The Great Australian Property Swindle
Apr 16th 2011, 7:03 am
#947
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Re: The Great Australian Property Swindle
Ireland had 5 years between when we should have taken our medicine (2002) and when we got taken down (2007). In that light your 2 year time frame from now looks appropriate, i.e. 4 years from the last hiccups in the market, .
Apr 16th 2011, 7:05 am
#948
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Joined: Feb 2011
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Re: The Great Australian Property Swindle
Before Ireland joined the Euro I thought the housing situation was going nuts. Adding low interest rates to that was always going to be a disaster in the making.
Apr 16th 2011, 7:41 am
#949
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Re: The Great Australian Property Swindle
I'm not sure I could call it. It was principally aimed at providing stimulus to the economy rather than to boost housing. Housing at that time didn't need boosting whereas the economy needed protecting. As the economy faired quite well it could be said that it was good policy. If it was bad policy I think it's too early to call. If we have a serious housing market crash across the whole of Aus in the next 2 years then I would be prepared to call it bad policy.
Also I call it first home vendors grant because it helped vendors of properties to first home buyers more than the home buyers. All it did for them was to allow them to leverage it up into more debt. Not a great outcome with increasing interest rates.
Apr 16th 2011, 8:20 am
#950
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Re: The Great Australian Property Swindle
Sorry but housing did need a boost mainly as it is a very large asset held by banks in Australia, in order to make Aussie banks look credit worthy the government put money into buying them via the first home vendors grant. That's about the only reason they kept their AA ratings and allowed them to keep borrowing on the money markets.
Apr 16th 2011, 8:29 am
#951
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Re: The Great Australian Property Swindle
My opinion is that using the housing market to stoke an economy, which is danger due to over exuberant housing lending, albeit in other markets, is saving up trouble for later. There were as an opportunity for the housing market to take a much needed breather, not saying it had to collapse, but instead it was encouraged to keep on inflating. It's now very interest rate sensitive so we'll see how it pans out.
Apr 16th 2011, 8:42 am
#952
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Re: The Great Australian Property Swindle
I would agree with that and I think there are quite a few others who would agree too. It seems obvious now that the government knew what they were doing with the boost and those who took 'advantage' of it were used to boost the economy.
Apr 16th 2011, 9:21 am
#953
Rhino with a big horn!
Joined: Feb 2011
Posts: 3,117
Re: The Great Australian Property Swindle
Sorry but housing did need a boost mainly as it is a very large asset held by banks in Australia, in order to make Aussie banks look credit worthy the government put money into buying them via the first home vendors grant. That's about the only reason they kept their AA ratings and allowed them to keep borrowing on the money markets.
Also I call it first home vendors grant because it helped vendors of properties to first home buyers more than the home buyers. All it did for them was to allow them to leverage it up into more debt. Not a great outcome with increasing interest rates.
Also I call it first home vendors grant because it helped vendors of properties to first home buyers more than the home buyers. All it did for them was to allow them to leverage it up into more debt. Not a great outcome with increasing interest rates.
Apr 16th 2011, 9:24 am
#954
Rhino with a big horn!
Joined: Feb 2011
Posts: 3,117
Re: The Great Australian Property Swindle
My opinion is that using the housing market to stoke an economy, which is danger due to over exuberant housing lending, albeit in other markets, is saving up trouble for later. There were as an opportunity for the housing market to take a much needed breather, not saying it had to collapse, but instead it was encouraged to keep on inflating. It's now very interest rate sensitive so we'll see how it pans out.
Apr 16th 2011, 11:36 am
#955
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Joined: Jul 2008
Posts: 823
Re: The Great Australian Property Swindle
Sorry but housing did need a boost mainly as it is a very large asset held by banks in Australia, in order to make Aussie banks look credit worthy the government put money into buying them via the first home vendors grant. That's about the only reason they kept their AA ratings and allowed them to keep borrowing on the money markets.
Also I call it first home vendors grant because it helped vendors of properties to first home buyers more than the home buyers. All it did for them was to allow them to leverage it up into more debt. Not a great outcome with increasing interest rates.
Also I call it first home vendors grant because it helped vendors of properties to first home buyers more than the home buyers. All it did for them was to allow them to leverage it up into more debt. Not a great outcome with increasing interest rates.
Apr 16th 2011, 12:21 pm
#956
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Re: The Great Australian Property Swindle
Boom, boom - wasn't that the catchphrase of a pommy children's TV character?
Apr 16th 2011, 12:28 pm
#958
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Apr 16th 2011, 12:33 pm
#959
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Apr 16th 2011, 12:37 pm
#960
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Joined: May 2003
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Posts: 24,246
Re: The Great Australian Property Swindle
Boom, Boom, Boom, Boom!! by the Vengaboys................. is a pretty shit song