Parley Posted June 4, 2015 Share Posted June 4, 2015 Speaking as a homeowner I have seen houses near me skyrocket recently. A year ago I thought my home was probably worth $750K to $800 and now have seen similar houses going for $1.2M. A 2 storey house in the next street to me went for $1.46 Million at auction on the weekend. It is nice to know my house is worth quite a lot. A lot of the buyers (most) are Chinese in appearance. If money is coming into our economy from China I see that as positive as it is boosting our economy. The vendors will spend that money and it is new money to the economy. It is a concern for the first home buyers though. If there is to be a crash I want to know when it will happen so I can sell my house first and rent for a while. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 4, 2015 Share Posted June 4, 2015 I find recessions to be red herrings. If you read the doom and gloom about the 2008 credit crunch in the UK (I really don't want to use the term "GFC" - find it a completely pointless Australian acronym), you'd be forgiven for thinking every man and his dog was out of work and the country was on its knees. But what happened in reality? Well from a personal point of view, we became considerably better off than in the boom years. Our mortgage went from 6.99% to 0.99% in the space of around six months, and it's remained there ever since. So a net saving of around $90K in interest payments alone. I didn't lose my job, neither did my wife or anyone in my family. Nor did any of my friends despite many of them working in the finance sector. Retail prices were also held in check, so we had more spending power than before (some huge discounts were available). The public services we actually used were more or less unaffected (or at least there was no noticeable effect). The bits of the NHS we used were unchanged, the bins got collected and the parks and swimming pools remained open. Some people were affected, that's true. A lot of public sector jobs went, as did a lot of public spending, but a huge amount of this was waste. I remember having an argument with a friend who worked for the local council (she kept her job) about the closing of a youth club. Her point was how bad it was for the community, my point was if it was that important then keep it running without the handouts - i.e. take some ownership and organise it without the council's money. If there's no drive or appetite to run it privately, why do you assume the tax payer should fund it? So all in all, despite the BBC telling us night after night that the end of the world was nigh, very little actually happened of any real consequence to a lot of people in the UK. Sure, it hit some people extremely badly, but as a percentage it's a lot less than people who were unaffected. Australia will survive... Actually, with poxy 2 bed flat in the part of Melbourne we live in costing north of $1M, it'll be very welcome. GFC is not an Australian acronym. It's used world wide and came out the US, who caused it. I think a lot of people have said if you don't lose your job and income when a recession is on you're generally on a winner. As long as your savings on the home loan makes up for the negative equity then people will be fine. That's if a recession happens mind you.:cool: Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 4, 2015 Share Posted June 4, 2015 Speaking as a homeowner I have seen houses near me skyrocket recently. A year ago I thought my home was probably worth $750K to $800 and now have seen similar houses going for $1.2M.A 2 storey house in the next street to me went for $1.46 Million at auction on the weekend. It is nice to know my house is worth quite a lot. A lot of the buyers (most) are Chinese in appearance. If money is coming into our economy from China I see that as positive as it is boosting our economy. The vendors will spend that money and it is new money to the economy. It is a concern for the first home buyers though. If there is to be a crash I want to know when it will happen so I can sell my house first and rent for a while. Don't we all parley, don't we all.:laugh: Quote Link to comment Share on other sites More sharing options...
Parley Posted June 4, 2015 Share Posted June 4, 2015 Also there is a lot of rich people in China, so there is no guarantee they will stop buying any time soon. They seem to be trying buy up the eastern suburbs of Melbourne, house by house. So while they are still buying, the house prices won't collapse. Quote Link to comment Share on other sites More sharing options...
Petkula73 Posted June 4, 2015 Share Posted June 4, 2015 GFC is not an Australian acronym. The first time I heard this was when I arrived in 2011. No-one in the Europe or US had ever referred to it as the GFC. I had to ask my colleagues what they were talking about - they must have thought I was an idiot. Quote Link to comment Share on other sites More sharing options...
newjez Posted June 4, 2015 Share Posted June 4, 2015 (edited) That wouldn't be blocking supply.At last years budget they opposed virtually everything. Love Abba. Sorry, but that is the definition of blocking supply. http://en.m.wikipedia.org/wiki/Australian_Senate#Blocking_supply http://en.m.wikipedia.org/wiki/Loss_of_supply Edited June 4, 2015 by newjez Quote Link to comment Share on other sites More sharing options...
newjez Posted June 4, 2015 Share Posted June 4, 2015 Speaking as a homeowner I have seen houses near me skyrocket recently. A year ago I thought my home was probably worth $750K to $800 and now have seen similar houses going for $1.2M.A 2 storey house in the next street to me went for $1.46 Million at auction on the weekend. It is nice to know my house is worth quite a lot. A lot of the buyers (most) are Chinese in appearance. If money is coming into our economy from China I see that as positive as it is boosting our economy. The vendors will spend that money and it is new money to the economy. It is a concern for the first home buyers though. If there is to be a crash I want to know when it will happen so I can sell my house first and rent for a while. In Sydney I have heard this time next year and another 20%. Seems optimistic to me. But then selling a house and buying back after a crash is not an easy thing to do. Requires balls of steel. But I have seen it done well a couple of times. Never tried it myself. Might be easier to time a super fund as it's more liquid. Quote Link to comment Share on other sites More sharing options...
