Follow, retweet @dailypinster




Post new topic Reply to topic  [ 2452 posts ]  Go to page Previous  1 ... 144, 145, 146, 147, 148, 149, 150 ... 164  Next
Author Message
 Post subject: Re: Good signs in Australia
PostPosted: Sat Apr 15, 2017 8:34 pm 
Offline
Back Home with Mammy

Joined: Apr 6, 2008
Posts: 54
I suspect most people who follow this topic have being expecting a crash in Australian property prices and have being surprised that it has not happened yet.

I suspect most people also go along with the idea that commodities have being propping up the Australian property market for most of this time.

I wonder if this scheme is the reason why Australia has not crashed yet and why it will not crash anytime soon?

https://en.wikipedia.org/wiki/One_Belt,_One_Road


Top
 Profile  
 
 Post subject: Re: Good signs in Australia
PostPosted: Sat Apr 15, 2017 9:24 pm 
Offline
Too Big to Fail
User avatar

Joined: May 6, 2008
Posts: 4231
Location: the nearest faraway place
extramild wrote:

I wonder if this scheme is the reason why Australia has not crashed yet and why it will not crash anytime soon?

https://en.wikipedia.org/wiki/One_Belt,_One_Road

If mining kept air in the Oz property bubble then Perth, the mines Canary, is struggling for breath.

_________________
Every single frozen corpse on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Sun Apr 16, 2017 5:08 am 
Offline
Real Estate Developer

Joined: Jun 10, 2010
Posts: 851
Australia's trade surplus widened 138 percent to AUD 3.57 billion in February of 2017 from an upwardly revised AUD 1.50 billion surplus in January and beating market expectations of AUD 1.8 billion. It was the second-largest surplus on record, as exports rose 1 percent from the prior month to AUD 32.41 billion while imports fell 5 percent to AUD 28.83 billion. Balance of Trade in Australia averaged -552.99 AUD Million from 1971 until 2017, reaching an all time high of 3701 AUD Million in December of 2016 and a record low of -4371 AUD Million in December of 2015.

http://www.tradingeconomics.com/austral ... e-of-trade

_________________
Jean-Claude Juncker - “We all know what to do, we just don’t know how to get re-elected after we’ve done it.”
Irving Fisher, economist, October 17, 1929 - "Stock prices have reached what looks like a permanently high plateau"
Gold and Economic Freedom by Alan Greenspan - 1966
Milton Friedman best moments


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Tue Apr 18, 2017 2:36 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
Quote:
A KPMG Economics report analysing data from the past 20 years has found almost two thirds of households pay no net tax, as the amount they fork out is equalled or more than offset by government payments.

The same report also estimates the bottom 20 per cent of income earning households has highest rate of growth in investment income.

Investment income from the lowest fifth of households has grown 8.5 per cent each year, compared with an average of 2.3 per cent over the past decade for other households.

http://www.theaustralian.com.au/news/la ... c4c5d28b8d


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Wed Apr 19, 2017 1:11 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
Quote:
Peter Dutton defends 457 visa scrapping as tech billionaire questions government’s wisdom

http://www.news.com.au/finance/economy/ ... 7803770834

I actually thought Australia would have closed up shop years ago when the mining boom started to falter....


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Wed Apr 19, 2017 12:11 pm 
Offline
Too Big to Fail
User avatar

Joined: May 6, 2008
Posts: 4231
Location: the nearest faraway place
Blindjustice BATONEFFECT wrote:
Quote:
Peter Dutton defends 457 visa scrapping as tech billionaire questions government’s wisdom

http://www.news.com.au/finance/economy/ ... 7803770834

I actually thought Australia would have closed up shop years ago when the mining boom started to falter....

The funny thing is when you look at it the new visa includes checks currently needed for PR like police clearance, english proficiency tests and experience checks so in effect there's no real change for those who really want to move to Australia.

It's actually PR light in that if you meet the checks for this visa then you've pretty much been pre-approved for permanent residency.

What I'm getting at is that it's actually an easier process now for both sponsor and applicant than under the extra layer that was the temp 457 visa.

_________________
Every single frozen corpse on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Fri Apr 21, 2017 3:28 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
http://www.afr.com/business/banking-and ... 420-gvp7sm


Quote:
According to CoreLogic home values across Australia's five largest capital cities have appreciated only 0.3 per cent between 20 March and 20 April 2017, less than one-third the average 1 per cent monthly capital growth rate over the preceding 6 months. The nation's investment mecca, Sydney, has fared worst among the capitals—setting aside the west coast property pot-hole—with dwelling values flat over the last 30 days. This is a welcome contrast to the crazy 14 per cent growth rate that has on average asserted since October 2016.

In what should be a warning to punters forced to chase speculative capital gains on 10 times leveraged housing equity (with negative interest carry) by the Reserve Bank of Australia's zero per cent "real" cash rate after living costs, Perth home values have slumped 10 per cent since their December 2014 peak. That could happen in Sydney and Melbourne, wiping out half the equity of all first time buyers.


