Jump to content
Guest Bullion Baron

Aussie Property Bubble: to crash or not to crash?

Recommended Posts

Well there are plenty of affordable houses around western Sydney eg. St Clair, St Mary's & Mt Druitt area... could be managed on a single wage.

Share this post


Link to post
Share on other sites
Guest Bob Tonnor
On the flip side of this, there are people on here who are coming back to the uk and they are very voiciferous over the high dollar due to Australia fairing alot better than the uk financially, they go on about how much money they will make, thanks mainly to Australias booming economy and no one says your being selfish for saying that, it is how it is, we can't change things, if Australias economy and house prices crash, its just a cycle of boom and bust, the uk has had 18 recessions in its history and the experts say this one is taking longer than most of the others to come out of. It would be nice if everyone had jobs and nice houses and didn't suffer from the global financial disasters, but unfortunately reality isn't like that.

 

I like to think that im a bit of an optimist, but looking at the UK economy at the moment it really looks like your basically on the edge of a recession, maybe depression. The austerity measures are only just starting to bite, house prices are falling, interest rates have nowhere to go but up, inflation is starting to bite, on the upside the UK has its own currency which means it can revalue the pound, which is seriously bad news if your intending to migrate to Australia. Whats going to happen here in Australia? who knows, as long as the Chinese bubble, sorry mega bubble stays intact we should be should be okay.

Share this post


Link to post
Share on other sites

U

The difference is our parents didn't have to do that. They could afford to buy a decent median home using a single wage. That's not possible any more.

 

Really? But did they need 3 bathrooms 2 plus living areas double garage cinema room etc. not to mention car loans, credit cards, store cards etc.


Kind Regards

 

Geoffrey (32, an aussie!!), Tracy (35), Jake (7), Jessica (2) & Joseph (1) :jiggy:

Share this post


Link to post
Share on other sites
The austerity measures are only just starting to bite, house prices are falling, interest rates have nowhere to go but up

 

monetary policy commitee at bank of england kept the interest rate on hold and the city is now predicting it will stay that way till well into 2012.


Visa Granted 01 July 2010. Probably heading to Perth.

Me:-Helicopter Engineer Wife:-Consultant Oil Exploration Geologist

Share this post


Link to post
Share on other sites

Here's an idea - why don't we build smaller cheaper houses on bigger blocks that can be extended as families grow? Then we wouldn't lose so much money in stamp duty whenever we move. They used to do that in the old days didn't they? They had those things, god, what were they called? Gardens - that's it - gardens that could be extended into.


Nearly there! Don't drop the ball now guys! Vaccines are weeks away. Stay safe!

 

Share this post


Link to post
Share on other sites

I've had a similar idea myself in the past. The big cost in buying a house is the mortgage, so if you can expand a place as needed it could well save money.

 

The trouble is that the price of a property is largely determined by the value of the land, which means that you need a fair chunk of change upfront to be able to do it.

Share this post


Link to post
Share on other sites
Guest Bullion Baron
U

 

Really? But did they need 3 bathrooms 2 plus living areas double garage cinema room etc. not to mention car loans, credit cards, store cards etc.

 

That's kind of sidestepping the issue. Even basic homes are unaffordable now.

Share this post


Link to post
Share on other sites
Guest guest36187

basic homes in UK or Australia? I have lost which country we are talking about! lol

Share this post


Link to post
Share on other sites
Guest guest36187

There are basic affordable homes everywhere. Dpends if u want to live in that area. The old " what you can afford and what you think you should have"

 

At the moment we have an "I want...." generation who think they should have everything now. You have to start low and work up!

Share this post


Link to post
Share on other sites
That's kind of sidestepping the issue. Even basic homes are unaffordable now.

 

That's not true, even around west Sydney there are affordable homes.... I already mentioned St Marys & Mt. Druitt well affordable.

Share this post


Link to post
Share on other sites
That's not true, even around west Sydney there are affordable homes.... I already mentioned St Marys & Mt. Druitt well affordable.

