‘Craziest’ market in 30 years: the impact of the global housing boom

I have sympathy for those who can’t find a rental - there is a rental crisis in many areas of Australia and it is causing significant impacts to many families. There are far too many homeless people here, and most have stable jobs etc - there are simply not enough properties to go around. I don’t think that investors are the cause of this though, if anything it’s the opposite (more investors = more rentals). The rental crisis is at the moment caused (I think) by the pandemic and people moving away from apartment living in big cities and so many expats returning to Australia. The market hasn’t had time to catch-up with demand.

 

@skater that $349K unit you posted the link to - the strata on that one is a shocker! $3k per quarter ($12K per year). Ouch!

 

yeah, good explanation. Cities such as Darwin and Perth have gone through a massive downturn, alot of investors got badly burned by it so not much investment in building new properties in the last 5 years because there was so much empty properties setting around and everything is on discount sale or rental wise.

So @Ariyahn2011 even if there's a record building approval in Darwin, it will take quite a while to build them and bring them into the market and hence very low vacancy rate. Non of the mum and dad investors who have been burned wants to take that kind of risk again too soon so that doesn't help. I don't think anyone is to be blamed there...
I am sympathetic to the recent arrivals to the city who can't find a proper place to stay. The best for yourself is to learn about the dynamics of property markets and think about what can you do now and in the near future to not to become the victim of the beast...

 

Are you serious we live in Australia, try living in Philippines…. we are blessed

 

It was a very quick look. I'd do a lot more research if I wanted to buy, or rent in the area.

 

It may sound like lack of empathy, but the truth is that life is unfair.

Many years ago I learnt that the only person I could rely on was myself. I had to take a long hard look at myself, and my income, or lack thereof and do the best that I could, and get on with life.

When I bought my first car, I didn't want an old clapped out (can't remember what it was), but that was what I could afford. So I bought it.

When I moved out of home, I didn't want to live in a crummy unit that looked like it was nearly 80 years old, and a long way from home. But that was what I could afford. So that's where I lived.

When I'd saved up $500, I had a small portable B&W TV, I really wanted a colour TV, but I needed a VCR, so I went without my colour TV and bought the VCR & plugged it into the old B&W.

When I bought my first house, I didn't want to buy on the edge of the housing commission, a home that was falling down around me, that had bright lime green carpet, that I couldn't afford to change, with old bus windows in the front, it was seriously a nightmare. But what I DID want was to buy a home, so I was no longer at the mercy of a landlord & rising rents. Something that was mine, no matter what condition it was in. No matter that I had to commute an hour each way to work. That was all I could afford, so that is what I bought.

So, you are in a situation where it's hard to find a rental, that's affordable. If you need to find somewhere to live, you have some options.

1) Buy a place
2) Suck up the high rent where you want to live
3) Move to where you can afford the rent.

That may sound like a lack of empathy, but it is the reality. There's no knight coming on a silver stallion to save anybody, nice as it might sound. You need to look into the circumstances of your life and make the best decision you can and get on with life. It's not fair. Do the best you can with what you've got. Be thankful you live in Australia.

 

Luck can run out. "The Lucky Country" was penned with negative sentiment but manipulated to have a positive spin.

The Lucky Country - Wikipedia

Winning 10 in a row betting red at the casino is lucky.

 

"There is a point where transformation can be drowned by an over saturation of empathy. While this container of empathy is where transformation happens, transformation is alchemy and alchemy cannot take place when there is only one ingredient in the container.

Courage, commitment and change cannot sprout… much less grow, when the container is overly saturated in empathy. There may be a lot of expression, witnessing, unloading and connection, but no movement. The movement is inextricably reliant on self realisation of internal power and can only take place when the individual holds themself accountable for the past, present and future."

-Unknown source.

 

Craziest market in 30 years and if you are in Brisbane, a relief to investors who have been patient, somewhat sacrificially for more than 10 years. Investors who are now vindicated should be tolerated for some celebratory back slapping all round! Non investors should not be shocked in this forum to see so much rejoicing. I am sure investors are not a big group of heartless and ungrateful humanity. People are understandably modest publicly about their private charitable contributions.

 

Investors with kids are probably happy and dismayed at the same time.

 

I find the ' I went without ' stories here quite funny.

We are losing our heroic generation..... ppl who suffered bombings in WW2 hardship was common.

They were tough.

Also expected less worked hard didn't complain.

 

Absolutely. There should always be some time for progress, success, achievement etc to be celebrated. I know many people who are having the time of their lives now despite covid. They sacrificed much and invested/accepted much risk for the last 7 to 10 years and finally they have seen significant results. Life catapulting results.

Sew and reap. Without promise or guarantees.

 

Wrong. There has been a knight on a silver stallion in the form of govt and rba bailing out the property market repeatedly over the past 20 years. Thats why its so expensive and people pay any price, its virtually govt guaranteed

 

Many markets performed very poorly to average despite whatever the government has or hasn't done.

WA, NT went no where up until recently. Brisbane just started to boom. Sydney and Melbourne had a decent pullback not too long ago.

If folks have done well in the markets, its due to taking on risk and holding assets.

There is absolutely no certainty you'll do well or be able to hold long enough to do well.

It's a complete fallacy and grave mistake to believe that governments have guaranteed amazing returns for property investors.

 

Theyve produced great returns for most and backstopped many areas that would have otherwise dropped. Fhog then doubled and tripled, int rates on path to negative, guarantee of deposits, cheap lending facilities to banks, massive immigration pre covid, halving cgt, bringing back neg gearing, ppor not part of pension test, no govt building schemes, smsfs ....... the list goes on. The govt has the back of the property market and investors know it.

 

It's just not the case that investing in RE is a guaranteed path to getting rich due to government policy.

If it were the clear case, then you'd see alot more people becoming uber successful from real estate. The reality is most people aren't getting super rich from property in a short period of time. There are many folks who do very, very well but they pale incomparison to the vast majority of real estate investors who do average.

Government policy IS NOT guaranteed to make investors super wealthy via real estate. It's simply not the case for the majority of people who invest in residential RE.

 

I didnt say all were guaranteed to make a killing, rather that the housing market as a whole is govt guaranteed ie whenever it looks in trouble the govt will act. So in general it has been a far greater investment than would have been the case without that backing. Imagine if we got 20k to buy mining stock for the first time?

 

Yup. This. We're so lucky. Those with a sense of entitlement don't go that far.

Hard work. Planning. Grit. Perseverence. Bit of ruthlessness when dealing with your 'team', as some need to get replaced due to differing views or they don't provide the help you need. Sticking to the plan. Don't chase the pretty butterflies and stick to the plan.

 

This is where we'll have to agree to disagree.