I am a 28 years old full time working professional, i will NEVER buy a property for at least another 5 years, because its going to crash, i put my money in the bank (cash), and wait for the market to go down. Why should i rescue some greedy property investor from their huge mortage? i pay rent (much less than the actual interest on a mortage), i go to overseas holiday 3 times a year with my cash, in 5 years i can easily save $300,000 than i may consider buy a property, just may…. why do i believe the property will crash? because all the baby boomer are retiring and dying, their empty houses will change hand, there will be alot of empty houses, read this article
TT552 wrote:I am a 28 years old full time working professional, i will NEVER buy a property for at least another 5 years, because its going to crash, i put my money in the bank (cash), and wait for the market to go down. Why should i rescue some greedy property investor from their huge mortage? i pay rent (much less than the actual interest on a mortage), i go to overseas holiday 3 times a year with my cash, in 5 years i can easily save $300,000 than i may consider buy a property, just may…. why do i believe the property will crash? because all the baby boomer are retiring and dying, their empty houses will change hand, there will be alot of empty houses, read this articleNot sure were you live TT but there is the small matter of immigration and births and more single occupant households. If your country has reached zero population growth thats probably a good thing. Just better make sure all the boomers die in the next 5 years to fit your scenario……oh yes then theres that increasing life expectancy thing as well.
TT552 wrote:I am a 28 years old full time working professional, i will NEVER buy a property for at least another 5 years, because its going to crash, i put my money in the bank (cash), and wait for the market to go down. Why should i rescue some greedy property investor from their huge mortage? i pay rent (much less than the actual interest on a mortage), i go to overseas holiday 3 times a year with my cash, in 5 years i can easily save $300,000 than i may consider buy a property, just may…. why do i believe the property will crash? because all the baby boomer are retiring and dying, their empty houses will change hand, there will be alot of empty houses, read this articleAnd (in the tone of your post) do you not consider the purveyors of the travel goods and services that you consume (three times per year no less) to also be GREEDY, just like the ogre property investor? Is your landlord greedy too?
Get informed…….in addition to the post from Yarpos above, why will a baby boomer retiring equate to dying? The article you provide the link for relates to NZ. Are you from there? Surely not all New Zealanders are leaving their country.
The issue of demand for housing in Australia (this forum relates to this country) will not go away any time soon.
Are things coming off the boil? Yes.
Will things possibly soften a bit more in many Aus markets? Yes.
And here TT552 will be the opportunities. Wait 5 years and you will miss the boat.
Indeed if it is baby boomers that will be dying soon, then you will not be buying the greedy property investors houses you will be buying off the estate of the deceased (who was in living form an owner occupier).
You'd better hope that the heirs do not hold the asset and become greedy landlords themselves because you might just become their tenant.
Who put you up to write such an ill-informed maiden post?
Hi, did i make you guys worried about your IP value in a few years? I am sorry but truth hurts sometimes. Yes, I believe Baby Boomer are going to crash the property market just like the way they pushed up the market in the past 10 – 15 years, they may not dies but they surely will DOWNSIZE their home, who would want to live in a 4 bedroom house when their spouse dies? who would want to look after a huge lawn when they can't barely walk due to diabetes and heart disease (Australia is the fattest nation in the world), a few baby boomer from my work has already sold their home in Sydney and moved to Tasmania, A SMALLER property, this will leave a large supply of property in future, so WAKE UP and get rid of your BAD INVESTMENT today, remember, only losers hold on to a loss…
bardon wrote:ItalianDragon wrote:I think Australians are BLIND.
Is this a general statement?
Yes general, including some of my friends that share your same positive opinion on the future of Australian realestate.
Also too many times, I hear about the immigrants.
From what I have seen I can guarantee you that only a very very small FRACTION of them is able to pay a LITTLE mortgage AFTER at least 5 years since they get in the country. For most of them the first 2 or 3 years are just a struggle and usually most of them come from poor countries. How can anybody expect that they have millions in their bags?
ItalianDragon wrote:Also too many times, I hear about the immigrants.From what I have seen I can guarantee you that only a very very small FRACTION of them is able to pay a LITTLE mortgage AFTER at least 5 years since they get in the country. For most of them the first 2 or 3 years are just a struggle and usually most of them come from poor countries. How can anybody expect that they have millions in their bags?
They hold on to Pom immigrants. Those used to be filthy rich when they came to Australia. They used to have 300.000 to 800.000 POUNDS of equity to spend in Australia on 'cheap' housing, due to the positive exchange rate.
