Housing bubble in Australia

[ppc.pt]

As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?

More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.

What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?

Have you done a "big short" kind of research ? Have you visited abandoned neighbourhoods ? Have you heard people getting unusual credits ? Have you heard people giving unusual credits ? If so, how many ?

I believe you, but you can't just say it's a bubble because the sector is growing fast. Where I live it's the same, but it's mainly because of the chinese coming here to live, and other countries like Brazil and centre of Europe where is becoming more and more insecure.

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[ppc.pt]

It will become more and more difficult to see a big market crash after 2008, because if it happens, every government, central banks and financial institutions know they will suffer like never before. I think you know why...

[Lieldoryn]

Australia is very attractive country. Moreover, it is an island country which area is limited. Property prices in Australia can be high for this reason. I would gladly move there to live, but I have no money to afford it.

[ardentvolcanoes]

Australia is very attractive country. Moreover, it is an island country which area is limited. Property prices in Australia can be high for this reason. I would gladly move there to live, but I have no money to afford it.

so do I, that place will be a such wonderful one if happen that i'll be able to succeed with my investment thru crypto currency i will surely go to that country and live for a while, hoping for this dream to come.

[Cosbycoin]

As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?

More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.

What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?

I won’t call it a bubble because there is the demand and availability factor. The scenario is not only in Australia but also all across the developing nations and the business has grown significantly big as in the last few years. Many experts are predicting the continuation of this trend for decades. So, it cannot be a bubble and it may not burst in near future too.

[Yakamoto]

As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?

More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.

What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?

Have you done a "big short" kind of research ? Have you visited abandoned neighbourhoods ? Have you heard people getting unusual credits ? Have you heard people giving unusual credits ? If so, how many ?

I believe you, but you can't just say it's a bubble because the sector is growing fast. Where I live it's the same, but it's mainly because of the chinese coming here to live, and other countries like Brazil and centre of Europe where is becoming more and more insecure.

We're still a little ways away from being at a point where boots-on-the-ground research like that depicted in "The Big Short" is possible, since the banks started selling the derivatives again in 2015(?) and there needs to be some time for all the bonds to catch up to where they were before 2008. We'll probably see it get to the same place pretty soon.

It should also be considered that there are more factors than just housing now; there is a huge, huge amount of student debt present which is held as a government asset, and we're seeing a lot of people not being able to pay said debts and you can see those people losing their shit in the streets, even online they're talking constantly about how they're unable to pay denbts. The government might experience the collapse of the student loan market, and they can only try to bail out themselves.

[izanagi narukami]

People have right to buy many house as much as he/she can.
Investing on bitcoin for buying house may be a wise decision since bitcoin able be more valuable than gold. Buying house with bitcoin also increase bitcoin network world wide !

[Mometaskers]

Bubble or not, better prepare for this so you won't get caught of guard. Hopefully it won't go so bad that people would be kicked out of their houses.

If it does fall, maybe you can take advantage of it and snag the cheaper houses. People who rent out houses would not have any problem since people would always need a roof over their head. When one can no longer afford the rent, someone who is looking for a more affordable place can move in. Best to have houses for different budgets.

Unless the Australian government bans real estate sales to foreigners, the bubble will never pop. Most of the buyers are Chinese and there is no shortage of Chinese population. They will zergrush your homeland till it becomes another China state. Good luck.

http://www.zerohedge.com/news/2017-04-01/australia-has-worlds-worst-money-laundering-property-market

China...
https://youtube.com/watch?v=RDrfE9I8_hs

Now that's troubling. Do Western countries have protectionist policies when it comes to land ownership? In my country you are mostly required to be a naturalized citizen or at least married to a citizen, to be able to buy land.

[bit1]

As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?

More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.

What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?

I won’t call it a bubble because there is the demand and availability factor. The scenario is not only in Australia but also all across the developing nations and the business has grown significantly big as in the last few years. Many experts are predicting the continuation of this trend for decades. So, it cannot be a bubble and it may not burst in near future too.

In time of economic crisis all prices tend to skyrocket in this case the one of the dwelling would not be the exception, but in the long run that paralyzes the whole economy and let's not talk about the ecological problem it represents, put a limit on houses per person could be a good measure but not the only one, but everything is connected for example if prices go down at a very low price then would build much more housing and comes the ecological problem, I believe that much more serious studies about the environmental impact in the construction subject must be done but taking into account all people and not only to investors who ultimately only seeks to maximize their profits, Australia  is a very nice place, and in that sense must be taken care of as such by his government.

[batang_bitcoin]

I don't think there's a bubble when it comes realty. The simple demand and supply will be the real reason why investors loves to invest to house and lot. It's a basic need of human being and it's a normal movement of pricing for a house and lot. And well it's everyone's dream to have house so he has the right to buy as many as he can and the government will be on their favor as they will pay tax.

[iv4n]

It's not just in Australia, on Discovery Channel I watched about real estates that cost 2 millions, 3 millions. Everyone not involved in tech is still trying to survive in the area, and it’s expensive for them too. When will it pop, who can tell, how high prices can go, who knows, will it ever pop? Anyone who gives this much money for a real estate is crazy, this is too much, I would go to pension with this money, I would take care of everything and I would enjoy until the test of my life.
 

