Why work, just buy property!

Discussion in 'Property Market Economics' started by Ummm, 1st Dec, 2019.

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  1. Ummm

    Ummm Well-Known Member

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  2. Waterboy

    Waterboy Well-Known Member

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    let me get my crystal ball
     
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  3. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    How do you get the money to buy them?
     
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  4. bmc

    bmc Well-Known Member

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    well that wage growth better start soon,
    • GDP growth forecast to remain weak at around 1.6 per cent over the year, well below RBA forecasts (Wednesday)
    • RBA is rated at only a 10 per cent chance to cut interest rates again (Tuesday)
    • Retail sales figures and the trade balance (Thursday) should again show a weak domestic economy, while the export sector is still booming

    and don't forget this little gem

    "Realestate.com.au chief economist Nerida Conisbee said there was a popular misconception that house prices doubled every seven years. “It usually takes a lot longer,” she said.
    The past performance of a market was no guarantee of future growth, she added."
     
  5. marmot

    marmot Well-Known Member

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    I remember the real estate industry saying something almost similiar about Perth real estate in the years after we recovered from the GFC with little damage done.
    What a load of bulldust that was.
    It took a few more years to play out before it all went south.
     
  6. VanillaSlice

    VanillaSlice Well-Known Member

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    Back then did Perth have the issue of ""building approvals remain low and council laws severely restrict new development"" like the OP's article has mentioned for Sydney ?
     
  7. Waterboy

    Waterboy Well-Known Member

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    :rolleyes: :rolleyes: :rolleyes:

    [​IMG]
     
  8. Timb89

    Timb89 Well-Known Member

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    The same thing they did the past few decades. Put themselves in so much debt that the millienia old financial fundemental of charging interest with on lent money has to be basically done away with to sustain an otherwise unsustainable system. Buy another property with equity and repeat.
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    but how do you borrow without a job?
     
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  10. Timb89

    Timb89 Well-Known Member

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    You're aware lending practices were so egregious we had a royal commission right?
     
  11. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes, but that doesn't answer my question.
     
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  12. Timb89

    Timb89 Well-Known Member

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    I don't see the relevance of your question. You obviously can't borrow without a job? But spending money the bank says you have isn't the same as spending money you've saved for otherwise why the need for the royal commission or interest rates this low to unburden people's commitments.
     
  13. Lacrim

    Lacrim Well-Known Member

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    Easy, just show the bank that article. :rolleyes:
     
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  14. marmot

    marmot Well-Known Member

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    Yeah and its highly dependant on immigration remaining high.
    With no wage growth for almost a decade you might end up with baby boomers all trying to sell their houses to another generaion that cannot afford then , but just expecting an rich immigrant to buy it.
     
  15. kierank

    kierank Well-Known Member

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    Not true.

    I don’t have a job AND I borrowed $1M in July this year.
     
  16. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    You seemed to be implying that because there was a Royal Commission in the past a job is no longer necessary for a loan. The 2 are not related.

    I don't think this was every the case since 2009 when the NCCP Act came in.

    But Kierank is right, you don't necessarily need a job, you need income to be able to borrow.
     
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  17. Woodjda

    Woodjda Well-Known Member

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    At his recent growth rate my nephew will be 10m tall by the time he's 30. Seems likely. You can't argue with maths.
     
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  18. Kelvin Cunnington

    Kelvin Cunnington Well-Known Member

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  19. TMNT

    TMNT Well-Known Member

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  20. Angel

    Angel Well-Known Member

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    How many suburbs have a current median price around $3.5m? Remove the tiny number of outliers and then do the Maths.
     
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