KIRK AND CO Posted June 4, 2015 Share Posted June 4, 2015 Laugh away mate, you live in Newbury, you wouldn't have a clue about how the Aus economy is performing and should care even less as it's not going to affect you.I don't need clues only work on fact. As for your remark on Newbury I take you have been there Quote Link to comment Share on other sites More sharing options...
starlight7 Posted June 4, 2015 Share Posted June 4, 2015 Where's Newbury? Is it in the UK? Quote Link to comment Share on other sites More sharing options...
bristolman Posted June 4, 2015 Share Posted June 4, 2015 Laugh away mate, you live in Newbury, you wouldn't have a clue about how the Aus economy is performing and should care even less as it's not going to affect you. You seem to make a lot of comments about the UK, couldn't that be considered hypocrisy? Quote Link to comment Share on other sites More sharing options...
KIRK AND CO Posted June 4, 2015 Share Posted June 4, 2015 Figures released yesterday and the GDP data surprised economists by coming in at 0.9% growth. They were expecting a lot lower. Makes you laugh that there is never any outcome for economists when they get their predictions wrong. They can seriously affect a country's performance by their predictions, the dollar took a tumble for the past few days because everyone was believing what they wee saying and expecting something like 0.6% growth. Joe Hockey said almost the same words as me when he spoke about the economy. Our interest rates, whilst low, could still go down further, the US and most other developed nations had to bring in virtually zero interest rates when Aus still had about 5%. It's only recently that they've fallen here and the economy has still been able to kick on. The US is still struggling. All you doom and gloomers might have to wait for another quarter. Gone very quite lately nothing to do with a recession is it ?????. Quote Link to comment Share on other sites More sharing options...
KIRK AND CO Posted June 4, 2015 Share Posted June 4, 2015 Where's Newbury? Is it in the UK?Australia without the sun.lol Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted June 4, 2015 Share Posted June 4, 2015 Figures released yesterday and the GDP data surprised economists by coming in at 0.9% growth. They were expecting a lot lower. Makes you laugh that there is never any outcome for economists when they get their predictions wrong. They can seriously affect a country's performance by their predictions, the dollar took a tumble for the past few days because everyone was believing what they wee saying and expecting something like 0.6% growth. Joe Hockey said almost the same words as me when he spoke about the economy. Our interest rates, whilst low, could still go down further, the US and most other developed nations had to bring in virtually zero interest rates when Aus still had about 5%. It's only recently that they've fallen here and the economy has still been able to kick on. The US is still struggling. All you doom and gloomers might have to wait for another quarter. What do you think the growth in GDP may coming in from? You don't suppose the wildfire, overinflated property market in Sydney and Melbourne for the main, would have something to do with that do you? Lower interest rates will only flame the fire. Really little room to manoeuvre. But yes still higher than expected, considering WA coming off the boil. Quote Link to comment Share on other sites More sharing options...
Parley Posted June 4, 2015 Share Posted June 4, 2015 In Sydney I have heard this time next year and another 20%. Seems optimistic to me. But then selling a house and buying back after a crash is not an easy thing to do. Requires balls of steel. But I have seen it done well a couple of times. Never tried it myself. Might be easier to time a super fund as it's more liquid. Do you live in Brighton in Melbourne. Would be nice to own a house there. $5M and up for a nice one. Quote Link to comment Share on other sites More sharing options...
bristolman Posted June 4, 2015 Share Posted June 4, 2015 What do you think the growth in GDP may coming in from? You don't suppose the wildfire, overinflated property market in Sydney and Melbourne for the main, would have something to do with that do you? Lower interest rates will only flame the fire. Really little room to manoeuvre. But yes still higher than expected, considering WA coming off the boil. Someone in another thread was saying how great it was that their house was worth $1.2m, is it any wonder first home buyers just can't get on the ladder ? It amazes me that the crazy house prices are being used as a reason the economy is doing well. Quote Link to comment Share on other sites More sharing options...
Parley Posted June 4, 2015 Share Posted June 4, 2015 Love Abba. Sorry, but that is the definition of blocking supply. http://en.m.wikipedia.org/wiki/Australian_Senate#Blocking_supply http://en.m.wikipedia.org/wiki/Loss_of_supply Don't forget we have the independents and minor parties, so even if Labor vote against I think Liberal need something like 6 votes from the cross benches to pass any legislation. And then there is the Senate to get past. I think there is something in the rules about 2 successive budgets being blocked and it can trigger a double dissolution election. But that should only happen if the government really cannot raise the income it needs by any means whatsoever. Quote Link to comment Share on other sites More sharing options...
