Society/Culture Australian Property Prices to Crash?

Run n Spread

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What are the circumstances that people will sell at a loss large enough to be considered a win for the buyer? Deceased estate?

Some of my friends were going to sell their investment property but in the end decided that it was better to hold and get rent from it than cop a whack.
Estate taxes could come in.

But big one is foreclosure and the bank forecloses. Happened in the US. Mortgages and investments are great but if you don't have the income to service them you are out of luck.
 

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You don't buy them the bank buys them. Any idiot could've done it before the credit tightening!

You could've picked a house for 200k and watched it double within 6 months if you knew what you're doing. Then you could've split that 200k equity into 10x20k deposits for 10 more 200k homes.

It's just some people research it and get it right, others have no idea, and the worst group only wants one when they seem going up in the papers. Basically this worst group are millennials who bought after 2015 and this is exactly what they deserve for buying at the top.
Who walks into a bank with $200k and walks out with approval for 10 mortgages?

If anyone ‘deserves’ to be stung by a housing collapse it’s idiots that pay no heed to the element of risk.
 

Leeda

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Who walks into a bank with $200k and walks out with approval for 10 mortgages?

If anyone ‘deserves’ to be stung by a housing collapse it’s idiots that pay no heed to the element of risk.
it's those who don't care about risk are those who will walk and plunder the banks when they can.. the Aussie Banks
are equally dubious about this.. they are getting better but they are also pandering to the chinese market way too much...
 

Mofra

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Estate taxes could come in.

But big one is foreclosure and the bank forecloses. Happened in the US. Mortgages and investments are great but if you don't have the income to service them you are out of luck.
The US market is completely different though - their market is predominantly non-recourse loans where if you sell at a loss the bank wears that loss, hence 'jingle-mail;' being a huge contributor to their crash in 2008.

Our loans are different where if the sale does not cover the outstanding debt the lender has 'recourse' to pursue the borrower for further funds to cover the remaining debt. Hence our lenders are generally far more reticent to foreclose.
 

Footyfan60

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You left out, Howard government selling assets and our gold reserves at bargain prices.
Yeap it’s all Howard fault!
Let’s ignore the abortion that was the Rudd/Gillard/Rudd and the greens circus

Handed everything on a platter and could not do a better job at screwing it up
 

its free real estate

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Youd reckon so
But people have been buying Meriton for how many years?
I just don’t see it. The people who bought in the Opal tower are going to take a massive loss, if not face bankruptcy. This will be in the news for months - probably lead to a Four Corners expose that reveals shoddiness across the Australian construction industry, and calls for Royal Commissions.
 

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Blue1980

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You don't buy them the bank buys them. Any idiot could've done it before the credit tightening!

You could've picked a house for 200k and watched it double within 6 months if you knew what you're doing. Then you could've split that 200k equity into 10x20k deposits for 10 more 200k homes.

It's just some people research it and get it right, others have no idea, and the worst group only wants one when they seem going up in the papers. Basically this worst group are millennials who bought after 2015 and this is exactly what they deserve for buying at the top.
As with everything it depends. I bought land in 2016 and got the house build 2017/18 out in the north western suburbs. Prices have gone up by 50-60% since 2016 and overall property prices in my area have continued to increase by 10-20% in 2018.

I was in 2 minds at the time of buying a unit/apartment closer to the city of a 4 bedder house further out with an eye on investment and the way things have panned out, very glad I chose the later.
 

maryjames

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Government - Hey banks you are an absolute disgrace irresponsibly lending money to anyone with a pulse, we are putting you on trial by media with a Royal Commission

Next minute....

Government - Hey banks why you no lend money to people anymore.....
The banks run the show.
 

CheapCharlie

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An article stemming from the Opal Tower fiasco in Sydney

..."It's monstrously dangerous," says veteran building consultant Robert Hart. "We now have tens of thousands of apartments affected by shoddy workmanship, rubbish materials, bad waterproofing."

Even where adequate standards exist, they're rarely mandatory and more rarely enforced. Geoff Crittenden of the Welding Technology Institute of Australia, says: "about 85 per cent of the 600,000 tonnes of fabricated steel imported into Australia every year is non-compliant".
And that's before we get to the flammable materials that could cost owners $12.5 billion; the pathetic defects protocols; the off-the-plan buyers duped into buying flats that can be 20 per cent smaller than promised; the voiceless residents bullied by huge, arrogant agent-run strata bodies. With four-fifths of City of Sydney dwellings now apartments and more than a million apartment dwellers in metro-Sydney, this is set to become a nightmare.
Some call for an inquiry. But an inquiry (I give you stadiums, Sydney light rail and Westconnex) has become the placebo you apply when you have no intention of change.
It's 20 years since Labor's then-planning minister Craig Knowles introduced private certification, which I described in this very column as "a small measure of stupendous idiocy" bringing the "inherent and unavoidable conflict between public duty and private money". It was a disaster from the start. Since then we've had reviews, reports, select committees and commissions. In 2007 we established the Building Professionals Board as watchdog.

https://www.smh.com.au/entertainmen...ot-just-a-transport-card-20190103-p50pg1.html
 

Bombermania

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The Australian Taxpayers bailed the Big Banks out in 2009
No they didn't, the government may have saved a few smaller banks by allowing them to be taken over by larger banks but the big four were never at real risk, the main concern was surrounding customers access to their money because without the deposit guarantee there was a risk that we would see a run on the banks which may then have put them at risk.
 