Read more: http://www.afr.com/business/banking-and ... z4eqZg9gZv
Follow us: @FinancialReview on Twitter | financialreview on Facebook



Quote:
On this note congratulations to CBA's senior economist, Gareth Aird, who in a report this week argued that the consumer price index (CPI) is a "poor barometer of changes in the cost of living" because it "ignores price changes in the single biggest purchase a person (or household) is likely to make in their lifetime – a dwelling". Refreshingly authentic words from someone working for a 20 times leveraged residential mortgage lender. Once CBA corrects for the fact that housing costs for the 67 per cent of households that own the roof over their heads is missing from the CPI, the official inflation number jumps from a record low 1.5 per cent to 2.5 per cent, in the middle of the RBA's target band.

Read more: http://www.afr.com/business/banking-and ... z4eqZw2eNr
Follow us: @FinancialReview on Twitter | financialreview on Facebook


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Thu Apr 27, 2017 11:34 am 
Offline
Too Big to Fail
User avatar

Joined: May 6, 2008
Posts: 4231
Location: the nearest faraway place
Quote:
Brad Wright was a project engineer working around WA, earning about A$250,000 (NZ$270,000) a year.
Now he works as a security guard part-time while he tries to dig himself out of a dire financial position.

"People have had their incomes slashed to 10, 20 per cent of what they were normally being paid and they have to meet enormous payments," he told 7.30.

He had two investment properties and a home in a luxurious suburb of Perth during the boom. He borrowed almost A$1 million and said waiting for his loan approval was "as easy as buying an ice cream".

Lifeline financial counsellor Jenny Cecil said they were servicing a new group of clients - those struggling as a result of the economy collapsing. Many had been high income earners. She said a lot of clients were now using credit cards to maintain mortgage payments, electricity bills and council rates, making their financial positions even harder.

During the product resources boom in WA incomes doubled, and Bankwest chief economist Alan Langford told 7.30 households were not getting the income growth today they were during the boom.

It's a very different story in Perth compared to Melbourne and Sydney.

"They say in the top end of Perth on a quiet day you can hear the property values falling," Mr Hegney said.

"And property values at the top end of the market have probably dropped 30 per cent from where they were at the peak of the market in 2009."

http://www.nzherald.co.nz/business/news ... d=11846339

My aussie friends in Perth say that the state is well and truly out of denial now.

_________________
Every single frozen corpse on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Thu Apr 27, 2017 11:47 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
Quote:
Ninety-six per cent of parliamentarians own a property. Only 10 out of our 224 elected officials aren't in the game.

Compare that to the rest of Australia, where home ownership is expected to dip below 50 per cent sometime this year.

Almost half of our parliamentarians have an investment property.

Among the general population, the rate of investment property ownership is about 10 per cent, according to the Reserve Bank of Australia.

There are 105 government MPs and senators and they own 289 properties between them.

About half of these properties, 139, are investments.

The average Coalition politician owns 2.7 properties.

There are 193 properties held by the 95 Labor MPs and senators.

The minority, 72, are investment properties.

The average Labor politician owns two properties.

http://www.abc.net.au/news/2017-04-20/h ... rs/8454978


Saw a thing on tv last night, i think it was ABS news 24, but the guy being interviewed said Australia was building so many houses (around 230,000) that dropping it to the normal rate needed would drop the GDP by 1%


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Thu Apr 27, 2017 9:15 pm 
Offline
Migrant

Joined: Apr 27, 2017
Posts: 1
Reading things like this makes my skin crawl...how on earth are they approved for a mortgage?

Apprentice plumber James Loukis, 19, and his sister, Stephanie, 21, who is trying for a job in the police force as a forensic scientist, both bought an apartment on the 22nd floor, paying $690,000 and $681,000 apiece.

Not only did mum & dad chip in for both with deposits, but so did the grandparents :shock:

And then the icing on the cake...

Mr Loukis is hoping that the apartments will be worth a bit more by the time they’re complete in three years.

“There’s always the worry that they might drop [in value], Mr Loukis said.

“But I don’t think there will be a loss — with Sydney’s housing the way it is, I don’t think you can really lose.”
XX

http://www.perthnow.com.au/realestate/n ... 5e9aa02acd

In another article for the same development...
Construction student Andrew Vassarotti, 34, and his hotel staff partner Sougninh Chaleunthao, also 34, have been looking for two years for a home they could afford to buy. They also opted for a one-bed apartment, even though they’re hoping to start a family soon.
The apartments won't even be finished for another 3yrs, yet they buy a one-bedroom and are planning on starting a family soon :?:
https://www.domain.com.au/news/desperat ... 25-gv6b92/

Then there is this...
https://www.domain.com.au/news/home-buy ... 27-gvseiu/

Buy a brick for as little as $57 to get your share of an investment property. Seems like people will come up with any idea to keep things going.

