Society/Culture Australian Property Prices to Crash?

Come up with 5% deposit (or 3.5% if you're Indigenous) and the Government will put up 25% in return for equity.


Thoughts?
Just sounds so open to fraud.
 

hamohawk1

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Come up with 5% deposit (or 3.5% if you're Indigenous) and the Government will put up 25% in return for equity.


Thoughts?

If the government (state or fed) really cared about the 'affordability' they wouldn't introduce these schemes. All it does is further inflate the market, and prices infinite more people out than it serves.

But governments are hooked on the money realestate brings i.e. stamp duty
 
“We are not putting more money into people’s pockets, in effect what we are doing is giving them the opportunity to participate in a competitive market,” he said.

Not sure how this solves the issue. More participants in an already competitive market?
 
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If the government (state or fed) really cared about the 'affordability' they wouldn't introduce these schemes.
And when the scheme collapses with tons of debt yadda yadda it will all be shovelled to some bank or investment fund that the gives the Finance minister a high paying gig at when he leaves office.

I predict disaster.
 
the RBA really have lost the *in plot.


RBA: WARNING!! The Housing Market is Overheating!

EVERYONE: Yes, because you're keeping interest rates at zero........

RBA: Yes but WARNING!! The Housing Market is Overheating!
 
the RBA really have lost the fu**in plot.


RBA: WARNING!! The Housing Market is Overheating!

EVERYONE: Yes, because you're keeping interest rates at zero........

RBA: Yes but WARNING!! The Housing Market is Overheating!
So the APRA tells banks to assess all loans assuming a higher interest rate, can someone explain why the RBA couldn't also start increasing the interest rate too? They're a bit s**t at there job if there forecast is 2024
 
So the APRA tells banks to assess all loans assuming a higher interest rate, can someone explain why the RBA couldn't also start increasing the interest rate too? They're a bit sh*t at there job if there forecast is 2024

because we are in economic turmoil they reckon.

How the * do housing prices rising 20% show we are in economic turmoil? If anything everyone seems to be doing pretty damn well economically.
 
Been happening in WA for decades. Google keystart shared equity scheme.

Government makes good money off it as they own a part of the house. Low income earners get onto the property ladder.

Is it a good thing though?

When your scheme targets 3000 purchasers, it isn't exactly doing much to curb the problem that's seemingly affecting a larger cohort of the population.

And when 60% of members of parliament own an investment property - it's good the government itself now has skin in the game to ensure the property market continues to be properly stimulated so they can at the very least get their money back and some.

Forget about investing in businesses - let's take some money out of the real economy and pump it into unproductive assets.
 
Dec 25, 2004
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Is it a good thing though?

When your scheme targets 3000 purchasers, it isn't exactly doing much to curb the problem that's seemingly affecting a larger cohort of the population.

And when 60% of members of parliament own an investment property - it's good the government itself now has skin in the game to ensure the property market continues to be properly stimulated so they can at the very least get their money back and some.

Forget about investing in businesses - let's take some money out of the real economy and pump it into unproductive assets.

I understand what you think would be the ideal situation for housing in Australia. This scheme might not fit with that but it works/helps in reality.
 

Maddhew

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I think the RBA is waiting for the economy to open and some serious spending to help kickstart it. This may naturally accelerate the need for an interest rate rise.

If they go too soon, they might stifle consumer confidence.
 
Debt. Debt. Debt.

And by taking in more debt you'd think most of the people doing so are confident in the economy? Which totally goes against the picture painted by the RBA as to why they are keeping interest rates low.

Something doesn't stack up here.
 
I think the RBA is waiting for the economy to open and some serious spending to help kickstart it. This may naturally accelerate the need for an interest rate rise.

If they go too soon, they might stifle consumer confidence.

Doesn't paying 20% more for a house show a fair bit of Consumer Confidence?
 

Madas

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Doesn't paying 20% more for a house show a fair bit of Consumer Confidence?

Not nececelery

Its pretty easy to buy into the boom hype that everything just keeps going up.
Am speaking from experience after getting fingers burnt in 2007 boom .
 
Not nececelery

Its pretty easy to buy into the boom hype that everything just keeps going up.
Am speaking from experience after getting fingers burnt in 2007 boom .

no offence to you but maybe a few more fingers need to be burnt now so a house in 30 years time is still obtainable for the average person.

RBA and the likes are fueling a bonfire that they are also trying to put out with a water pistol.

Maybe they should stop pouring petrol on it.
 
Last week, a real estate agent told me about a young couple who’d just bought a house off him for $3.5 million.

The reserve had been $2.8 million, but spirited online bidding took the price a spectacular $700,000, or 25 per cent, above that.

He asked them: “What’s your mortgage?”

“$2.4 million”, they replied proudly. After all, that meant they had more than a million for a deposit and bank approval for that kind of loan. (We did something similar when we started out, without the deposit, so I’m not judging).

But if it was a two-year fixed-rate mortgage at 2 per cent interest – about the lowest rate you can get at the moment – the repayments would be $8859 per month, after tax.

That means this couple has to earn $150,000 before tax just to service the mortgage, before buying food and paying any bills.

 

Madas

Norm Smith Medallist
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no offence to you but maybe a few more fingers need to be burnt now so a house in 30 years time is still obtainable for the average person.

RBA and the likes are fueling a bonfire that they are also trying to put out with a water pistol.

Maybe they should stop pouring petrol on it.
I agree
What is see playing out currently is another disaster waiting to happen for plenty of people who get in over their heads .
Tread cautiously and don’t buy into the hype is a word of advice I can pass on for what it’s worth.
 

Maddhew

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Doesn't paying 20% more for a house show a fair bit of Consumer Confidence?
Yes, that's my point. They want that to feed into retail, hospitality and travel for a bit to get those sectors going again. This will start to increase inflation and naturally rates will rise.

If they put one through now to take the heat out of the housing market it will have down stream impacts on the other industries.

Prices have no doubt increased but some of that is a bubble created by lack of supply, again as we open up and things get back to normal more will come onto the market which will stabilise/reduce prices. If you prematurely add interest rate increases to that, you then have 2 factors potentially reducing prices, creating mortgage stress and putting pressure on lenders,

People who don't own houses want a crash, the RBA doesn't. A stabilisation with a 5-10% reduction to account for the bubble and modest staggered increases to rates would be the best scenario.
 
Yes, that's my point. They want that to feed into retail, hospitality and travel for a bit to get those sectors going again. This will start to increase inflation and naturally rates will rise.

If they put one through now to take the heat out of the housing market it will have down stream impacts on the other industries.

Prices have no doubt increased but some of that is a bubble created by lack of supply, again as we open up and things get back to normal more will come onto the market which will stabilise/reduce prices. If you prematurely add interest rate increases to that, you then have 2 factors potentially reducing prices, creating mortgage stress and putting pressure on lenders,

People who don't own houses want a crash, the RBA doesn't. A stabilisation with a 5-10% reduction to account for the bubble and modest staggered increases to rates would be the best scenario.

I own a house and I want it to crash, that or the Government tells me what the long term plan for housing affordability is, so my kid whos 2 has a chance to buy when she is in her 30's without deathriding me and my equity.

The entire problem with housing is its looked at and regulated adhoc as a short term investment opportunity. It should be planned out for the next 30, 40 years. if the clear issue is that interest rates provide such an up and down then regulate it by other means to provide more stability. This s**t isn't rocket science. But i guess when ministers etc are the ones who own all these investment properties why would they.
 
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