News: Property Market Spruiking....what shortages.. another Bubble?
#1
Lifestyle Development
Thread Starter
Joined: May 2007
Location: Budapest, Melbourne, Yarrawonga & Antalya
Posts: 353
News: Property Market Spruiking....what shortages.. another Bubble?
Article at end popped up in the comments section of a Melbourne Age article:
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.Below explains the supposed "housing shortage" that media and real estate industry keep on telling us about.....
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.Fascinating article ...... and explains how the media have been boosting while the property industry has been spruiking and the govt. inducing...... rhymes
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.
#2
Guest
Posts: n/a
Re: News: Property Market Spruiking....what shortages.. another Bubble?
The only thing that I have seen to confirm 'suitable property' shortages, are the numbers of people wanting to buy or rent properties when they become available.
I've read on here many times about renters offering more than requested to try to beat the other hoards that also want the property.
We also see statistics that "prove" there is no 'property' shortage.
However, we must consider one word.... "suitable".
It appears there is no shortage of property, but there does appear to be a shortage of "suitable" property.
People seem to know what they want, and what they do not want, and are prepared to pay extra for what they want.
While that attitude stays, prices will logically rise.
I've read on here many times about renters offering more than requested to try to beat the other hoards that also want the property.
We also see statistics that "prove" there is no 'property' shortage.
However, we must consider one word.... "suitable".
It appears there is no shortage of property, but there does appear to be a shortage of "suitable" property.
People seem to know what they want, and what they do not want, and are prepared to pay extra for what they want.
While that attitude stays, prices will logically rise.
#3
Forum Regular
Joined: Jun 2009
Posts: 34
Re: News: Property Market Spruiking....what shortages.. another Bubble?
I think both house price supply and price rises are very patchy in nature. For example, I know of houses in the $1million plus price range that cannot be sold whereas other houses in the $700-850 range are moving quickly - even in the same areas.
#4
Account Closed
Joined: Apr 2007
Posts: 495
Re: News: Property Market Spruiking....what shortages.. another Bubble?
Article at end popped up in the comments section of a Melbourne Age article:
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.Below explains the supposed "housing shortage" that media and real estate industry keep on telling us about.....
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.Fascinating article ...... and explains how the media have been boosting while the property industry has been spruiking and the govt. inducing...... rhymes
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.
#5
Banned
Joined: Apr 2009
Posts: 1,054
Re: News: Property Market Spruiking....what shortages.. another Bubble?
dont know about the media spruiking,plenty of resident landlords on here will be along in a minute to try and discredit anything that suggests housing is expensive in oz.Everyone's got a vested interest mate ,your either a renter,owner or landlord,and your opinion will determine which side of the fence you sit on.In oz there is no such thing as a neutral opinion.
#6
Account Closed
Joined: Apr 2007
Posts: 495
Re: News: Property Market Spruiking....what shortages.. another Bubble?
if thats your true opinion i will take my hat off to you,for seeing things clearly and not been blinded by personal gain or loss
#7
Guest
Posts: n/a
Re: News: Property Market Spruiking....what shortages.. another Bubble?
There are actually a lot of Australians who think exactly the same as that.
#8
Re: News: Property Market Spruiking....what shortages.. another Bubble?
I have no idea what the market is doing, or what it's supposed to be doing, or who's telling the truth about what's going on.
All I know is that I received a professional valuation of my house yesterday and learned that its value has increased by $35,000 in two and a half years.
All I know is that I received a professional valuation of my house yesterday and learned that its value has increased by $35,000 in two and a half years.
#9
BE Enthusiast
Joined: Feb 2006
Posts: 666
Re: News: Property Market Spruiking....what shortages.. another Bubble?
I am another one not bothered, own a house that I love and have no plans to sell, move or buy another one (don't think it's the best way to invest money).
I agree that the house prices are very high.
In area where I live due to it's popularity with Chinese immigrants (for whom more than half a mil is still only pocket change) and very good schools prices have been steadily rising over last 3 years and now are at crazy level.
I agree that the house prices are very high.
In area where I live due to it's popularity with Chinese immigrants (for whom more than half a mil is still only pocket change) and very good schools prices have been steadily rising over last 3 years and now are at crazy level.
#11
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: News: Property Market Spruiking....what shortages.. another Bubble?
If Australian house prices are off to the races again it would seem that the Australian government has been successful in propping up house prices. However, at what cost? Are we just kicking the can down the road for a future generation to pay for? Government policy effectively encourages Australian households to save very little and to take on large debts just to finance the purchase of a home, just the kind of behaviour that facilitated the US housing bubble.
#12
Account Closed
Joined: Apr 2007
Posts: 495
Re: News: Property Market Spruiking....what shortages.. another Bubble?
I have no idea what the market is doing, or what it's supposed to be doing, or who's telling the truth about what's going on.
All I know is that I received a professional valuation of my house yesterday and learned that its value has increased by $35,000 in two and a half years.
All I know is that I received a professional valuation of my house yesterday and learned that its value has increased by $35,000 in two and a half years.
#13
Banned
Joined: Apr 2009
Posts: 1,054
Re: News: Property Market Spruiking....what shortages.. another Bubble?
If Australian house prices are off to the races again it would seem that the Australian government has been successful in propping up house prices. However, at what cost? Are we just kicking the can down the road for a future generation to pay for? Government policy effectively encourages Australian households to save very little and to take on large debts just to finance the purchase of a home, just the kind of behaviour that facilitated the US housing bubble.
#14
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: News: Property Market Spruiking....what shortages.. another Bubble?
Article at end popped up in the comments section of a Melbourne Age article:
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.Below explains the supposed "housing shortage" that media and real estate industry keep on telling us about.....
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.Fascinating article ...... and explains how the media have been boosting while the property industry has been spruiking and the govt. inducing...... rhymes
"Oh, what a lovely recession … for comfortable old folks" suggesting that older generation (of property owners) are benefitting at the expense of the younger generation in employment, benefits, housing, inflated salaries etc.
Property Spruikers Claim Australia Suffers from a ‘Chronic Housing Shortage’
Last Friday we sent a request to Money Morning readers. We asked if they had any authentic research to support the claim made by property spruikers that Australia suffers from a 'chronic housing shortage.' We assumed there must be such research in existence. After all, it is the main basis the property bulls make to support the idea of continually rising property prices.
http://www.crikey.com.au/2009/08/12/...ousing-bubble/
As long as Australia’s banks have an interest in propping up residential property, the bubble will be tentatively kept alive. However, the risks of this path are significant. As Dan Denning in the Daily Reckoning noted presciently yesterday:
The bigger risk … is that Australia’s banks will become increasingly reliant on rising house prices to spur demand for new mortgages. That’s the process that contributes to earnings and keeps the balance sheet ticking along. The loans made to mortgagees go on the balance sheet as assets. They are funded from money borrowed abroad, which goes on the balance sheet as a liability.
The trouble here is that assets can change in value while liabilities do not. The debt has to be repaid, even if house prices fall. Australia’s banks are gambling with the capital structure of the entire nation, sinking more and more borrowed money into residential housing. It’s the biggest and riskiest bet yet.
Yes. Big, risky and very stupid. As no doubt Japanese banks can attest.