Fluid36

I'm not crazy, I'm talking about the CPI, have you heard of that?

asprilla

No, what is CPI?

In your post you say that the goverment uses electronic goods to somehow lower the CPI and "offset inflation rises".

Isn't it more accurate to say that electronics goods are included in CPI (not just in this country... in many other countries too.. it isn't just our own evil govt manipulating the figures) simply because they are items that people spend their money on?

Do you really believe that the government includes them to offset real inflation???? Please tell me that you aren't that crazy.



edit - your post also says:

"You don't have to buy electronics goods if you don't want/need to."

And you don't have to buy alcohol and tobacco either... yet that has gone up 11.4% v the Dec 09 index. What's your position on this category? Why has the govt included it ??!

Fluid36

You say crazy a lot and maybe it is a case of monkey is monkey types?

Yes i think that core inflation as in day to day cost of living does not need to include such items as electronic goods. You could also argue that it should not include anything that is not necessary (you rightly point out alcohol and cigarettes). In reality however, a much larger proportion of the population probably spend more of their money on these items. Whether or not you agree with this doesn't really bother me,

bcworld

Can anyone actually detail what the 'basket of goods & services' contains?

asprilla

I'm not really worried about what the govt puts in our CPI. It's all those chemicals that they add to our tapwater to keep us under control, that worries me.

asprilla

No, but a quick google found this document which appears to be quite informative...

http://www.abs.gov.au/AUSSTATS/[email protected]?opendocument

Fluid36

Yeah it seems you may have more chemicals in your taps than some others, I'd get under your sink with a wrench if I were you and you may find where you misplaced the book called "dummies guide to thinking that everything is a conspiracy when really the world is a kind fluffy place full of candy floss and little knomes who are good at giving foot rubs".

TKline

This week we have some very big news in Australia that I thought you all might be interested in discussing.

More and more Australians are giving up on overpriced housing in their home country and buying overseas. It's no surprise Aussies are buying real estate overseas. In America, UK, Ireland, and Spain - house prices have fallen back to more sensible levels.

The level of public dissatisfaction with Australia's housing market became abundantly clear today, to myself and thousands of other Australians.

Recent campaigns by renowned advocate group "Get Up!" are championing a First Home Buyer's Strike and also calling for an end to the negative gearing tax break used by many property investors. The campaigns are gaining a huge amount of publicity in the media:

Online campaign targets high cost of housing

Real estate in Australia has exceeded all sensible valuation criteria and we now have some of the most unaffordable homes on the planet according to Demographia, The Economist, and many other respected organisations.

Also gaining much public attention recently is the Get Up campaign support thread and discussion on the Australian Property Forum with literally thousands of hits in a few days:

Get Up! Campaign Thread on AustralianPropertyForum.com

If these campaigns works as the organisers plan, property values may reduce to more sensible levels whereby decent hardworking Australian families can once again afford a reasonable home.

Here are the links to the original campaigns where thousands of people are casting their votes at an ever accelerating pace:

Get Up! Campaign to End Negative Gearing

Get Up! Campaign calling for First Home Buyer strike

If the bottom rung (FHBs) are taken out then the whole property ladder pyramid scheme may collapse. However, the GetUp Administrator has unfortunately suggested that it is very unlikely they will even accept these campaigns, as explained here:

Get Up Administrator suggests campaign may be shelved

Now, whether or not the public believe these campaigns are a good idea or a bad idea, there is no denying the huge level of public interest. The discussion has gone viral across the country on Twitter and other social media sites.

It is important that all property investors and owners consider the impact such a campaign could have on Australian property values.

The public have spoken, and if nothing else, these campaigns will surely be influencing future political decisions about the housing market in Australia.

This has been an important event in the history of the Australian housing bubble.

Thanks,

Tom.

asprilla

Perhaps if you look under your sink you might find another misplaced book. The dictionary.

asprilla

When is this bubble going to burst anyway? Normally when there's a bubble bursting you see prices plummet.

I've got a sneaking suspicion that there is no bubble.

Fluid36

Oh no, I misspelt gnomes, you win the knitpicking contest but that's about it.

Is knitpicking a word? - you'd better check.

Steve2009

You seem to be making an assertion there about the rate of deflation for a typical asset bubble. I am not convinced there is such a typical rate of deflation. If there is then I haven't seen evidence that the initial rate of deflation is high.

jimbo_d

I remember all this in the UK when I left 6 years ago, all they managed to come up with was shared ownership. Reason Aussies are buying overseas is a strong dollar makes foreign property cheaper and a better investment. Aussie housing market is stagnating, but won't fall without the economy falling.

One thing I have noticed here in Perth is the large numbers of apartments being built, and the advertisments remind me of those in London just before that sector crashed, offering guarenteed rents etc. I wouldn't be surprised if units fall a lot, houses will be fine.

Amazulu

The same happened in Melbourne a few years ago - they were even advertising in the UK.

What happened to those?

bcworld

All sold. Any now there are literally dozens more apartment blocks around Southbank / Docklands, built since those days.