Beoz

Of course you want a 50% reduction. You want to buy. Thinking about yourself again.

What about the others who make a living off anything from flat to growth.

Builders for a start. And I'm not talking your big guys. I'm talking about the average man.

I spoke to a mate of mine who has had to lay off his guys until the banks release some money for one of his clients. Large house renovation. That's 15 guys with families. As he said, fine for him, it's been a great few years, he owns the business, happy to have a month or so off, but not for his guys who work pay cheque to pay cheque.

So you got your lending wish for now - it won't stay as the wider economy is far more important than you?

the troubadour

The housing market will return to normal again when affordable. How about a market that serves all people, not just a few gaming the system trying to get rich quick', that is what has destroyed the market. A return to the 'original concept of housing where a house is to live in'.
Just think of the money freed up from un productive housing that could be spent expanding the economy. If you develop a 'faux' economy based on ever expanding housing growth, which by the way, was in part a replacement to the declining resource industry boom, but more by bad Coalition policy in the late 90's that I keep telling you about. that kicked the whole sorry state of.
You may chose to explain how lending money to people to purchase grossly over inflated houses, creating the second highest personal debited nation on earth,
is remotely good policy? Or having a debit that will never likely be paid off, creating a generation of wage slaves, having to put up with any sort of shite coming their way by employers. Already witnessed it. No way to run an economy, let alone a country.

Beoz

The housing market is less affordable today than it was 2 years ago in Sydney and Melbourne simply because there is no money to buy.

You should know. Despite a 20% drop in Perth you still can't afford it, because your bank won't lend.

Anyhow, those guys who work for the builder shouldn't sweat it out over Xmas. The economists are calling for the banks to lend again. Best not wait out Leederville any longer and jump on Joondalup.

https://www.smh.com.au/business/banking-and-finance/regulators-call-out-overly-cautious-banks-on-lending-20181213-p50m5d.html

the troubadour

The housing market is only 'less affordable' due to the sensible reigning in of debts that should never have been loaned in the first place. I filled you in on the corrupt banking practices, long before the Royal Commission got underway. It has turned out exactly as I mentioned, even worse.
Building a nation on personal debt never a good idea. Reason interest rates will rise at some point and devastation results will result in the economy.
No the liberal government is calling for les stringent loan criteria, a party that wouldn't be able to arrange a chook raffle. They fought tooth and nail against a Royal Commission and remain clueless. you should spare a thought for the tens of thousands that have been sold dodgy loans , far beyond their capacity to repay, or tricked into interest only loans.
Interesting that a house is more unaffordable now than when rates where high, purely due to over inflated prices and stagnant wages.
The Coalition have got us into one hell of a mess. Times will be tough ahead but this lot deserve a generation in Coventry.

No, wouldn't buy in OZ again, unless got a real deal. Actually did attend and bid in an auction two weeks ago at a mortgagee sale. Agent pretty poor, and long and short is the residence remains for sale. My offer was clear, but lets face it. There are plenty of more exciting countries than Australia to get bogged down in and renting in Europe a far better option, over a longer term.

Stuck in Auckland

Dare you to smell the cash

Hence the phrase dirty money and money laundering

Beoz

Sounds like you read a snippet and post some random comment.

the troubadour

I've been away for awhile but note that the mortgagee house sale remains unsold. It will be interesting to see how much the bank will allow it to go for. Thing being of course, folk are now waiting for further falls in the market unless it is a prime product, ticking all boxes, plus willing to negotiate. I can only imagine how it must be in Sydney and Melbourne.

As for unemployment being mentioned as a key, WA now leads the pack in per cent terms (over 6%) in the unemployment stakes.

Beoz

[QUOTE=the troubadour;12628890
As for unemployment being mentioned as a key, WA now leads the pack in per cent terms (over 6%) in the unemployment stakes.[/QUOTE]

Seven year unemployment low over here.

the troubadour

Unemployment just a double whammy for Perth/WA. Sydney is where the over inflated housing market is really showing signs of correction. Only natural, when houses out of reach to the vast majority of the population. But it is no longer unemployment but under employment that is the key to unaffordability. Regardless of the risk taking many may be inclined to take to put a roof over their heads, banks will find it increasingly impossible to loan money, without serious government intervention, to such loan seekers.

Yes they will pressure banks, to unwisely cut interest rates, but likely to raise rates themselves to few will be better off, just more an unpayable debt to service. The Liberal scare tactics well in train about NG.
Just remember the awful mess we find ourselves in, was kicked off by the Howard Coalition government late last century. Definitely time for a change.

Beoz

A change that puts ordinary people under stress. Maybe we just leave that to Perths "one trick pony" economy. The rest of us like low unemployment.

the troubadour

See previous post to learn why unemployment is no longer the sole factor. Perth housing prices are not falling as fast as Sydney's. A lot of stress out thee at the moment. What the nation needs is to keep speculators at bay and return house prices to affordable norms (which means considerably further falls) then maintain sustainability.
A sustainable housing market will allow a focus on true value growth but business (small, medium I refer) needs a cost effective environment to succeed. WE don't have that at the moment.