Guest TheLege Posted December 10, 2010 Share Posted December 10, 2010 There's been a fair few threads on the housing market on this forum and, to put it mildly, I wouldn't rush to buy at the moment. I arrived in Queensland in May this year and all the locals were going on about was how house prices were destined for 10yrs of strong growth having just rallied 20% in the preceeding 12 months. Australian house prices were already among the most unaffordable in the developed world 8 years ago and have increased 160% on average since then. Bubble? You bet. Why else would the RBA raise rates in November after the inflation figure came in lower than expected. This move was an implicit acknowledgement that a bubble exists so they're in the process of deflating the whole market to avoid a big pop. There is still plenty to go, so go and rent for 12 months or more. Asset prices are inversely correlated to interest rates, and always will be. And don't forget the recent removal of market stimulus - first home buyer grants. The press in this country have largely had the rose-tinted spectacles on when commenting on future property prices, and the various justifications for high house prices are laughable i.e. "A housing shortage in Australia will support prices". Hey? Complete garbage. The UK has a much bigger shortage of housing and that didn't stop the market cratering in the early nineties. Japan has an even worse shortage and their house prices are still deflating almost 20yrs after their bubble popped. What's key is affordability and Australia is now by far and away the most unaffordable country in the world to buy a house in. The market where I live (Brisbane) is the worst it's been since the last housing slump in the early nineties. "Immigration and a strong economy will keep prices motoring in the right direction." What? With the strong Aussie dollar, immigrants (and foreign investors') spending power (for housing) is much diminished so their entry level is much lower now than it would have been just a year or so ago. Immigration has also slowed of late. The economy here isn't as robust as the talking heads make out, unless you're working in the resources sector, in which case it's Christmas every day. God help us if (when)the Chinese economy slows because the rest of the economy here is very average. Just settle in, enjoy the country and wait for property prices to come your way.:hug: Link to comment Share on other sites More sharing options...
Prairie Girl Posted December 10, 2010 Share Posted December 10, 2010 I think you are right but we left already! Maybe we'll come back if the big correction happens. Do you think there's any chance retail prices could come down too? Hope so. Link to comment Share on other sites More sharing options...
fish.01 Posted December 10, 2010 Share Posted December 10, 2010 "and all the locals were going on about was how house prices were destined for 10yrs of strong growth having just rallied 20% in the preceeding 12 months" "all the locals"....I was talking to different agents every day at that time and I didn't even hear them throw numbers like that around, let alone "all the locals"....most were quite realistic and moderate in their outlook admitting no one knew for sure what would happen....unlike some who know what will happen without question. Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 13, 2010 Share Posted December 13, 2010 Its a sad state of affairs when the Government seems hell bent on bankrupting every average family in Australia. Charities crying out that the need for support has almost trebled in 1 year, water and electric prices increasing, $4 for a loaf of bread?! Dont get me started on Dairy products. We did our homework before we came out but boy are we reconsidering our options now!! Link to comment Share on other sites More sharing options...
Prairie Girl Posted December 13, 2010 Share Posted December 13, 2010 And I think it's criminal that this huge stamp duty is charged on the purchase of a home which probably gets turned into personal debt in a lot of cases! Link to comment Share on other sites More sharing options...
fish.01 Posted December 13, 2010 Share Posted December 13, 2010 Its a sad state of affairs when the Government seems hell bent on bankrupting every average family in Australia. ... Ok, I'll ask, how is the federal government hell bent of on bankrupting every average family in Australia? Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 13, 2010 Share Posted December 13, 2010 Taxing everyone to death! Link to comment Share on other sites More sharing options...
fish.01 Posted December 13, 2010 Share Posted December 13, 2010 Taxing everyone to death! The first graph I could find suggests they are not astronomically high by world standards. They have dropped significantly since 2005 as well. A lot is also given back in middle class welfare. Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 14, 2010 Share Posted December 14, 2010 lol, theres always 1! It must be the working class Aussie mums that I'm mixing with that have it wrong then telling me that times are so much harder than that of 3 years ago...food prices...water...rates...Obviously being a newbie here I cannot compare as I've just got here and am finding it harder than expected - and we never expected charity when we chose to move here. Must be the whinging Pom syndrome! Ooops then again, Im not English!! Haha!! Link to comment Share on other sites More sharing options...
