Comments on: Australia’s housing asset boom slams on the brakes

By: 2bob

2bob — Wed, 03 Nov 2010 05:26:25 +0000

AverageBloke, falls in Syd are a done deal and Melb as well its just a question of by how much now!

By: Peter

Peter — Wed, 03 Nov 2010 01:44:26 +0000

It is amazing how the media is very involved in stoking the flames in the housing price bubble. Telling punters that Australia is a special case and how the banks are all so evil. No doubt ,media fortunes are tied to advertising revenue, much of which is derived from the real estate sector but I suspect that journalists too have a vested interest in maintaining the housing price bubble, as they too own real estate.

By: Romsey

Romsey — Tue, 02 Nov 2010 09:18:30 +0000

Looks like the fairy tale is not going to have the happy ending the fools thought it would.

Interestingly I posted in the readers comments section under the article about the CBA raising it’s rate above the RBA hike today and I got slammed by hundreds of people for supporting the rise. It amazes me that so many people have the “I want it all but not have to pay anything much for it” mentality…… CBA’s rates are now sitting on the 8% range and everyone is abusing them for ripping off consumers…… back in the mid 2000′s interest rates were just under 9%, so really what is the big deal?…. the only diff now is that clowns have borrowed so much more for things that aren’t worth it………

I look forward to Westpac’s profit report and it’s raising of rates along with all the other banks, at least now there is a hope that realestate will return to a more normal cost versus cash flow level.

By: J Hill

J Hill — Tue, 02 Nov 2010 08:10:49 +0000

I wonder how all the investors feel about these figures?

Is the Pyramid Scheme over?

By: AverageBloke

AverageBloke — Tue, 02 Nov 2010 00:39:57 +0000

I must see negative figures from Sydney.

By: Brandon

Brandon — Mon, 01 Nov 2010 17:42:06 +0000

The debt levels, affordability issue and higher interest rates is going to kill the property market. Add the amount of money the banks have borrowed from overseas then you have some major problems. Australia cant keep consuming much more debt. Everyone says well Australia is different. The difference is Australia has dug itself into a deeper hole than the US and other countries. REMEMBER THE US WAS HAVING HOUSING SHORTAGES AND THE UK. WHERE ARE THEY AT TODAY?

Australia depending on China is really what will be the future issue. China has 64 million empty units/houses, roads leading to now where, cities that are empty, bridges being built in the middle of now where, and 60% of their current GDP tied to all this stimulus money the govt granted 2 years ago then something isnt right. If Australia and China do not go through a correction then it would be the first time in history that this didnt happen. Its not if its coming but when.

By: Alex Barton

Alex Barton — Mon, 01 Nov 2010 11:50:42 +0000

Today’s ABS data shows priced down in five cities, and up in three, but a slight positive national figure (due mainly to strong Melbourne result). The question is what happens from here. Will Q4 be the first quarter to show a national fall. If so, that just might spook the public and falls could accelerate. But it prices rise in Q4 then the public will think the worst is over and we’re back on an uptrend. Public sentiment is everything. To be honest I don’t think the political will exists for more housing stimulus. Both parties are too weak, they’ve got more important things to think about, and frankly I’d wager they’re happy with this flat result. A ‘soft landing’ is exactly what the RBA and government wanted to achieve, and that’s what they’ve got here.

Alex Barton
Australian Property Forum
http://s4.zetaboards.com/Australian_Property