Reserve Bank’s Glenn Stevens turns jawboning effort to bubbling house prices

After a fruitless attempt to talk down the high Australian dollar, Glenn Stevens has today embarked on a new project – talking down house prices.

The jawboning comes after overwhelming evidence suggests Australia’s property bubble, already one of the biggest bubbles in the world, is accelerating out of control fuelled by record low interest rates.

It has put the central bank in quite a bind, with one hopeless instrument – the official cash rate – to manage inflation, booming housing prices, the excessively high Aussie dollar and surging unemployment. You could easily call it mission impossible.

Increasing interest rates at this point in time to combat the frothing property market, would cause an appreciation in the dollar, exposing trade exposed industries to even more heartache. For much of the past year, Stevens has been trying to talk down the Australian dollar – all in vain.

It would seem sensible for the bank to embark on macro-prudential controls, but the central bank has conveyed its belief it would cause distortions in the market – probably insignificant to the current distortion. The comments sound synonymous with a Q&A session in 2012 when the then Prime Minister Julia Gillard suggested you couldn’t remove negative gearing, as doing so would create distortions in the property market.

Today, Stevens said the bank was unable to further drop interest rates to cushion our faltering economy due to our housing bubble:

In our efforts to stimulate growth in the real economy, we don’t want to foster too much build-up of risk in the financial sector, such that people are over-extended. That could leave the economy exposed to nasty shocks in the future. The more prudent approach is to try to avoid, so far as we can, that particular boom-bust cycle. It is stating the obvious that at present, while we may desire to see a faster reduction in the rate of unemployment, further inflating an already elevated level of housing prices seems an unwise route to try to achieve that.

Stevens is not the only banker ring alarm bells. ANZ chairman David Gonski said yesterday that a correction in Australia’s housing market is inevitable. He said banks “are very aware of history. They know that you can have the growth in prices that we have had and over time and there will be a correction,”

“But the fact is anybody who believes that prices will always go up is a fool,” remarked Gonski.

Ratings agency Moody’s has warned our banks are writing more risky loans with the proportion of investor loans, interest only loans and subprime loans increasing. An analyst for Moody’s, Robert Baldi, even went as far as saying “Australia is out there at the front of the market” in issuing subprime loans. Moody’s senior credit officer Ilya Serov said “The increase in higher-risk lending is credit negative for Australian banks because it weakens the credit quality of their portfolios,”

Ex Commonwealth Bank of Australia CEO and now chairman of the Financial System Inquiry, David Murray, warns real estate is now the biggest risk to the Australian economy.

Two weeks ago, the United Nations warned the Australian housing asset bubble need to be “closely monitored.”

» RBA’s Glenn Stevens urges action to avoid property ‘bust’ – The Australian Finacial Review, 3rd September 2014.
» RBA governor Stevens: ‘Unwise’ to further boost ‘elevated housing prices’ – The ABC, 3rd September 2014.
» RBA’s Glenn Stevens ramps up warning over property investment – The Australian, 3rd September 2014.
» RBA governor Glenn Stevens warns of housing bubble risk – The Sydney Morning Herald, 3rd September 2014.
» House price correction inevitable, warns David Gonski – The Australian, 2nd September 2014.
» UN report warns of asset bubble in housing – The Age, 19th August 2014.
» Moody’s warns on rising bank home loan risks – The ABC, 2nd September 2014.
» Australia ‘at the front’ of growing subprime mortgage market – The ABC, 26th August 2014.
» Moody’s issues Aust bank warning – Business Spectator, 2nd September 2014.


  1. Looks like every media outlet in the country is running the Gov’s comments as headline news. I wonder if this will squash demand?

  2. I am an ordinary person and yet could see the bubble is coming but why Reserve can only see and say now and do nothing!
    The low interest is designed to boost the economy but the money is not flowing into business, instead housing prices are going up out of control soon due to previous and current government policies designing to serve their own interests.

  3. @Ken. Central banks have a mandate to maintain financial stability. Popping a bubble goes against this mandate.