Well :
– Pound has lost a LOT of value lately
– House prices have dropped by 30% to 70% in UK. ( and people now have higher mortgages than their house is worth , ie : subprime crisis )No more rich Poms. No more rich USA immigrants.
Immigrants entering the country of Australia are poor, at best. ( and unemployed )Scamp wrote:bardon wrote:Back on the charts the one on page one of this report is more descriptive of the price history and I am expecting more of the same in the future.http://www.anz.com/documents/economics/Housing%20Snapshot%20April%202008.pdf
You realize that only 1% in the world actually knows what a Log Scale is right ?
Log scales are a nice way to disguise reality, as spruikers have done for a long time.
In order for the log scale to continue it's upward spiral, you imply houseprices will double in the next 5 years.That will not happen. We have reached a top in the housing prices. Simply put, there are only 2 solutions :
– High inflation ( with double to triple wages within 2-3 years )
– Houseprice deflation.Inflation is the axis of evil. It will be prevented by any government at all costs. This means higher interest rates, which means even more unaffordable houseprices, less buyers even, and thus more pressure on houseprices.
Deflation is the only way to go. It will happen.
God, I hope you're right.
There will be a lot of cheap houses around with really nice rental yields for me to buy.
bardon wrote:Scamp wrote:[Inflation is the axis of evil. It will be prevented by any government at all costs. This means higher interest rates, which means even more unaffordable houseprices, less buyers even, and thus more pressure on houseprices.
Deflation is the only way to go. It will happen.
Why do you think that the US Fed has chosen not to act on inflation in the US in fact they are doing the opposite you have a situation where IR's are way lower than inflation and only last week the Fed yet again failed to act ?
L.A Aussie wrote:[God, I hope you're right.
There will be a lot of cheap houses around with really nice rental yields for me to buy.
[/quote]Fill yer boots with them lad
the immigrants I work with from UK, Singapore, HK and Sth Africa are wealthier than me , they can do what they choose to do and arent struggling for 5 months let alone 5 years. The situation isnt as black and white as you present, some actually do come with millions…some with 5c. You may not be seeing the effect in SA but it is significant elsewhere.
Interesting position to take …. you dont agree with me so you are blind … sort of makes discussion pointless
bardon wrote:Why do you think that the US Fed has chosen not to act on inflation in the US in fact they are doing the opposite you have a situation where IR's are way lower than inflation and only last week the Fed yet again failed to act ?Hm. Well that is the most difficult question to which there is not 1 good answer I am afraid.
I personally think there's a few reasons for it. The official reason would probably be that USA is afraid of stagflation, and would rather have inflation than inflation + recession. In order to counter the recession, they lower interest rates, and thereby keep the economy going.
You could also put your tin foil hat on and think that the USA are pressing the oil prices up. Since USA has a contract with Saudi's to buy oil for no more than 70$ per barrel, they can sell it on for 140$ a barrel and make some nice profits.
Or, you could think that USA doesn't want to affect their export and therefor try and keep prices low, thus keeping economy going.
Then again, maybe you could think the Fed are affected by presidential elections and want to keep their rates low because otherwise the shit hits the fan.
Or maybe the Fed is so incredibly worried that USA banks will tumble over due to the credit crunch that they will give the banks cheap extra credit to stay afloat.
Or perhaps even, the Fed just wants USA to stay in power by 'sharing' their crisis with the rest of the world.It's hard to say, that's why I haven't answered. I have no respect for USA or their policies. All I know is that they are warmongerers , their economy thrives on war and bullying and blackmailing, they are a fake country and are the most hated country on earth. In other words : they're not really interesting.
yarpos wrote:the immigrants I work with from UK, Singapore, HK and Sth Africa are wealthier than me , they can do what they choose to do and arent struggling for 5 months let alone 5 years. The situation isnt as black and white as you present, some actually do come with millions…some with 5c. You may not be seeing the effect in SA but it is significant elsewhere.Interesting position to take …. you dont agree with me so you are blind … sort of makes discussion pointless
The immigrants you work with were part of the bubble creation. I'm sure they were wealthy since they would have sold their house before the USA and UK bubbles. I was talking about future immigrants ( aka, the ones that would be buying houses in 4-6 months from now )
yarpos wrote:the immigrants I work with from UK, Singapore, HK and Sth Africa are wealthier than me , they can do what they choose to do and arent struggling for 5 months let alone 5 years. The situation isnt as black and white as you present, some actually do come with millions…some with 5c. You may not be seeing the effect in SA but it is significant elsewhere.Interesting position to take …. you dont agree with me so you are blind … sort of makes discussion pointless
If you know few millionaires then it does not mean that the majority of new immigrants are rich.