HelensvaleHoward Posted June 4, 2015 Share Posted June 4, 2015 I guess us living in Australia will have to cope with the economy here Those in the UK who love to talk about it will just have to keep on talking about it Can't see the point myself But I guess you must have too much time on your hands because of the poor weather you get over there to be on this forum Unless you live near to Perthbum of course Get a life or as you all sound like you have great ones live it Quote Link to comment Share on other sites More sharing options...
bristolman Posted June 4, 2015 Share Posted June 4, 2015 I guess us living in Australia will have to cope with the economy here Those in the UK who love to talk about it will just have to keep on talking about it Can't see the point myself But I guess you must have too much time on your hands because of the poor weather you get over there to be on this forum Unless you live near to Perthbum of course Get a life or as you all sound like you have great ones live it I'm confused, why is it different for you to be on the forum ? Is the weather so bad ? Also why is it different for people over there to talk about the economy ? It is a glorious day today and between working on the car I am coming in to catch up, I have a life, a very good one but there seems to be a great deal of hypocrisy. Just saying Quote Link to comment Share on other sites More sharing options...
newjez Posted June 4, 2015 Share Posted June 4, 2015 Do you live in Brighton in Melbourne.Would be nice to own a house there. $5M and up for a nice one. Brighton UK at the moment, hassocks to be more exact. Quote Link to comment Share on other sites More sharing options...
newjez Posted June 4, 2015 Share Posted June 4, 2015 I guess us living in Australia will have to cope with the economy here Those in the UK who love to talk about it will just have to keep on talking about it Can't see the point myself But I guess you must have too much time on your hands because of the poor weather you get over there to be on this forum Unless you live near to Perthbum of course Get a life or as you all sound like you have great ones live it The Australian economy is of great interest to those living in Australia and planning to stay, planning to leave, and those in the UK planning to migrate. Those in the UK planning to stay shouldn't care, and they are a bit sad if they do. I'm interested in the dollar, house prices and jobs. That is the point. If you're not interested, then why are you on the thread? Quote Link to comment Share on other sites More sharing options...
HelensvaleHoward Posted June 4, 2015 Share Posted June 4, 2015 I'm confused, why is it different for you to be on the forum ? Is the weather so bad ? Also why is it different for people over there to talk about the economy ? It is a glorious day today and between working on the car I am coming in to catch up, I have a life, a very good one but there seems to be a great deal of hypocrisy. Just saying I live in Australia 90% of this forum is about that The weather here is not always great you should know that (it aint perfect) Talking about the economy for me we live it so we just have to get on with our lives and take the ups and downs but obviously any change do affect us The Australian economy is of great interest to those living in Australia and planning to stay, planning to leave, and those in the UK planning to migrate. Those in the UK planning to stay shouldn't care, and they are a bit sad if they do. I'm interested in the dollar, house prices and jobs. That is the point. If you're not interested, then why are you on the thread? I live here why wouldn't I be interested I agree with the sad bit Are you thinking of coming back? You sound so settled Quote Link to comment Share on other sites More sharing options...
paul1977 Posted June 4, 2015 Share Posted June 4, 2015 Brighton UK at the moment, hassocks to be more exact. Nice area Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted June 5, 2015 Share Posted June 5, 2015 Someone in another thread was saying how great it was that their house was worth $1.2m, is it any wonder first home buyers just can't get on the ladder ? It amazes me that the crazy house prices are being used as a reason the economy is doing well. All part of the continued direction of breakdown within society caused by extreme individualism, greed and apathy. Goes far further than first home buyers, although they are unfairly impacted of course, as adds costs and sucks in wealth that could be put to far better uses than over stimulation the housing inflation. Quote Link to comment Share on other sites More sharing options...
flag of convenience Posted June 5, 2015 Share Posted June 5, 2015 I guess us living in Australia will have to cope with the economy here Those in the UK who love to talk about it will just have to keep on talking about it Can't see the point myself But I guess you must have too much time on your hands because of the poor weather you get over there to be on this forum Unless you live near to Perthbum of course Get a life or as you all sound like you have great ones live it I wonder what you can't see the point in? Those living here discussing the falling economy or those that have been or are intending/thinking to/of moving out. Not a big stretch of the imagination to see why all especially stakeholders with regards to the Australian economy would very much of an interest in such bread and butter issues, surely? Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted June 5, 2015 Share Posted June 5, 2015 I don't need clues only work on fact. As for your remark on Newbury I take you have been there I've been to Newbury yes. I was going from the clue in your "Location" field though. Quote Link to comment Share on other sites More sharing options...
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