Society/Culture Australian Property Prices to Crash?

[Evolved1]

I don't think people realised how big an impact the property market and the associated "wealth effect" had on our economic performance, including the RBA.

I think our property is ridiculously overvalued, but there is no doubt that the economy tanked a bit after the banking royal commission.

Our long-term property boom has resulted in a large portion of the middle class amassing paper wealth through consistent increases in the value of their homes. That level of growth was always going to be unsustainable, but there will be a huge political backlash if/when a larger correction happens. Nobody wants to be in charge at the time of a massive property price dump, so the problem keeps getting kicked down the road.

I feel sorry for younger people trying to buy their first home.

 

[maryjames]

The market is flying right now. It’s crazy. Up and up and up it goes. Only a huge world wide virus will slow it up.

 

[Pessimistic]

The market is flying right now. It’s crazy. Up and up and up it goes. Only a huge world wide virus will slow it up.

Might make property more attractive just a easily

Not too many years to the $5m average house price in Melbourne and Sydney

 

[maryjames]

Might make property more attractive just a easily

Not too many years to the $5m average house price in Melbourne and Sydney

People wages arn’t going up at all. Everyone get in now before to late..

 

[Kwality]

A few have had a 'mare in this thread.

https://www.abc.net.au/news/2020-03-02/house-prices-surge-in-february/12015772

more than a few interested & competing parties in the markets, who are you representing?

 

[Kwality]

Our long-term property boom has resulted in a large portion of the middle class amassing paper wealth through consistent increases in the value of their homes. That level of growth was always going to be unsustainable, but there will be a huge political backlash if/when a larger correction happens. Nobody wants to be in charge at the time of a massive property price dump, so the problem keeps getting kicked down the road.

I feel sorry for younger people trying to buy their first home.

Its happened in Perth, how do your backlash claims stack up?

 

[Squarehammer]

People wages arn’t going up at all. Everyone get in now before to late..

#climate change
apparently climate change only happens in western countries while 3rd world asiang countries are allowed to storm ahead

 

[Kwality]

The number of first-home buyers increased in almost every state and territory in Australia last year despite a deterioration of housing affordability, according to a new report.

Nationally, housing affordability declined by 2 per cent in the last quarter of 2019, requiring 34.7 per cent of income to meet loan repayments, the latest Real Estate Institute of Australia Housing Affordability Report found.

But that did not stop more first-home buyers snapping up properties in the last three months of 2019 in every state or territory, except for Western Australia.

Victoria saw the largest increase with the number of loans to first-home buyers increasing 14.1 per cent over the quarter to 10,073.

The states where first-home buyers are most active revealed in new report

Affordability has declined over the past quarter but that hasn’t dissuaded first-time buyers, who have increased in almost every state and territory.

www.domain.com.au

 

[Deliverance]

Record low interest rates, easier lending criteria from APRA, only 5% deposit required, housing affordability worsening. What could possibly go wrong?

 

[twotooto]

The uncontrollable face saving ego is real.

Absolute dribblers.

 

[Kwality]

The uncontrollable face saving ego is real.

Absolute dribblers.

Interesting claim ....

 

[twotooto]

more than a few interested & competing parties in the markets, who are you representing?

Interesting claim ....

Literally no ******* idea what you're on about. Zero, zilch, zilla, nada.

 

[DangerousD]

For those wanting a burst of the supposed property bubble, can i hear your thoughts on what you think will actually cause this?

Before you answer, keep in mind, Australia added roughly 380,000 new arrivals in the 2018/19 year.
Victoria added 132,000 people.

 

[Squarehammer]

For those wanting a burst of the supposed property bubble, can i hear your thoughts on what you think will actually cause this?

Before you answer, keep in mind, Australia added roughly 380,000 new arrivals in the 2018/19 year.
Victoria added 132,000 people.

well there you go! cut the immigration rates and allow the shortage of housing to catch up!

WA is a good example of supply and demand

 

[DangerousD]

well there you go! cut the immigration rates and allow the shortage of housing to catch up!

