What is the future of Australia's housing market? (Part 1) | 7.30
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- Опубликовано: 9 дек 2018
- For years now the real estate discussion has been all about rising house prices in Sydney and Melbourne and how hard it is to buy a house or find an affordable rental. But not any more.
Some are predicting that we're at the start of what could be the deepest and longest property downturn in Australia's history.
For Part 2, click here: • Credit crackdown putti...
For Part 3, click here: • Negative gearing chang...
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I feel sorry for that poor auctioneer driving around in his GLE 63S. I’m wondering how on earth is he going to be able to make the repayments on the finance for that vehicle.
Poor guys, instead of a new car every year, it’s every 2 years. How embarrassing for them.
It’s time things cool down.
It’s funny most of the people complaining are the ones with the most.
Don't worry about RE agents.they made a fortune last couple of years. agents know property cycle better than others. They save $$ for downturn.
gold embossed ivory back scratchers need backs too
No, he'll have to get a real job and actually contribute to society until the next housing bubble starts.
Ahahahhahahah
Jai Rock Yep and they compliment the bankers so well. This happened in the 70s a 11000 house in Sth Melb . Would jump to15 to 17k a year later only worth12 or 13. Of course that same house is well over a million dollars now. You can bet the banking fraternity and co. will pick up some bargains in coming months and years. Then the cycle will begin again.
Rent is so expensive in Sydney but the worst thing is most of rental properties are filthy and full of mould.The investers just collect money but do not paint or install new kitchens or bathrooms FOR A VERY LONG TIME.
that would be the renters fault not the landlords in the case of mould. As for kitchens and bathrooms, why spend 30-70k on a new kitchen and bathroom(s) when the rent will stay the same and you wont be able to enjoy them? Land lords aren't your parents they aren't going to go out of their way to make sure you're comfortable.
They also claimed money back from negative gearing which is tax payers money :(
Melbourne rentals are better - only because they have an oversupply of nice and new appartments
What happened to the time when people bought a house to live in not for an investment.
Good thing my family own their house outright. Buy one house we all work to pay it off, buy another house and do that again.
now 5 houses in, all mortgage paid. each has a house. Life is good. We didnt go overseas, we didnt buy new cars, we worked like dogs, and 10 years later its paid off.
BikeStuff Good story. Kudos
The crash was always coming because the boom was built on debt and perceived wealth, not actual wealth based on wages. I thought the catalyst would be higher interest rates, but as it turns out the tightening of credit is having a deeper effect, and is probably having the same impact as a 1-2% rate hike. If the market is left to level itself out-if the government doesn’t interfere with what is supposed to be a free market-then you can only assume the falls will be closer to 30%, simple because banks are lending about 30% less-because through due diligence they now-now-believe that is what people can actually afford to repay. That will be followed by a long-term levelling out. Who would have thought the affordability crisis could be solved so simply-by lending people what they could actually afford to repay. Simply but painfully. Welcome back to the 90s.
Flatpack Spiritualism you are awesome
Good reasoning, though this is the situation without a local recession or global financial crisis. What's going to happen if inter-bank lending dries up like it did in 2008 or if Australia is hit with a recession?
@Flatpack
100% agreed with you!!💯💯💯
The fed banks knew what they were doing. Telling people they can afford something they never could. Now with the Midwest underwater in the US, and swine flu killing millions of pigs in China, and yes it has spread. It's in africa, and other asian countries. Food prices are going up and not going to stop all year. Canada lost most of their potato crop from early freeze. Media is not saying much about what's to come. The CDC in the US caught a million pounds of pork being smugged in new york has not said it any tested positive for swine flu.
still no downturn
“Asset” “investment” that sentiment is the issue! It’s a bloody house not a commodity
lets be real, sydneys housing prices were and are ridiculous lmao. sure hope these hyper rich people/people with tens or hundreds of houses/units just lose out big time.
That's alright if it only affects a couple of hundred these so called rich people. But a lot of ordinary people ( tens of thousands of people ) have interest free loans, the trouble will start when these people start to pay off the principle.
The prices for houses will plummet. Which is good if your rich because you'll have the money to buy. But for the rest of us we won't be able to get finance, like whats happening now.
So if I had a spare 10 million I'd be hoping the crash will happen soon. Because all these people who will lose their homes still need somewhere to live.
Harsh I know, but capitalism is a harsh system.
@@tomjohnson1110 you mean interest only loans?
No sympathy. If you cant afford the principal, then you shouldn't have gotten the loan....
Interest only loans have been a "cheats way" for people to buy a more expensive house than they normally could. I have no doubt that it contributed to the astronomical house prices we see today. Now the chickens are coming home to roost and those who thought they'd never have to pay back the principal component are in for a rude awakening...
@@shaungordon9737 Yes! sorry.
hahah if the hyper rich get affected what do you think will happen to the average joe?
Oh my gosh, people aren't buying houses three times their actual worth? Who would have guessed?
