More News on Australian housing
May 2nd 2003, 2:04 am
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More News on Australian housing
A land of fools funded by fools its a house of cards waiting to collapse , still you refugees will help to keep it going for a while.
The sticky truth is that our strong economic growth is funded by overseas borrowing.
Inflation has been moving house - or rather, moving into our houses. And central bankers are worried that their next crisis may be already in the pipeline, as housing prices have spiralled beyond the reach of new buyers.
Prices of consumer goods are no longer the problem. The main threat to financial sustainability is now from asset booms and busts. And in Australia, that means housing.
The authorities skite about Australia's high growth, attributing it to economic reforms. But any country that borrows $350 billion from the rest of the world can finance above-average growth, until the lenders ask for it back. Then things will get sticky, particularly if all we have to show for it is overpriced housing.
http://theage.com.au/articles/2003/0...381898315.html
The sticky truth is that our strong economic growth is funded by overseas borrowing.
Inflation has been moving house - or rather, moving into our houses. And central bankers are worried that their next crisis may be already in the pipeline, as housing prices have spiralled beyond the reach of new buyers.
Prices of consumer goods are no longer the problem. The main threat to financial sustainability is now from asset booms and busts. And in Australia, that means housing.
The authorities skite about Australia's high growth, attributing it to economic reforms. But any country that borrows $350 billion from the rest of the world can finance above-average growth, until the lenders ask for it back. Then things will get sticky, particularly if all we have to show for it is overpriced housing.
http://theage.com.au/articles/2003/0...381898315.html
Last edited by pommie bastard; May 2nd 2003 at 2:13 am.
May 2nd 2003, 2:58 am
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pretty much like the UK then.
May 2nd 2003, 3:10 am
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I'm sure the housing market here will cool off too. However in Qld its really only been going up for about 18 months.
Land releases here attract about 30 potential buyers for each block and each release seems to go up about $20,000. Land in Buderim was $70,000 two years ago, you'd be paying $160,000 minimum now. Large block with views sold for 1.3 million last week. Canal land goes between $600,000 and 2 million.
The demand for houses on the Sunshine Coast under the 400,000 is staggering. Brisbane seems to be a bit cheaper, but huge variety in price according to area.
From what I have seen here demand wise, I think it will continue upwards for a good while yet, simply because each new Land development comes out more expensive than the last.
Has Perth gone up much yet?
Land releases here attract about 30 potential buyers for each block and each release seems to go up about $20,000. Land in Buderim was $70,000 two years ago, you'd be paying $160,000 minimum now. Large block with views sold for 1.3 million last week. Canal land goes between $600,000 and 2 million.
The demand for houses on the Sunshine Coast under the 400,000 is staggering. Brisbane seems to be a bit cheaper, but huge variety in price according to area.
From what I have seen here demand wise, I think it will continue upwards for a good while yet, simply because each new Land development comes out more expensive than the last.
Has Perth gone up much yet?
May 2nd 2003, 3:11 am
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Originally posted by karawara88
pretty much like the UK then.
pretty much like the UK then.
The rule of thumb is banks lend on earnings or should be after seeing the micky mouse way of lending in Australia even a thick sod like me can see its pit falls.
House building in Australia is the biggest employer without it the country would have 3 times the unemployment it has now which is not low, brickies building homes for brickies?
May 2nd 2003, 3:27 am
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Originally posted by dotty
I'm sure the housing market here will cool off too. However in Qld its really only been going up for about 18 months.
Land releases here attract about 30 potential buyers for each block and each release seems to go up about $20,000. Land in Buderim was $70,000 two years ago, you'd be paying $160,000 minimum now. Large block with views sold for 1.3 million last week. Canal land goes between $600,000 and 2 million.
Has Perth gone up much yet?
I'm sure the housing market here will cool off too. However in Qld its really only been going up for about 18 months.
Land releases here attract about 30 potential buyers for each block and each release seems to go up about $20,000. Land in Buderim was $70,000 two years ago, you'd be paying $160,000 minimum now. Large block with views sold for 1.3 million last week. Canal land goes between $600,000 and 2 million.
Has Perth gone up much yet?
