldfrog said:
To stress this fact:
Completed yesterday relocation of small suburban queenslander onto already own land
Cost of actual building relocated rewired replumbered?
Around 95 to $100k inc 40k or so labour
Final cost 155k
55k in fees and mandatory compliance costs such as bushfire rating, environmental obligation
And that is using preexisting house capitalising on 1950s hourly rate and materials..hardwood not pine, etc
So by that example even with free land and labour, you need to pay 100k min for a 2/3 bedrooms in Oz
That is the min start price in Australia
Click to expand...
Compliance costs and associated bs is crazy in this country.
 
sptrawler said:
You are right, but when it is a hot property market, everyone thinks property, how to save for it, where to buy it, keep an eye on prices, put things off.
When the herd turns, it is all bad news, property prices crashing, apartments with problems etc.
Then the people on the side lines say, we will save a little longer, we will take that holiday we put off.
It takes a lot to stop the slide, people have to believe it has bottomed, I don't think they do.
The Sydney, Melbourne market was awash with, buyers, easy money and foreign investors.
All of the above has dried up.
Click to expand...

It seems that what we thought has happened, and things wont change quickly.

https://www.smh.com.au/business/the...e-than-40-years-rba-says-20190628-p522ay.html

From the article:
CommSec economist Craig James put the overall slump in lending for property buying down to "low inflation, lower home prices, an investor strike and competition from other asset classes.
Once the herd has turned, it is hard to pull it up and change its direction, investors have been given a scare on a few fronts so they are focusing on new frontiers. IMO
 
Smurf1976 said:
https://www.abc.net.au/news/program...7-02/a-nation-making-coffee-not-cars/11272684

It seems some are starting to wake up.

A bit late, it has only taken ~40 years after the problems with the "low value service economy" idea became all too apparent to anyone who gave the idea some thought, but at least they've worked it out eventually.

Now how do we fix it?
Click to expand...
Well maybe the media, starting to focus on economic issues, rather than political and social theatre would be a good start. IMO
 

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