"when a main stream economist says the market will never recover, that's the signal to buy" I agree wholeheartedly! Tony you bought your property at what you feel is a good price for what it is... you can't do better than that. If it's for living in then it's a perfect combination. Well done, and thanks for your insights.
Martin, Hope you and your family have a great Christmas and New Year. Many thanks for your videos. Before discovering your channel a few months ago, I was totally ignorant to the shenanigans that the banks and governments were up to. Thanks for opening my eyes.
how is $600 - 800,000 a reasonable amount on money for a house in sydney let alone WA? Thats nonsense. Youre still in the property boom fantasy land with those prices. Sydney should be $300,000 and WA less..... and imo it will be back to those levels.
@@col2959 in a communist centrally planned econony like the one we have with the reserve bank of australia in the center of it, yes $800k is supply and demand, but in a capitalistic free market economy , which we dont have, supply demsnd wiuld be at $300k
You are absolutely right. These prices are purely speculative. It's a fool's market. No house in Australia is worth these prices - and it's even worse in NZ now. The best thing people can do is lower their expenses and save for several years. If no one is buying the houses - the price will crash to much more realistic levels.
I have no debt and good job and applied for 2k credit card for travel purposes. I had to jump through hoops to get it. This was different from years back where the application process was basically automated and you got it straight away after application.
Best market commentary I've found. Thanks Martin. Gotta feel for the young people suckered into this market with their 20% deposit, they will lose all of it plus alot more. A life in negative equity.. good one central banks.
@Tony Locantro you said in the vid that Sydney could fall 70%. With Sydney prices 70% lower, how would that put your $650k homes for "good value" in W.A. I don't understand what could possibly make W.A. special?
@Tony Locantro Oh, I see., losing 70% of the _gain_ . I personally think we could see nominal falls of 50-60% nationally. From your perspective, I see why you expect perhaps a 35% fall in Sydney and a more modest fall on W.A. since things have fallen already there. However, I tend to think that $600-700 for a house when the average income is about $70k is not sustainable. You seem to have a double income (no kids?) in the region of $230k/annum so maybe it's hard to understand the plight of the average household in Australia? No need to be defensive. Thanks for appears here in the comments 🙂
Credit drives prices, wages drives rents is correct. Only land prices have significantly increased in cost longer term. Land prices still may not revert to mean following a correction if there is higher residual private debt, as is the case in many economies post 1980. Credit is just the fuel for speculation upon future rental potential of land, which is less knowable the further out we go into the future, a freehold literally entitles the holder to all future rents minus property tax, and because the supply of land is highly inelastic, the price essentially becomes whatever a bank is willing to lend to it. Another way land absorbs a higher share is via improved efficiency in the economy, which reduces the return to capital and increases the economic surplus which will capitalise into either higher rents or land prices unless measures are taken to improve elasticity in the highly monopolistic and distorted land/housing market. This is why workers wages are always pushed down via rent to a certain socially determined subsistence level at the margins even as technological innovation improves production, it's Ricardo's 'law of rent' in action.
Interesting comment. Having a little trouble following. Agree that we have more of a land price boom than a house price boom. In my area of Brisbane, land prices are about 6-7 times what they were in 1999. Curious what changed in 1980. I only arrived in Australia in 1982 (just 11 years old).
Hmmm I’ve worked in kalgs Newman and Tom price al workers I met are WA workers flying from Perth. A few kiwis fly back home now and then but they aren’t cheap labour.
BDM I see what your saying but... I’ve personally witnessed lads arrive on site in the mines they do their first swing to never return ? The same for girls who arrive at camp to clean ect they quit as soon as they get there. Companies pay hundreds of dollers to get you on site for them to leave I was by far the youngest lad on site last year at age 20, the next oldest was 26 what does that say. These foreign workers work cheap but they work, I’m not bashing Aussies by the way but there is major problem with west Australians work ethic
Thank you, Martin. Merry Christmas and Happy New Year! 2019 will be a very interesting year for all the over priced cites around the world, Sydney, Melbourne, Vancouver, etc.