    It is the same reason why Alan Greenspan and Ben Bernanke told congress 6 months prior to the collapse of one of the biggest bubbles in USA history, there is no bubble to go bust.

    But in saying that, the IMF has worked out it is probably better to be pre-emptive and prevent large housing bubbles (They are smart). Pop bubbles with rate rises: IMF – September 2009 (5 Years ago now…)

  4. Glenn, actions speak louder than words. Whilst you flap your gums and somehow feel justified in taking $20,000 a week from the taxpayer, the property investor brigade keeps mooning you. Embarrassing.

  5. Jawboning is his insurance. He is willfully playing a media campaign, rather than actually doing anything.

  6. And here we see the hazards of central banking. It’s great for a while to get everyone at the party buzzing on cheap credit, but sooner or later there’s gonna be one huge hangover. Ours has been one very long party and oh how we did indulge.

    And this is why having floating interest rates is a far better idea – the responsibility gets spread across the whole market and not just a room for of folks with their own agendas.

    Now what’s the bet their reaction will be to lower rates even further?

  7. I think this situation is a result of several factors, low interest rates and the resulting cheap currency, negative gearing and the influx of investors, FIRB and their impotency in the face of greed of RE agents.

    Steps to help this issue I believe are
    Isolate NG without retroactive measures and the market will cool slightly.
    Isolate NG with retroactive measures and the market will face a contraction.
    Increase interest rates and the market will also face a contraction.

    Isolate NG with retroactive measures and increase interest rates and the market will collapse.

    The historically low interest rates coupled with a terrible policy idea such as NG has resulted in what we face today. Huge sums of disposable income have shifted from other parts of the economy and have flown in to RE.

    What happens if housing prices do contract 10%, all capital in a house is wiped out and people face a debt level greater than 100% of the value of their “asset”?

    Of course none of this even considers factors such as an external shock, a rise in unemployment, decrease in ToT, decrease in GDP which is all a real possibility.

    So the question is who will do something to bring this in to line? My money is on…. No one

  8. So, let’s look at all the structural conditions that the Bank, the Treasury, and Commonwealth and State governments have created to cause this house price bubble:

    * restrictions on land supply and encouragement of land banking – check

    * high levels of immigration – check

    * allowance of use of negative gearing on investment properties to reduce tax paid – check

    * encouragement of foreigners to invest unlimited amounts in Australian property – check

    * lack of will and capacity in FIRB to enforce restrictions on foreign investment in Australian property – check

    * allowance of leveraged property investment by self-managed superannuation funds – check

    * pissed-poor regulation of investment in financial assets, leaving investors mainly trusting property investment over other forms of investment (shares, managed funds, etc) – check

    * absence of macro-prudential tools and focus of the cash rate on inflation outcomes, giving the authorities ZERO means with which to manage housing credit – check

    * reduction of cash rate to imprudent levels so as to offset the drag on the economy created by Rudd, Gillard and Swan in their six years of shambolic mismanagement – check

    OK, so against all of those structural conditions, we have … Glen Stevens saying ‘look, it might not be wise to bank on ever-increasing prices.’

    Does he propose to do anything about the structural conditions – no! You’ve gotta be joking.

    He just gasbags.

    It’s gonski. Buckle up and brace for impact.

  9. No one believes it here though. I feel that amongst friends, colleagues and family etc that I’m a minority in my bearish views on housing. Australians refuse to believe that prices can go down. Despite what GS says, no one will pay any attention. I think we are heading for a depression and not a recession due to housing policy neglect.

  10. @ Brad

    Yeah for sure. If we really loose faith in the property sector we will follow Japan, Ireland, Iceland, and be left with economies that don’t grow, don’t manufacture and here’s the big one DON”T BORROW. Here we are 25 years after the Japanese correction, housing continues to fall in dollar terms, what is it like in real terms allowing for inflation?

    If you think the millennials & gen Y are adversed to debt, just wait until you meet a young Japanese person. They are so CONSERVATIVE in their PERSONAL behaviours, as they seen what debt did to their families: Many are still tied to loans that are on property that is underwater 25+ years after it was written.

