Negative equity on the rise as house prices fall | 7.30
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- Опубликовано: 22 апр 2019
- The Reserve Bank has warned that almost 3 per cent of home loans are in negative equity - meaning the purchased property is worth less now than when it was bought. And some economists are concerned the rate of "underwater loans" is actually higher. But what will the flow-on effect be for the rest of the economy?
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When you treat houses as investment instead of as a home this is the consequence of quick money and greed
No, you're wrong. Houses are commodities which people can invest in. The problem is that people don't understand that all commodities are alike in that they're subject to the market, like the dollar, stocks, oil, gold etc.
I know the feel.
Most laws used to only benefit property owners for a reason, and in a sense they still do... If you didn't own a property you were a second class citizen, that's is probably why they made it illegal for the Aboriginal people to "own land" and the British Australians used slave money to buy up as much of it as possible. Now, an Investment is what it is, whether or not it is your home or someone else's.
@@A_massive_wog you are right on the money. Not many people go to the trouble to learn about economic cycles before investing, they "blindly believe" instead of investigating facts.
It's not even an investment, it's a speculation.
The correction we had to have. If people could not see this coming as long as five years ago, it is because they did not want to.
leaf wigger
You need to repeat this on every post.
@leaf wigger is there an echo in here? Liberally you have posted the same comment 5 times
So much money invested into useless property instead of actual innovation
Good point
FUNGIBLE
Agree 100%
PART 4 DA WIN! Particl.io
Yeah nice. We shouod all invest into monero and cryptocurrency and live on the street
Fantastic!! Let the prices fall , bring on the down turn.
miserable sook
Don’t hate the player , hate the game !
@@johnbroadbelt Spot on!!!!
@@iceblue1963 he doesn't sound miserable to me. Fantastic is a positive word.
@Larry Bulthouse Back to the 18th century? Okay 🤣🤦♂️
So people were complaining that the property price rise was crazy and first home buyers cant afford.
Now the rise has stopped and the market corrects itself people are complaining prices are dropping?
Learn a lesson and don't make the mistake again. It's apart of life.
First people were complaining prices rise faster than wages, now low wages cannot keep prices high.
When you have no umbrella when raining or it starts to rain when you have no umbrella you actually don't have two opposite situations. No one would give a crap what price is if he can afford it and prices would not drop if people could afford it.
During the rise it was likely disheartened young adults complaining about the situation. Now that there is a downturn, it's disheartened property owners.
For the most part, you could say it is different people complaining, however, anyone who made the incredibly poorly planned/timed transition from non-home-ownership to home-ownership during the peak will inevitably suffer the most and will have complained on the way up and on the way down. A miserable ride for those ones.
Mariusz Furman The problem is always a supply and demand issue. And when it comes to land development for houses it’s controlled by the government/council. There needs to be law passed so people can develop land easier without size restrictions. Let the buyer decide if he wants a big or small block.
"Apart of life....."
Only the ones complaining are people who paid like $350,000 loan and its now only worth $250,000. It sucks for the battler. But my old landlord owned 7 houses. Ridiculously kept upping the weekly rent without doing any repairs. Had a hole in the window trim from wood rott. Could put my hand outside from in. He was self made. and greedy.
Bring it on! Big correction to overhyped real estate. Criminal banks and parasite realtors.
adventuresinbelieving yes please can’t wait to see realtors homeless in the streets
You two are the very first people I've seen who recognise that realtors are HUGELY responsible for this issue..
In America we gave the criminals huge bailouts so they would be okay.
Oh yeah, and tons of people lost their homes.
@@Funkteon Its not realtors at fault. They can only sell what is available. Its the past two governments at fault for letting stupid amounts of people migrate to this country too quickly. Also at fault for allowing foreigners to use loopholes to buy property in this country. For allowing foreigners to pay for a degree and then earn permanent residency. I'm not a racist but I am appalled with this country's shortcut to growth over the past decade - simply import more and more people. Meanwhile many young people I know just can't find a job. I can point to plenty of employers who have chosen to hire foreign born citizens instead of locals... and not all of them are in skill shortage areas. Thankfully its an election year and many who feel passionately about this issue will be able to protest vote. I won't be voting for One Nation, I'll be voting for Sustainable Australia.