Tony if your really up with it, and your buying a house which you COULD pay cash for, why on earth wouldn't you with the pending crash and probable reduction in currency value. And tony, shares are not savings. They can be seen as savings if you have a crystal ball but you don't have. Your an amateur. You should have pulled him up Martin as I. Know you know what I'm saying. I know your a very polite gentleman but yeahhh. Best wishes for 2019 Martin and john. Where is john btw.... be good to see you two working together again asap. The combo of your knowledge and personality is truly awesome and no doubt ruffling some feathers in all the right places..
I can understand the banks position on this. Shares are worth what the market is willing to pay on a particular day. If you had 20% of the value of a house in AMP shares 12 months ago that obviously wouldn’t be worth 20% of the house today
Do you guys get the feeling Tony's mentioned Pepper Finance at least twice too often? I do not think there is anything wrong with it, of course and Tony is absolutely correct that the best time to sell is R I G H T N O W ! ! !
Arthur Treibs actually no, I think he made it quite clear that it wasn't his first option as it cost him 1% extra interest. He was just making it known that they were still an available option if banks turned you down for relatively minor reasons. I get the distinct impression he was buying to live long term not to speculate in the short term. Hope it works out for him. Maybe by the middle of 2019 he could have picked one up for less, of course, in the same neighbourhood.
"Why would I leave cash in the bank when I earn sweet FA?"... possibly because a lot of dividend stocks have completed obliterated many people's capital and the world's rates are increasing putting a crimping on growth.
Well done guys great insight. And merry Xmas Martin to you and all the DFA contributors I’m going into 2019 much more confidant than last year after following your videos, I haven’t missed a video for months now 👏. what I don’t understand is the banks have restricted lending, the market is now awash with uncertainty, and even the uneducated can’t help but see it’s not a good time to buy. I’ve been watching a property in Yarraville on the market for about 6 weeks. It’s a very small 2 bedroom house which has clearly been divided previously started off at offers over $849, the price came down to $829 and it’s been sold (undisclosed price). One of the most overvalued property I’ve ever seen, I viewed it. Obviously whoever bought the home does have money or banks would not have lent, but I just can’t see how they could on such a property. Maybe there is still a lot of people out there with a lot of money. My point is I thought the market would have dropped faster than it is..
Id suggest they knocked them back because they are likely to be a highly overvalued micro cap portfolio. Most lenders won't lend against those. Never have. Always been considered "nonleading". They are not much different to bitcoin really, most asx micro companies are hot air that dont and never do make a profit, so their " valuations" are garbage. This is nothing new and he should have well known this if its the case imo.
I don't live there now but relations do . C as a typical investor gets cocky but he's way over paying . Mining got a little leg up lately but it's only down from here xmass day china markets got clobbered wait for a while buy rio n bhp for next to nothing cheers martin
The DOW is trading at a PE of about 28.5. Normal PE is about 15/16 so it is obvious that the DOW needs to halve before it becomes a realistic investment. The real concern is that all asset classes must operate in equilibrium otherwise money will flow from “high” priced assets to “low”priced assets. It is obvious that we are “in” for a bad time as all these asset classes property, shares, bonds, gold, crypto, houses, find their new equilibrium. It is time to rejoice at being poor because you can watch the maelstrom about to occur and lose very little. Woe to those who have added house to house and land to land. Woe to those who have added stock to stock, woe to those who thought bonds were “safe”, woe to those who invested in Deutsche Bank because it is about to do a Lehman’s and take down the global financial system. Sorry but the financial mess will make Global Warming bad as it is, look like a picnic.
Perth is one of the most isolated cities on the globe.. Literally middle of nowhere, day just to drive to Adelaide. 9 hr flight just to NZ. These prices he is quoting are a crazy nonsense.
