Australia, you’ve officially jumped the shark

My opinion is that is a complete myth. Of course Sydney and parts of Melbourne are overpriced right now. But there is still some good buying in Perth, Brisbane, Adelaide and parts of Melbourne. Personally, I think it is more about expectations. My parents first house was very modest but they kept upgrading until they lived in a very nice, very large house before downsizing after retirement. My first house was a 2x1 unit. My partner's first house was a dump that needed extensive renovations. Some of the people I hear whinging about property prices simply don't want to buy a traditional "first home". They want their "forever" home now. Genuine first home buyers can still buy a "first home" in most capital cities without "becoming a mortgage slave for life".

 

Yes it is rhetoric. And numerous economists isn't the same as 'nearly everyone', and even those few economists didn't think the mining boom would last 'forever'.

It's nonsense. The majority of bank funding comes from local deposits...

That was my point. It's really just an opinion piece

The value of finance has always been at record levels and always will be, as long as the population keeps rising and there are more people taking out finance. The total amount of money spent on bread in Australia is also at record levels.

Yes, rhetoric. Various sectors of the economy decline or rise as the economic cycle changes. There has always been some sector in decline, throughout Australia's history, and always will be.

I'm not surprised you gave up. You pretty much conceded it was mostly rhetoric in your first few responses.

 

The proportion of renters has barely changed for seven decades.

Mortgage slave for life? That's funny. A typical loan term is 25-30 years, and most people pay it off faster than that.

I'd rather be a mortgage slave for 20 years than a rent slave for life. And it really is life in the case of renting - you need to keep paying rent until the day you die, and the rent goes up every year, unlike the mortgage which reduces every year and then vanishes completely after 15-20 years.

 

We have 7 million homeless people? news to me and mortgage slave? hyperbole does not an argument make.

 

The real issue with that is not that they want that first, it is that if they don't get it, they expect the world to change to suit them.

 

Homelessness in Australia fact sheet states: http://www.homelessnessaustralia.or.../Fact_Sheets/Homelessness_in_Australia_v2.pdf around 230,000 people. Where did the 7 million figure come from?

"Homelessness is often a result of a number of complex issues which can include:
ƒ
The chronic shortage of affordable and available rental housing
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Domestic and family violence
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Intergenerational poverty
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Financial crisis
ƒ
Long term unemployment
ƒ
Economic and social exclusion
ƒ
Severe and persistent mental illness
and psychological distress
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Exiting state care
ƒ
Exiting prison
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Severe overcrowding/housing crisis"

 

I will not argue with you all. To old and mature for that. One thing I know for sure, property market crash WILL HAPPEN in OZ. It happened everywhere else and it would happen here. Will it happen soon - YES, how soon - I don't know. At least I'm ready for it.

 

House prices won't go down they'll just stagnate e.g Adelaide 2010-Current.
https://www.sa.gov.au/topics/housin...vice-for-buyers/median-house-sales-by-quarter

 

Outside of presenting pure unsorted data, that is really all any article (or post on a forum) is.

Unprecedented investor finance relative to that of owner occupiers.

Doesn't make it any less true.

 

I would say not just believe but have done so. (not me, I'm very poor )

 

Interesting figures on how long it would take to save a deposit for a house: 14 years in Sydney... if you buy a median priced house. Easy solution, buy under the median. Here is the article:
http://www.dailytelegraph.com.au/re...ears-for-deposit/story-fni0cate-1227467965278

In Perth, it would take a first home buyer 8 years, 11 months to save a deposit for a median priced house. This raises the question, should a first home buyer by a median priced house? In Perth, within 7.5km of the CBD, there are unit for sale for under $350k. If I was a first home buyer wanting to get into the market but still be within 7-8km of the CBD, I would be looking at that kind of product. Some might need fixing up, but I think a renovator is a great first home. Opportunity to add value. The deposit is much smaller too

 

But everybody according to some, wants to own a home in Sydney and close to city for much less.

 

Surprised that no ones picked up on this ....

If you're paying cash for several how can it get ugly with all that debt mounting .

Some of you're other comments smell of troll .

Two in one week I think , eh sim ?

Cliff

 

There's a few of us who are not property investors.. Either rent or have one ppor... But are looking to get into property investing and believe it's a valid and good way to create wealth. Some of us, like myself, talk smack on various threads, but occasionally do have some wisdom and insights that even seasoned property investors find useful.

 

Everywhere else? There was a crash in Ireland, USA, Spain and Greece about a decade ago. Maybe a couple of others.

But there are over 200 countries in the world. So prices crashed in about 2% of them.

 

I listed 12 untrue claims that he made.

Unprecedented since when? The ratio was almost as high in 2003, and I suspect it was also higher prior to the 1950s when almost half the population of Australia rented (meaning nearly 50% of homes were owned by investors).

 

The ignore feature on this site completely removes all traces of the users comments (unlike Somersoft), I see that it's going to come in very handy