    A mate of mine was engaged to a Japanese girl, but when push come to shove, she couldn’t leave her job: A job is still a very sacred thing in Japan, and just shows how far ahead in this curve the Japanese are. We now see this trend in USA where workers will do almost anything to keep their jobs: There are several stories where when companies failed post GFC the workers united to purchase the business to keep their jobs: Unlike the years leading to GFC where they united to EXTORT the company: Radical shifts in thinking.

    It will come, give it time. In the mean time try to cash up/ build wealth as quick as you can.

  11. @10 Brad, I totally empathise. Every time I mention at work, or out and about, that we are in a housing bubble, hoping to gauge reaction and sentiment, I am always greeted with denial and the ‘we’re different’ line, followed by a look that says they think I’m bonkers or jealous, and that we should swiftly change the subject. No-one, and I mean no-one, I know agrees with me and the other voices who find solace on this site.

    Michael Francis @9 is right – stupidity is probably the largest factor in this mess. It’s frightening how dumb people are.

  12. More proof the RBA and all levels of government are incompetent and corrupt but I doubt it will affect the majority of people who will continue to vote for them. DONT BUY NOW AND DONT VOTE FOR THEM NOW!!

  13. I have a family member who is a qualified accountant with a high paying corporate position. You would think that someone who studied subjects involving, boom/bust cycles, macro and micro economics, fiat curruncies, insolvency management, etc, etc, would have a greater understanding of the dire situation this Country is facing.

    Instead, this person is in debt to the tune of (I would estimate $4mil)
    and his wife is still looking at more real estate, to add another aquisition to their other 9 dwellings. Recently, there has been talk of his company being sold off and possible redundancies looming.

    Just because you have an education doesn’t make you wise! Infact, I find many people who are successful professionally are substantially more driven by status and greed. Humans can be very irrational, when it comes to money. It’s madness!

  14. On another note, Glenn Steven’s and his ilk know full well what’s going on, they’re just morally corrupt individuals and need to all be criminally charged and sentenced for the damage they’ve done to society.

  15. Jane – that is very common. I know people that have multiple properties that tell me they are millionaires as if I should care and bow down. They are actually in massive debt as the bank owns all the properties. Any dent in their revenue stream in terms of a lack of rental income will collapse the lot. If the economy tanks these people will be begging the government to bail them out.

  16. The other thing that is ignored is the interlinking of debt. Where a business owner has borrowed against a residential property to fund their business. It is not hard to see how the debt mountain will rapidly collapse. Also a lot of people have either borrowed to buy property or have used their super and brought at the peak of the market.

  17. @ Jane

    Accountants are shockers at controlling their own money: Just look at how much they charge and how they try to justify their role. Book keeper $20 per honest hour, Accountant $140 and additional phantom hours. Most accountants aren’t practising accountants, but rather tax minimizers.

    My accountant for the my business went spare when I bought (in cash) a second hand work ute: “You KNOW that you only lease new vehicles for the deduction”……Um….right, two months lease repayments were the same amount as the second hand ute…. (I do have a post grad in management, and was in the top 15 students in SA for maths, but apparently I know nothing of finance).

    When I worked in a rural area I seen it every year, The farmers go mad in June ordering utes so they can write it off: Pay $40k for a ute, to get $10k off your tax…..Or pay the $10k in tax and pocket the $30k….I know which one I’d be doing (hint, it aint what the accountant ordered)

    The problem with accountants is they look backwards and extrapolate forward: If it happened last year it can happen again this year: If that’s the average over the last 5 years, that’s what will happen for the next five years: It’s why they get their predictions soooooo wrong.

    I’ve been involved with several companies where directors for one reason or another have moved on and accountants become directors, they almost always, without fail, collapse the company or destroy any value it had: They don’t understand cycles, customers, stock control. Eg, they reduce stock levels to improve the books, but this kills turnover and creates disgruntled customers, which they justify with “But they aren’t profitable customers, they only wanted xxxx”, or they go the other way and go crazy with stock levels and talk smack about the life time value of a customer (which is code for we’ll just stock EVERYTHING in abundance, sell at low margins, and one day the customers will spend big!)