Maybe people are getting sick of buying houses worth 450k for over 1 million dollars.
And if you account for how old and run down those houses are they should be worth alot less than they usually were and not more. Instead of trippling the pricess should be 1/3.
Something everyone should remember at the next federal election is that virtually all our parliamentarians own properties and half of them or 5 times the national average own investment properties, the very kind that caused his mess. Vote with your feet.
1.5 for that dump. 1.38 MIL was good offer for that dump, but the seller was greedy lmao
Stanmore has always been a shithole.
yeah tell me about it, I've been hearing this huge crash and I was honestly looking forward to it but people can still fork out 1M+ for homes
1.38m was a fantastic offer. Isn't worth anything over $1m.
JewTube they paid $1.3+
I think that guy who offered 1.38 will be very happy later on they didn't take his offer.
Retail down, House prices down, Construction down and car purchased down. Interesting time over the Christmas break to see economic data. Recession around the corner.
Is it just the rich buggers having a whinge about not getting what they expected on their investments? I hope selfish buggers who have multiple properties take a massive hit.
Mellow while i have no empathy for the greedy. it is the poor that suffer the consequences of the fallout of the crash.
@Richard Minh Le - no they won’t! Those who currently can’t afford to buy even one home will benefit from a housing crash, because it will force the government to do two things both of which are beneficial for the poor: firstly to outlaw negative gearing and secondly to build a very large amount of affordable housing financed directly from the budget using the extra taxes it will receive once the fraud called negative gearing is gone!
The media and bank and politicians all promoted the real-estate boom as an endless source of return investment.
The cracks are starting to show, once the prices really fall we'll be in for a recession like never before.
James Stolzenberg while what you said it is true, The housing crash will bring the banks to their knees and subsequently spike the unemployment rate to the 25% range. the house price may be cheaper then but people won’t have a job to support it and very few bank will lend.
That hasn’t even factored the deposit bail-in. When these greedy banks fail, people’s deposit will confiscated to float the banks up.
@Barret Somerville - negative gearing is a massive fraud!! If it’s removed and then, a big scale, government run affordable housing program is launched, then the government will: Firstly, stop subsidising the greed of sadistic parasites and save itself a huge amount of money, and secondly the government (i.e. us the taxpayers) will get very large returns from their investments in affordable housing through affordable rents and sales of the houses. Their (governments) motivation will not be greed unlike private investors. Their motivation will be winning the next election and since the housing affordability is the election issue number one then they will do their best to build as many and as cheap as possible.
The Guptas are a prime example of what's wrong here. They're not to be celebrated.
Exactly. It's happening all over the world now. People who can afford to buy dozens of properties which then prevent people from owning just one. Multiple house ownership needs be banned.
@@Diddy1970AD BS and you know it. Any other investments you want to ban such as stocks😤😤😤😤😤😤😤😤😤😤😤😤😤
it's basically overseas millionaires buying into the Australian market hyperinflating everything, which consequently has made it unobtainable to the average Australian.
I’m really puzzled from who thinks it’s a down turn . Feel free to call it as it is . It is a bubble bust . The funny thing is people tend to forget that prices has increased more than 100% since 5 yrs . Get the facts right , you wait for 2012 prices . Pls read about GFC in the US
Walid Douar love these terminologies
-down turn
-correction
-Secular bare market phase
Just fancy words for fucked
It is all about Land Mafia. Australia is very big for current population but still land is very expensive. Houses could be made of shipping containers.
I have worked on the Mines for years & live with Mum never having bought a house.What a complex mess Australia is .
Get a job in healthcare eg nursing. Buy regional Australia. Especially in central or north west Tasmania within an easy commute of hospitals, health facilities and nursing homes in Launceston (central) or Devonport/Ulverstone or Burnie. (north west). If you choose the North West, buy within 10 Klm of the coast for the most temperate climate in the world. ( And more hours of sunshine in winter than Melbourne). Great airport access to the mainland from both areas (in just over an hours flight to Melbourne). We moved from Parkdale in Melbourne 11 years ago as retirees and have never regretted it. Quality of life great, people much friendlier than in major cities of mainland. cleaner air, much easier driving and much cheaper real estate than either the mainland or Hobart, and gradually increasing in price. Lots of community groups.. ( But not for people into a nightclub type life) Our daughter finished high school in Devonport. She did a nursing degree. Now aged 27. Married a pharmacy student she met at Tas University. They now have a 4 bedroom house on acreage which they’re rapidly paying off. No financial help from either set of parents ( It cost $360,000 about 2 years ago) They Intend to start a family at around age 30. She will always be able to get work, even part time. He plans to buy into the pharmacy business he works at. Also plenty of work for tradies here. And teachers. For parents, don’t let your kids train or do courses for jobs which are over supplied or where technology may take over, or for jobs where they can only get work in the major mainland cities with its overpriced real estate, urban congestion and particle filled air.
