Australia, you’ve officially jumped the shark

My ex thought like this...that's why she is my ex.

 

1. Nearly everyone assumed that these mining riches would go on forever, permanently paving the streets with iron ore and gold.
Rhetoric (paved streets), but there are numerous economists, commentators and governments who've overestimated the longevity of the commodities/mining investment boom.

2. We organised a commodities boom
I'll give you that one.

3. We didn’t actually have the cash we needed, so we just borrowed the rest, mostly from overseas lenders

http://www.afr.com/markets/debt-mar...ce-on-offshore-capital-markets-20140615-jgriz

4. House prices exploded over the last two decades, outstripping our so-called ‘economic fundamentals’.
I would call this opinion, not really deniable or provable.

5. The bubble re-inflated in one last giant blow-off, sending investor lending straight to Pluto, as the scale on everyone’s graphs broke
Unprecedented (in recorded history) investor finance in the market is factual.
http://www.digitalfinanceanalytics....or-may-investment-property-lending-still-hot/

6. The twin columns of the Aussie economy – mining and housing – sucked the life out of every other possible means of making money
Mostly rhetoric, but manufacturing (and other sectors) are clearly in decline.

7. Nearly the entire sum of new credit loaned since the GFC went to housing
"Nearly the entire sum" is debatable, subjective, but clearly a majority.

Can't be bothered continuing, but all the rest have factual basis with a little rhetoric sprinkled over the top

 

Well, probably she thinks the same.

 

I was once, but not anymore and I was a part of a parent forum for many years. Also I'm looking to buy myself a new PPOR and you have good links on resources about property economics and market stages. I'm an investor now in another field, but behaviour of mankind is the same, so it's interesting to see how it is in different fields of investing. That's why I'm here.
If you want to ban me, that's your choice.

 

I have lived overseas 25 years ago. And yes I was able to pay cash for my first property and several after that, until it got ugly with all that debt mounting. I have never rented except a few holiday houses for a few months.

 

Yep she sure did...
Although her salary was high and had no debt..would have been perfect low risk candidate for a mortgage...

 

I have told you it was overseas. A country had NO lending practices at the end of the 80's. Everything was sold in cash, so the prices were sustainable for a lot of people. I was around 20+ back then. And I was living at my girlfriends while saving.

 

Putting aside the fact that it's just another unsubstantiated (his admission) whinge, I think the title of the article should have been, 'Sydney, you've officially jumped the shark.' I haven't heard many people in other parts of the country complaining too much about prices.
Scott

 

Interesting to read all the views on here. It will be even more interesting to see what happens going forward. I would agree that Australian and New Zealand house prices are very high and outside of foreign cash buyers I don't see how it can continue forever. Off course, if the banks are willing to lend and people are willing to borrow and service the debt then it will.

 

I dream of being able to purchase a house with cash unfortunately not sure if I could buy it even with $100 notes lol. Might have to hire a few trucks + security.

 

Oh comon now Simon never mentioned anything about banning or even alllued to it. It was just an innocent question.

 

I have paid around 14k USD for a one-bedroom flat in a very good location. I was making around 1 - 1,5k a month back then after taxes, so it didn't take long. You could buy a good studio for 5-6k without a problem.

 

Fair enough. But sometimes it's sad to see how people react to a different point of view, especially the ones who are in command.

 

The majority (roughly two thirds) of Australians own their own home. Our home ownership rate has been within +-2% of 69% since the 1950s.

 

Yeah that is correct. But, how many of those homes were purchased in the 21st century, without previous selling? What about those 7+ million who are without a home and have NO opportunity to buy anymore without becoming a mortgage slave for life?