Do you have any idea how much wealth resides in Perth? Drive along coast from freo to yanchep then take a river cruise . Check. Out the boats check out the houses. Then go for a stroll through kings park and have a walk around hillarys marina. Wa did not try to go it alone twice for no reason. I live in perth. My ancestors came from Kallasdadt Germany and most of them have been here since the beginning. WA isn't a new place. . To me the east is a long way away😎coltrump
Over the century, statistically speaking, housing might have gained 0.5% or so in real term. It might not be that in reality. For one, the original "housing" property would have been sub-divided. Some a fair few times over. Some, converted to industrial or commercial property etc. So one block housing 100 years ago would now be 5 or 10 property. But I take the point that housing as an investment is average at best. But like anything, there's a good time to load up and a very bad time to get into. The past few years is probably the worst time to get into property... the next few years should be good. Sydney got about 50% drop to go. A knock-down fibro 1-hour train ride from the CBD is going for the cheap $650k+. A brick 3 bedder about $850k+. With tight credit, negative market sentiment, rental yield next to nothing given the recent construction boom in both apartments and granny flats for every house. Property decline mean construction work will dry up mean high unemployment. It's going to get ugly.
@Tony Locantro Gov't subsidies, incentives and cheap credit sure gave Baby Boomers and lucky investors a windfall. But that, according to a smart tradie I know, is the gov't way of not paying senior pensions from the state treasury. You design policies that jacked up property prices. Those with one or two property will offload them for a million or more... no pension for you. Who pays for it? The younger generation. That's how you get away with your obligation, increase tax revenues (through stamp duties), raise tax (on the young)... all while making everyone happy. It's bloody beautiful. While it lasted. Yea... I'm hearing complaints from landlords lately. They'e your typical mom-pop baby boomer who bought a house some decades ago for $100K. Split it into two for two rental income. And they're complaining about the low rental yield and pain in the behind tenants. Imagine the recent batch of landlords getting in for $1m.
That's true, but money in the bank isn't a fool-proof strategy either. DFA has made me aware of the potential looming threat of bank bail-ins at the expense of depositors.....
Hi Martin, I thought the following video of Kyle Bass on CNBC might be of interest to you. It’s is essentially his stump thesis on Chinese banks. However, I think his theory gives greater clarity and color on the under lying reasons for the stricter outgoing capital flows, which are, to a material degree, effecting australian real estate markets. When their banks are eventually recapitalized it will appear via weaker demand for Australia minerals and a weakening Yuan. Yet another macro risk we must eventually face, in addition to all the interest rate divergence incapsulating developed economies. Cheers 🥂
Sorry, but this guy is a bullshitter. "I forgot to pay a payment on my credit card, I hate this credit card. I forgot a payment on my car loan, but I can buy this house outright."
more likely its because the banks here are unsophisticated and just plain dumb. Even if you offer the a 400 ounce gold bar from london delivery, they wont count it. LOL!!
It was interesting that between 1890 and 1990 that prices rose on average 0.5% a year which was basically population growth. So how will governments fix the affordability crisis without crimping banks? So expect political upsets before long.
Maaa-aaa-aaate It does depend on where you live. The lending restrictions here ended in the 1980’s There was a surge of price increases in the mid 1970’s but that was when we had significant price increases everywhere and strong unions to transfer the benefits to workers. Prices in the late 1960’s here were a fraction of that a few years later. The real boom started in the early 1980’s after the deregulation of banks from residential mortgages. Until then only building societies were the source of mortgages and they had no ability to create money. If you went further back into local prices they were pretty stable for decades again rising with population growth.
Susannah Jones .. all in the banks know what's coming. They , along with their master( rba / Rothschilds) created it. What's scary is in my belief it wasn't created by chance. It's been a long term well orchestrated plan for a one world government/ currency which has been ramped up due to the appointment of dontrump. He is not with them. All. Before him have been. Check out fed reserve rate rises during Obama as opposed to trump. .. best wishes coltrump😎
Hi can you talk abit more about Brisbane. We all know that Sydney and Melbourne are going to get slaughtered. Brisbane hasn't had so much of a boom.?? Thanks
Hey so.... how do we prepare for this stock market crash / recession / collapse? What would you recommend for somebody with no assets or investments, but $10,000 to utilize? Invest now? Invest later? Panicking.
Start with getting your finances properly under control. Read a book called Your Money or Your Life by Robin and Dominguez. At the moment crypto, and bullion are probably your best bet but please read the book, I went from suicidal about my financial position to near financial independence within 4 years of putting the strategy into play.