And finally, is this the start?
http://www.smh.com.au/business/property ... uvekr.html

http://www.thecourier.com.au/story/4618 ... oned/?cs=7


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Thu Apr 27, 2017 10:16 pm 
Offline
Too Big to Fail
User avatar

Joined: May 6, 2008
Posts: 4231
Location: the nearest faraway place
Quote:
The number of foreign investment applications for residential housing has fallen sharply.

The government, and regulators, have recently deployed a series of measures aimed at cooling Australia’s booming property market. And authorities in China have been cracking down on the amount of money flowing out of the country.

China’s central bank late last year started vetting capital transfers abroad worth $US5 million or more. Previously, only transfers worth $US50 million were required to be reported to authorities.

Those restrictions were tightened further at the beginning of this year with regulators stipulating that people could not purchase foreign exchange for overseas investment, including for buying houses.


Read more at https://www.businessinsider.com.au/fore ... xt9BeIX.99

I imagine the transfer restrictions from China are going hit Canada, London and many other markets too.

_________________
Every single frozen corpse on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Fri Apr 28, 2017 10:12 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
http://www.smh.com.au/business/the-econ ... vuezo.html

Quote:
Sydney house prices are set to suffer their first fall in 18 months, new figures show, in the wake of strong action from regulators designed to curb the growth in investor loans.


Quote:
CoreLogic's figures for the first 27 days of April show Sydney house prices have fallen 0.1 per cent for the first time since December 2015, while Melbourne's property prices have risen 0.5 per cent, half as much as the previous month.

The full analysis for April, which could see Sydney's monthly prices fall 0.2 per cent, is due to be released on Monday and is likely to be welcomed by the Coalition after Treasurer Scott Morrison urged regulators to clamp down on "the sharp increase in the level of investor credit" fuelling the runaway property market.


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Tue May 02, 2017 11:52 pm 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
Quote:
Most interest-only and investor loans from the big four banks are cheaper than a year ago despite a series of rate hikes and a regulator crackdown aimed at cooling the housing market.

http://www.smh.com.au/business/banking- ... vr9vv.html


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Wed May 03, 2017 6:22 am 
Offline
Nationalised
User avatar

Joined: Nov 6, 2006
Posts: 8510
Location: Australia
Quote:
Residential property valuations may “correct” over the next 12-18 months, with Citi warning mid-single digits price falls could be seen in 2018.

The call came as a new survey found local fixed income investors were growing increasingly wary on the state of the Australian housing market and were also prepared to tip price drops later this decade.

In a broad note on the housing market today, Citi analysts noted signs of “cooling” in the previously booming markets of Sydney and Melbourne last month.

This came through in house price data released Monday that revealed flat prices in Sydney and modest gains in Melbourne.

While the April slowdown could be pinned on Easter, school holidays and a kneejerk response to tighter lending restrictions on investors, the analysts believe it may prove a precursor to a more substantial development over the next 12 months.

http://www.theaustralian.com.au/busines ... 9cd8249f58


Top
 Profile  
 
 Post subject: Re: Ominous signs in Australia
PostPosted: Wed May 03, 2017 7:37 am 
Offline
Nationalised
User avatar

Joined: Apr 1, 2010
Posts: 9720
Wealthy feel pinch of housing costs as one in four Australians face mortgage stress
Households in affluent suburbs struggle to meet repayments as survey finds financial distress from property price surges reaching beyond ‘battlers and mortgage belt’

https://www.theguardian.com/australia-n ... age-stress

Highlights:
  • "The survey, which analyses real cash flows against mortgage repayments, finds more than 767,000 households or 23.4% are now in mortgage stress, which means they have little or no spare cash after covering costs."
  • "The firm predicts that almost 52,000 households will probably default on mortgages over the next year.
  • the numbers were “an early indicator of risk in the system”.
  • "The underlying drivers were “flat or falling wage growth”, much faster rising living costs and the likelihood mortgage interest payments would only go up."
  • "Widespread mortgage burdens were limiting spending elsewhere and “sucking the life out of the economy”, and the problem should be addressed to head off a housing crash and its repercussions"
  • “If we start seeing house prices slipping then this can turn into a US 2007 scenario rather quickly,”
  • The Reserve Bank of Australia’s financial stability review last month observed one-third of Australian borrowers had little or no mortgage “buffer”,

_________________
"Prediction is very difficult, especially about the future" – Niels Bohr


Top
 Profile  
 
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 2452 posts ]  Go to page Previous  1 ... 144, 145, 146, 147, 148, 149, 150 ... 164  Next


Who is online

Users browsing this forum: No registered users and 5 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum

Jump to:  

Follow, Retweet @dailypinster



Pyramid Built, Is Better Built! - Latest Property Discussions www.thepropertypin.com