 

 

It's funny because not that long ago, areas like St Kilda, Albert Park, Williamstown, Fitzroy etc people were turning their noses up at.

My brother chose Epping over Williamstown (kicking himself now) because Williamstown was considered "undesirable" while Epping was "up and comming" so yes people could afford to live in those areas but nobody wanted too.


Kind Regards

 

Geoffrey (32, an aussie!!), Tracy (35), Jake (7), Jessica (2) & Joseph (1) :jiggy:

Share this post


Link to post
Share on other sites
The difference is our parents didn't have to do that. They could afford to buy a decent median home using a single wage. That's not possible any more.

 

Many parents of your generation couldn't do it either! You'd have to go back farther before you could make that generalisation.

Share this post


Link to post
Share on other sites
Many parents of your generation couldn't do it either! You'd have to go back farther before you could make that generalisation.

 

You would have to go back to a time when land was not owned but shared. Because once money come into play there has never been a shared playing field!


Kind Regards

 

Geoffrey (32, an aussie!!), Tracy (35), Jake (7), Jessica (2) & Joseph (1) :jiggy:

Share this post


Link to post
Share on other sites
There are basic affordable homes everywhere. Dpends if u want to live in that area. The old " what you can afford and what you think you should have"

 

At the moment we have an "I want...." generation who think they should have everything now. You have to start low and work up!

 

True, but is it unreasonable to want a nice home for your family in a nice, safe area?

 

Taking a perhaps an (above?) average family with 2 kids and with 1 parent earning £70k and the other making £30k, they are struggling to afford any 3 beds in any (what people generally perceive as) nice areas. And they certainly cant afford an average property!

 

Can they afford to progress in future years (start low & work up)? Probably not because they'll never be able to save anything and not everyone can

continually earn more, therefore the repayments are continually too steep in the more expensive properties.

 

The only people able to afford average properties in average suburbs are those on above average salaries, those with generous parents (deposit help or otherwise) or those who buy beyond their means.

 

Saving for a deposit is often a waste of time as the property is proportionally more expensive by the time you have the deposit, so you're actually worse off.

 

This position will ultimately never change in a free market economy, but corrections will happen periodically as the 'differences' become too large, as they are at the moment (IMO).

 

Rant over :)

Share this post


Link to post
Share on other sites
Guest guest36187

I understand where u r coming from. Take my parents. When I was born in early seventies only my dad worked. When I was born, my mum became a stay at home mum. They had a £1 a week left over which they put in savings. That enabled us to have a holiday each year.

Now they are here in oz, with a nice house, boat, caravan and 4x4. They didn't get it all by "expecting it to come to them" or "thinking they should have it". It's taken a long time for them to get to where they are.

 

Sometimes u have to have what u can get. My stepdaughter has just moved out at age of 23. They have moved away from where they wanted to be so they can get a nice place at decent rate. the compromise......she does shift work and has a 45 min drive to work. Does shifts so that she doesn't get caught In rush hour.

 

The point I am making is that sometimes u have to make do. As the song goes, you can't always get what u want!

Share this post


Link to post
Share on other sites

 

The only people able to afford average properties in average suburbs are those on above average salaries, those with generous parents (deposit help or otherwise)

 

Well as long as there are people able & willing to pay then that the way it is, to be honest that's the way it always has been.

 

What's the difference between someone from Country Australia moving to London would they not find it equally expensive?

 

The only other option is a form of Communism and reduce everyone/property to the same.

Share this post


Link to post
Share on other sites

Supply and Demand applies.

If people refused to pay the prices asked, they wouldn't sell and the price comes down.

 

People still keep paying the high prices which is what keeps them at that level.

 

Mind you, I think we are all hypocrites. As soon as we own a property, we love for it to go up in value.

We are very happy for a house we own to be worth a fortune.


I want it all, and I want it now.