If this guy had a problem, my question is the same as it has been for the past few years: Who the XXXX is buying? Even agents admit investors are out of the market, how the hell do first home buyers a) get the loan and b) afford it? (Note there are only so many first home buyers as you can only be one once and near 10% of the working population are on job seeker/keeper). People tell me "their parents help out", this makes no more sense, where do they get the money, for more than one child? I'm in my 50's, we are a double income no kids couple and we own property and other assets, i'd really struggle to cough up say $400K (2 kids x 20% deposit - assuming they could get a loan). I really don't get it at all.
Fantastic Christmas gift having you two meandering in great property conversation. Tony, what an authentic guy. The property bear buying a property and sharing his experiences. Martin, you're amazing! This channel of yours is one of the best in RUclips. I look forward to seeing more of your work in 2019. Merry Christmas to you both as well as John, Edwin and Joe.
Reminds me of the Japanese in the late eighties, especially on the Gold Coast. Boy, did they go home with their tails between their legs? HE HE HE HE HE... Most of Asians are mad gamblers, NOT investors..... and so are westeners too!
the daily dose of fear even at christmas day... i wonder if martin gets his daily kick out of this daily fear reporting ... i havnt seen any videos past decade when markets going up... fear sells i guess...
lol... every day is a bit too much... but if it gives u the kick why not... the big hit is still around the corner.. that 560k bargain house from the guy above is still way too high.. i bet it will be around 250k by 2025.
@@TheFrickshow So you think this is not the truth!................if you want BULLSHIT..............just watch the six O clock news............or sub to CNN!!
"when a main stream economist says the market will never recover, that's the signal to buy" I agree wholeheartedly! Tony you bought your property at what you feel is a good price for what it is... you can't do better than that. If it's for living in then it's a perfect combination. Well done, and thanks for your insights.
Anybody who is buying into this market is crazy, I am so glad we sold our property just over a year ago, completely debt free now.
Martin,
Hope you and your family have a great Christmas and New Year.
Many thanks for your videos.
Before discovering your channel a few months ago, I was totally ignorant to the shenanigans that the banks and governments were up to.
Thanks for opening my eyes.
Me too, three, four and 100. Have a good one Martin and Tony
how is $600 - 800,000 a reasonable amount on money for a house in sydney let alone WA?
Thats nonsense. Youre still in the property boom fantasy land with those prices.
Sydney should be $300,000 and WA less..... and imo it will be back to those levels.
Supply and demand...
@@col2959 in a communist centrally planned econony like the one we have with the reserve bank of australia in the center of it, yes $800k is supply and demand, but in a capitalistic free market economy , which we dont have, supply demsnd wiuld be at $300k
Peter K .... TRUE! Well put. Unfortunately it is what it is. No doubt the RBA / Rothschilds are very proud...
You are absolutely right. These prices are purely speculative. It's a fool's market. No house in Australia is worth these prices - and it's even worse in NZ now. The best thing people can do is lower their expenses and save for several years. If no one is buying the houses - the price will crash to much more realistic levels.
I have no debt and good job and applied for 2k credit card for travel purposes. I had to jump through hoops to get it. This was different from years back where the application process was basically automated and you got it straight away after application.
Best market commentary I've found. Thanks Martin. Gotta feel for the young people suckered into this market with their 20% deposit, they will lose all of it plus alot more. A life in negative equity.. good one central banks.
You're not a housing bear if you think $650-700k is good value.
@Tony Locantro you said in the vid that Sydney could fall 70%. With Sydney prices 70% lower, how would that put your $650k homes for "good value" in W.A. I don't understand what could possibly make W.A. special?
@Tony Locantro Oh, I see., losing 70% of the _gain_ . I personally think we could see nominal falls of 50-60% nationally. From your perspective, I see why you expect perhaps a 35% fall in Sydney and a more modest fall on W.A. since things have fallen already there. However, I tend to think that $600-700 for a house when the average income is about $70k is not sustainable. You seem to have a double income (no kids?) in the region of $230k/annum so maybe it's hard to understand the plight of the average household in Australia?
No need to be defensive. Thanks for appears here in the comments 🙂
Credit drives prices, wages drives rents is correct. Only land prices have significantly increased in cost longer term.
Land prices still may not revert to mean following a correction if there is higher residual private debt, as is the case in many economies post 1980.