@@DistantComputer - we may have a vast amount of empty land, but we also have relatively very little water. Our water resources are already feeling the pinch of the massive migration wave we have been having since John Howard lifted the cap on migrants that the Hawke/Keating governments had locked at 80,000 a year.
I hope the prices KEEP decreasing until I can finally afford one!
If we ever have another glut like 2008 I will push hard and with leverage to take advantage. Downturns are fantastic opportunities across all asset classes. If you're from Australia though I heard they weren't hit nearly as hard as most of the world.
Yeah but with the slowdown on china, our economy is so dependent on properties... its so scary to see japan have a housing crisis in 1991, they didnt see growth till 2005 or 2006, even so it was only .5%... till this day people who purchased property out the outskirts of japan are still half the value they paid for it... and thats japan, always in top 4 for econmic growth... who are we compared to them?we are shit, ranked in the 80's for innovation,and heavy dependent on exports to china... unless we tap the indian market this may be a long bear market... 55 yr bull run is coming to an end.
Your dreaming mate. Pull your finger out. Stop being one of those people that think the world owes them something
@@Nick-wl2uz but why would the Indians seek australian goods when they can get European ones. Australia has tried and failed in the past.
@@crimzikk Your lack of contextual interpretation is alarming.
I don’t feel bad for the greedy investment property owners who were looking to get rich quick. I feel bad for the regular families who are feeling the downturn. The market is over reliance on Chinese investors, as soon as the economy in China turn down south it’ll have a direct and disastrous consequences in Australia. The government need to stop seeing just money and control foreign buyers.
Enticingmay unfortunately sometimes the only way people will learn their lesson is for them to experience a financial collapse. I hope it happens so I can finally afford a house
I think western countries that suffers this downfall in the house market need to realise unless you are not buying a house for long term reasons you do run the risk of your investment if you're looking for a short term turn over at the height of the housing market at the moment because at some point it will come down, the question is by how much.
I'm not sure if you realise this but foreign investors can only buy new developments and they only make up a small percentage of the market. China had cracked down on its people several years ago stopping them from taking money out of China and Aussie prices still went up. Negative gearing and the baby boom investors are the main cause for the inflated prices.
I live in New Zealand and the housing market is slowing down but still rising and the reason for it is that their ain't many affordable housing in New Zealand that is fit and ready to live in which makes it very hard to find one for and decent price because of that and the demand to buy a house here is high that keeps the housing prices high on the market which is totally different to Australia. Good for investors not first home buyers, but China seem to affect the Australian housing market which makes alot of sense, I must say China isn't the enemy because they have injected alot of money into the market so for those who is sitting on houses and land before that have benefited alot, infact alot of home owners that have sold their houses since have made alot of money thanks to China so don't cry now it's already to late.
Your comment is full of garbage facts that have no basis in reality. Investors are renting out their properties so a temporary correction has zero effect on them.
Without investors in the market rents will go through the roof and Chinese investors have no effect on the market except to anger bigots.
Australian household debt is currently one of the highest in the world at around 120% of GDP. This is unsustainable. An economy that relies so heavily on rising house prices to fuel consumer spending is bound to fail. The cycle of boom to bust is inevitable. The Reserve bank are being irresponsible if they lower interest rates and further increase the indebtedness of the Australian people. At best it is shortsighted and is just avoiding the inevitable. We need a reset of the economy. We need to make housing more affordable for our children. We need politicians with a long term vision for this country not short term political gain and expediency.
So glad the election is almost here.. hopefully people vote for the long haul, even if it does pinch the economy for a short while.
