The Great Australian Property Swindle
#1
The Great Australian Property Swindle
Interesting, but depressing read.
http://www.dailyreckoning.com.au/rep...ty-swindle.pdf
The bubble is starting to burst.
http://www.dailyreckoning.com.au/rep...ty-swindle.pdf
The bubble is starting to burst.
#2
Re: The Great Australian Property Swindle
1. That's just one opinion.
2. Was posted September 2009, its nearly 2011.
However, the report makes sense, people can't borrow much more than they earn unless theres international faith that the market can maintain growth. Australia doesn't have this at the moment, will be awhile before it returns. The gov must work hard selling the idea that Australia is the place to be to fix this. If China stays strong hopefully the gov can ride stagnation for a while. Stagnating housing after so many years of growth is tough going though, I'd say the gov has got 12 months at best to convince the world we're rocking.
2. Was posted September 2009, its nearly 2011.
However, the report makes sense, people can't borrow much more than they earn unless theres international faith that the market can maintain growth. Australia doesn't have this at the moment, will be awhile before it returns. The gov must work hard selling the idea that Australia is the place to be to fix this. If China stays strong hopefully the gov can ride stagnation for a while. Stagnating housing after so many years of growth is tough going though, I'd say the gov has got 12 months at best to convince the world we're rocking.
Last edited by The Flintstones; Nov 28th 2010 at 4:39 pm.
#3
BE Enthusiast
Joined: Sep 2008
Location: newbury
Posts: 943
Re: The Great Australian Property Swindle
Interesting, but depressing read.
http://www.dailyreckoning.com.au/rep...ty-swindle.pdf
The bubble is starting to burst.
http://www.dailyreckoning.com.au/rep...ty-swindle.pdf
The bubble is starting to burst.
#4
Re: The Great Australian Property Swindle
an emotional claptrap report by an unknown author with underlined and bold ittalic words
#5
Re: The Great Australian Property Swindle
Aussie property is a ponzi scheme once it starts to collapse the whole lot will go.
I would be looking to sell now if I had property.
I feel that in a couple of years house prices will have fallen by upto 50% of their curent value.
I would be looking to sell now if I had property.
I feel that in a couple of years house prices will have fallen by upto 50% of their curent value.
#6
Re: The Great Australian Property Swindle
Its not cheap to buy but then neither is it to rent. I'd rather put my money into bricks and mortar than piss it up against the wall
#7
Re: The Great Australian Property Swindle
The interest on a mortgage is just as much "dead money" as rent.
#9
Re: The Great Australian Property Swindle
Which ever country we live in the market will fluctuate based on economic variances.
Buying houses should be something in the long run not a short term investment.
Buying houses should be something in the long run not a short term investment.
#10
Re: The Great Australian Property Swindle
Sure the right person in the right place at the right time can get a cracking investment that leads them to riches within 3-4 years,
but the global economy is going to be fluctuating for possibly 20-30 years and buying a property for investment purposes needs to be done on a long term basis or alternatively buy abroad or renovate...
I've been looking at properties the last few months, now is a fantastic time to buy in the UK because nobody else is! there are plenty of people eager to sell, and although prices could go down in the next year, over a 5-10 year period I'm pretty confident that a house here could provide a nice little return (although probably not the sort of return people would have had 10 years ago).
On another note, the US economy is still struggling and buying property in the states could provide some fantastic opportunities. I've seen lovely 3/4 bed villas in florida on realtor.com for as little as £50k... I'm sure a good buy would bring an investor a 50% if not higher return over the next 10 years as the economy there begins to pick up.
If the Oz property bubble pops then it can be a good thing - there could be a lot of bargains going around, and people who don't want to lose out on a sale will just have to stay put until the market picks up again.
I'm not an economist, but every problem is an opportunity in disguise and there's plenty of them out there for investors to work on!
Jen
#13
Re: The Great Australian Property Swindle
Could be some great bargains if there is a crash.
...and everyone will be calling us "vultures"
#14
Re: The Great Australian Property Swindle
Why do commentators often use examples like this? Surely this person shouldn't be able to afford the median house?
"Let’s say a young median wage earner convinces the bank to lend him the money to buy the median house... He has the following capital to put up:
- 14,000 First Home Owners Grant from the government (expires September 30th 2009)
- $31,000 gift from generous parents totalling a 10% deposit to lodge with the bank
Like tens of thousands of Australian home buyers, he has no savings of his own...
...
To live the same “Great Australian Dream” his parents did, the average Aussie is buying a house that
costs over SEVEN times his salary, and spending well over half of his take home pay to service the home
loan."
"Let’s say a young median wage earner convinces the bank to lend him the money to buy the median house... He has the following capital to put up:
- 14,000 First Home Owners Grant from the government (expires September 30th 2009)
- $31,000 gift from generous parents totalling a 10% deposit to lodge with the bank
Like tens of thousands of Australian home buyers, he has no savings of his own...
...
To live the same “Great Australian Dream” his parents did, the average Aussie is buying a house that
costs over SEVEN times his salary, and spending well over half of his take home pay to service the home
loan."
Last edited by fish.01; Nov 29th 2010 at 12:14 am.
#15
Re: The Great Australian Property Swindle
Why do commentators often use examples like this? Surely this person shouldn't be able to afford the median house?
"Let’s say a young median wage earner convinces the bank to lend him the money to buy the median house... He has the following capital to put up:
- 14,000 First Home Owners Grant from the government (expires September 30th 2009)
- $31,000 gift from generous parents totalling a 10% deposit to lodge with the bank
Like tens of thousands of Australian home buyers, he has no savings of his own...
...
To live the same “Great Australian Dream” his parents did, the average Aussie is buying a house that
costs over SEVEN times his salary, and spending well over half of his take home pay to service the home
loan."
"Let’s say a young median wage earner convinces the bank to lend him the money to buy the median house... He has the following capital to put up:
- 14,000 First Home Owners Grant from the government (expires September 30th 2009)
- $31,000 gift from generous parents totalling a 10% deposit to lodge with the bank
Like tens of thousands of Australian home buyers, he has no savings of his own...
...
To live the same “Great Australian Dream” his parents did, the average Aussie is buying a house that
costs over SEVEN times his salary, and spending well over half of his take home pay to service the home
loan."