the troubadour

It would take a tomb and more to fill in your lack of knowledge, I'm afraid. If you want to suggest such things tell the entire truth. You are not seriously telling me a BMW is cheaper in Australia than Germany? Or a Mercedes? That would be simply untrue. Australia is very expensive for any so termed 'luxury' model. Never heard of the Luxury Tax? These cars would be cheaper in your native South Africa. What is cheaper are some of the smaller makes like Festiva's and the like. (Probably some of the Korean SUV's for example)Not sure who would drive those in Germany.
But never fear. The falling Aussie dollar will be pay to any foreign imports.

Amazulu

You're obviously unaware, but last time looked, Germany has other can manufacturers apart from BMW and MB. There's a tiny, niche car maker called VW. Not very well know but they're in the game. Mind-blowing knowledge but there it is. Check them out

Amazulu

tome

Beoz

Glad you agree with my numbers. Yet you still fail to argue against except it say 30 years ago it was still cheaper. No it wasn't.

troubadour let me frank with you. Your understand of economics, affordability and cost of living is so out of touch. To be honest, you are like a piece of wet cardboard when it comes to anything involved with money. I guess that's why you are always on the moan. Please seek a financial advisor ASAP.

the troubadour

No tomb. A tome would be far too heavy to even lift filling in your short comings in knowledge, I'm afraid to say.

the troubadour

I do hope you are not in charge of the petty cash? Your understanding of the housing industry is dismal to say the least. I really fear for Australia. What you need to keep in mind, or should I say introduce yourself to an understanding of the issue is the cost factor per median wage to actual cost of a house. The rate has exploded unfavourably in a percentage of earnings over actual house price increase. It was a 3 times median income in the eighties. It got to 12 times in parts of Sydney before the downturn with something like 8 times income being fairly normal. Spot the difference,
Low interest rates play a big part in widening the gap further but playing Russian roulette on house buyers. Interest rates will rise and too many will be caught up in servicing a debt never anticipated . Good for business of course. In debited workers are less likely to kick up and cause a fuss. Nothing like a huge debt to service in order to keep a roof above ones head to passivey completely a work force.
But mortgage wallahs care not. Lower rates equal printing money in the confines of their world. WE really need tighter regulation over the entire industry. Unlikely now the party of business and financial interests are in place for three years.

the troubadour

Simply new cars in Australia are not cheap end off. German cars not being the exception. Glad you mention VW. We had the latest model while living In Germany which in fact was far cheaper than in Australia. Now makes like the Pussat , cheaper range have no idea as to their comparison cheapness and it hardly matters. The thing being Australia has for the most part among the most expensive cars in the world and a lot of other things as well. Hard to think of anything outside of petrol, which could be considered cheaper in Australia.

Beoz

In summary you agree with me. Yes low interest rates are the factor. 10 points for figuring that out. Still cheaper today to service mortgage repayments as proportion of income than it was 30 years ago

Now it comes down to whether your crystal ball is accurate. Will rates rise to the levels of the 80's and 90's?

First of all, before that happens, a wage rise is required - GLOBALLY. Next in turn will be inflation. To control inflation the interest rate lever gets pulled. All 3 are very unlikely in the near term, even medium, and besides, if interest rates were to increase dramatically, then we would have all had a sharp pay rise.

You need to take your crystal ball for a service. Basic economics is not working well in it.

the troubadour

Nil points as per usual. It not a matter if interest rates will rise to the level of the eighties or not. Even the slightest rise will encounter consequences. The selling of over inflated houses on the grounds of low interest rates is subversive to the economy at large. Nothing stays the same It was only a few months ago the expectation was upward. Crystal ball servicing more your specialty I'm afraid but doubt any servicing would be of much help.
If you possess any real interest in economics study up economic history and get a broader insight into the makings of economic outcomes with some insight . Not knee jerk reactions to on the spot occurrences
But the fact remains. An increase in house prices while pleasing to some short sighted punters and attempting to squeeze the last breath out of housing in order to stimulate the state government coffers and general economy is akin to something like thumping a dead cat back to life. Australia needs affordable housing talking away speculator advantage. Regulation of the money market as can't be trusted not to return to old habits as well not sucking in large segments of the population into a life time existence of debt beyond comfort due to easy credit in times of' cheap money'.

Beoz

Really. There's been 2 bank imposed rate rise in the last 1 and a half years. What were the consequences?

Really. That's a strange thing to say given a lot of speculative investors have done very well out of property - hardly thumping a dead cat back to life. Do you think they should have been in shares instead? Are you one of these strange left wingers who think property should only be for people to live in and no one can make any profit from it.

You would be taking away the incomes of many who rely on a healthy property market to put food on the table.

Again, very selfish, only because you cannot afford an inner city pad.

the troubadour

Now listen carefully. Speculative investors invest simply because they do well. How's this? Overseas speculators borrowing money from OZ banks to speculate on houses thus rising the price all round. Probably not happening now to any extent but then the Chinese speculators pulled out the market anyway, realising the game was over and Aussie real estate was no longer a good deal. That and alone with some local change in taking money out.
No incomes have to be real incomes resulting from real job creation and not a bubble which will fail without far greater regulation anyway. The market needs to cool and decline to sustainable levels. Regardless of 'industry' attempting to keep afloat something passed its time.
Ha ha. I live in an inner city pad you dolt. You are the selfish one willing to take Australia down the gurgler to enable commissions to flow in. I can't think of a much more shellfish reason to advocate the further demise of this country.

Beoz

Have you ever tried to borrow money from a foreign bank for a foreign property? Not impossible but given the interest rate they hit you with and the deposit they require, nearly impossible. No Aussie bank wants to touch someone from Chinese they can never get their hands on should they do a runner. I think you are a bit deluded there. Making up stories again?

The Chinese want to be in. They want to be in anywhere. Australia, Canada, Europe. Sadly for them the Chinese government is not letting the money out.

Not sure how they Chinese came into this discussion.

The market is sustainable. If it weren't you would see an increase in defaults. Defaults are at an all time low.

Sadly for you none of these arguments are stacking in order for you to buy that inner city pad.

Amazulu

Many new cars are cheaper in Australia than in Europe - Japanese, Korean, some European (including German)

Check it out

Never heard of a Pussat BTW. Must be a car that's only available in your (alternative) universe

Amazulu

But you meant to use the term tome in your post. Tomb makes absolutely no sense. Then again.............

the troubadour

No I place bit and pieces in error to allow you the occasional sense of some narrow win. It has long been determined that while poor on discussion you will attempt to crow at the slightest perceived small 'win'. Hope it makes you feel a little better.......