Who am I kidding. With so many in debt it's unlikely that will happen lol
Every single new car bought with a loan has negative equity
Shriekin Leada yes but a 🚗 is not essential for survival 😂
111mmgg Irrelevant. It’s about the delusion that buying a house will be a positive investment no matter what. And it’s a dangerous mentality that majority of Australians seem to have
Ohhhh so people shouldn’t put themselves a million dollars in debt; thanks geniuses
3:51 modest wage increase of 2.5% per year, what BS is he talking about? We didn’t have a pay raise from 2012 to 2018, we had a 4% increase last year and nothing is promised for 2019.
Gov't employees probably had that pay increase
Probably has wages and salaries confused.
These people are out of touch with reality.
Lol compared to inflation who gives a fuck about a pay rise
I had to stop and rewind to make sure I heard him right. 2.5% pay rise EACH year.... what fantasy world does this guy live in?!?
How the hell did these people in power allow this to happen. Our children can not afford to put a roof over their heads. That’s one of the basic needs, not wants. Yet they turned it into a profit making machine. Who will be held accountable for the carnage about to be unleashed, not the ones who have consistently advocated for the stimulus and rising house prices. We no longer look after our young children or our elderly someone else does. Thanks exorbitant house prices. 👍
Hasn't the housing market been terribly over inflated for almost a decade at this point? I mean the bubble had to pop at some point.
Disthron Its not a bubble, it’s a natural correction of an overinflated market. We’re lucky the market is cooling at a sustainable rate. A bubble would look far, far worse than this. If people hadn’t overextended themselves in the first place when buying at record highs three years ago, they wouldn’t be in this situation.
@@teganwardle6243 *it’s a natural correction of an overinflated market*
That's what the bursting of a market bubble is. Ok, maybe it's not as bad as the Tulip bubble or the South Sea company but I suspect that has more to do with the inherent utilitarian value of property, as opposed to... nice looking flowers.
Since I made that comment I did a bit more research. Large property firms have been buying up whole neighbourhoods and creating false scarcity by leaving many of them vacant. Which is pretty shady if you ask me.
Didn’t learn from last time, head in the sand mentality. Bail outs for corporations and punters losing the gamble as usual. Come on, motor cars lose 20% as soon as driven off the lot, stop crying help when your over-priced cardboard box does exactly the same. After all, one has to pay the System for the “privilege” of ownership.....
Oh boo hoo. Instead of having 7 properties, baby boomers will now only have 4 or 5. Woe is them 🤦♂️
Obviously the guy has his finger on the pulse...."modest 2 -2.4% yearly pay rise' !!!???!!! Not under LNP mate, I can assure you.
At the start of 2018, Sydney exhibited the second most expensive dwellings in the world based on price/income ratio. They have since fallen a bit. If prices drop 30% from that level, they would still be very high, compared to many other cities. Time will tell.
Time told. Doubled, didn't fall 30%
The fundamental problem is that homes are treated as investments. A home should be prevented from being used as a growth tool.
Now at Melbourne docklands there are empty apartments everywhere.
@@countdamoney8128 He didn't say that. Only you did. Empty apartments are an inefficient allocation of resources.Docklands are full of airbnb and overcrowded sublets also. Its a dump and I pity foreigners who were tricked into buying there.
@@sharnistevens1428 I will say this, I used to think it was a dump as well but I now work around there and on my lunch break I walk around the area every day and it's quite beautiful,its low key. They have green areas and really wide footpaths. Nice trees, and the water to look at, all the boats. Parts of it are quite nice but I'd never want to live in the city.
Those things are simply above ground caves
But I thought house prices always went up! I expect that houses will have a median price of $1billion in the years ahead- after all, this is Australia and there is no house price gravity.
If you look at house prices in the last 50 years there are up and down years but the direction is up. Don’t be so short sighted and pessimistic!
@bluemona 600,000 migrants will put huge pressure on labor market, drawing wages even lower.