Are there panel beater jobs available in Tasmania?? If yes, I will move there!
Housing bubble collapse is healthy for economy and it's natural like breathing. Central planners should stop interest rate manipulations.
jay Brrr depends what u mean by healthy, some may say it will kill the economy.
The recession we need to have?
@@winstonmac1209 Its healthy for the economy in the longer term, lower hose prices equals lower montages, lower mortgages people can spend more in the "real economy" over shoveling everything to the banks.
Battleneter yes true but banks and government don’t think long term. They wouldn’t keep their highly paid jobs if they did. F#%king Parasites!!!
The boom is the disease, and the bust is the cure. Low interest rates create asset bubbles.
ts capitalism run wild -.-
You never hear Real Estate agents saying.........."the market needs to soften so 1st home buyers can get on the ladder." You never hear them say......"Cashed up foreign investors who drive up prices are bad for house prices and the economy". The reality is they get commissions - the higher the price the more they get. It makes me sick to hear ads on the TV or radio where they say "we'll get you the price you want". More like the price they want. I welcome flat rate agents or platforms where you sell your own house into the house market - get rid of these vultures.
1.3 million for an old house in the suburbs where planes fly very low above it? Sure why not.
What does it make it worse is the interest rate is too low 1.5%. So basically there is a little room for RBA to move . It is going to be tough really tough. In the US it was 5% when GFC happened
Ray White is an appalling company, the housing market is massive bubble. All bubbles pop. Hopefully it does so the younger generation can atleast afford it.
Young people can still buy homes! They just aren't in near the city. Buy in the regions! Everyone wants the cosmopolitan lifestyle. Thats the problem.
@@XYZ-km9kg Why buy a home in regional areas when there is no employment there
Ahmad Hussein there are plenty of jobs in he regions
@@XYZ-km9kg Plenty of jobs in the regional areas? Come on now, get serious. The jobs are few, and the folks not too welcoming to non locals as well.
I want to buy my first home. Even 1hr outside the city, in towns of only 3000 people, prices are up 100% in 4 years here.
This has been done throughout America. Driving real estate prices sky high - way higher and faster than wages. Each time I see this start to happen I know the area will be destroyed. As the rates start to rise, people pile into the area because it is still affordable. They they use that as a need to build more houses and they put as much crap in as can fit.
Then the people who could afford the area, no longer can. If they are renting, the rental prices start zooming pricing people out. Then somehow the druggies find their way there. There starts to be more litter, graffiti, homeless people begging.
In just 15 years, they have destroyed Seattle, WA, San Francisco, LA, Most all of OR (it was affordable then the people priced out of CA flooded that state - after they had already flooded the Seattle area.
I knew a fella in a town near Seattle: he bought his house in 1998 for $98k. 4 years later it was worth $450k. When I moved back to NJ in 2007 I saw a house I wanted to buy. It last sold in 1998 for $108k. It was now selling for $400k.
This isn't happening by accident. It's being created and manipulated by the people who want open borders - so they can make more money building more and more houses/condo's/townhouses/apartments. It's all the start of decline. And designed to destroy the wealth of the lower and middle class people of America.
Each place that grows ends up needing more and more taxes. The town leaders look at the new houses as a great increase in property taxes. But those taxes don't really cover the costs of more students/schools, roads, police, etc. Soon the well run towns go in debt, and the area declines quickly. Litter. Graffiti. Homelessness. Drug addicts. It's happening to the small town I live in NC.
Trust that this progressive "progress" is working against the citizens of the country.
This is all part of UN Agenda for the 21st Century - Agenda 21. In the end they want one world order where we can't live in houses. We'll be transplanted to designated living areas with high rise apts on rail roads so we won't have cars. This will be world-wide communism. It's all being planned.
Liberty - So UN & governments (+ banks?) have made housing/property (investment) today into something more like margin trading, horse betting or casino gambling? What's the solution? Million Man Marches/Rallies? Gandhi style salt marches? Mao style revolution? Or people should use their money to invest in gold, oil or Bitcoin?
陳Bruce perhaps seeing it more like criminal manipulation of markets, including perhaps charges of treason. This isn't capitalism.
Prices have increased because mortgage rates have decreased. When rates drop to 3.5% rather than 7% you can pay twice as much for a house. Solution: raise the rates and lower the prices. Re-write loans so instead of having a $400k house at 3.5% with a payment of $2k, you have a $200k house at 7% with a $2k mortgage payment.
By me peeps are buying lots for $30k, putting about $100k into building a house that 3-5 years ago that would have sold for $150. Now it sells for $230-250k. So they're making about $100k per house.
When interest rates rise people can afford less and then they want the government to bail the banks out that are "too big to fail". BS. Let them fail. Others will replace them. Re-write the loans and the banks will make the same amount. But instead people will go back to being able to buy a house at 2-4 years if their income instead of 10+ years of their income. Lower down payments.