I bought a block 3 years ago for $94K same blocks that are left try $300k , some new land is being sold at auction only because the developers know that people are camping out for weeks to get a good block so they push the price up by using an auction.
The top spots go for over a million plus on the river even a lotto win would not be enough , an inner city block 200sq would be around $400K.
Last edited by pommie bastard; May 2nd 2003 at 5:08 am.
May 2nd 2003, 7:28 am
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Need more puff in the bubble? Increase the immigration quota to 110,000 for 2003, process immigration applications faster.
A New Economic Depression
"Henry George’s slant on classical distributional theory makes it eminently arguable that the dual pathologies of taxation and land price are setting the agenda. As tax regimes give preferential treatment to those seeking to capture increments in land price, people will logically follow this dictate. More productive pursuits become the casualties of taxation, which then reinforces the bias in favour of land speculation. The consequential decline in real wealth creates unsustainable debt levels and land price speculation. Excessive debt thus generated is eventually liquidated by recurrent periods of economic catastrophe. Whilst these financial collapses are said to be the ‘natural self-correcting mechanism of the capitalist system’, the mechanism may neither be validly described as efficient or natural in view of George’s virtually untried fiscal alternative."
Howard Liberal Government terrified it will lose next election if the house price bubble burts?
The Primary Cause of Industrial Depressions
"One school say that the speculation produced the depression by causing over-production and they point to warehouses filled with goods that cannot be sold at remunerative prices, to mills closed or working on half-time, to mines shut down and steamers laid up, to money lying idly in bank vaults and to workmen compelled to idleness and privation. They point to these facts as showing that the production has exceeded the demand for consumption and they point moreover to the fact that when government during war enters the field as an enormous consumer brisk times prevail."
"The other school say that the speculation has produced the depression by leading to over-consumption, and point to full warehouses, rusting steamers, closed mills, and idle workmen as evidences of a cessation of effective demand, which, they say, evidently results from the fact that people, made extravagant by a fictitious prosperity, have lived beyond their means and are now obliged to retrench - that is, to consume less wealth. They point, moreover, to the enormous consumption of wealth by wars, by the building of unremunerative railways, by loans to bankrupt governments, etc., as extravagances which, though not felt at the time, just as the spendthrift does not at the moment feel the impairment of his fortune, must now be made up by a season of reduced consumption."
A New Economic Depression
"Henry George’s slant on classical distributional theory makes it eminently arguable that the dual pathologies of taxation and land price are setting the agenda. As tax regimes give preferential treatment to those seeking to capture increments in land price, people will logically follow this dictate. More productive pursuits become the casualties of taxation, which then reinforces the bias in favour of land speculation. The consequential decline in real wealth creates unsustainable debt levels and land price speculation. Excessive debt thus generated is eventually liquidated by recurrent periods of economic catastrophe. Whilst these financial collapses are said to be the ‘natural self-correcting mechanism of the capitalist system’, the mechanism may neither be validly described as efficient or natural in view of George’s virtually untried fiscal alternative."
Howard Liberal Government terrified it will lose next election if the house price bubble burts?
The Primary Cause of Industrial Depressions
"One school say that the speculation produced the depression by causing over-production and they point to warehouses filled with goods that cannot be sold at remunerative prices, to mills closed or working on half-time, to mines shut down and steamers laid up, to money lying idly in bank vaults and to workmen compelled to idleness and privation. They point to these facts as showing that the production has exceeded the demand for consumption and they point moreover to the fact that when government during war enters the field as an enormous consumer brisk times prevail."
"The other school say that the speculation has produced the depression by leading to over-consumption, and point to full warehouses, rusting steamers, closed mills, and idle workmen as evidences of a cessation of effective demand, which, they say, evidently results from the fact that people, made extravagant by a fictitious prosperity, have lived beyond their means and are now obliged to retrench - that is, to consume less wealth. They point, moreover, to the enormous consumption of wealth by wars, by the building of unremunerative railways, by loans to bankrupt governments, etc., as extravagances which, though not felt at the time, just as the spendthrift does not at the moment feel the impairment of his fortune, must now be made up by a season of reduced consumption."
Last edited by Megalania; May 2nd 2003 at 9:16 am.