@bluemona I've been through that process myself just 10 years ago and most of my friends too, i know it better than most. If there was shortage of particular skills, government would issue visa quotas to employers struggling to fill their vacancies. Instead, government issues visas based on its own assessments of "shortage". Government makes huge amounts of money on visa fees, plus immigrants bring in cash to pay for rents, cars, food etc, while not eligible to most of social services till they worked for at least two years. Government couldn't care less that lot of immigrants lured with promise of "job shortage" spend many months , sometimes years trying to find any job, and many eventually leave after running out of money.
I noticed everything went up when Olympics came to Auz. Everything is overvalued especially food. Someone is profiting and manipulating from ripping off Australians.
Whenever there is a duopoly (coles, woolworths) they can charge what they like. They also bought up the petrol and alcohol (pubs bottlos). They also tried hardware but masters failed once all the mum and dad hardwares were gone.
The above story is talking about 2 postcodes. When interest rates were 18% in the 1990's took a while to crash the market. People couldnt afford their mortgage and down sized to reduce debt so took a long time for the low end market to become flooded only the top end died quickly.
The current system is different with interest rates at an all time low as long as the banks dont ask for a LVR top up people will pay their motgage no different regardless of house price just cant move. Investors cant keep buying with the negative equity now on their books. But rental returns @6-7% doesnt change anything.
NOW here is the killer if you are a bank and have too many negative equity loans, your books dont balance. Because of Australian banking laws banks they need more cash on hand. But the banks and govt knew this was coming. Govt restricted banks from over lending stopping the 100% mortgages and making investment loans max 80%. Banks on the other hand still needed cash and lost a lot of scams they had running before the royal commission so their only way was to increase interest rates even though the reserve bank hadn't.
@@leighmoom5277 increase interest rates, not to savers. They've punished savers who lend them cash. Yet charge high interest rates for mortgages.
@@leighmoom5277 Coles & Woolworths are a rip off causing great waste and pollution, but they are also mining companies. Destroyed good fresh food with chemicals. We had best food in the world 50 years ago, straight from Auz farms. TTP will be another nail in coffin for consumers, workers, that deal, done in secret for benefit of huge corporations not the people.
@@kitkat7523 Yes money has only a perceived value it hasnt been backed by gold since 1971. TTP is a whole new topic but most of the fine print is hidden.
The TTP is designed to control inflation by importing cheap goods. Gov'ts have never been able to balance inflation/interest rates while keeping population employed not to hurt debt. TTP is just trying to delay the crash of the failed money system the world uses.
There are so many issues with the way Monsanto gets chemical approvals. And things not allowed in our meat are found in our farmed fish from water run off. No studies are ever carried out on the effect. Almost every human on earth has round-up in their system from the food we eat.Bayer and Monsanto are a perfect match been poisoning the population for decades.
@@leighmoom5277 corruption of govt is destroying poisoning Australia, turning into another USA. TTP is even worse than that it affects sovereignty and loosens regulation whilst pushing wages down to make corporations more powerful.
Stephen is correct. One must have a long term view when buying a house. Nightmare for anyone who bought at the top of the market and now prices are dropping
Buying properties when they are outrageously priced is bad investment? Who da thunk?!
Thats very true, its about time not timing so when you buy is normally immaterial.
However this time around the slump has been massive and may get worse.
If this is the case it may take years and years just to break even
@@oceanskie
An outrageous price does not exists if things are worth as much as one is willing to pay and a house is not an investment any more than food is luxury. The government idly watched prices skyrocketed beyond affordability, now will face they drop below developers costs while "experts" with second house will teach how homelessness is a better option.
I have a question for you: what's use of government if empty chairs can do same job?
A house should not be an investment. Anyone treating it that way should accept the risks that come with investing and should not risk more then he or she is willing to lose.
@@Steven_Rowe In the next 12-36 months many of the IO loans will reset. 40%+ of all loans during the bubble were IO's. This is when reality will set in.