This is why a lot of the progressive politicians want open boarders: build and sell more houses. 10-1 their fingers are in that pie making millions off building and selling houses... and leaving us with the bill to pay for the growth in schools, hospitals, roads, police, etc...
Treasonous attack on our existence! Our quality of life.
@@libertychick3522 - Treason against which nation? Or it's more like crime against humanity? Like what the Nazis did?
If banks fail, won't the depositors lose their money (just like in 1930 bank runs/panic)? Wouldn't this create lots of unrest, protests, rallies ... Maybe even revolutions, coup d’etat, civil wars & fracturing of the nation? Is this good for the people & nation?
BTW it's not just house/rent prices are skyrocketing yes? Healthcare, (Tertiary) education & stocks-share/Index prices have also soared too yes? While low-middle income wages + pensions remain low/stagnant right? At least food, clothes, shoes, transport, mobiles & internet are still affordable.
Anyway in China, bankers who cheat the people or government, they are likely to get a nice meal before going to the hangman.
Greedy owner!
Paid 1.3 and wants 1.5m!
People are waking up to these shisters!
Lolz
The WORST thing you can do when buying a home is attending an auction. The SELLERS KNOW that prospective buyers WILL get caught up in a buying frenzy (just like sharks at a feeding frenzy), & will spend way more than they can comfortably afford. The BEST thing you can do when buying is to hire a Real Estate Agent to act on your behalf, as they are acting in your Interest, & not against you. My spouse & I (both medically retired military Veterans), bought our last house (while we were still both in Canada's military) just North of Edmonton, Alberta, Canada, in the Summer of 2000. When you are Posted to another location in Canada's military, the military bureaucracy pays for ALL of your real-estate fees, which really helps to defer your costs when you are posted to another Base/location. We had been posted from "Moose Jaw", Saskatchewan, Canada, where we sold our house for $60 K (we had bought it for $50 K), & was posted to CFB Edmonton (a Super-Base). We had wanted to buy in the city of Edmonton, but (even back then), we could not afford to do so. Thus we looked at bedroom communities. At the time we 'stretched ourselves just a little bit, but we REALISTICALLY sat down before hand, & figured out what we could REALLY afford. Now, at this time the housing market in Alberta (where we bought) was in a bit of a slump, so we got our house for $113 K (after talking them down from $118 K). Then in 2001 the housing market took off, due to the "oil boom", & nowadays (after even another economic down turn), our rather large house is worth $350 (+) K (& is now payed off). The reason I went through the previous, is to show/say that if you are patient & realistic when it comes to buying a residence, you can still get a property well within your budget... it just takes time & patience. Other measures you can take (& I recommend) to help you finish buying your residence is (as we did): (1) buy down & lock in your initial mortgage rate. It will cost a bit more in the beginning, BUT YOU WILL save thousands in later interest (we bought an initial five year lock-in, at 3.5%); (2) ensure that you can make once yearly payments on your principle; & (3) the most important, I would say, is to make weekly mortgage payments, instead of 2 payments a months (you end up making 2 extra mortgage payment a year, & saving thousands in interest). I AM NOT trying to brag, but I am trying to say, that you CAN afford a house, even nowadays, if you are realistic about what you can afford (& where), & that you expect the worse to happen in the economy (as it will). Thoughts?
The Guptas are about to have a rude awakening...
"Don't buy a house, buy a home."
Lol what ever! All i can say is stop trying to always take shortcuts. Your home is not an ATM, why constantly reborrow on your place of living. What i see a lot of is lets put a car on the house lets not just put a cheap car lets put a 100k 4x4. When we talk interest only loans is asking for trouble. I am of the opinion that you should save your money before you make a purchase, okay a house is a massive amount to save for but at least save a good deposite before you get in over your head. Work on the fact that interest rates should be around 10% not 4.7%. Plan always for the worse case and if you know your in over your head dont just think it will all pass by, try helping your self and get out with the least debt as you can. I have been debt free for 10 years now and all i can say is great, okay i no longer own a house but i really dont want one i live on my yacht with million dollar views peace and quiet making my own power and soon to be making my own water. All i can say there are alternatives in life!
Colin Jones, well said and nicely thought out alternative lifestyle that matches your values.
couldnt agree more
You chase the money for your living but you forgot about your life and end up into the coffins
I keep hearing of investors 'holding out for more'. Ain't going to happen. They should take what they can get now or be prepared to hold for 10 years+.
Personally, I hope they're forced to sell at a loss so others without a home can get on the ladder.
Silver is what everyone needs to protect themselves with.
kieran franey btc zil vet enji
Lol at the Guptas. You keep believing that because you have owned an asset and it has doubled in value every 10 years that it will just continue to do so. Try putting that into a spreadsheet and extrapolating it out another couple of decades, do the same for wage inflation and see what the end result is.
Can't wait to buy a 32,000,000 house in 50 years
They shouldn't be allowed to buy Australian homes.
