Australia housing bubble

[Syndrome]

Originally Posted by kevino

Chairman Xi with his centralised control policies is certainly strangling most of the Chinese economy.
But can people pull their money out of China-not sure.

What do you make of this?

[raised by monkeys]

Originally Posted by Citroënbender

A very “thin” article.

Agreed.

Where I live, like most places, inflated house and land prices are out of reach for many locals, and when i leave my home and go to the gym or cafe for coffee i am now part of the minority. Cant tell me the money isnt getting here some how.

[T3rminator]

https://www.macrobusiness.com.au/202...lian-property/

[HONK]

"""Population replacement"""

[fordomatic]

Lots of talk about interest rates rising again, seems the media is prepping everyone like they always do.

Will be interesting to see what happens and where it will stop.

[Syndrome]

Not going up this year

[b0son]

Originally Posted by fordomatic

Lots of talk about interest rates rising again, seems the media is prepping everyone like they always do.

Clickbait. Far more likely the next movement will be down (though it will hold steady for a few more months until that happens).

[fordomatic]

Originally Posted by fordomatic

NAB literally don't care about losing a customer, after speaking in depth with my broker, he's refinanced 40% of his NAB customers that aren't business accounts.

My broker rang on my behalf and they wouldn't budge. I then spoke with NAB they only dropped it .25%. I asked them to drop it .75% to be in line with the market rate. Long story short they told me I was high risk and valued my asset at 30% below it's actual worth. No matter what I said on the phone, even saying to look up prices sold from that area in the last 6 months for the same asset, they wouldn't budge and said I was high risk as my loan was more than the asset was worth. For the record, the loan is much less than the asset is worth in the current market.

So I told them that I'll be refinancing in November and I will be putting the full amount owed on the loan into offset so they wont get another $1 from me. They said to go for it.

So true to my word I put the full loan amount into my offset for that asset. I then called a week later and said I'd remove the offset if they dropped another .5%, they said no and that I'm still high risk. I've never missed a single payment in 12 years for any of my loans.

So, the offset will be staying in and i'll no longer be with NAB for that loan, come November 1st. Already been pre-approved for refinancing from two places with great rates and 4k cash.

Update on this, rang to tell them I was going to refinance and wanted to see what they could do. Told them about my previous experience with a banker and how disappointed I was in their customer service.

In a turn of events they've matched the competitors rate which is 1.41% lower than my current rate. Seems I may have just got someone having a really bad day on the original phone call

[raised by monkeys]

Originally Posted by fordomatic

Seems I may have just got someone having a really bad day on the original phone call

Call it human error, poor judgement, bad hair day... until Skynet is in power there will always be such experiences

[T3rminator]

Originally Posted by b0son

Clickbait. Far more likely the next movement will be down (though it will hold steady for a few more months until that happens).

If the yanks keep raising their rates or keep their rates high, there will be pressure on us to follow.

The consensus seems to be one more raise, before it begins to fall. Timing is anyone's guess. Inflation is still high.

[Citroënbender]

Inflation is still high.

I’m “feeling” there’s still a good chunk of self deception going on, people stretching out their expenses in hope of rates falling.

[Itsme]

Originally Posted by T3rminator

If the yanks keep raising their rates or keep their rates high, there will be pressure on us to follow.

The consensus seems to be one more raise, before it begins to fall. Timing is anyone's guess. Inflation is still high.

Rates may stay the same, but I think we are heading into a recession which is bad for homeowners still struggling, tough times ahead for us with inflation out of control.

[Polyal]

Originally Posted by Itsme

Rates may stay the same, but I think we are heading into a recession which is bad for homeowners still struggling, tough times ahead for us with inflation out of control.

From what I see around me people got fat and this country sucks from the breast of property and has not much else. It needs to crash and the economy and country get its stuff together and start building again. Opinion only.

[b0son]

Originally Posted by T3rminator

Inflation is still high.

When you are stopping for a red light, do you apply enough brake pressure to eventually arrive at standstill at the lights, or do you keep increasing brake pressure because you're still moving, and pull up 20m short?

Sure, we could keep cranking rates while inflation is >3%, but an economy has momentum. Too much, and you risk killing it, and having to drop rates for stimulus. What matters is the trend, and the trend is down and CPI within the target range over the next handful of months.

