Australia’s housing bubble about to implode
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1   Ceffer   ignore (1)   2017 Nov 23, 9:38am   ↑ like (1)   ↓ dislike (0)     quote      

Housing on the barbie!
2   Patrick   ignore (0)   2017 Nov 23, 11:39am   ↑ like (0)   ↓ dislike (0)     quote      

Good article, except for the damn auto-playing video, which I disabled after reading this page:

https://www.howtogeek.com/227669/how-to-stop-auto-playing-html5-videos-in-your-web-browser/
3   HEYYOU   ignore (4)   2017 Nov 23, 12:53pm   ↑ like (0)   ↓ dislike (0)     quote      

Aussies are overpayers too?

"So far, the Reserve Bank of Australia has relied on banking regulators to apply the brakes with lending curbs. It reckons the financial system is well-placed to withstand any shocks, but isn’t so confident on consumers."

Economies don't need consumers!
4   Patrick   ignore (0)   2017 Nov 23, 1:52pm   ↑ like (0)   ↓ dislike (0)     quote      



Interesting metric: number of cranes. Hard to fake, since people are not going to put up cranes just to mess with the numbers.
5   bob2356   ignore (1)   2017 Nov 23, 3:34pm   ↑ like (1)   ↓ dislike (0)     quote      

tovarichpeter says
ustralia’s housing bubble about to implode


Not as long as urban boundaries keep supply tight. No way the market can be keep up inside the boundaries and expanding boundaries never keeps up.
6   Patrick   ignore (0)   2017 Nov 23, 3:39pm   ↑ like (0)   ↓ dislike (0)     quote      

bob2356 says
Not as long as urban boundaries keep supply tight. No way the market can be keep up inside the boundaries


If people stopped moving to Sydney, prices would stop rising.

I've been there, and it is extremely nice, like San Francisco but without the homelessness and shit everywhere. I can see why people move to Sydney. And they do seem to have a lot of jobs.

7   APOCALYPSEFUCK_is_ADORABLE   ignore (5)   2017 Nov 23, 4:17pm   ↑ like (2)   ↓ dislike (0)     quote      

Of course chasing drug addicts out of your parlor in Paddington makes the house worth $3 million!
8   HowdyThere   ignore (0)   2017 Nov 23, 5:14pm   ↑ like (1)   ↓ dislike (0)     quote      

I'd read about Toronto having a lot of cranes vs some US cities, which the chart shows, but Sydney... Holy crap.
9   bob2356   ignore (1)   2017 Nov 24, 5:51am   ↑ like (0)   ↓ dislike (0)     quote      

Patrick says
If people stopped moving to Sydney, prices would stop rising.

I've been there, and it is extremely nice, like San Francisco but without the homelessness and shit everywhere. I can see why people move to Sydney. And they do seem to have a lot of jobs.


and your point is what exactly? If construction kept up with population increase prices would stop rising also Which is difficult to do when infilling a city. It's very hard to get the balance right. The latest version is called A plan for Growing Sydney 2014 and is pretty interesting reading.

It's very expensive to build in Australia anyway. Build able land is expensive. Labour costs are high (no cheap illegals).. Very little is locally produced and shipping construction materials is expensive Building codes are very strict and can be costly (NZ is a lot worse).. Australians desire for everything to be designed from scratch (NZ is much,much worse about this) because they don't want cookie cutter houses drives up prices a lot. I once asked a builder why people didn't just use spec plans instead of paying 20k to design houses from scratch and he thought i was insane. The horror.

I've been to Sydney quite a bit, It was my gateway city when I lived in Australia. it's a really great city. Australians like the urban planning and boundaries, but realize it drives housing prices up a lot. Beats the shit out of the endless strip malls and urban sprawl of 21st century America..

I don't see any US style crash in Australia any time soon. The ratio of owner occupied to rentals hasn't changed in decades. People are buying houses to live in. At the peak of the US boom in 2006 only something like 40% of houses sold were going to be owner occupied (disclaimer I sold at that point, that number scared the shit out of me). If nothing else you can't walk away from debt there. You still owe the money if you walk away so you might as well ride it out. I'd love to be wrong. I'd swoop up distressed property in Melbourne in a heartbeat.
10   Strategist   ignore (0)   2017 Nov 24, 10:26am   ↑ like (0)   ↓ dislike (0)     quote      

tovarichpeter says

https://www.bloomberg.com/news/articles/2017-11-23/australia-faces-housing-hangover-twice-size-of-u-s-subprime-era


Wow.....and some of you think US homes are excessively priced.The facts are:
Homes are cheap compared to the rest of the developed world.
Homes are larger and better.
Our incomes are high, making homes more affordable.
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You guys need to stop complaining. Straw huts in the Congo probably cost $50.00, but who wants to walk 10 miles to get a pot full of water.

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