[CryptoBry]

Theres nothing the government can do as they are beholden to the bankers. Do you remember what Obama did during the financial crisis of 2008? Instead of leaving it alone and let the depression take its course, he allowed the US treasury and the Federal Reserve to pump more money in the system by bailing the fraudsters out. Why? Because hes up for reelection.

The government just decided to print more money so those who are responsible for the problem can be rewarded with new money and just let the future taxpayers bear the burden of the problem. This kind of mentality can result into more economic woes later...it can possibly solve the whole thing from collapsing but the side-effects can be seen years after the solutions are executed.

When the economic system is based on greed and over-speculation there comes a time when the bubble will really pop as the whole thing can't be stretched any longer. Unfortunately, even the government can sometimes be tied and those in power can just be letting things happen and will only be reactive rather than be pro-active for fear of being not politically correct.

[merchantofzeny]

Australia is very attractive country. Moreover, it is an island country which area is limited. Property prices in Australia can be high for this reason. I would gladly move there to live, but I have no money to afford it.

This could also be one of the reasons. Australia's interior is a desert and so most of the cities are clumped around the coastal areas mostly on the eastern side. Most of the desirable land is there so despite Australia's size, we can say that it's expected that price of land will further increase.

[Limbor]

Australia is very attractive country. Moreover, it is an island country which area is limited. Property prices in Australia can be high for this reason. I would gladly move there to live, but I have no money to afford it.

This could also be one of the reasons. Australia's interior is a desert and so most of the cities are clumped around the coastal areas mostly on the eastern side. Most of the desirable land is there so despite Australia's size, we can say that it's expected that price of land will further increase.

As far as I know, life in Australia is not very expensive and not very difficult. Even the government I welcome all migrants who wish to stay and obtain citizenship. They themselves attract more people to their country. In other countries, laws are much tougher in this regard. And about the land and other issues regarding land legislation, this is a separate topic for conversation and I'm not ready to say anything yet.

[freeyourmind]

In this government can't make strict regulations, because people are building with their own earnings and hoping for a bigger Profiting. What the government can do is just make the taxation heavier with the person having ownership for two or more houses.

The government is in control of how much debt can be accessed, and somewhat tied to the cost of that debt.  Those two things on top of personal capital dictates what is "affordable".  As the interest rate has been artificially low for awhile, the cost of debt is low, so it's easy to service and affordability artificially increases (given the same net worth, you can spend or invest more money).  This increases speculative behaviour because the cost for doing so is low.  So here we are, where speculators win and savers lose.  Government created this economic state and can change it, but I don't see that happening because the wealthy benefit the most from it.

[gueorguiev]

Well something that they are doing in Vancouver, and now Toronto is that they implement a foreign buyers tax, which is essentially a fine that buyers have to pay for every year their houses remain vacated.

[freeyourmind]

Well something that they are doing in Vancouver, and now Toronto is that they implement a foreign buyers tax, which is essentially a fine that buyers have to pay for every year their houses remain vacated.

I'll have to double check, but I think those were two separate things.  Foreign buyer tax is 15%.  The vacant-home tax is what you're referring to.

[groko271]

As we all know it's getting more and more expensive to buy a house, and the rate of growth currently associated with investing in a house is just phenomenal, and obviously too good to not be a bubble. We all know that. However, WHEN will this bubble pop?

More and more houses are being built but the demand for it just continues to go up. And many houses are bought and just left to sit there, not even rented out, fueling the problem further because investors just want a safe and profitable investment.

What do you think the governments can do to avoid this? Put a limit on houses per person? Your opinions?

G,day magneto, I live in Sydney and I know what you mean more than anyone. I bought a property in Yr 2000 for $230,000 and sold it in 2008 for $460,000, believe it or not I regret selling. Its impossible to get back into the market. I am waiting for either litecoin to go to $300AUD    or BTC to go to $10,000AUD  and I'll be able to afford a house outright. Currently I live as far away from the city as possible and have a 2 hour commute to work (each way). sheesh!!

Regarding your Question about the housing bubble, I cannot see it bursting in my city or Melbourne due to the fkd up governments not releasing land. There is better news for QLD, WA and ADL as housing becomes more realistic. People have been saying for decades about the bubble bursting and it hasn't and wont happen. It will take a major crisis one of which hasnt been seen in the last 50yrs.

[Hydrogen]

Well something that they are doing in Vancouver, and now Toronto is that they implement a foreign buyers tax, which is essentially a fine that buyers have to pay for every year their houses remain vacated.

Good example of states continuing to raise taxes in an attempt to tax their way out of debt, rather than reduce spending.

That could represent one key point proving: fiat is a bubble.

Continual tax hikes with no attempt to cut deficit will inevitably lead to a spectacular crash.

[cafucafucafu]

Hey, another Aussie! Well, this has been my mind for a couple of months now since I am still looking to buy my first property, while this housing bubble is going on. It is not doubted that the price of housing and land has grown drastically, especially in the last 5 years and especially in Sydney. There has been talk with the government putting a limit on the houses you can own, especially with people owning heaps of properties and investments and renting them out.
 
What think is going to happen is that the banks will start raising their interest rates and then people will not be able to afford properties, causing the bubble to burst. The real problem with the housing bubble is the never ending waves of foreigners who come to Australia to invest in properties, I think we need some regulation against that to combat the housing bubble and hopefully make the Aussie dream possible again.