Credit is just the fuel for speculation upon future rental potential of land, which is less knowable the further out we go into the future, a freehold literally entitles the holder to all future rents minus property tax, and because the supply of land is highly inelastic, the price essentially becomes whatever a bank is willing to lend to it.
Another way land absorbs a higher share is via improved efficiency in the economy, which reduces the return to capital and increases the economic surplus which will capitalise into either higher rents or land prices unless measures are taken to improve elasticity in the highly monopolistic and distorted land/housing market.
This is why workers wages are always pushed down via rent to a certain socially determined subsistence level at the margins even as technological innovation improves production, it's Ricardo's 'law of rent' in action.
Interesting comment. Having a little trouble following. Agree that we have more of a land price boom than a house price boom. In my area of Brisbane, land prices are about 6-7 times what they were in 1999.
Curious what changed in 1980. I only arrived in Australia in 1982 (just 11 years old).
@@steshaw6510 could be referring to financial deregulation
Another good report 👌Season greeting to all the DFA TEAM 🍻🥂🍾
Seasons Greetings to you too...
In the late 80s to the early 90s, my wife and I went from $10,000A to building our own house for cash in 6 years. How times have changed.
WA will never have a mining boom again. Workers are flown in from anywhere now. Gone are the days of fly in fly out of Perth and the money they bring
Hmmm I’ve worked in kalgs Newman and Tom price al workers I met are WA workers flying from Perth. A few kiwis fly back home now and then but they aren’t cheap labour.
What kind of roles are these visa workers filling ? If it’s cleaning and what not I definitely don’t have a problem with that
BDM I see what your saying but... I’ve personally witnessed lads arrive on site in the mines they do their first swing to never return ? The same for girls who arrive at camp to clean ect they quit as soon as they get there. Companies pay hundreds of dollers to get you on site for them to leave I was by far the youngest lad on site last year at age 20, the next oldest was 26 what does that say.
These foreign workers work cheap but they work, I’m not bashing Aussies by the way but there is major problem with west Australians work ethic
Thank you, Martin. Merry Christmas and Happy New Year! 2019 will be a very interesting year for all the over priced cites around the world, Sydney, Melbourne, Vancouver, etc.
Thanks Martin, Tony.....all the best for Christmas one and all.
Shares aren't savings.
@Tony Locantro shares have taken a big hit this year
Tony if your really up with it, and your buying a house which you COULD pay cash for, why on earth wouldn't you with the pending crash and probable reduction in currency value. And tony, shares are not savings. They can be seen as savings if you have a crystal ball but you don't have. Your an amateur. You should have pulled him up Martin as I. Know you know what I'm saying. I know your a very polite gentleman but yeahhh. Best wishes for 2019 Martin and john. Where is john btw.... be good to see you two working together again asap. The combo of your knowledge and personality is truly awesome and no doubt ruffling some feathers in all the right places..
Another excellent video guys, Cheers!
I can understand the banks position on this. Shares are worth what the market is willing to pay on a particular day. If you had 20% of the value of a house in AMP shares 12 months ago that obviously wouldn’t be worth 20% of the house today
Do you guys get the feeling Tony's mentioned Pepper Finance at least twice too often? I do not think there is anything wrong with it, of course and Tony is absolutely correct that the best time to sell is R I G H T N O W ! ! !
Arthur Treibs actually no, I think he made it quite clear that it wasn't his first option as it cost him 1% extra interest. He was just making it known that they were still an available option if banks turned you down for relatively minor reasons. I get the distinct impression he was buying to live long term not to speculate in the short term. Hope it works out for him. Maybe by the middle of 2019 he could have picked one up for less, of course, in the same neighbourhood.
Wouldn’t pepper be considered sub-prime?
Non bank lenders such as Quicken loans and others are very big now in the US now. It’s happening again. Great video.
"Why would I leave cash in the bank when I earn sweet FA?"... possibly because a lot of dividend stocks have completed obliterated many people's capital and the world's rates are increasing putting a crimping on growth.
I've bought puts options against ANZ. Winning when then the market is crazy
This year has proved that sometimes Fuck All is the best you can hope for.
