FOUR CORNERS: Betting on the House
With TEAM AUSTRALIA'S resident property expert @jasonstaggers away on well deserved break - the team at COMMUNITY NEWS thought they better fill in for him with a property update. This also continues on from a well commented post we made the other day titled:
In Australia: A trickle of poor consumer sentiment data is turning into an avalanche! (Link below)
COMMUNITY NEWS is happy to report all news - good and bad. What we try not to report is BS! And when we continue to hear stories about how great the Sydney property market is and how 12%pa growth will go on forever - we first think... great for who? Followed by - smells like BS!
So the team at COMMUNITY NEWS found it somewhat refreshing on Monday night, when the hard hitting journalists at FOUR CORNERS took a look at our property bubbles and actually reported on the devastating affects these are having on ordinary Australians.
"You're effectively toast if you lose your job or the main breadwinner does. That's the point of fragility that we're at now."
Furthermore, the program looked at the aggressive lending practices within the banking system. These practices have been responsible with many years of loose credit, which in turn has pushed property prices to astronomical levels.
Gone are the days when the banks would lend 3-4 times your annual salary - now they are lending 7-8 times. And if it looks like you really can't afford it - don't worry, the brokers have been known to fudge your numbers to get you over the line.
A quote which summed up the theme of the program was:
"I've been studying the market here for a good number of years and I have never seen this perfect storm of issues coming together."
'Betting on the house: Australia's real estate obsession driving us to the brink' was the name. A link to the 43 minute report is below - if interested.
If you simply want our take on the report - we agree that the market is a "powder keg", yet we do not know when it will explode.
However, we would simply ask you, to ask yourself, this one simple question:
'Do you want to be a slave to your debt?'
If the answer is 'NO' - Don't sign your life away!!
THE EDITOR
COMMUNITY NEWS: https://steemit.com/australia/@communitynews/in-australia-a-trickle-of-poor-consumer-sentiment-data-is-turning-into-an-avalanche
FOUR CORNER: http://www.abc.net.au/4corners/stories/2017/08/21/4719901.htm
Video: http://mpegmedia.abc.net.au/news/fourcorners/video/NC1704H028S00MA2D1_512x288.mp4
Image: https://www.itphomeloans.com.au/help-im-mortgage-stress/
One mans debt is another mans leverage.
The more leverage the higher the risk, Will the Sydney/Melbourne property Boom end in tears or champagne?
It always end in tears for the majority Stephen. Such is life. This being said - a knock down job on 600 sqm block down the road from @sirknight's; no water or park views etc went for $1.6 million a couple of weeks back - we reckon the vendor would have been knocking back champagne by the case load for the next week.
Community News
Just like crypto when the demand dries up and people get desperate the prices tumble.
Great advice. Unfortunately too many people lack a healthy fear of debt these days.
Thanks for filling in. Property update coming tomorrow :)
You only have one life to live - who really wants to live it as a slave to bankers?
Great to have you back Jason! We hope you enjoyed your week off.
Community News
Gahhhh! Bloody hell mate. 1.2mil without views is ridiculous. You can get value for your 1.2 up in the mountains. .. just sayin..
Its like how houses down in Blackie being close to a mil - get the f. outta here with that shit. Blackie is still Blackie. Its still next to Doony and Lalor, and round the corner to Whalan, Druitt etc. Being a westie local and growing up here? Aint no way Im paying that much for a shitty size piece of land so I can hear me neighbors have a domestic, whos house is only an arm reach away.
That said, the prices are catching up up here, but you can still buy 900sqm plus for under 500k over here and that's with a knock down house on it. And up here if youre on a hill you got some sort of a view.
I take it @communitynews advises against buying... 😭😭😭
We are looking to sell and buy within the next couple of weeks... 😢
Sell well and buy well, you can make money on both almost instantly if done correctly.
Don't fall for the media story. Negative headlines sell papers. If you look back they have been saying the same thing every couple of years since the 80s. Look at how far prices have come now 😂
$1.6M Arly - $1.6M. Glad I am not a first home buyer.
It is all relative if you sell and buy immediately after - but don't get me wrong - I hate paying stamp duty too!
Those who have large debts when the market takes back control of interest rates will be in trouble. It will over correct into double digits, it won't be pretty for most but the biggest banks will clean up. Nothing changes, they keep pulling the same scams and people keep falling for it.
Congratulations and success 👏
Hello @areare - thanks for popping in. May you be blessed with good luck and fine health for all your life to come.
Community News
☺
i like it, ! keep it up! and thanks again for following!
@ahlawat
Thanks for popping in Ahlawat
voting thanks, sir communitynews
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very interesting post.. thanks for sharing!
thanks for the great advice