Share this post


Link to post
Share on other sites
True, but is it unreasonable to want a nice home for your family in a nice, safe area?

 

Taking a perhaps an (above?) average family with 2 kids and with 1 parent earning £70k and the other making £30k, they are struggling to afford any 3 beds in any (what people generally perceive as) nice areas. And they certainly cant afford an average property!

 

Can they afford to progress in future years (start low & work up)? Probably not because they'll never be able to save anything and not everyone can

continually earn more, therefore the repayments are continually too steep in the more expensive properties.

 

The only people able to afford average properties in average suburbs are those on above average salaries, those with generous parents (deposit help or otherwise) or those who buy beyond their means.

 

Saving for a deposit is often a waste of time as the property is proportionally more expensive by the time you have the deposit, so you're actually worse off.

 

This position will ultimately never change in a free market economy, but corrections will happen periodically as the 'differences' become too large, as they are at the moment (IMO).

 

Rant over :)

 

 

If people can't survive on $70,000 a year something is wrong. Maybe people need to look at what is the most important thing! A great lifestyle and no house or a good lifestyle (while saving)


Kind Regards

 

Geoffrey (32, an aussie!!), Tracy (35), Jake (7), Jessica (2) & Joseph (1) :jiggy:

Share this post


Link to post
Share on other sites
Guest hobojo
Bullion Baron, you're not a Hobo on a different forum are you?

Graemsay, the poster that created this thread is not the real Bullion Baron. It's an imposter from Australian Property Forums trying to use my good name to get hits for their site full of trolls!

Share this post


Link to post
Share on other sites
Guest guest30038
Graemsay, the poster that created this thread is not the real Bullion Baron. It's an imposter from Australian Property Forums trying to use my good name to get hits for their site full of trolls!

 

How did you know he was posting here??????????:skeptical:

Share this post


Link to post
Share on other sites
Guest hobojo
How did you know he was posting here??????????:skeptical:

A reader of my blog made me aware that I was being impersonated as per comments section here:

http://www.bullionbaron.com/2011/06/perth-mint-2012-year-of-dragon-silver.html#comments

 

So I googled "Bullion Baron" along with the name of the other site and stumbled across multiple occasions where my handle has been used including this site.

Share this post


Link to post
Share on other sites
Guest Bullion Baron
Graemsay, the poster that created this thread is not the real Bullion Baron. It's an imposter from Australian Property Forums trying to use my good name to get hits for their site full of trolls!

 

Probably just a coincidence mate. You're probably a bullion investor like me - I don't think you've got a copyright on the name Bullion Baron, I've used this ID on the net for many years! You're right that I'm a member of AustralianPropertyForum.com (different ID there).

 

Nice to meet another BB! :)

Share this post


Link to post
Share on other sites

:wink:

When Main street follows 'Wall Street' its time to get out!

 

In the paper the other day it said its been 4 years since we (UK) started the slippery slope, it is impossible to maintain or increase the house prices, and that goes for anywhere.

 

I hope, that the property market does check itself, and the AU$ does fall against the pound.

 

What you have to remember is that unlike the UK, Oz is a different kettle of fish, i.e mining, and untold future growth, I think prop will go down but they wont have a recession like us,

australia is a two tier economy mining boom manufacturing bust,people will suffer but a recession is part of a healing process hopefully it will be a soft landing and the australians wont suffer too badly,the aud needs to come down to boost travel and tourism and also so that local people spend locally not over the internet and abroad ,i doubt property will collapse maybe fall a bit, i thing AUD will weaken about sept time then fall as commodities become cheaper and china slows down,good news for all i think

Share this post


Link to post
Share on other sites
If people can't survive on $70,000 a year something is wrong. Maybe people need to look at what is the most important thing! A great lifestyle and no house or a good lifestyle (while saving)

Mate, $70,000 a year is not a lot of money any more


I have the body of an eighteen year old. I keep it in the fridge.

Spike Milligan

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×