WA is a good example of supply and demand

WA is a good example of why a market can crash and a example of how to minimise risk when investing.

Cutting immigration rates is a simple yet unrealistic option to lower housing rates. It would/might lower house prices and ease congestion, well not ease but slow until infrastructure catches up. But the state and federal governments rely on a growing population to actually pay for an ageing population.

There are so many ways a government could increase supply and decrease demand, but it seems there is no real need to, considering the party who actually had a policy to address this last year, was soundly defeated.

 

[Cuzz09]

Would int rates go up to double figures?

That would create chaos

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[RudyBlue]

What’s the go with corona and the housing market?

 

[Kwality]

What’s the go with corona and the housing market?

Problematic if you are highly geared .....

 

[Austoraisetheurn]

For those wanting a burst of the supposed property bubble, can i hear your thoughts on what you think will actually cause this?

Before you answer, keep in mind, Australia added roughly 380,000 new arrivals in the 2018/19 year.
Victoria added 132,000 people.

Im in my mid 30s, not married, no kids. I dont own any property.

I personally dont see the value in property as it is....all the huge gains have probably already been made in this market and the lucky ones should have already cashed out.

There is no point winning 99 times out of 100, if the 1 time you lose it is catastrophic.

That is where I think property is now.

Can you handle that?

 

[Kwality]

Im in my mid 30s, not married, no kids. I dont own any property.

I personally dont see the value in property as it is....all the huge gains have probably already been made in this market and the lucky ones should have already cashed out.

There is no point winning 99 times out of 100, if the 1 time you lose it is catastrophic.

That is where I think property is now.

Can you handle that?

So what are you doing for the future?

 

[DangerousD]

Im in my mid 30s, not married, no kids. I dont own any property.

I personally dont see the value in property as it is....all the huge gains have probably already been made in this market and the lucky ones should have already cashed out.

There is no point winning 99 times out of 100, if the 1 time you lose it is catastrophic.

That is where I think property is now.

Can you handle that?

Whilst i disagree, of course i can deal with that, your opinion, your life.

I am interested in hearing from the property naysayers, on what they think will cause the crashes they are expecting.

Whilst i don't care if you do or don't invest in or purchase property, to suggest all the huge gains have already been made, is crazy.

 

[Scotland]

Im in my mid 30s, not married, no kids. I dont own any property.

I personally dont see the value in property as it is....all the huge gains have probably already been made in this market and the lucky ones should have already cashed out.

There is no point winning 99 times out of 100, if the 1 time you lose it is catastrophic.

That is where I think property is now.

Can you handle that?

I am in the same boat, but I do own property.

Why? I want a roof over my head. Will I make a fortune? No, but I can do what I want with the house and I gauge interest payments vs equivalent rent. Whether you own or rent it still boils down to outgoings relative to income.

Would I invest all my life savings and super in real estate? Hell no. Transaction costs are ridiculous and the gains don't justify it.

 

[Cuzz09]

Yeah Ive got my little unit. Thats all I need. Never thought of it as an investment just a place to move out by myself and chill in.

I guess down the track omce its paid off and hopefully the value goes up its a good thing but its not like Id sell it (maybe when Im 80 to go to retirement home or whatever)



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[Scotland]

I know a couple that have their house paid off in their mid 30s. Now they are having kids and down to one income etc. and under no financial pressure at all.

It's a great position to be in. I'd rather be them than renting and earning $100k+ with no assets to my name. Sure they could theoretically have $500k in the bank instead of a house worth that (assuming tha'ts around the value) but how many people actually do that? Paying off a mortgage acts as forced saving for a lot of people.

 

[Royal Flush]

For those wanting a burst of the supposed property bubble, can i hear your thoughts on what you think will actually cause this?

Before you answer, keep in mind, Australia added roughly 380,000 new arrivals in the 2018/19 year.
Victoria added 132,000 people.

Mate this basic logic goes through one ear and out the other.

The people calling for a property market burst are simply the entitled who feel they should be able to afford an inner city dwelling and lift their noses at affordable housing on the outskirts of cities.



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