Yes I have done this. Over any time horizon of property prices even if you go back to when we had the Australian Pound, properties grow at 4-6%pa on average with 7% implying a doubling every ten years. And if you buy into underdeveloped stock you can extract further value out of that property. It’s really not rocket science. You just need to time the market if you want real growth or buy whenever if you want long term growth.
@@Jay-hr9ci why not?
Have you seen the house prices at other global cities relative to the average income? That's what the end result is. Stick your head in the sand all you want, this is inevitable. Sydney and Melbourne are extremely livable cities, and our property prices are so cheap compared to the likes of New York, Shanghai and London.
Loving these 480p videos from Australia's leading broadcaster.
An auctioneer is as good as offer and demand. NOT THE PRODUCT
Wait, the owner paid 1.3. Three years later someone offered to pay 1.38 and he was turned down? OK.
We should have many smaller (lending to local regions only) banks that lend for productive purposes only. This is the way it is in Germany as Robert Werner describes.
Having a few large banks that lend for non-productive purposes hinder the economy.
the fun part is , that there has been almost NO technlogical advancements to build a house since 50 years ago.
We STILL USE the same goddamn way to build a house. It's in today's standards inefficient, it cost way more than it should and it drives the prices of the houses way to high!
But the central banks doesn't care, and surtenly not the politicians, because they get their money. Never did an politician said "we need to invest in real estate TECHNOLOGY", on how to build better, faster and cheaper houses
My heart bleeds for that auctioneer!!!.....Hahahahaahahahaha
Ian Bishop and the gupta family
Housing is a complex subject. However, since the Howard years you found preference given to investors via tax breaks. Furthermore, as the Royal Commission has set out, there are significant amounts of "liar loans".
Then have a look at population growth, where migration has not been based on skills, but selling education based visa classes.
The issue is multifaceted, but is along the same line as turning public assets into private. I.e. turning the home to live in to investment classes.
You can't blame the government alone, it is greed and the market.
You cannot build an economy on increasing house prices. It is impossible and it is insanity to think that.
Al 81 - Yeah, the so-called developed countries are sending the manufacturing and production jobs to Asia and building their economies on overvalued property. The UK is a typical example. The idea that the median house price in London’s suburbs is about ten to fifteen times the median salary paid IN LONDON is a sad joke...
this was in Florida right before the bubble
Looks just like US in the 2008 housing crash, million dollar homes were rare in the US , that was a huge run up in OZ .
This takes me back to the movie, 'The Big Short' where Steve Carells character speaks to the two mortgage brokers who had no clue they were contributing to a giant bubble that was on the verge of collapse.
I can remember in 1988, a Ford XF fairmont Ghia was $28,000 which was the same price as a block of land. In 2016 a falcon V8 was $52,000. How much for a block of land in a capital city? Depending on what city but way out of price range for most people, Greed has set in and sadly the youth of today left to struggle to rent.
Joel Hammen Holden shits on Fords 💩😂😂😂
Calling it greed is a super simplistic way of looking at it. Property prices are the way they are because of demand plus inflation. The youth of today don´t have to live in inner Sydney or Melbourne. Plenty of affordable places in Australia, the problem is everyone wants to be in the "inner city"...
Sorry pal, but your generalising is super simplistic too and quite the red herring. Possibly, just possibly, young folk want to be in the city as that's where jobs are, and family and friends reside. Social support that is vital to any young person making out in life or starting a young family. Cue the baby boomer diatribe of "making sacrifices" and the "well, back in our day we had to..." Problem is we aren't living in your day.
@@newellharry176 You just said what I said was a red herring, then said exactly the same thing. lol
Also probably worth noting, the boomers did all live in the city (because that's where all the jobs that would afford you a house were and would be now if most people could get a job to afford them a house) while the working class lived out in the 'country', now suburbs. And a huge number of those homes were inherited and the working class couldn't escape them unless they went to work in the city or the city came to them in the form of expansion.
On top of all that, it's all out of touch, brainless baby boomers now in parliament refus to invest in making microcities into new places people could go live and build industry and expand.
But you know why they won't do that? The prices of all their investment houses would plummet because the *demand* would drop.
So fuck em, I'm happy to see them run themselves into the ground.
Around two years ago in Sydney, some property that'd been vacant for a decade came up.....small house....no yard....no garage. It came fairly close to a million upon sale. Total renovation required, and made no sense. The system is broke and everything within 10 miles of the city is 'faked-out' on pricing. They need to build some massive tram-system and allow the public working in the city to live 30 to 50 km outside of town, to reset the whole pricing scheme.
I keep hearing these stories in vid 'Bubble Gonna burst', but I havent heard so far that apartment unit prices are below 400K within 30 km from Sydney CBD.
Sydney prices are already down 13% and we still have a long way to go....
"It would take a major reversal of policy by the government" Ha, while your right the damage can not be un done, they allowed Australia to be sold like any disposable product to any body with the money, now to much of it is owned by non Australians and those that grew up here can't afford to live where they were born...."Investment properties" was such a bad idea and we are all paying dearly for the governments lack of foresight.....I will never own my own home but I will also never have to deal with the debt pressures either......