Paul1Perth Posted December 14, 2010 Share Posted December 14, 2010 lol, theres always 1! It must be the working class Aussie mums that I'm mixing with that have it wrong then telling me that times are so much harder than that of 3 years ago...food prices...water...rates...Obviously being a newbie here I cannot compare as I've just got here and am finding it harder than expected - and we never expected charity when we chose to move here. Must be the whinging Pom syndrome! Ooops then again, Im not English!! Haha!! That's the thing with this new technology. You try to make a point about something and someone downloads a graph to prove you wrong. Maybe it's not the taxes though and just that everything seems to be slowly creeping up in price. Don't worry, you'll still get called a whinging pom too, even if you are Welsh. Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 14, 2010 Share Posted December 14, 2010 lol, cheers Paul from Perth. I just thought it would be in the Governments interests to try and help the people not to let most suffer and allow it to become a state where the rich get richer and the poor get poorer? It must be easy to scan the internet for 5 year old statistics and preach from a golden throne with a silver spoon! lol, I dont care anyway! Link to comment Share on other sites More sharing options...
Paul1Perth Posted December 14, 2010 Share Posted December 14, 2010 Hang in there Cruella. Once you are earning and thinking in A$ and not converting everything you will find it's not too bad I reckon. Best not to even bother, just see how much you've got left at the end of the week/month and if you've got more coming in than going out you'll be OK. Just like the UK really but with sunshine and beaches. Well it is in Perth anyway. Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 14, 2010 Share Posted December 14, 2010 Cheers dude! We will manage I'm sure. We had a good run in Wales an nothing needed fixing other than a new chance for my hubby. Its quite sad to see how badly they pay his trade out here (at home we thought is was a good salary until you compare to other trades and positions). But we are grafters and we will make it happen! Thanks for understanding what I'm saying!! Link to comment Share on other sites More sharing options...
Guest siamsusie Posted December 14, 2010 Share Posted December 14, 2010 Cheers dude! We will manage I'm sure. We had a good run in Wales an nothing needed fixing other than a new chance for my hubby. Its quite sad to see how badly they pay his trade out here (at home we thought is was a good salary until you compare to other trades and positions). But we are grafters and we will make it happen! Thanks for understanding what I'm saying!! Welcome to Australia Cruella:hug:.... on the shopping front people like Olly are good to speak to, know the cheaper haunts etc. You will get there in the end, there are also a good few Welsh on here that can assist you also...Places like Cosco and Aldi are good for bargains as are the markets.. Have a good lst Christmas over there love Susie x Link to comment Share on other sites More sharing options...
Cruella2949 Posted December 14, 2010 Share Posted December 14, 2010 Thanks for all the advice Susie! Do you know I hadnt even considered costco (havent seen it yet)! Will remember that as we have it back home! Also - thanks millions for the visa advice before. We rang the consulate at £1 per minute and they did the change over in minutes (thankfully)!! LOL! Even the UK has its downsides for sure! We almost ended up in Tasmania at one point you know!! Link to comment Share on other sites More sharing options...
Guest siamsusie Posted December 14, 2010 Share Posted December 14, 2010 Thanks for all the advice Susie! Do you know I hadnt even considered costco (havent seen it yet)! Will remember that as we have it back home! Also - thanks millions for the visa advice before. We rang the consulate at £1 per minute and they did the change over in minutes (thankfully)!! LOL! Even the UK has its downsides for sure! We almost ended up in Tasmania at one point you know!! Delighted you received your new passport Cruella! I was wondering how you got on with it... nerve wracking times when you have enough on your plate. Try ringing the British Embassy in Canberra, mortgage stuff:laugh:.... WA up north prices are horrendous, but I had to re-educate myself on shopping, starting from scratch etc which was no bad thing and I only had Woolworths and Coles, and no markets... so Tasmania is working out much cheaper for me. Coming from a climate where "buy l, get one free" prevails, it tends to be a bit of a shock at first, slowly slowly you acclimatise , learning the tricks of the trade, in a few months you will giving out advice:huh: to newcomers. Tasmania is beautiful Cruella, never perfect of course but where is, I am very settled here and hopefully you will be in Victoria as well... You will suss it all out before too long x...:hug: enjoy the ride. Love Susie x Link to comment Share on other sites More sharing options...
