>house prices are humongous because supply and demand! (australia btw)
>house prices double every 10 years everyone knows that!
>population growth is only 1.4%/yr, thus demand should only be growing at that rate if we're being realistic
Because this isn't related to the free market. This is related to governments forcing everyone to eat inflation at unprecedented rates.
PS: the free-market will fix this. Check back in 5 years and we'll see where global housing ends up.
Yup, demographic collapse in the western hemisphere won't be papered over with ever increasing mounds of debt and this last ditch effort to assimilate masses of third world migrant/refugees. Add in China in full blown deflationary depression mode and Australia will choke on their real estate. Vancouver will be a crater. Nothing will get built there for 20 years.
It's insane, my parents bought their house for like £40,000 decades ago and it's now worth £700,000, even with inflation and all that shit, their net wealth has increased 4-5 times over just by living
Mate shit's fucked. Houses have been going up triple compared to incomes. Some serious shit is going to go down when everyone realises nobody can afford land or a house in the lowest pop. density country on earth.
>AUSTRALIANS have poured their money into the property market lifting its value to a staggering $5.6 trillion.
>In comparison superannuation [retirement] funds are worth about $1.8 trillion and the share market about $1.6 trillion.
>>house prices double every 10 years everyone knows that!
Thats something ive been meaning to ask. Why the fuck dont aussies just build more houses? Its 2016 , the fact that vast swathes of the place are desert is moot , phoenix az has millions of people - total afront to god.
What gives aus?
Apparently the various levels of government aren't releasing much land for residential development. Could be because that would hurt the various decision makers' property portfolios lol.
Why don't aussies get tiny houses and show a "fuck you" to the real estate market?
I fucking hope so. Im renting and want to buy at a good level and get equity, not buy and prop up a pyramid scheme.
Kek. I doubt it. We are just racist enough to avoid this I think (hope), r right guys?
No wonder there is no "innovation". Where the fuck do people think jobs and growth come from.
I've read its to do with state governments withholding land for development cause higher prices means higher stamp duty. I don't know about this but.
I got a senpai. This is my plan when kids move out, small house for me and gf (my children are bastards). What do I need, a computer and internet, that's it. Fuck a big house of empty space.
What would someone in my position do in this situation? Early 20s with a full time job still living at home. Got about 25k saved but the dreams of my own home arent even close to a reality.
What do i do with my dollarydoos?
>>AUSTRALIANS have poured their money into the property market lifting its value to a staggering $5.6 trillion.
>>In comparison superannuation [retirement] funds are worth about $1.8 trillion and the share market about $1.6 trillion.
Does anyone have similar statistics for the US/UK btw?
>i have no idea what that means
Australia has 1.65x more money invested in property than the entire value of the share market and all our retirements combined?
Yeah it's a bit strange..
>FIVE months. That’s how long before house prices start to fall, according to the latest major investment bank to call the peak in Australia’s housing cycle.
>OCTOBER 12, 2015
Oh fugg, ids habbening
>"I purchase real estate when the market is up and i purchase when the market is down. I might add on a very modest income with four children we now own 6 properties and are looking at seven and eight."
Hmm where have I heard this before
This is why I put my investment property on the market back in November. I think it's too late though, market is stagnant. We're on the precipice now boys.
House prices falling 20%+ will be a by-product of some other major economic event. More than likely Chinese markets eating further shit and Chinese investors trying to bail out along with everyone else.
Sydney is going to be a complete shit-show. Anyone who bought property there in the last 5 years is going to default.
>House prices falling 20%+ will be a by-product of some other major economic event. More than likely Chinese markets eating further shit and Chinese investors trying to bail out along with everyone else.
>Sydney is going to be a complete shit-show. Anyone who bought property there in the last 5 years is going to default.
What will the likely consequences be though, economically/stock market wise?
Deflation and all the bullshit that comes with it. Wage stagnation, job losses etc.
That's worse case scenario. Anything we get ourselves into, we can get out of again without too much pain. What we need to worry about is China and the US. Once they crash (and they will), our exports will completely dry up. THEN the fun begins.
Store some cash, food and gold bud. The real show begins after the next US election.
Let me sum up Australia. It's a great country, but it's run by a bunch of idiots.
There are a few things to point out. Culturally Australians are pretty laid back. Particularly when it comes to any kind of political activism. There just isn't enough people who care enough to make a difference with the idiots in government running the country.
Australians in general have a 'if it ain't broke why fix it' attitude to many things. It's why Australians are so fixated on the 'Strayan dream of owning ya own house and doing it up. It's the most dull, boring dream to aspire to but we've all been duped into thinking that's the goal as Australian citizens.
This attitude is why the NBN is in the trash now. Not enough people cared about it. Hell, most people think the NBN as it was originally proposed was a waste of money.
>Ah well me internet now plays YouChoob foine now!
Anyway that's getting a bit off-topic. The Australian real-estate market is just frustrating to look at. The crash has been expected since the 90s but it never happens. I don't think the crooks in government will ever allow it to reset without some kind of revolution among Australians when it finally hits its absolute breaking point. But even then I doubt we'll do anything to change things significantly.
>but it never happens. I don't think the crooks in government will ever allow it to reset
If incomes keep stagnating people will just be unable to pay the increasing prices -> mass defaults -> ????