Was Australia asleep when 2007-2008 RE disaster was happening in the US?
Australia doesn't have a Fannie Mae or HUD backed by a corrupt legislature.
built a house in 2004 for $127,000--prices went thru the roof--sold it in 2007 for $250,000--bottom fell out--bought it back for $30,000 in 2009--hell of a deal for me--but not for the buyers
this was in Florida
That one guy saying “ every 10 years my house will double”. That is so wrong. Houses on average appreciate about 3% annually or so historically. During bubbles they double every 10 years.
Wow they allowed comments? People need to watch Martin North on RUclips.
A perfect definition of Catch 22. Too expensive to buy or cheap but no finance to buy.
Not feeling sorry for these investors
The same thing happened to me in New Hampshire. Most people had to borrow money to sell. The key to investing in real estate is “long term”
Some of us will never own a home, we will have no security or guarantee of a roof over our head. My husband works full time. I worked full time until I could no longer work due to injury just after we were married. We are a single income family, we have two children, raised them with no government benefits, paid rent, still paying rent. We could never get a deposit with the cost of living and medical bills. We are now in our mid fourties and are too old to be considered for a housing loan. If I could have worked things would have been much different. We are looking into buying a decent caravan, so that we will at least have shelter if the shit hits the fan or my husband can no longer work. The future and getting older scares the crap out of us. So these greedy bastards winging just pisses me off.
A person can only “ride the storm” if interest rates don’t go up, and they will. 6 then 7, 8, 9 and beyond.
Good time to buy is 2020, you heard it here first. Later it might pickup again and things will get pricier. By then the new Light rail will be in full swing in the city and eastern suburbs, and the new Sydney metro will have met expectations in the north west.
Note to self...
Never FOMO 👌🏾
No foreign investment
3:10 - "wibble wibble wibble" oh you poor thing.
And keeping interest rates at historical lows while the economy is ‘booming’. I’m sure that will do lots of good
Increasingly when people talk about Australia they are only talking about Sydney and Melbourne. There is so much of this amazing country that remains ignored. If we invested in the country areas we wouldn't have a housing cost or supply problem.
I remember looking at some crappy tiny terrace in Newtown for about $200k in the 1990s and then fast forward to 2015 and it's suddenly worth $2,000,000, an increase of 1,000%.
So when wages increase 16% allowing for inflation in the same time that house prices increase 1,000%, something is clearly wrong.
My best advise for those like us with teenage children who are caught in the rental trap and never likely to get off it is, teach your children from a young age the value of a good education and that everything they do now will determine everything they do in the future. Our daughter is 15, we encouraged her to get a job after school as soon as she was old enough to apply. Instil the importance of a good work ethic and to save, save, save. We are not well off so the only way we can help our children is to carry them as long as possible. My daughter will live at home where she will have no rent, no bills and have an opportunity to save as much as she can while at Uni and longer if she needs it. She saves 80% of her wage each week and in the twelve months she has been working after school she has already saved $5000. She keeps a small amount to have fun with and do things with her friends. I don’t want her to struggle like us, I want her to have a future and a home of her own, and the only way I can see the young people today ever having a chance at home ownership is by instilling the importance of a good education, a good work ethic and that if you want something you have to work hard for it and to get into good savings habits. It’s not like it was 20 years ago where you didn’t have to worry about adult responsibility until you were actually an adult, kids these days need to start adult habits and responsibility at a much younger age if they have any chance of owning a home. Bonus for me and the hubby, we might be able to park our retirement caravan in her backyard 😂
Ruth Parks invest in btc zil vet enj cash is dead out of date Monopoly money with inflation killing it learn about block chain dyor trust no banks or governments
Man that engine sounds great
1.5 million for a crappy 2 bedroom terrace which will probably need about another 200k in renovations to make it liveable, located right under the flight path with planes landing and taking off every 3 minutes. And then to increase supply the government relax all regulations on apartment building standards and we get this Opal mess. What a perfect storm, all preventable by previous governments having a proper zoning plan for Sydney rather than leaving it up to councils to protect their little enclaves, while apartments are rushed or not built properly, and then land is released 80km away from Sydney's CBD as if that's going to do anything.
This is the neoliberal approach to town planning: a fricking mess.
How many properties do they bloody need? 😑 one isn't enough anymore?
Tell me what your plan is to obtain financial security for retirement if property isn't included? I'm curious to know, because you can't honestly expect to live off a pension paid to you by hard working tax payers and expect to feel better than someone who has worked bloody hard for many years to pay off more than one mortgage, so that they they don't have to rely on government handouts.
So if not property, than what? Not everyone can make a million dollar one hit wonder youtube video or phone app.
@@jodie883There is very stable investment called Family. Children supporting (or living with) their old parents is not normal in Australia?
