Liberal MP John Alexander: Australia faces worse house price crash in 130 years

https://www.smh.com.au/politics/fed...alls-for-housing-changes-20200612-p551vp.html

"We are facing the biggest correction in the housing market we have seen since the 1890s," Mr Alexander said. In the decade following a major property boom in the 1880s, house prices in some areas fell more than 50 per cent.

Australia has record levels of housing debt. The fear is with rising unemployment, this debt, underpinning the Australian housing bubble will not be serviceable. The bubble will collaspe.

His solution is to allow everyone to be able to use Superannuation to buy a house.

"You've got to find a way of how do you bridge from this moment when the market is going to go way down ... You've got to be working on it right now."

What are your thoughts?

 

His plan will only inflate assets, deflate the value of dollars of those who are saving for a deposit and undermine retirement savings.

Two years ago he talked about a high speed train to improve housing affordability. TIME TO BITE THE BULLET, High-speed rail at heart of ‘mega-city’ (23rd May, Northern District Times, front page) That train would have cost billions and delivered fewer benefits than improving conventional public public transport for a fraction of the cost in a fraction of the time.

Now he's whipping up fear about what might happen if affordability improves, even though he thought that was a problem two years ago when he was spruiking trains.

 

Nothing like pouring several trillion dollars of petrol on the property market fire - makes all those first home buyer schemes etc look like total amateurs. Guess what happens at the end - "biggest correction in the housing market we have seen since 1788".

 

If he's tennis commentating skills is anything like his economical skills,
Is why he's on my ignore list

 

Has he any education qualifications beyond high school?

 

I believe he is very economical with his skills.

 

Super is only the beginning.

This is what I reckon will be promised before the 2022 election.

They will introduce a tax break for parents who help their kids buy a home.

Parents don't need cash, they can just give home equity. Eg if a parent gives their child $200k equity that will be used for a home purchase the parents will have both their asset lowered in value by $200k (which might help with the age pension assets test) AND get a tax offset from the government up to $20k per year. But not just any tax offset this will be a refundable tax offset. So even if you've arranged your affairs to pay no tax you will still get that money back from helping your kids into their first home.

The whole thing will be arrangeable online through the tax office. Kids won't need any deposit to buy most homes.

Sound crazy? No crazier than the recent home renovation payment thing.

 

That's it. That fella, Alexander the great BS artist. His name is mud in my books.

 

What a bear

These utterances of Armageddon came just before the Melbourne market clearance rate (Domain) reached the lofty heights of 57% (subject to amendment). He's doing a great job of depressing property prices all by himself so I hope he doesn't stop because as a potential cash PPOR buyer, I welcome this timely intervention.

 

As you know the economy is currently running on life support. The problem is not now, but what happens later in the year when life support systems are turned off.

 

Property market is behaving like it's about to boom, even though it's on "life support"

Share market has tanked too

 

Buy The Effing Dip!

 

Lol
I dont get it

 

I've stopped predicting because I got sick of looking and feeling silly

 

I know its nuts I give up...

 

its going to Boom from next year!

 

It’s because every single person who tries to predict an economic outcome never factors in the most important equation....human psychology (mainly optimism and sentiment).

Right now optimism for most people is incredibly high. Think about it.
Majority of people didn’t lose their job, we are coming out the other side of the pandemic, life is returning to normal, most other countries (especially the ones Australians most relate to are far far worse off), some people to date have actually been much better of since the pandemic (more sales, busier, casuals getting JK), some people now have more money (staying at home is cheap, maybe withdrew 10k super and will withdraw 10k more). I could go on and on but the reality is for a lot of people they are actually right now very optimistic about how well we/they have done and this translates to behaving accordingly.

We are on a property/economics forum so spend a lot of time discussing the future and impacts of things. The majority of the population don’t think that way...Most people aren’t waiting to see what happens when government hand outs and repayment holidays stop.

Just ask the people on the ground. Speak to the brokers around here. I’ll bet anything the last 2 weeks they have had a dramatic increase in enquirers, any agents in here?? Bet they are seeing the same.

 

Where's the ignore button.

 

You could be right and I sure hope so
I started a thread on whether ....cash flow has taken a hit, interesting most people in a better situation as you mentioned

I can now start my development due to government grants which is making this market attractive

I agree market sentiment is important, on the flip side we cant forget that when the market originally got hammered (shares) suddenly everything went south.

Trying to point out how fickle it is, we are not in blue sky territory and the last two quarters of gdp tell the true picture

Lets see what happens over next 6 months, I am not planning to slit on wrists anytime soon

 

Jobkeeper stops in September (hopefully), this is because the businesses that are currently not able to work will re open in September and the people on jobkeeper will have to go back to work,

Also all the businesses that currently have employees on jobkeeper but never stopped working will go back to paying there staff by themselves.

I see all this as positive, don't get the negativity around Jobkeeper ending in Sep.