123Logic cash is sensible waiting for markets to crash
123Logic exactly....the sharemarket has dropped over 10% so your cash in bank can buy 10% more.
@@packageism what is 123logic cash? First I've heard of it
Martin - Please can you change the title? I thought it was solely WA orientated. Its such a good interview I'd hate to see this missed.
Hi Martin, merry Christmas and happy new year! Great collaboration!
Well done guys great insight. And merry Xmas Martin to you and all the DFA contributors I’m going into 2019 much more confidant than last year after following your videos, I haven’t missed a video for months now 👏. what I don’t understand is the banks have restricted lending, the market is now awash with uncertainty, and even the uneducated can’t help but see it’s not a good time to buy. I’ve been watching a property in Yarraville on the market for about 6 weeks. It’s a very small 2 bedroom house which has clearly been divided previously started off at offers over $849, the price came down to $829 and it’s been sold (undisclosed price). One of the most overvalued property I’ve ever seen, I viewed it. Obviously whoever bought the home does have money or banks would not have lent, but I just can’t see how they could on such a property. Maybe there is still a lot of people out there with a lot of money. My point is I thought the market would have dropped faster than it is..
This was good. Thanks Tony and Mr. Martin
they nocked back the shares because they know what is coming!
Right on mate. This should be an alarm bell to all shareholders.
😂😂😂
Exactly!
Id suggest they knocked them back because they are likely to be a highly overvalued micro cap portfolio. Most lenders won't lend against those. Never have. Always been considered "nonleading". They are not much different to bitcoin really, most asx micro companies are hot air that dont and never do make a profit, so their " valuations" are garbage. This is nothing new and he should have well known this if its the case imo.
I don't live there now but relations do . C as a typical investor gets cocky but he's way over paying . Mining got a little leg up lately but it's only down from here xmass day china markets got clobbered wait for a while buy rio n bhp for next to nothing cheers martin
The DOW is trading at a PE of about 28.5. Normal PE is about 15/16 so it is obvious that the DOW needs to halve before it becomes a realistic investment. The real concern is that all asset classes must operate in equilibrium otherwise money will flow from “high” priced assets to “low”priced assets. It is obvious that we are “in” for a bad time as all these asset classes property, shares, bonds, gold, crypto, houses, find their new equilibrium. It is time to rejoice at being poor because you can watch the maelstrom about to occur and lose very little. Woe to those who have added house to house and land to land. Woe to those who have added stock to stock, woe to those who thought bonds were “safe”, woe to those who invested in Deutsche Bank because it is about to do a Lehman’s and take down the global financial system. Sorry but the financial mess will make Global Warming bad as it is, look like a picnic.
Wishing you both A Merry Christmas
RBA doesn't have a problem
you're right they're not managing their finances or our finances right now they're managing seat prime minister
becoming a very hot seat too
Not so sure I value the opinion of this Tony guy so much.
Perth is one of the most isolated cities on the globe.. Literally middle of nowhere, day just to drive to Adelaide. 9 hr flight just to NZ. These prices he is quoting are a crazy nonsense.
smithy smithy; Perth is pretty close to Kalgoorlie and Derby though. Lol
Do you have any idea how much wealth resides in Perth? Drive along coast from freo to yanchep then take a river cruise . Check. Out the boats check out the houses. Then go for a stroll through kings park and have a walk around hillarys marina. Wa did not try to go it alone twice for no reason. I live in perth. My ancestors came from Kallasdadt Germany and most of them have been here since the beginning. WA isn't a new place. . To me the east is a long way away😎coltrump
Should of seen the prices in Darwin until recently.
Shares are not counted because they have to take your word for it - and the truth is - most people lie.
why wasnt tony told that shares will crash and house prices too
Lol
Nick Ashton He is an ‘expert’
Hope his job is secure.
Over the century, statistically speaking, housing might have gained 0.5% or so in real term. It might not be that in reality.
For one, the original "housing" property would have been sub-divided. Some a fair few times over. Some, converted to industrial or commercial property etc. So one block housing 100 years ago would now be 5 or 10 property.
But I take the point that housing as an investment is average at best. But like anything, there's a good time to load up and a very bad time to get into. The past few years is probably the worst time to get into property... the next few years should be good.