Bombermania

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I can't see the Australian property market crashing.

So many 30-somethings (And I am one) with solid and stable incomes (ie middle class, government jobs) are sitting poised and ready, priced somewhat our of their 'dream home' range. In many cases, holding other property or with strong savings, etc.

Basically, there's a heap of latent demand if prices start to fall or even just remain stable.

The economy would have to fall apart first... to the extent that the urban middle class are getting smashed too... in which case we have bigger issues than property prices imo
That would be the case in a normal market correction but in a crash many of them will eventually face unemployment because a proper property crash is like a wrecking ball through the economy, and people who do keep their jobs would face a harder time in obtaining finance.
 
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Bombermania

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"Value" is a ghost. It does not exist out side of what a buyer will pay.

For nigh on a decade the "market " has danced to tune of shit like "the Block" and the BS they propagated through their "invisible" partner real estate agents, one of which has gone down the shitshoot..rhythms with macarr.

This has all been based on up-selling "jerry built" cheap shit overpriced property to idiots, who paid and now stand to get arse raped.

I absolutely revel in the loss of these idiots.

I hope they have half a brain and sue the people who raped them like Scott Cam and his band of tools and unskilled labourers but doubt many of them have the where with all to even identify who ripped them off.
You are having a crack at real estate agents but I think you are aiming at the wrong target because agents have one job and that is to get the best deal for the seller now considering prices have been rising it could be said that agents have been doing their jobs well, they don't set the price, it is set by the seller and then its up to the market to accept or reject that price, now it is true that agents will recommend a price but its just a potential guide price that should be based on the market.
 

juss

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As a future first home buyer (eventually) would this be good for me or bad? Wouldnt this just mean banks tighten up and its harder to get a loan?
 

Benny78

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Yeap it’s all Howard fault!
Let’s ignore the abortion that was the Rudd/Gillard/Rudd and the greens circus

Handed everything on a platter and could not do a better job at screwing it up
They were handed nothing left to sell and faced the GFC. I actually would've preferred no stimulus as the low end blue collar people would've lost their jobs and small businesses (mainly retail) would've closed up. As usual it's always about them being bailed out by the taxpayer.

You can't really count the revenue from sold assets and gold as part of Howards surplus. What revenue did he leave behind when you subtract all that?
 

Footyfan60

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They were handed nothing left to sell and faced the GFC. I actually would've preferred no stimulus as the low end blue collar people would've lost their jobs and small businesses (mainly retail) would've closed up. As usual it's always about them being bailed out by the taxpayer.

You can't really count the revenue from sold assets and gold as part of Howards surplus. What revenue did he leave behind when you subtract all that?
Most of the world suffered the GCF but Australia didn’t thanks to its mining boom!
Howard did sell assets but as did Krudd/Gillard and the oxygen thieving greens so all at fault there

Krudd/Gillard/Krudd and the greens only continued on selling everything except instead of saving the pennies just blew it on utopian dreams as well as selling out workers buy lying they had fixed the work choices with their fair work! All they did was change the name of it!

We saw endless boat people arrive and reckless spending by labour & hold up large projects of much needed infrastructure projects and continue to choak the choak and destroying The Australian economy!

Now we have over clogged cities now, record welfare and homeless thanks to rubbish immigration that has people bypassing 8 countries to reach Australians shores for housing and welfare & the greens calling for open borders meanwhile welfare and homeless ness is at record highs and crime rates growing and unaffordability is booming! Meanwhile labor along with the greens destroyed the blue collar manufacturing industry

At the time i disliked Howard due to working in union based work places! But looking back he it 10times better than any of the crap labor and the greens have served up in the past 100 years (Hawke the exception)

Either way Shorton is a snake and the greens have to go
 

Lebbo73

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No they didn't, the government may have saved a few smaller banks by allowing them to be taken over by larger banks but the big four were never at real risk, the main concern was surrounding customers access to their money because without the deposit guarantee there was a risk that we would see a run on the banks which may then have put them at risk.
Meaning that the Australian taxpayers were and still are responsible for bailing out the banks.
Depositors were withdrawing money from the banks at a rate that was pushing the limits of the banks cash reserves. If this continued then the banks would have collapsed. The Federal government stepped in and guaranteed all deposits with taxpayers money. This had a calming effect which stopped depositors from withdrawing their funds.
 

Bombermania

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Meaning that the Australian taxpayers were and still are responsible for bailing out the banks.
Depositors were withdrawing money from the banks at a rate that was pushing the limits of the banks cash reserves. If this continued then the banks would have collapsed. The Federal government stepped in and guaranteed all deposits with taxpayers money. This had a calming effect which stopped depositors from withdrawing their funds.
That is it in a nutshell and its a vexed question because you could argue that it is not the government's job to bail out the private sector but at the sametime the government could not allow a full run on the banks because that would have been a worst outcome for the wider economy.
 
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