With the government raising wages standards a few weeks ago, which will go into effect in the new financial year. Do you think the banking industry will see that as some extra money to grab by raising interest rates. I know already that prices of goods and services will increase, due to the wage increase as companies need to raise prices to keep profits.
Another informative read Jason. Nicely written and laid out. I agree that we're in for a bit of a shock. I saw it a little while back and have made the necessary adjustments. I hope other's have also. Thanks for a great read.
Thanks mate. It will be interesting to see how it all unfolds. I think there's a chance property prices flatten out for a while, but unless wages rise a lot in a short time, it's hard to see how we can't have a correction of some kind.
So true. Aussies underestimate the interest rate risk they carry. It will be fine until rates rise because they don't automatically adjust higher, but any changes by the RBA or in the bond market have an immediate effect.
These prices are out of this world and the fact that the one girl would have been ok with $850,000 3 months ago and got $1,000,000. That is nuts!!!!!
Tucson real estate went up 8.9% last month but I don't expect results like that. Jeezzzzzzz
It has been some crazy growth, although this girl probably underestimated what she could have sold the property for several months ago. Believe it or not, the buyer paid $1m to rent it out for about $2500 per month. About a 3% gross yield.
Hahahhaha, That is terrible. Has anyone ever told them about something called inflation?
I guess if their main play is capital appreciation they think they are going to rent it out and then resell it for a lot more but I just expect a lot of these people to get blown out of the water.
hmmmm, sensing another executive appointment here Jason - you interested?
With the exception of my wit and personality, my home is my largest asset... by a mile - house, large flat block, 30 minutes to CBD - so you think would be happy wouldn't you? Well no - because I simply can't believe how ridiculously stupid the Sydney market is and the participants within.
There is going to be a lot of pain this time round! SK.
Haha! Another title? I don't know, my ego is already pretty big :)
What did you have in mind?
Regarding your home, we talk in our investor training about the difference between an investment asset and a lifestyle asset. It's always tougher to sell the family home to realise a gain. Although sounds like it could be ripe for a subdivision.
Happy to serve any way I can. I've been thinking about organising a Melbourne Meetup. It would be good to connect more personally and it seems like there's a pretty good group of Steemians here. I tried it a year ago, but only one other person showed up. It was early days.
Great read Jason, it's quite refreshing to hear someone in the industry who's not afraid to tell it the way it really is. Do you feel comfortable throwing out any dates to when you think this charade will start to pick up some pace to the downside. Cheers, upvoted and resteemed.
I'm surprised they've kept it going this long. Australia is at the mercy of the Fed, ECB, and the PBoC. I don't expect a property correction here until something crazy happens overseas - maybe European bank / derivitives related. When the bond market deflates, shares fall, derivitives unwind and banks fail it could be very bad. If we make it through 2018 business as usual I'll be amazed. But I've learned to never underestimate the power and resolve of central bankers. It could be years still.
I agree with what your saying, there are so many black swans circling it's ridiculous, any of these could blow it all up. I think we have a few domestic problems that could blow up pretty quickly as well, like a government downgrade, sharp rise in unemployment etc etc. I guess time will tell my friend, thanks for the reply. Cheers
thanks for this great article :) i have a very poor understanding of how the housing market actually works and found this really informative and interesting. keep up the good work!
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With the government raising wages standards a few weeks ago, which will go into effect in the new financial year. Do you think the banking industry will see that as some extra money to grab by raising interest rates. I know already that prices of goods and services will increase, due to the wage increase as companies need to raise prices to keep profits.
Another informative read Jason. Nicely written and laid out. I agree that we're in for a bit of a shock. I saw it a little while back and have made the necessary adjustments. I hope other's have also. Thanks for a great read.
Thanks mate. It will be interesting to see how it all unfolds. I think there's a chance property prices flatten out for a while, but unless wages rise a lot in a short time, it's hard to see how we can't have a correction of some kind.
Every time you post this info I can't help but have the same reaction of "wow, this is the US market in 2008!"
When all those ARM loans go variable rate it will be real interesting how things play out.
So true. Aussies underestimate the interest rate risk they carry. It will be fine until rates rise because they don't automatically adjust higher, but any changes by the RBA or in the bond market have an immediate effect.
Another great update. Interested to see how this will unfold.
Thanks, me too. Hopefully they'll somehow orchestrate a soft landing.
These prices are out of this world and the fact that the one girl would have been ok with $850,000 3 months ago and got $1,000,000. That is nuts!!!!!
Tucson real estate went up 8.9% last month but I don't expect results like that. Jeezzzzzzz
It has been some crazy growth, although this girl probably underestimated what she could have sold the property for several months ago. Believe it or not, the buyer paid $1m to rent it out for about $2500 per month. About a 3% gross yield.
Hahahhaha, That is terrible. Has anyone ever told them about something called inflation?
I guess if their main play is capital appreciation they think they are going to rent it out and then resell it for a lot more but I just expect a lot of these people to get blown out of the water.
Good point about inflation. But as you say, when you assume infinite annual 12% growth, who cares?
"assume" is the key word. Hahahah
hmmmm, sensing another executive appointment here Jason - you interested?
With the exception of my wit and personality, my home is my largest asset... by a mile - house, large flat block, 30 minutes to CBD - so you think would be happy wouldn't you? Well no - because I simply can't believe how ridiculously stupid the Sydney market is and the participants within.
There is going to be a lot of pain this time round! SK.
Haha! Another title? I don't know, my ego is already pretty big :)
What did you have in mind?
Regarding your home, we talk in our investor training about the difference between an investment asset and a lifestyle asset. It's always tougher to sell the family home to realise a gain. Although sounds like it could be ripe for a subdivision.
No way mate - newly built - will suit for the rest of my life - so market value means nothing to me.
Executive Manager - Property Research and Markets - is the first title to come to mind.
SK.
Happy to serve any way I can. I've been thinking about organising a Melbourne Meetup. It would be good to connect more personally and it seems like there's a pretty good group of Steemians here. I tried it a year ago, but only one other person showed up. It was early days.
Great read Jason, it's quite refreshing to hear someone in the industry who's not afraid to tell it the way it really is. Do you feel comfortable throwing out any dates to when you think this charade will start to pick up some pace to the downside. Cheers, upvoted and resteemed.
I'm surprised they've kept it going this long. Australia is at the mercy of the Fed, ECB, and the PBoC. I don't expect a property correction here until something crazy happens overseas - maybe European bank / derivitives related. When the bond market deflates, shares fall, derivitives unwind and banks fail it could be very bad. If we make it through 2018 business as usual I'll be amazed. But I've learned to never underestimate the power and resolve of central bankers. It could be years still.
I agree with what your saying, there are so many black swans circling it's ridiculous, any of these could blow it all up. I think we have a few domestic problems that could blow up pretty quickly as well, like a government downgrade, sharp rise in unemployment etc etc. I guess time will tell my friend, thanks for the reply. Cheers
thanks for this great article :) i have a very poor understanding of how the housing market actually works and found this really informative and interesting. keep up the good work!
Thanks, I'm glad you found it helpful.
Feel warmly welcomed. Just upvoted you.
If you are interested in investing in new sciences, feel free to follow my blog.
Best,
Alex