If a product or service costs more you are effectively poorer because of it. Ie imagine everything at every shop doubled in price. You'd pay more and get less, it'd be the same as losing half your pay... well it's the same with houses. In reality house prices coming down is in general making us richer on average.
And here comes the lesson we had to have..
I don't think we need to have this as a lesson the banks failed to give out good loans the banks failed to put up interest rates to slow the boom the banks have just failed they're the ones that need to be taught a lesson
no idea 💡 agree in part yet it takes two to tango, all casinos need more suckers in than out, to which apparently investors seemed happy to oblige- the saying that greed is contagious has merit in this regard..
@@zwarst you cant get an aussie residency by loosing money at a casino in australia...
So im not sure what a casino has to do with this
no idea 💡 my point exactly, government policy has made an odd yet a Casino indeed, and the people (immigrants included) contracted affluenza as a result - enjoy the crisps🥓.
600,000 more immigrants in the next two years? Blimey
Exaclty what I thought. Why are we letting in that much?!? I will vote against the politician that is happy to let so many people in such a small amount of time. I would be happier with 600,000 over the next ten years, not two years.
Bullshit, he made up the number...the annual immigration intake has been cut to 160k from 190k as announced by Scott Morrison. Meanwhile Canada has increased their intake from 330k to 350k per year for the next 5 years.
Pk Suleiman you cant get welfare unless you’re a citizen... and that takes a long time
Not to mention the poor building standards, they’re unlikely to be standing by the end of the loan period. Throw away homes, the new scam
What? An asset that decreases in value? That's absurd!
50 to 60%+ falls are very possible .... logic and history has always been that the average outer suburban city house price has always cost around 4 to 5 times the average yearly wage and not this crazy 12 times as it is today, just saying! so prices are only going to correct themselves over the next 24 to 36 months.... a one million dollar home at it's peak will cost between $400,000 to $500,000 within the next 36 months
Families also lived off one income back then. Now we have mostly dual household incomes.
weren't houses a lot more affordable and simpler back then- not great big McMansions?
36 months later and it's impossible to overstate how badly wrong you were 😂
Imagine if we had put all that capital into tech/manafacturing/biotech/medical devices/engineering/health etc. and had a productive economy like the U.S., Switzerland, Germany, Japan, Hong Kong etc. instead of billions upon billions tied up producing nothing. Just blades of grass sitting there - producing nothing. Australia is a stagnant economy with little innovation.
I was told by an investor friend 6 years ago, house prices will never go down. Obviously he hasn't learned the housing boom ,bust history.
That is very naive, like the stock market, when it shoots up too high it will drop much lower afterwards.
If he was 25 then he could even use the world a lifetime =)
You know the system is broken when you could build a house yourself out of trees you cut down by hand, in less time than paying a 40 year mortgage. Even if I built everything from scratch it would take me no more than 20 years why are we killing ourselves trying to pay back 1.5 million dollars for houses made out of cheap plasterboard and crappy timber?
Zenith the value is in the land...
Zenith very well said, wake up people it's absolute madness. A roof over your head is a basic necessity. Should cost very little
no mention that Australia has the highest % of household debt in the world....
Martin North has been banging on about this for a long time
The problem here is the prices were vastly inflated way beyond other parts of the world. That is why they crashed so badly.
Builders saying a house cost a 4 bed 2 bath 2 garage $280,000....so why is the price ?$750k $850,000?
London pretty much same at the moment
The times that ppl become reach from owning house it’s gone ,
Wait and watch as the critics of universal basic income call for helicopter money.
Generations of broken economic rationalisation has come home to roost.
I really hope we see an 80% crash with people losing their jobs in mass. It’s the only way Australians will learn their lesson!!!
What lesson would that be..
Well said!!
@Evan the rest of the world has learned nothing. We went trough this a decade ago and things are right back to where they before.
