Property Markets
#1
Lost in BE Cyberspace
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Joined: Dec 2010
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Property Markets
Ok this one is for you troubadour.
Once upon a time it was an Aussie dinner party favourite. Not sure it's going to get legs on here, but at least it might stop topics always turning in a discussion about cheap money, dodgy banks, negative gearing, property implosions and Sydney.
I see Leederville is in the "Safe" category according to this.
https://www.finder.com.au/boom-and-doom-property-index
That's bad news for you and the hope for a drop.
Anyway, over to you. What's news? What's property news?
Once upon a time it was an Aussie dinner party favourite. Not sure it's going to get legs on here, but at least it might stop topics always turning in a discussion about cheap money, dodgy banks, negative gearing, property implosions and Sydney.
I see Leederville is in the "Safe" category according to this.
https://www.finder.com.au/boom-and-doom-property-index
That's bad news for you and the hope for a drop.
Anyway, over to you. What's news? What's property news?
#2
Re: Property Markets
A real methodology would have what percentage of household income was going into the mortgage payments, and what percentage of mortgages were interest only types (who are finding it difficult to remortgage now). They are the suburbs that are most likely to face forced sales, etc. and thus lead the market down into 40-50% declines.
#3
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Joined: Oct 2005
Location: Hill overlooking the SE Melbourne suburbs
Posts: 16,622
Re: Property Markets
Incidentally, over the years my casual observation is that stats show people have smaller mortgages than the prices bear out.
I can only surmise there is a lot more inheritance and money sloshing around as huge deposits or people having traded up in the market over what must be now almost 20 years.
The worst case scenario would be a 500k mortgage on a 2 income family on the edges, where that 2nd income earner has to get back to work asp once the kid is in school.
I can only surmise there is a lot more inheritance and money sloshing around as huge deposits or people having traded up in the market over what must be now almost 20 years.
The worst case scenario would be a 500k mortgage on a 2 income family on the edges, where that 2nd income earner has to get back to work asp once the kid is in school.
#4
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Re: Property Markets
Interesting points gents. In my opinion this time around was the availability of cheap money ..... or was it? The US has had cheap money for years.
#5
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Joined: Jan 2017
Posts: 392
Re: Property Markets
Interesting how far away banks are finding actual family spends
Now the banks are reviewing actual spends versus assumed average stats
All those netflixs, private schools, cars, trips, shopping comes back to roost
Now the banks are reviewing actual spends versus assumed average stats
All those netflixs, private schools, cars, trips, shopping comes back to roost
#6
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Joined: Jan 2017
Posts: 2,900
Re: Property Markets
Beoz, in WA there is some real trouble in the market. I've been hearing from realtors that the banks have been pulling back on everyone, and even solid candidates are getting rejected for mortgages. I don't know if that's just for the regions or if it applies to Perth as well.
That is for existing properties. Land sales supposedly are going OK.
That is for existing properties. Land sales supposedly are going OK.
#7
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Re: Property Markets
Beoz, in WA there is some real trouble in the market. I've been hearing from realtors that the banks have been pulling back on everyone, and even solid candidates are getting rejected for mortgages. I don't know if that's just for the regions or if it applies to Perth as well.
That is for existing properties. Land sales supposedly are going OK.
That is for existing properties. Land sales supposedly are going OK.
#8
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Joined: Jan 2017
Posts: 2,900
Re: Property Markets
Same banks doing the same thing all over Australia care of the Royal Commision. We've been hearing the RBA, APRA, and the Treasurer tell the banks to ramp lending again. APRA being the ones who are the watchdog. Those who have investments in banks (most superannuation contributors) must be asking the same thing. It's like the banks are sending a "don't mess with us message". Sadly it's the knock on effects - the electrician, the brickie, etc, etc.
#9
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Re: Property Markets
Foreclosures only occur when there is increased unemployment. The unemployment in Sydney is at an all time low. Sydney is a totally different economy to Perth.
However I don't expect such low foreclosure rates to continue. It looks pretty certain the federal government will be a Labor one and with that comes bad economic management and increased unemployment rates. The tinkering of negative gearing in a falling market should see vast swaths of workers who rely on construction out of work pretty soon.
It was great while it lasted though.
#10
Re: Property Markets
Beoz, in WA there is some real trouble in the market. I've been hearing from realtors that the banks have been pulling back on everyone, and even solid candidates are getting rejected for mortgages. I don't know if that's just for the regions or if it applies to Perth as well.
That is for existing properties. Land sales supposedly are going OK.
That is for existing properties. Land sales supposedly are going OK.
I don't get involved in house price debates as they are pointless but if banks are not lending, how are they going to make money?
The whole point of a bank is to lend money and charge interest on this money. If they're not doing that, they ain't got a business
#13
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Re: Property Markets
They are just holding out until the Royal Commision Wrap Up. Then they will be back in action.
#14
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Re: Property Markets
Pretty much the case, I'm afraid as above. Banks will push for more government support. For example the lowering of tax as well as what has already happened get them on board in a scare campaign around ALP's NG policy. It'll be back to business in an attempt the arrest the necessary correction and push the problem to a future date.
Lending for housing is money for jam for the banks. A very poor use of resources, of course, which would be better used in more productive ways to grow the economy.
Lending for housing is money for jam for the banks. A very poor use of resources, of course, which would be better used in more productive ways to grow the economy.
#15
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Joined: Dec 2010
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Re: Property Markets
Pretty much the case, I'm afraid as above. Banks will push for more government support. For example the lowering of tax as well as what has already happened get them on board in a scare campaign around ALP's NG policy. It'll be back to business in an attempt the arrest the necessary correction and push the problem to a future date.
Lending for housing is money for jam for the banks. A very poor use of resources, of course, which would be better used in more productive ways to grow the economy.
Lending for housing is money for jam for the banks. A very poor use of resources, of course, which would be better used in more productive ways to grow the economy.