Property Investment in Australia

[Ash007]

Hah, I'm one of the rabbits waiting at the sidelines now. Looks like it'll be a 2-3 year wait for prices to reach bottom.
[video]http://www.youtube.com/user/ProfSteveKeen#p/u/5/AxIdlnZjCSs[/video]

In the past, you get companies like Central Equity going to Singapore to sell Australian properties - using Singaporean migrants as proeprty agents.

The game has move on to where the money is. The smart people will not rush in to compete, it is better for the "wind" to blow in your favour rather than competing. Even if you manage to buy - , eg one local buyer already signed the Sales contract, a few days later, an overseas buyer comes along and offers a higher price and pays in cold hard cash. The developer executes the 48-hour clause, giving the original local buyer 48 hours to come out with a higher bid or the void the Sales agreement - but the bank says no! How to compete?

When KRudd came out with the big First Home Buyer carrot, a lot of excited rabbits were jumping over one other to win the carrot - many of them are 1 to 3 months behind their home loan repayments now and the lucky ones have parents to bail them out. But the vultures are waiting in the sidelines to feed on cheap properties. Some of these vultures already fed once during the GFC, others are rabbits who miss or do not want to compete for Rudd carrots!

 

[neddy]

Hah, I'm one of the rabbits waiting at the sidelines now. Looks like it'll be a 2-3 year wait for prices to reach bottom.

** Thanks for the excellent video **

I have been telling some of the people whose the wage raise is not catching up with inflation, if possible, get a better paid job.

** Example **
WA Lib is decentralising the government services, so this provide job opportunities. For those interested in Perth govt job, this process is on-going as they are undoing what the previous Labor govt did (centralising and sharing govt services to cut cost). One of the guy in IT decided to act and now he is some systems architect or something. Before that, he is just a programmer.


Qantas striking staff asking for 5% payrise is reasonable if their aim is beating inflation (offically 3.5%, actually >5%).
But their world is in STAGFLATION.

For Chinese property buyers, Australia offers more than cheaper property, - the fresh air, less competition, pay less tax, less government intervention, and living with dignity.

I am asking the Perth government to set up chinese language website >>> just kidding, we just want their $money$

** This book is from respected Harvard professor, Liz Warren & her daughter. It applies to Australia as well. **

 

[Aussie Prick]

Instead of looking at it from a purely affordability issue you people need to look at the theory that seems to have been proven correct. Its the Austrian School of Economics that has been spot on.

If you look at the US, Europe, China, Singapore, even Australia

Its all about credit, the credit cycle and the debt deflation that follows.

We are hoping the China story continues because if it unravels, and the bubble pops over there

We are ALL IN DEEP TROUBLE.

 

[earmosim]

THanks for the video, this explains why every property agent I saw the other day was a Chinese. Also explains why it cost $630K for a 2 bedroom apartment that is 100sqm including balcony.

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Property price is hard to come down :-

1) inflation is putting the costs of building materials and labour costs up.

2) Council fees is up too. To apply to council for building a new house costs is 1/3 of the building costs to be added on.

Many people who have not tried to built a new house will not realise it. With all these add on costs, you will see new houses are at all time low. If no new houses, exisiting houses will continue to be on high demand.