I’m from the UK, there are varying reasons for house slumps, since I don’t know your countries politics I thought I’d ask...thanks for your help...not
@Evan If banks lend amounts that far outweigh the lender's ability to pay it back and actually encourage people to do so, then that is predatory lending and improper internal oversight.
There is no secure income. Whatever your job it’s not a secure source of income. Be careful people.
Because "they" artificially inflated the housing market and it has now all fallen apart if a mortgage owner now can't pay their mortgage they are called a BAD DEBT nice connotation, that one. How about a BAD LOANING INSTITUTE? How about some accountability?
people need to use their head also
if you actually bought a house to live in, to raise your children in and live in there for a long time or even long term investment that you rent out and wait to sell the land value when you retire, it shouldn't affect you at all as your mortgage remains the same. only really affects those who will be trying to resell their house in near future.
There is no such thing as job security- I’ve been with a corporation for over 20yrs till I’ve been let go.
Wow didn't these people see what happened back in 2007???
Ha ha ha! I have no sympathy for these people. They arrogantly thought house prices would rise forever. Blind idiocy for which they are now paying the price.
Australia is special. The last decade should have been a warning.
Little bay has no access to trains and and long bus commute into cbd by public transport so it’s little no surprise prices have dropped in that area
I think one of our biggest housing issues is the standard of many of these new buildings. They're not going to last long without intense maintenance (that most occupiers wont be able to afford). We're either going to have knock them down.. abandon them.. or get bombed.
@potato psoas No, after death comes decay
The government is greedy, the banks are greedy and people are greedy. Now is time to face the consequences. Remember a few years ago during property bust Americans simply abandoned their homes after their house value dropped below their mortgage. The city of Detroit is a perfect example, millions of people abandoned the whole city and moved elsewhere and crime rate jumped up. The skyscrapers, the stadium and highways are still there but the city becomes a ghost town. Will this happen to Sydney or Melbourne in the near future?
@@icebaby6714 Maybe sections of Sydney for a short while. Otherwise I dont think Sydney will be anything like a Detroit ghost city.
It's too important to Australia. It's also in a lot better of a financial position than Detroit.
PS.. You forgot to add you are greedy too. It's a dangerous man who thinks he's morally above the rest.
That shot of the beach when Mr North walked out walking his dog, I thought all those houses were doomed as global warming takes hold and the beach erodes
TOMORROW
We are already in negative equity, you pay more for fees than you get in interest. Banks have taken us to neg.eq. years ago with piling on fees for nearly everything.
It began in Europe in 2008, and it has been a horror scene. And it remained that way, It is now 2020 and anyone that bought in 2006 2007 are still in negative equity today-ireland.
You've got to ask yourself the debt on purchasing these properties must have been 90% debt to begin with that's as bad as been in negative equity anyway. Banker greed is all it is
Hmmmm, why didd nobody warn them?
Ohh wait, steve keen has done just that for over a decade.....
Really can't blame anyone but themselves for this. Especially after seeing what happened in europe in 2008.
People have been sounding the alarm for years. They were told: don't be negative!!!
@@ThisFinalHandle yeah, negative nancy's lol ;)
Some friends of my brother's in-laws bought their house for $600k in Hornsby some years back and recently sold for a million. They were big noting themselves about it and carrying on like high class profiteers. The wife is a typical Aussie boiler who now think's her farts don't Smell. They recently purchased a house in Newcastle for a million which was no better than their Hornsby house. When I asked them what they actually gained considering their Hornsby mortgage and land rates combined cost them over a million bucks in reality over the years and getting no change out of their million dollar sale and subsequent re purchase..THEY GOT SHITTY WITH ME..
Timing is everything. It's hard to insulate yourself from the vagaries of complex real estate markets. People who are not real estate investors should buy their house with the intention of living in the house for decades and not as a quick way to make a profit.
Excessive taxation, fiat money and inflation combined with global economic slowdown. Prices tank. Lots of debt tp acquire things that are only a liability.
