Guest Posted October 14, 2015 Share Posted October 14, 2015 http://www.smh.com.au/business/banking-and-finance/westpac-rate-rise-ushers-end-of-the-property-boom-20151013-gk8imy.html Wow, Westpac have raised their rates today. How long until the other 3 of the big 4 do? Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 Hurrah. Price declines predicted at 7.5%. In fact the banks are cooling off overseas borrowing. They are coming to terms with an over exposure to real estate and the dangers looming. Population Ponzi now in decline with less migrants interested in coming to Australia. Over builds in big cities, especially in the apartment sector. Still far more room to decline IMO. Link to comment Share on other sites More sharing options...
VERYSTORMY Posted October 14, 2015 Share Posted October 14, 2015 As rates start to rise, there are going to be a lot of investors and homeowners caught out Link to comment Share on other sites More sharing options...
Lambethlad Posted October 14, 2015 Share Posted October 14, 2015 Pure greed. Link to comment Share on other sites More sharing options...
Guest Posted October 14, 2015 Share Posted October 14, 2015 The people who get smashed no doubt will be in the outer lying less desirable suburbs if the big downtown occurs I imagine. Location, Location, Location as they say. Link to comment Share on other sites More sharing options...
Parley Posted October 14, 2015 Share Posted October 14, 2015 You lot are dreaming. Link to comment Share on other sites More sharing options...
Bungo Posted October 14, 2015 Share Posted October 14, 2015 You lot are dreaming. Yup. I can honestly say I was reading about the house price crash before I moved, during the whole five years I was there and in the year since I moved back. Proces just went up though. Link to comment Share on other sites More sharing options...
KIRK AND CO Posted October 14, 2015 Share Posted October 14, 2015 You lot are dreaming.think the word is nightmare Link to comment Share on other sites More sharing options...
VERYSTORMY Posted October 14, 2015 Share Posted October 14, 2015 Yup. I can honestly say I was reading about the house price crash before I moved, during the whole five years I was there and in the year since I moved back. Proces just went up though. Perth is falling fast http://www.abc.net.au/news/2015-08-01/perth-house-prices-take-a-tumble/6665540 Darwin is a lot worse with percentage falls in the double figures Sydney is now starting to fall http://www.abc.net.au/news/2015-10-13/sydney-housing-prices-to-fall-because-of-greater-supply/6850566 Sydney will, in my bet, be the biggest loser. Its prices have gone through the roof and are a VERY long way from a justifiable price. Link to comment Share on other sites More sharing options...
Bungo Posted October 14, 2015 Share Posted October 14, 2015 Perth is falling fast http://www.abc.net.au/news/2015-08-01/perth-house-prices-take-a-tumble/6665540 Darwin is a lot worse with percentage falls in the double figures Sydney is now starting to fall http://www.abc.net.au/news/2015-10-13/sydney-housing-prices-to-fall-because-of-greater-supply/6850566 Sydney will, in my bet, be the biggest loser. Its prices have gone through the roof and are a VERY long way from a justifiable price. Nothing I haven't read before. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted October 14, 2015 Share Posted October 14, 2015 A correction is inevitable. It is always a matter of when, not if. Housing is a commodity after all and therefore subject to price fluctuations. Conditions are ripe for reductions with only low interest rates to soften the blow for some. Link to comment Share on other sites More sharing options...
Paul1Perth Posted October 14, 2015 Share Posted October 14, 2015 Hurrah. Price declines predicted at 7.5%. In fact the banks are cooling off overseas borrowing. They are coming to terms with an over exposure to real estate and the dangers looming. Population Ponzi now in decline with less migrants interested in coming to Australia. Over builds in big cities, especially in the apartment sector. Still far more room to decline IMO. Did you see 4 corners Monday flag? Right up your street mate. About all the Chinese money been coming into the Australian Property market, mostly Sydney, including where it came from. Pretty enlightening. Nice quote from the Chinese sales Lady, who must be making a fortune, "money can't buy this in China". She was selling properties to multi millionaires who had not even seen the place but trusted her and signed for it anyway. There was a guy from the foreign investment agency (or some department) looking into a few dubious deals, he said one "student" was already living n a $1.5mill apartment and was trying to buy a $5mill one as well. They looked into who he was related to and where the money was coming from and it was the "princelings" (I think that's what they call them) the ruling classes in China. They stopped that deal but don't know how many go through. Wouldn't trust anything the Chinese say, promises made don't mean anything and any deal with them has to be benefiting them a lot more than whoever they are making the deal with. I hope the Labor party and the Unions have a real good look at the free trade agreement terms and conditions and oppose the ones that are going to cost Aussie jobs.:yes: Link to comment Share on other sites More sharing options...
VERYSTORMY Posted October 14, 2015 Share Posted October 14, 2015 Nothing I haven't read before. The difference to before is that people were saying they "would fall". Now, they actually "are falling". When we built, we calculated we had about $140k+ of equity in the house based on the houses selling in the area including one that is identical to ours by the same build round the corner. Based on the same data now, we may have negative equity at best we would probably break even. Link to comment Share on other sites More sharing options...