Sydney got about 50% drop to go. A knock-down fibro 1-hour train ride from the CBD is going for the cheap $650k+. A brick 3 bedder about $850k+.
With tight credit, negative market sentiment, rental yield next to nothing given the recent construction boom in both apartments and granny flats for every house. Property decline mean construction work will dry up mean high unemployment. It's going to get ugly.
@Tony Locantro Gov't subsidies, incentives and cheap credit sure gave Baby Boomers and lucky investors a windfall. But that, according to a smart tradie I know, is the gov't way of not paying senior pensions from the state treasury.
You design policies that jacked up property prices. Those with one or two property will offload them for a million or more... no pension for you.
Who pays for it? The younger generation.
That's how you get away with your obligation, increase tax revenues (through stamp duties), raise tax (on the young)... all while making everyone happy. It's bloody beautiful. While it lasted.
Yea... I'm hearing complaints from landlords lately. They'e your typical mom-pop baby boomer who bought a house some decades ago for $100K. Split it into two for two rental income. And they're complaining about the low rental yield and pain in the behind tenants. Imagine the recent batch of landlords getting in for $1m.
17:25 - Freudian slip there Martin. Dropping the F-bomb nearly. :)
i love Wa people, they dont bull shit like the rest of Australia . Good post !merry Christmas !
shares are not like money in the bank they can tank at any time .
That's true, but money in the bank isn't a fool-proof strategy either. DFA has made me aware of the potential looming threat of bank bail-ins at the expense of depositors.....
3:20 - Shares are savings? Hmmm not in this environment lol.... oh well.. Still cash in the bank is useless..
Happy Xmas Martin, Ben from Wales :)
Seasons Greetings from OZ!
Hi Martin, I thought the following video of Kyle Bass on CNBC might be of interest to you. It’s is essentially his stump thesis on Chinese banks. However, I think his theory gives greater clarity and color on the under lying reasons for the stricter outgoing capital flows, which are, to a material degree, effecting australian real estate markets. When their banks are eventually recapitalized it will appear via weaker demand for Australia minerals and a weakening Yuan. Yet another macro risk we must eventually face, in addition to all the interest rate divergence incapsulating developed economies. Cheers 🥂
m.ruclips.net/video/Mvwu6x7W0gM/видео.html
Sorry, but this guy is a bullshitter. "I forgot to pay a payment on my credit card, I hate this credit card. I forgot a payment on my car loan, but I can buy this house outright."
Many area in Perth are high risk area so banks will only do 70% loan
Correct, and wise given the price falls...
they wont consider shares because they know stock market is going to crash
more likely its because the banks here are unsophisticated and just plain dumb.
Even if you offer the a 400 ounce gold bar from london delivery, they wont count it.
LOL!!
High volatility as well
Merry Christmas Martin & Tony. Great chat again! Bring on 2019
Seasons Greetings!
It was interesting that between 1890 and 1990 that prices rose on average 0.5% a year which was basically population growth. So how will governments fix the affordability crisis without crimping banks? So expect political upsets before long.
Maaa-aaa-aaate It does depend on where you live. The lending restrictions here ended in the 1980’s There was a surge of price increases in the mid 1970’s but that was when we had significant price increases everywhere and strong unions to transfer the benefits to workers. Prices in the late 1960’s here were a fraction of that a few years later. The real boom started in the early 1980’s after the deregulation of banks from residential mortgages. Until then only building societies were the source of mortgages and they had no ability to create money. If you went further back into local prices they were pretty stable for decades again rising with population growth.
First finally
Some in the banks know what's coming.
Susannah Jones .. all in the banks know what's coming. They , along with their master( rba / Rothschilds) created it. What's scary is in my belief it wasn't created by chance. It's been a long term well orchestrated plan for a one world government/ currency which has been ramped up due to the appointment of dontrump. He is not with them. All. Before him have been. Check out fed reserve rate rises during Obama as opposed to trump. .. best wishes coltrump😎
First
Hi can you talk abit more about Brisbane. We all know that Sydney and Melbourne are going to get slaughtered. Brisbane hasn't had so much of a boom.?? Thanks
Yes, on the list...
never try to catch the falling knife.