May 5th 2003, 1:52 am
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Originally posted by Megalania
Need more puff in the bubble? Increase the immigration quota to 110,000 for 2003, process immigration applications faster.
A New Economic Depression
"Henry George’s slant on classical distributional theory makes it eminently arguable that the dual pathologies of taxation and land price are setting the agenda. As tax regimes give preferential treatment to those seeking to capture increments in land price, people will logically follow this dictate. More productive pursuits become the casualties of taxation, which then reinforces the bias in favour of land speculation. The consequential decline in real wealth creates unsustainable debt levels and land price speculation. Excessive debt thus generated is eventually liquidated by recurrent periods of economic catastrophe. Whilst these financial collapses are said to be the ‘natural self-correcting mechanism of the capitalist system’, the mechanism may neither be validly described as efficient or natural in view of George’s virtually untried fiscal alternative."
Howard Liberal Government terrified it will lose next election if the house price bubble burts?
The Primary Cause of Industrial Depressions
"One school say that the speculation produced the depression by causing over-production and they point to warehouses filled with goods that cannot be sold at remunerative prices, to mills closed or working on half-time, to mines shut down and steamers laid up, to money lying idly in bank vaults and to workmen compelled to idleness and privation. They point to these facts as showing that the production has exceeded the demand for consumption and they point moreover to the fact that when government during war enters the field as an enormous consumer brisk times prevail."
"The other school say that the speculation has produced the depression by leading to over-consumption, and point to full warehouses, rusting steamers, closed mills, and idle workmen as evidences of a cessation of effective demand, which, they say, evidently results from the fact that people, made extravagant by a fictitious prosperity, have lived beyond their means and are now obliged to retrench - that is, to consume less wealth. They point, moreover, to the enormous consumption of wealth by wars, by the building of unremunerative railways, by loans to bankrupt governments, etc., as extravagances which, though not felt at the time, just as the spendthrift does not at the moment feel the impairment of his fortune, must now be made up by a season of reduced consumption."
Need more puff in the bubble? Increase the immigration quota to 110,000 for 2003, process immigration applications faster.
A New Economic Depression
"Henry George’s slant on classical distributional theory makes it eminently arguable that the dual pathologies of taxation and land price are setting the agenda. As tax regimes give preferential treatment to those seeking to capture increments in land price, people will logically follow this dictate. More productive pursuits become the casualties of taxation, which then reinforces the bias in favour of land speculation. The consequential decline in real wealth creates unsustainable debt levels and land price speculation. Excessive debt thus generated is eventually liquidated by recurrent periods of economic catastrophe. Whilst these financial collapses are said to be the ‘natural self-correcting mechanism of the capitalist system’, the mechanism may neither be validly described as efficient or natural in view of George’s virtually untried fiscal alternative."
Howard Liberal Government terrified it will lose next election if the house price bubble burts?
The Primary Cause of Industrial Depressions
"One school say that the speculation produced the depression by causing over-production and they point to warehouses filled with goods that cannot be sold at remunerative prices, to mills closed or working on half-time, to mines shut down and steamers laid up, to money lying idly in bank vaults and to workmen compelled to idleness and privation. They point to these facts as showing that the production has exceeded the demand for consumption and they point moreover to the fact that when government during war enters the field as an enormous consumer brisk times prevail."
"The other school say that the speculation has produced the depression by leading to over-consumption, and point to full warehouses, rusting steamers, closed mills, and idle workmen as evidences of a cessation of effective demand, which, they say, evidently results from the fact that people, made extravagant by a fictitious prosperity, have lived beyond their means and are now obliged to retrench - that is, to consume less wealth. They point, moreover, to the enormous consumption of wealth by wars, by the building of unremunerative railways, by loans to bankrupt governments, etc., as extravagances which, though not felt at the time, just as the spendthrift does not at the moment feel the impairment of his fortune, must now be made up by a season of reduced consumption."
Nice post but its far real for the dreamers ,try a bit more more down market , must read nothing more than the Sun on the site.
Nest making is a be all and end to most Australians thats why the Abos are outcasts , nomads have no place in Suburbian housing estates.