@@chatnoir1224 as a support worker I see cases of the other way round, where adult children (men mostly) are still living off their elderly parents and expecting their parents to pay their rent and other things for them because of their grandparents inheritance that went to their parents. When their parents are just pensioners and struggling to pay for their son's living expenses as well as their own medical expenses. As an individual, I feel it is important to be fully responsible for your own yourself and not to rely on your parents or your children to support you.
@@jodie883 i can't judge Australians - i don't know your situation (economical, house and job market) and culture. But It just feels natural for me that kids are responsible for supporting their parents when they are old and need support. When you grow up - you should leave parents. Live you own life. Have a career. But when time comes and they need support (financial, medical etc) - you should come back and live with them. My grandparents died in peace at their home, in their bed. When time comes, I will take my wife and kids and move to my parents home to care for them. When my time will come to pass, i also would like to die at my home, having kids and grand kids near me. It just a good and right way to go.
Sad story that nowadays many kids exploit their parents the way you describe.
@@chatnoir1224 You sound so very fortunate to have a tight knit family structure. You and your family are very blessed. That has not been my experience at all. When I was just 8 yrs old, my father walked out and abandoned us, leaving my mother to raise two girls on a disability pension with no help or support from him or anyone else. I heard he got remarried and had a son (who I've never met). I grew up watching my mother struggle financially and at a young age, I learned the value of a dollar. I realised how important it is to save money and to make it work for you rather then to ever have to struggle for survival on a pension of any kind. I choose not to live that way. You cannot expect people family to be there. They're all just trying to make their own needs met. I also work with a lot of families with autistic children, many of which (but not all) are non verbal and will always be needing support themselves and will never be able to support their parents or a family of their own (more than likely). What would you suggest to those parents, that they keep having more kids? Also accidents happen. I'm sorry, but I don't feel that even your perfectly lovely family can be your one and only investment. Houses can be insured and then rebuilt should an accident happen to them. People on the other-hand ...
I see in Sydney or Melbourne the average rental for a nothing special apartment is $2500 to $3000 a month! In many parts of the USA you can still get a mortgage on a very nice home on a huge lot for under $800 bucks a month on a 30 year fixed.
I live in one of those parts of the US (Kentucky) and the reason is people don't want to move here. Our population has been stagnate for decades. It is a pretty place to live, but jobs aren't here and poverty is common.
Do you think it's acceptable for the average house to be priced at over half a million dollars?
I’d like the ABC to consider calling Australian house prices something other than the ‘housing market’ which is exactly what neo con ideology wants us to call it. These are homes.
Yeah - sick of homes constantly referred to as property - as though in some rarefied class of investment.
75% drop is not unrealistic
Michael won't be that bad
Employment will never rise high enough for that
coasteys coasteys what does rising employment have to do with a deep crash?
Why would that even make sense
Only rich people can afford to buy properties especially in large cities.
*those who sacrafice
same thing happened in U.S real estate agents and banks over valued homes and values of homes skyrocketed, then when housing market crashed people were stuck with mortgages double the value of the actual value of the house.
All up and down the west coast! Same reason.. China
We should realize it's not just Sydney or Australia. The same situation is here in Europe, USA, Canada, everywhere. No matter where you live, who you vote for what legislation you have this is coordinated globally.
The 'I want it now' individual is about to learn the true meaning and responsibility of borrowing beyond your ability to repay.....the banks will take no prisoners.
60+ drop occurred in ireland
In 08 they were tearing down thousands of new houses.
Not the Australia I grew up in .
Let see here: 1. Invest in a non-liquid asset like real estate 2. The investment prices and valuation are overblown 3. Expect to make a quit profit by selling it overpriced with little market demand 4. Logic?!
What's the big deal. If you are selling in this market than you are going to buy in the same market. It's the same if you sold at the height of the market you were likely to also purchase high as well. It balances out.
Not if you have debt
Big deal is mainly for people who haven't bought yet. For people who own one property (that they live in), it doesn't make that much of a difference imo
It’s a big problem for those who owe more than what they can sell their house for. Circumstances change, people sometimes need to move for work or illness and if you owe more than you can sell it for, your screwed. Anyone silly enough to have bought during the peak and borrowed to their absolute borrowing potential really have bought it on themselves. They didn’t think about a rainy day, well guess what, it’s now poring.
Meanwhile.. people are spending on Christmas.. even taking on credit cards hahaha...
Real estate agents have had it too good for too long & suddenly we should feel sorry for people who might need to sell that expensive BMW or Mercedes they felt the need to have convincing people to borrow more than they can afford , because they feel there missing out.
HD next time please. 480p? I got the NBN now, baby!!
The problem is not home prices or speculates, its zoning laws and regulations that prevent builders from building the apartments people want.
There isn't enough perceived risk in property investment. This inflates the market, creating a clear line between haves and have nots. The government needs to allow the market to correct and inject some fear into these speculators. But of course that won't happen because they love earning that sweet sweet stamp duty.