Allan Bond
Christopher Skase
Nathan Birch
a couple of OZ's talking , ' sweet F A ' , we get it , I wonder how that travels overseas?
Sorry Martin. Do you or Tony Lacantro have a commercial interest in Pepper?
None at all - as you may know DFA is fiercely independent and we do no take cash for comment. Ever!!
@@WalkTheWorldDFA fair enough Martin. Merry Christmas.
@Tony Locantro fair enough Tony. Merry Christmas.
Great interview gentlemen!! More of Tony please! Cheers
Thanks...
Hey so.... how do we prepare for this stock market crash / recession / collapse? What would you recommend for somebody with no assets or investments, but $10,000 to utilize? Invest now? Invest later? Panicking.
You seem like the anxious type. Perhaps a Financial Adviser would suit you best?
Start with getting your finances properly under control. Read a book called Your Money or Your Life by Robin and Dominguez. At the moment crypto, and bullion are probably your best bet but please read the book, I went from suicidal about my financial position to near financial independence within 4 years of putting the strategy into play.
It’s expected as one off the big four is going to need a bail out in 2019
If this guy had a problem, my question is the same as it has been for the past few years: Who the XXXX is buying? Even agents admit investors are out of the market, how the hell do first home buyers a) get the loan and b) afford it? (Note there are only so many first home buyers as you can only be one once and near 10% of the working population are on job seeker/keeper). People tell me "their parents help out", this makes no more sense, where do they get the money, for more than one child? I'm in my 50's, we are a double income no kids couple and we own property and other assets, i'd really struggle to cough up say $400K (2 kids x 20% deposit - assuming they could get a loan). I really don't get it at all.
20:30 Bingo!
Fantastic Christmas gift having you two meandering in great property conversation. Tony, what an authentic guy. The property bear buying a property and sharing his experiences. Martin, you're amazing! This channel of yours is one of the best in RUclips. I look forward to seeing more of your work in 2019. Merry Christmas to you both as well as John, Edwin and Joe.
“Suckers of Asian persuasion... I’m not racist, just an observation”. Love that rhyming meter 😎
Reminds me of the Japanese in the late eighties, especially on the Gold Coast. Boy, did they go home with their tails between their legs? HE HE HE HE HE... Most of Asians are mad gamblers, NOT investors..... and so are westeners too!
I enjoyed that. Entertaining with some priceless info.
Thanks, Tony makes some good points (in his own way...!)
its the leveraged bbb bond market CDS LOCKING UP??????
Hi Tony. Thank you for your insights and thoughts on investments. Congratulations on your new house! Merry Christmas and a wonderful new year.
“Shares are savings”?! I’ve never heard that one before, good luck with that.
Here's a link to the video tony refers to at 12:39 about ireland. ruclips.net/video/Gd6ZwqLePC0/видео.html
spot on...............the drop will be a shakeout of all the ''GG s''..............gullible & greedy..!!!..............& i will laugh my ass off!!!
dow down minus 600 points?? cash out stock NOW.... no good if market crashes... it will be wipe out like GFC
Very real video
I really enjoy listening to Tony Locantro. Its a real shame we don't have this kind of honesty in mainstream media.
Thanks, I agree....
Never heard of "pepper". Since you don't explain it at the start, watching this was a waste of time.
Neil McCoy WHAT .???????
I was wondering if it had something to do with Peppa Pig?!
Neil, the process was the thing, not the specific lender...
the daily dose of fear even at christmas day... i wonder if martin gets his daily kick out of this daily fear reporting ... i havnt seen any videos past decade when markets going up... fear sells i guess...
Just tell it as it is...
lol... every day is a bit too much... but if it gives u the kick why not... the big hit is still around the corner.. that 560k bargain house from the guy above is still way too high.. i bet it will be around 250k by 2025.
@@TheFrickshow So you think this is not the truth!................if you want BULLSHIT..............just watch the six O clock news............or sub to CNN!!
@@WalkTheWorldDFA EXACTLY!
@@dazbenpeter8311 clearly starting to get the trolls here trying to cause fear uncertainty and doubt