[John 13]

Originally Posted by Polyal

From what I see around me people got fat and this country sucks from the breast of property and has not much else. It needs to crash and the economy and country get its stuff together and start building again. Opinion only.

Totally agree with the comment re. Property and the desirability of the country needing to get it’s stuff together but I don’t think we will see the recession we need to have (Paul K )
Australia is so stitched up through Free Trade Agreements, International debt and other regional (and some not so regional at all) activities that it no longer has the autonomy that it may have had for a short time in the nineteen seventies and eighties.
Mango slices from Thailand, Evaporated milk from Mexico and Baked beans cooked in Italy using beans from USA and Canada. Don’t bother looking to see where our imported sea food comes from. What about the manufacture of durable goods and machinery, forget it !

[raised by monkeys]

number of migrants whove arrived in australia as weve battled a cost of living crisis

[FoxtrotGolfXray 5.0]

Looks like the popular belief is that another rate rise is on the way on Melbourne Cup day.

Unlucky 13?

[ToryMikey]

Originally Posted by Citroënbender

A very “thin” article.

“Our” national broadcaster again proving it’s worth the money we waste to keep it running.

[FoxtrotGolfXray 5.0]

There we have it: another 0.25% rate increase.

[T3rminator]

BOOM. The RBA needs people to start losing their jobs to hit their target. That is the sad reality.

[blueoval]

get ready to see some mortgagee sales come up on the market soon

[Citroënbender]

Where’s the referendum on migration levels?

Most of my skin in the game is from a “boomer” POV; better interest on term deposits. That doesn’t stop me from empathising with people genuinely in a bind from solid rate increases on the back of other near-unforeseen events.

[buggerlugs]

Originally Posted by Syndrome

Not going up this year

Pardon ?

[FoxtrotGolfXray 5.0]

I went out for a hit of golf this morning. The golf course is on a road that is used by many Melbournians to get back home from visiting the south side of the Gippsland Lakes and/or the Ninety Mile beach. Given today was the last day of the unofficial long weekend, there was no surprise to see a number of caravans heading home.

What did surprise me was the number of them. It was a constant stream. And the vast majority (I'd say easily nine out of ten) were all dual axle.

It makes me think that this country is becoming more and more a land of the haves and have nots.

Like you, cb, I feel for those who will be pushed over the edge by this latest increase. More so those who are in this position due to no fault of their own. I have less sympathy for those who over capitalised.

[Syndrome]

https://www.fordforums.com.au/showpo...postcount=2842

Quote function not working for Citroenbender post 2842

The irony is that the left want to give the aboriginals more say and power but at the same time will never seek from these people permission to bring more "invaders" to "their country".

[Polyal]

Ill be stuffed how new car sales are at record highs?

[Itsme]

I'm tipping we will see a recession in the new year.

[MITCHAY]

New governor and inflation still high. Unbackable odds

[prydey]

I'm not an economist but how does taking away people's spending money help the economy?

Hospitality must already be stretched pretty thin. So many struggled through covid with many having to close up, and now this.

Many other industries doing it tough with people tightening up on spending.

Is interest rates really the only way to try to achieve what they want? Genuinely curious although I would guess that it's a very complex answer.

[Syndrome]

Originally Posted by prydey

I'm not an economist but how does taking away people's spending money help the economy?

Hospitality must already be stretched pretty thin. So many struggled through covid with many having to close up, and now this.

Many other industries doing it tough with people tightening up on spending.

Is interest rates really the only way to try to achieve what they want? Genuinely curious although I would guess that it's a very complex answer.

In my opinion there are two types of inflation:

(1) Where the economy is overheating due to demand outstripping supply thus causing prices to increase too much and too quickly.

(2) Where government spending is causing debt to rise too quickly and too high thus requiring stimulus, bailouts, subsidies etc and eventually the value of the dollar is reduced thus requiring more of the stuff to purchase the same amount of goods.

What I believe we have is scenario (2) whereas the RBA and government are treating it as scenario (1).

Our company recently announced they are closing the afternoon shift at the end of this month. Even in the depths of the GFC they had enough work to keep two shifts operating.