Show me some datas to prove me wrong, I can see and read facts.
Thanks
The idea is not to import instant money (Millionaires) but to introduce skilled migrants to infiltrate certain areas that are stagnant to our economy to boost national production in order to increase profit.
Gheez guys
ItalianDragon wrote:yarpos wrote:the immigrants I work with from UK, Singapore, HK and Sth Africa are wealthier than me , they can do what they choose to do and arent struggling for 5 months let alone 5 years. The situation isnt as black and white as you present, some actually do come with millions…some with 5c. You may not be seeing the effect in SA but it is significant elsewhere.Interesting position to take …. you dont agree with me so you are blind … sort of makes discussion pointless
If you know few millionaires then it does not mean that the majority of new immigrants are rich.
Show me some datas to prove me wrong, I can see and read facts.
Thanks
These people arent millionaires just middle class folks not looking for hand outs. I provide real world observations, you generalise……..and I have to provide data? mmmmmmmmmmm sure i'll get right onto that
ormeau wrote:The idea is not to import instant money (Millionaires) but to introduce skilled migrants to infiltrate certain areas that are stagnant to our economy to boost national production in order to increase profit.Gheez guys
100% agree and those are the sort of people I was talkng about……but yet again…its not black and white…..we take immigrants for all kinds of reasons and some people do arrive with little money or skill but thats the price of supporting humantarian immigration which we have responsibility (I think) to do
for those actually interested in immigration levels beyond generalisations (source Dept Immigration web site). This indicates about 140k people under general immigration (roughly 40k family and 100k skilled) ….elsewhere on the site there is a summary of humanitarian immigration. About 14k in that category:
http://www.immi.gov.au/media/statistics/statistical-info/visa-grants/migrant.htm
Scamp wrote:bardon wrote:Why do you think that the US Fed has chosen not to act on inflation in the US in fact they are doing the opposite you have a situation where IR's are way lower than inflation and only last week the Fed yet again failed to act ?Hm. Well that is the most difficult question to which there is not 1 good answer I am afraid.
I personally think there's a few reasons for it. The official reason would probably be that USA is afraid of stagflation, and would rather have inflation than inflation + recession. In order to counter the recession, they lower interest rates, and thereby keep the economy going.
You could also put your tin foil hat on and think that the USA are pressing the oil prices up. Since USA has a contract with Saudi's to buy oil for no more than 70$ per barrel, they can sell it on for 140$ a barrel and make some nice profits.
Or, you could think that USA doesn't want to affect their export and therefor try and keep prices low, thus keeping economy going.
Then again, maybe you could think the Fed are affected by presidential elections and want to keep their rates low because otherwise the shit hits the fan.
Or maybe the Fed is so incredibly worried that USA banks will tumble over due to the credit crunch that they will give the banks cheap extra credit to stay afloat.
Or perhaps even, the Fed just wants USA to stay in power by 'sharing' their crisis with the rest of the world.It's hard to say, that's why I haven't answered. I have no respect for USA or their policies. All I know is that they are warmongerers , their economy thrives on war and bullying and blackmailing, they are a fake country and are the most hated country on earth. In other words : they're not really interesting.
Scamp interesting response I dont disagree with any of it. But I would say that on your earlier post you said that all Govt will fight inflation absolute I dont think you should make statements like that in this case.
The Uk aint doing much about fighting inflation either actually Ozzie appears to be doing a lot more about this than the US and UK.
Rudd said "I will fight inflation at all costs". Just look it up. Also , any country with a reasonable view on the future will fight inflation. The steps that the FED has taken so far have led to financial TERRORISM. Just look at this :
USA heading for hyperinflation : http://www.bloomberg.com/avp/avp.htm?N=adv…VkI8WexWY2M.asf
Worse than '94 inflation : http://www.bloomberg.com/apps/news?pid=20601087&sid=aLyjKy00BA1AFed has no clue on what to do. They're in so deep that they have no way out. We're heading for 1929 crash.
Stockmarkets have dropped 20% already, the only reason why they haven't dropped more is that they are not ALLOWED to drop more by the stock exchange ( they will prohibit trade if dropping stocks reach 'critical levels' ( 2% or something ) ).The crisis is huge. People don't realize how big this is, and that's good, because if they knew, we'd have a mass hysteria on our hands.
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