Every Aussie citizen should be given a free plot of land after working for 5 years straight to build house on.
There are plenty of lands in the north and the west, but not many want to move there, why? Both Melbourne and Sydney are full!
I lived in Dubai for a few years and this is exactly what they do for their citizens. After a few years each person is rewarded a land and then it’s up to you to save and build on it. Construction is not very expensive the main cost is land
Thats a joke right
This has got to be the most dumbest comment i have read
I totally agree, we’re the only species that has to be a slave for someone else just to exist. It’s not right to pay someone for something they didn’t create.
Isn't it called negative gearing as well ????
I guess it's a new catch phrase !
I mean the prices were extremely hyperinflated..
They said right now house prices going up in Sydney...? Now this one says negative equity...
We're they got 4 million to pay for a house? If financed and they sell or try to sell in 3 years they got nothing they just paying interest houses worth less now if they sell they got to pay the bank...
Good reporting
Nz is heading the same way the average house price went up 126 dollars a day for the past 4 years
$183,960 - 1,461 days.
@@antoniaburnett6067 yep theres very few people than can save $46,000 a year
Houses may go negative but rents will not.
They already are, what are you talking about?
Really ? Wait until people with negative equity start moving back in with their parents and renting out their properties for anything they can get... Obviously you don't know what property busts are like...
In 2008 rental prices went up in California because people who lost homes became renters whilst the bank kept homes off the market for years in some cases. People with negative income should be made to keep paying on their mortgage whether the house is worth less then mortgage amount. They made a financial commitment and should be made to keep it. If they lose there jobs, well that's a different matter. In the long run prices will go back to there prefall value anyways. @@AdamSahr-cj4kf
It's a house of cards and the deck is about to fly everywhere
Blame ourselves people. I remember back in the 80s when interest rates were about 15-17%, house prices were so cheap, and people loved savings to get interests. Then “boom” Mr Howard advertised everywhere during his election campaign that he would bring interest rates down so people can own their first home. He delivered, and the rates kept going down and down. Mr Rudd saw how Mr Howard did, so he did the same, and winning the election. So, who is to blame? The politicians?
Martin North has made it...on ABC News.
Mate. 2 year's ago they were auctioning rental properties because there wasn't enough to go around. What was all that about?.
That's called repression and subjugation...
Ah well, a lot of people like me will never be able to buy a house so it's kind of hard to expect us to care, hey.
Don't kill yourselves or whatever.
Prices are going back up
Awsome about time
its easy if you own one of those apartments, just sit on it til the market comes back up. whether it takes 15 or 30 years.
I wish my house was worth $2, that way I could buy the house next door.
chuckle.
I want it all, I want it all, I want it all, and I want it now.
Gimme gimme that, gimme that thing, gimme that, gimme gimme that, gimme...... an in the day hit from the “Top 40”
Now they say negative gearing
I need somewhere to live and I don’t mark to market my house on a daily basis. Not really bothered tbh.
its not a crash as its localized as people paid the upper limits for certain properties, if the demand falls due to wages then not enough people are able to afford them, supply and demand, credit card debt is yet to have an impact which will see houses becoming more affordable and if Labor wins and negative gearing on older properties bites then its a plus for first home buyers, i see it as good for the economy as people can afford to buy a home.
Im not concerned, if you search for the graph that tracks real estate prices over the course of more
than a 100 years it has an upward trend. Owners will be fine if you stay in it in the long run.. It will be a good time for buyers
Well... 9 months later the market has bounced back so this story is completely redundant.
So the banking royal commission in a nutshell revealed the banks had zero concern if lenders could account for their income/expenses and so record lending figures were abundant. Recorded ledgers of 100% value lending were abundant. 100%! No deposit needed in a period of record low interest rates! It's like handing out candy. So of course people bought houses they couldn't afford. There were many clear instances of lending records being manipulated by the banks so they could sail through approvals to release funds to the borrower. Funds the borrower should never have been able to access because they did not have means to pay it back. This is irrespective if investor or owner.