Big pop coming...same thing going on here in Canada...crazy, crazy prices all over the country...a real mess in the making
Because most of NSW and Victoria is Crown land the shortage of affordable land to build new homes on resulted. Hence the demand goes up for existing homes and the rest is common knowledge.
In mid 90's was 4x our median income now it's 9x our median income but you forgot to mention how much the cost of living is these days. If you factor that I find it impossible to own a house by retirement when most adults who purchase a house are young families in there early/mid 30's
Where is part 2?
Damage is so deep! in order to get recovered from this point , afew drastic changes are needed.
1. No one should own more than Four houses regardless of income or borrowing capacity.
2. Only Australian citizens can have mortgage and buy house. No oversea buyers.
3. Any mortgage term must not exceed more than 15 years.
4. No more subsidies on Businesses. If they can't survive that's their problem. ( look what happen to Holden and Ford. )
5. Mp should not earn more than 100G. ( if they really wanna be public servent , 100g is more than enough. )
6. Anyone between 18 to 60 will not get Doe money.
Olympic Park was built on swamp land. It was never meant to house such a building as the Opal building. Some people must have known this. People as old as I am. Don't get the idea that the rest of Sydney is suspect in any way. Markets go up and down. The Opal building is a one off and some people need to pay, possibly with jail time.
You need a house price correction, vastly over inflated prices. £500k plus for small houses with no land. Got a very big mortgage problem brewing.
Late 2018 - the good old days.
Nine and a half percent drop in prices is tiny, compared with the rise in prices over the last decade.
Housing is a very real national security issue facing Australia. Just think about those two words
NATIONAL SECURITY!
A place that is a roof over a familys head should not be traded like it is a kilo of rice at a Market. Unfortunately that is the reality that has been allowed by governments who have clearly failed the Australian people and they do not know the way out.
This is exactly what is going to happen in Canada as well. The two cities leading the boom are Vancouver and Toronto. The problems started last year (2018) when the government implemented foreign buyer rules which stopped all that crazy money coming in from China but that did not cool the market that much. Then the Bank of Canada started raising interest rates and this has removed any wiggle room that people have. It got to the point where a run down shack in Vancouver has been valued at over a million dollars. Toronto is absolutely unlivable. Housing prices are insane and renting has gone through the roof. Canadians have one of the highest debt to income ratios in the developed world. When the "correction" comes...(and it will).....the housing market will be a "Fukushima" disaster. I am sure people will be killing themselves...no joke....The worst is yet to come...
The future is recession.
We will soon see who are true Australians willing to suffer through the recession and those that will flee for greener pastures.
Now's a good time to skill up for primary and secondary industries, may be a good idea to learn how to hunt lads.
well a true australian also need to learn how to save
weird...
If you say so. But I'd rather hunt poon.
weird
@Damian are you shit posting or do you not know what primary production is.
Primary production is the obtaining of resources, be it harvesting food or mining minerals. Secondary industry are the jobs that use the items from primary production, smelting iron into steel or preparing meat for consumption.
Wether or not we "have" these industries at the moment is irrelevant, these will be the driving industries that will first come back once a recession hits.
It looks like all those teflon arsed speculators are beginning to lose their non stick qualities.
One factor linked with housing or renting market which nobody wants to talk or agree is immigration especially skilled immigration. People are putting all kinds of immigration into same basket. Believe me if you try to reduce skilled immigration and student arrivals in various names, the housing market especially in cities will not only decline but may collapse. It is not a only factor but also one of the imminent factors. So, every thing has dual side.
agree with this. the sudden influx of migrants is because they are the ones who will rent out the apartments.
It has been known for a decade at least that Australia's housing market awaits the same fate as the UK and USA and other places. But the banks kept lending and the people kept borrowing.
It's not rocket science.
Vertigofall - So housing/property investment today has become more like margin trading, horse betting or casino gambling?
@@user-DongJ The whole market is a disgrace. I'm in the UK and I distinctly remember 10 + years ago Australia's future being discussed in the terms presented here. Thousands of people in Australia have been loaned money they couldn't afford to pay back and shouldn't haven't been loaned. The banks were happy to do so as the financial instruments they used were legal as they were here. Investors were aware here and are aware there and exit markets before they collapse leaving the people to suffer negative equity, foreclosure and or homelessness. Then the people are put on the hook to bail these parasites out! Classic!
@@vertigofall - So the banksters plan to make profit is to make risky loans to the NINJAs then when they can't pay up, seize the house & then rob the taxpayers & pensioners to top up any loses?
I'm unsure how & why bankers in the West can get away with this kind of scam/nonsense. In China, if a banker is caught cheating the people or the government, it is certain that he/she will be given a sumptuous meal before meeting the hangman. 😗
1.38M is wonderful. Whats wrong with that auctioneer?
Houses in Australia are really squeezed together! You would think there is hardly no land left!!