fish.01 Posted December 14, 2010 Share Posted December 14, 2010 lol, theres always 1! It must be the working class Aussie mums that I'm mixing with that have it wrong then telling me that times are so much harder than that of 3 years ago...food prices...water...rates...Obviously being a newbie here I cannot compare as I've just got here and am finding it harder than expected - and we never expected charity when we chose to move here. Must be the whinging Pom syndrome! Ooops then again, Im not English!! Haha!! I don't think they have got it wrong....electricity, rates, water all going up. But was intruiged by your tax comments as didn't think that was related so looked it up....I guess I didn't realise it was one of those "it's all the governments fault" throw away comments where you weren't interested in the facts but just really wanted a hug. Do that to my wife too :frown: By the sounds of things many struggle at the start but hopefully it will get better for you :wubclub: Link to comment Share on other sites More sharing options...
Bobj Posted December 14, 2010 Share Posted December 14, 2010 Its a sad state of affairs when the Government seems hell bent on bankrupting every average family in Australia. Charities crying out that the need for support has almost trebled in 1 year, water and electric prices increasing, $4 for a loaf of bread?! Dont get me started on Dairy products. We did our homework before we came out but boy are we reconsidering our options now!! Er... Standard rate You pay VAT on most goods and services in the UK at the standard rate. The standard rate is 17.5 per cent. This will increase to 20 per cent on 4 January 2011. GST Australia Summary A GST rate of 10% will be charged on most goods and services consumed in Australia. If you are registered for GST, you need to include GST in the price you charge your customers for goods and services they purchase from you (called sales). We pay $1.79 for bread... Suggest that your 'homework' be restudied...:yes: Cheers, Bobj. Link to comment Share on other sites More sharing options...
Guest steveportelli Posted March 23, 2011 Share Posted March 23, 2011 It has been stagnant for past 18 months, but is starting to pick up. In Perth we are supposed to build 22000 homes a year to keep pace with growth...past two years we are about 10,000 plus short, so eventually the demand will have to take off and unfortunately it will likely be a mini boom...so best time is now to get in. If you need a feel for things I suggest you look at established homes first then compare building. You can often save big money. Do the exercise. If you need help just ask. Cheers, Steve There's been a fair few threads on the housing market on this forum and, to put it mildly, I wouldn't rush to buy at the moment. I arrived in Queensland in May this year and all the locals were going on about was how house prices were destined for 10yrs of strong growth having just rallied 20% in the preceeding 12 months. Australian house prices were already among the most unaffordable in the developed world 8 years ago and have increased 160% on average since then. Bubble? You bet. Why else would the RBA raise rates in November after the inflation figure came in lower than expected. This move was an implicit acknowledgement that a bubble exists so they're in the process of deflating the whole market to avoid a big pop. There is still plenty to go, so go and rent for 12 months or more. Asset prices are inversely correlated to interest rates, and always will be. And don't forget the recent removal of market stimulus - first home buyer grants. The press in this country have largely had the rose-tinted spectacles on when commenting on future property prices, and the various justifications for high house prices are laughable i.e. "A housing shortage in Australia will support prices". Hey? Complete garbage. The UK has a much bigger shortage of housing and that didn't stop the market cratering in the early nineties. Japan has an even worse shortage and their house prices are still deflating almost 20yrs after their bubble popped. What's key is affordability and Australia is now by far and away the most unaffordable country in the world to buy a house in. The market where I live (Brisbane) is the worst it's been since the last housing slump in the early nineties. "Immigration and a strong economy will keep prices motoring in the right direction." What? With the strong Aussie dollar, immigrants (and foreign investors') spending power (for housing) is much diminished so their entry level is much lower now than it would have been just a year or so ago. Immigration has also slowed of late. The economy here isn't as robust as the talking heads make out, unless you're working in the resources sector, in which case it's Christmas every day. God help us if (when)the Chinese economy slows because the rest of the economy here is very average. Just settle in, enjoy the country and wait for property prices to come your way.:hug: Link to comment Share on other sites More sharing options...