If you default on your loan the bank takes everything you got, including the house, if you are deep in negative equity. But when banks cheat and get in trouble, it's just a rap over the knuckles. Response then is they tighten lending and (again) swear they will be good boys and girls. This then means sellers cannot find the traditional buyers that used to be available and so the housing economy freezes and prices drop. So who was greedy here, the lender or the borrower?
Basically when the banks stuff up, you still get penalised because all the royal commission banking penalties in some shape or form then transfer to us, the general public.
If you default, you lose the lot. If the banks default, they get a rap over the knuckles softened with a bailout, with YOUR tax payers money. Banks never ever lose.
People who were caught up in the middle of that spiral do.
Take in more shots of turn Bullfarts to stand up to the negative equity.
These people doublespeak about housing loans just like when the economy in the USA tanked around 2008 from predatory home loans.
How channel 9 says houses are booming going up prices $50,000
the issue is if you “have to move”-
30 year pay is a robbery as houses value was $120,000 in 2002
Look, if you bought the house to live in, you must have been able to afford the mortgage. The prices will go up again eventually so stop worrying. If you bought the house to flip it, then you are no different than a person who buys shares of stock and it happens to fall. No one bails out that guy. You took a risk so live with it.
as far as im concerned, apartments are not 'property'....they are over priced shoe boxes. Property to me means 'land'. land is the most valuable resource.
Don't matter if ya don't move.
Thought a house was for a home.
Houses were increasing in value four times as fast as wages were growing. That is by definition a bubble. Any simpleton can see that the maths just does not add up. In order for house prices to stay where they are long term, wages must go up at least 20%. That is not going to happen.
Entitled are we?
Maybe now explain in 2021 with no one coming into Australia why housing prices have increase and still increasing
now billionaires will use that house price fall and hold empty houses so others are forced to pay rent on them
Prices should go down more
If you buy a house in 2016 in hope to renovate or FLIP it for a profit, your days are numbered.
For anyone that just has their 1 home and a good job, it would be great for property values to fall. Less property tax! Do you not have property tax there? Maybe that's the problem if it's under 2% per year. The taxes greatly reduce the chance of speculation in property that creates bubbles. That's what we do here in my state and we've avoided property bubbles thus far (none even in 2008 here)
Whether the price go up or down it doesn't matter if your purpose is to live in it long term like normal people do, there is no problem when prices of house goes down, it's a commodity anyway, we'll there is a problem if you buy and sell houses
Meanwhile the sharemarket is surging...
I'd hate to have a mortgage
Then pay with cash.
best investment you could make. you invest in a downpayment and profit on whole value of home.
Let them all go bankrupt. Weren’t Australians complaining about their housing prices being too high
wait did i hear right a secure full time job 72% work force in australia is casual what country is he living in?
And most jobs are unproductive, service jobs...
At all times there are opportunities to invest, sell and reinvest. Research your markets. Don’t believe the hype of shows or videos like this and do your research. At all points in time, even in recession there are people from all walks of life that have profited.
Do your research, plan your budget, spend less than you earn. Make conscious decisions for your finances and you will be fine.
Owning a home is overated better to rent and leave speculation to the stock market.
You can’t owner occupy a stock/bond. Nor can you add equity to one. Nor do they reduce your taxable income, etc, etc. quit coping and buy some property
if you buy a home to live in and not for speculation , there is no better investment, . Once you own, price is set whereas who knows what rents will be in 30 years. The only variable will be property taxes, insurance etc. which a renter has to pay anyways indirectly.
It's not just about bringing in more people to buy. You need to bring in progressively richer people to buy. Even if you do, this is the marginal buyer only. Bringing in progressively richer people does not improve the affordability for the remaining 97% of residents. This 97% is your critical mass of support and prices are well beyond what they can afford.