flag of convenience Posted June 22, 2015 Share Posted June 22, 2015 If you're right about the Aussies being unable to afford the first house then the prices should be falling like a stone anytime soon. Not seen it happening yet. No doubt the real estate people will counter that by saying what a great time to buy it is because of the falling prices.:laugh: Aren't there well policed rules about foreign ownership of property? I'm sure I saw a case in Sydney not long ago where some Chinese guy had been forced to sell some multi million dollar place because he hadn't followed those rules. Don't know what happened but hopefully, if rules are in place they will be stuck to. I've noticed cars prices have never been lower recently, Imported or not. Oil price rises will affect everyone, World Wide, won't be just Aus. In fact Aus has an oil industry so it will help some sectors of the economy. Well that is probably why Aussies have some of the biggest personal debt in the world. Unproductive mortgages due to fear of losing out. You could do worse that consult the number of first time home buyers in the Sydney/ Melbourne markets being at all time lows. There are no falling prices in those markets which are by far the main centres of population. Real estate will always distort the picture regardless. Self interest dictates with powerful backers in the form of media and government and financial industry. All discussed before of course and just repeating what have already been writing for a considerable period. No there is very limited protection and rorts galore of foreigners buying property. Only now after so long have a few hundred come to light for possible investigation. If that comes to anything we shall see but foreigner buyers have been put on notice not to be so blatant in disregarding the rules. Chinese living overseas now make up some twenty odd per cent of the Sydney market, I can obtain the correct figures, and far more of the inner city purchases in the main cities. Australia will be hit very hard by increasing oil prices regardless of having oil. Distance being a major factor in long distance transportation, it could be argued WA especially so. There is a reason Overseas Chinese are showing little interest yet in WA. Isolation being a big reason and more perceived opportunity on East Coast for future prospects. Still probably wrong thinking your house is going to appreciate into silly figures as on the other side. It is not just Australia but we got fattened during the previous boom and have yet to experience the downturn to any great extent. Canada is in a similar situation to Australia. While housing there is way over inflated though, there saviour of sorts is having their biggest market in their backyard USA. Not overly dependant on China as is Australia and WA especially. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 22, 2015 Share Posted June 22, 2015 The same rules of supply and demand affect the rental market as the purchasing market. If there are too few properties rental prices rise but they will drop when there is a glut and houses stay empty. Investors would then stop getting returns and there will be a flight from that form of investment. Rules of supply and demand apply to the housing market but the effects can be slow to kick in. Well no. Old school rules don't apply I'm afraid. Overseas buyers, generally in the form of Overseas Chinese do not purchase with yield in mind. In fact they have few concerns leaving a property empty. Main objective being the parking of money outside of China away from the gaze of authorities. Link to comment Share on other sites More sharing options...
Parley Posted June 22, 2015 Share Posted June 22, 2015 So the bubble should last for a long time yet. How many people in China ? Rich ones - probably enought so they could buy every house in Australia. Link to comment Share on other sites More sharing options...
flag of convenience Posted June 22, 2015 Share Posted June 22, 2015 Yes to your obvious glee. I suspect Sweden may well be a place of refuge when you cash in to an overseas buyer and cop out. Link to comment Share on other sites More sharing options...
Parley Posted June 22, 2015 Share Posted June 22, 2015 The Age reckons there is a bloodbath coming, although I doubt it myself. Crashes happen when you are not expecting them. http://www.theage.com.au/federal-politics/political-news/australian-housing-market-facing-bloodbath-collapse-economists-20150622-ghu8a6.html Link to comment Share on other sites More sharing options...
Slean Wolfhead Posted June 22, 2015 Share Posted June 22, 2015 You are right about the RBA constantly going on about the dollar being too high, even now. They would like it lower and can still drop the interest rates further if they want it to decline. Usually a comment from the governor of the reserve bank can have a serious affect on a countries currency and our guy continues to talk it down at every chance. . They've been worried about poor Aussie exports for the last few years, but every time they cut interest rates the UK would announce even poorer economic figures and the USA would print more money...so the AUD was being kept artificially strong despite best attempts to let it weaken. The pound is now rising but i don't think the UK is out of the woods at all. They still borrowed 10 billion in May and poor economic growth hasn't made the deficit reduction targets that the Tories predicted way back in 2009 (as the reason for austerity)...there's an argument for saying that even with no austerity, any economy would have rebounded to the current levels if nothing had been done whatsover. The worry i have for the UK is that interest rates must start rising soon and the deficit will start accelerating again before they've really been able to take a huge chunk out of it. Link to comment Share on other sites More sharing options...
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