Guest Geordieboy Posted March 29, 2011 Share Posted March 29, 2011 It must be easy to scan the internet for 5 year old statistics and preach from a golden throne with a silver spoon! lol, I dont care anyway! Not so easy as making ridiculous comments (i.e. completely wrong!) without making any effort to justify them. And if you don't care, why make such an issue of it? By the way, these are the latest international statistics available from credible sources. If you want to try and scare people off by making up stories about high taxes in Australia, better to get your facts right first. As you keep saying, lol !!!! Link to comment Share on other sites More sharing options...
Guest Burchos Posted March 29, 2011 Share Posted March 29, 2011 It has been stagnant for past 18 months, but is starting to pick up. In Perth we are supposed to build 22000 homes a year to keep pace with growth...past two years we are about 10,000 plus short, so eventually the demand will have to take off and unfortunately it will likely be a mini boom...so best time is now to get in. If you need a feel for things I suggest you look at established homes first then compare building. You can often save big money. Do the exercise. If you need help just ask. Cheers, Steve We were looking into self building when we arrive. OH is carpenter by trade, but also a general builder. How easy is it to build yourself? Is it much different, i.e. planning permission, building regs, cost etc to the UK? Link to comment Share on other sites More sharing options...
Guest Burchos Posted March 29, 2011 Share Posted March 29, 2011 Cheers dude! We will manage I'm sure. We had a good run in Wales an nothing needed fixing other than a new chance for my hubby. Its quite sad to see how badly they pay his trade out here (at home we thought is was a good salary until you compare to other trades and positions). But we are grafters and we will make it happen! Thanks for understanding what I'm saying!! What trade is your OH? Link to comment Share on other sites More sharing options...
gemjay Posted April 5, 2011 Share Posted April 5, 2011 Is the Australian economy the world Link to comment Share on other sites More sharing options...
Joebloggs Posted April 9, 2011 Share Posted April 9, 2011 $4 for a loaf of bread?! Dont get me started on Dairy products. We did our homework before we came out but boy are we reconsidering our options now!! Just been to Coles, pan loaf of white bread $1.19 and 2ltr full milk $2 Link to comment Share on other sites More sharing options...
Steve99 Posted April 17, 2011 Share Posted April 17, 2011 lol, theres always 1! It must be the working class Aussie mums that I'm mixing with that have it wrong then telling me that times are so much harder than that of 3 years ago...food prices...water...rates...Obviously being a newbie here I cannot compare as I've just got here and am finding it harder than expected - and we never expected charity when we chose to move here. Must be the whinging Pom syndrome! Ooops then again, Im not English!! Haha!! No, your right. There is a massive difference between now and several years ago. Back then housing, rent, electricity/gas, water, food etc etc was cheap by any world standard you could choose to compare with, clothing and a few other things have always been more expensive/worse than UK standards. As Oz/Poms who have spent most of the last 12 years living in London and coming back just about every year to deal with sick family etc, we have found the changes to be astronomical, both internaly within Australia (ie for the locals) and even more so for Poms turning up in the last 2 years or so with devalued Pounds against all time high Aus$. As for the big picture it would seem to be the best and only policy right now to keep GBP in the UK and survive on whatever you can earn in Aus, cause sure as sheep eat grass, if you sell your UK house for a knockdown price in order to get the sale through, then transfer the money to Oz (loosing again) then buying at the most expensive time in history (well, since 1890, the last bubble peak that then crashed for the next 60 years or so) you may well regret it for a very long time, especialy if the Aus market does crash, unemployment goes through the roof (very likely in a commodity driven currency/country) and of course coinciding with a commodity failure, the Aus$ will sink through the floor, ie you would not want to sell up and then go back to the UK, with half your original GBP on the conversion. Sorry if this sounds long winded but it would not be the first time this scenario has worked out with Aus$, employment, biggest difference this time of course is the massive property bubble that has so many people up to their necks in mega dept. Link to comment Share on other sites More sharing options...
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