Parley Posted October 14, 2015 Share Posted October 14, 2015 On the other hand where I live they are still going up so you can't generalise. Brisbane is tipped to be the next winner from another analysis I heard. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 Did you see 4 corners Monday flag? Right up your street mate. About all the Chinese money been coming into the Australian Property market, mostly Sydney, including where it came from. Pretty enlightening. Nice quote from the Chinese sales Lady, who must be making a fortune, "money can't buy this in China". She was selling properties to multi millionaires who had not even seen the place but trusted her and signed for it anyway. There was a guy from the foreign investment agency (or some department) looking into a few dubious deals, he said one "student" was already living n a $1.5mill apartment and was trying to buy a $5mill one as well. They looked into who he was related to and where the money was coming from and it was the "princelings" (I think that's what they call them) the ruling classes in China. They stopped that deal but don't know how many go through. Wouldn't trust anything the Chinese say, promises made don't mean anything and any deal with them has to be benefiting them a lot more than whoever they are making the deal with. I hope the Labor party and the Unions have a real good look at the free trade agreement terms and conditions and oppose the ones that are going to cost Aussie jobs.:yes: Hardly enlightening at all. I was expecting something far more probing. Four Corners blew a perfect opportunity to give greater exposure into a subject I have been articulating for quite some time. The inclusion of Chinese State spying and intimidation of former citizens was material for another time. The Chinese shoring up of the housing market, along with the unaccountability, worse not caring of where the funds were derived from made Australian property into a laundering of ill gotten gains. Disgraceful. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 On the other hand where I live they are still going up so you can't generalise. Brisbane is tipped to be the next winner from another analysis I heard. AS my area but it is inner city but Sydney prices. Certain areas will fall earlier than others. The housing Ponzi has only recently been pricked. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 The difference to before is that people were saying they "would fall". Now, they actually "are falling". When we built, we calculated we had about $140k+ of equity in the house based on the houses selling in the area including one that is identical to ours by the same build round the corner. Based on the same data now, we may have negative equity at best we would probably break even. Still very early days in the WA housing downturn. It'll take time to play through. 2017 suggested as being crunch year. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 You lot are dreaming. You are likely praying. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 Yup. I can honestly say I was reading about the house price crash before I moved, during the whole five years I was there and in the year since I moved back. Proces just went up though. Of course you did but as I continue to remark there was no free market. The rising prices were encouraged by ever declining interest rates and the government/banking/real estate industry working in hoc to encourage stimulation. Something had to replace the declining resource market. Housing and population was it. Prices are not going up in WA and are in decline. This being the closest resource related state is only natural to feel the chilly wind first. Much more to come. Link to comment Share on other sites More sharing options...
Paul1Perth Posted October 14, 2015 Share Posted October 14, 2015 Hardly enlightening at all. I was expecting something far more probing. Four Corners blew a perfect opportunity to give greater exposure into a subject I have been articulating for quite some time. The inclusion of Chinese State spying and intimidation of former citizens was material for another time. The Chinese shoring up of the housing market, along with the unaccountability, worse not caring of where the funds were derived from made Australian property into a laundering of ill gotten gains. Disgraceful. I thought it would be a bit more probing and name a few more names. It's like everywhere though flag, everyone is scared of upsetting the Chinese too much as they are some of the very few people with money to throw around still. Their businesses (usually state controlled pretending to be private enterprises) are massive investors in Aus and they are easily upset if someone has a go at them. They can't understand why the Unions and Labor party see anything wrong with the free trade agreement:laugh:. I think they feel a bit offended. Link to comment Share on other sites More sharing options...
flag of convenience Posted October 14, 2015 Share Posted October 14, 2015 I thought it would be a bit more probing and name a few more names. It's like everywhere though flag, everyone is scared of upsetting the Chinese too much as they are some of the very few people with money to throw around still. Their businesses (usually state controlled pretending to be private enterprises) are massive investors in Aus and they are easily upset if someone has a go at them. They can't understand why the Unions and Labor party see anything wrong with the free trade agreement:laugh:. I think they feel a bit offended. The 45 billion placed in Australian housing over recent years must be a big loss to the Motherland. The Chinese government claim to be clamping down on the laundering of money into foreign real estate and perhaps at one level they are. But on the other hand I do wonder how compliant and influential in the take over of property. Be that in top notch housing or industrial and farming buy outs. ALP has appeared to have backed down on demanding work place testing for local employers and China will have a free hand in the importation of workers. Link to comment Share on other sites More sharing options...
Guest xmas lights Posted October 14, 2015 Share Posted October 14, 2015 Fair play to Westpac. Pity UK banks weren't thinking like this post 2008... Westpac pouring water, UK banks throwing petrol. Link to comment Share on other sites More sharing options...
VERYSTORMY Posted October 14, 2015 Share Posted October 14, 2015 Fair play to Westpac. Pity UK banks weren't thinking like this post 2008... Westpac pouring water, UK banks throwing petrol. lol - you are kidding. Oz banks are the craziest in the world. Even today someone can get a loan for 6x their income. They are massively overleveraged in a lot of property and that property is starting to fall sharply in value. As the economic downturn continues we are going to see a lot of banks with a lot of property that isn't worth the loans given on it. Link to comment Share on other sites More sharing options...
Parley Posted October 14, 2015 Share Posted October 14, 2015 Another gem. Our banks are the strongest in the world. Link to comment Share on other sites More sharing options...
Wooba Posted October 14, 2015 Share Posted October 14, 2015 Another gem. Our banks are the strongest in the world. People here in Canada say this about our banks all the time. A widely held belief. But scratch the surface and they have had horrible practices for years. I suspect the situation is similar in Australia. Link to comment Share on other sites More sharing options...
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