    I know of one CPA accountant who has a self employed tradie husband, two kids <5 years old, who has massive debt from something like 8 cars in 12 years, a crazy mortgage that got out of hand, setting up the hubbies business, and has just pulled both their super's to set up her own one person accountancy (of course buying the premises with a loan in the SMSF)…..and tapped out every source of funding (code: Mum and dad I need money!)….. Wow! Just crazy.

    But I'm meant to consultate with these people about how to manage my finances….Like hell

  18. The problem is that it has been years now that many of us have been talking about how housing prices are too high relative to rents and wages, and how the fundamentals don’t stack up. We’ve talked for years about how the bubble is unsustainable. Meanwhile others go and spend up big, and get into huge debt and it all works out for them. Their properties are gaining in equity each year, and they borrow more and more. And we “chicken littles” look like absolute fools, while these people are getting richer and richer (and more and more in debt).

    We underestimated the amount of rabbits that our government could pull out of a hat to keep the bubble inflating. Rudd came up with the idea of tripling the FHOG during the GFC. Rudd is responsible for opening the floodgates to immigrants AND for relaxing the laws on foreign investment AND for allowing SMSFs to be leveraged into property. A triple whammy! Not that the Abbott govt has done anything to change any of these bubble blowing strategies.

    On top of all this, who would have thought that interest rates would go so low? And who could have ever predicted that not only would the foreign investment laws be relaxed, they would also not be policed at all? Who ever expected this country to become a place to launder corrupt money from overseas?

    And all the while, those buying into the madness are still winning. Property prices are STILL going up, on top of what is already extremely overpriced.

    When will it end? Who can tell? There’s no reason why we couldn’t let rich Chinese investors buy up everything and price out everyone, except for the extremely wealthy. We could open the floodgates even wider, if it means placing even more demand on property and drive up prices. We can still kick this can down the road for years. Or it may end tomorrow. Whenever this bubble does burst it’s going to be earsplitting. But who knows when that will be?

  19. @md
    Just because some people have made a paper profit on investing in property in the past doesn’t mean now is good time to invest in property. Past performance is not an indicator of future performance. The fact that properties are so expensive is a good reasons why now would not be a good time to change your behaviour.

    By using negative gearing investors are losing money on their investments (i.e. the rental returns don’t cover the costs of owning the property). As a result it must be more affordable to rent than own.

    Encouraging owner/occupiers to buy overpriced dwellings means that mortgage slaves must require larger incomes and thus be less competitive with workers in other countries. Also the sectors of the economy that are doing well (e.g. mining) are now turning to robotic and automated replacement for workers (such as driver-less trucks and trains) to increase profits. Those profits are going overseas as a result of our big miners being owned by foreign corporations and investors.

    These factors drive a vicious cycle of retrenchments and rising unemployment which should ultimately lead to a crash. If there isn’t a crash, because of continued overseas investment, you can bet that there will be a voter backlash as more and more Australians become destitute in their own country.

  20. Nexus 789 – Yes, the bragging and the ‘oh your JUST renting aren’t you’ line I cop from people that are huge debt slaves makes me so annoyed. All I want is a simple roof over my head for a fair cost, like my parents generation had 🙁

    Matty – It sure seems that way, although this particular person I’m referring to was always a miser growing up, he saved every cent and I remember him having enough money to pay cash for his first car. Once he hit his strides career wise and got married things started changing. To be honest, I think it’s his wife who is the out of control spender, always wanting more, never satisfied with what she has. He needs to stand up to her demands and halt her accessing real estate dot com.

    MD – The reason interest rates are so low is because we’ve entered a recession, the growth rate for the last three quarters has been dismal! The powers that be are just not broadcasting the real facts. I believe, we are closer than you think to a meltdown.

  21. Sorry, I meant unsustainable instead of sustainable when talking about the bubble in the first paragraph.

  22. @md! Good analysis.
    During the GFC period, the Rudd government over spent and overdone many things (changes of foreign investment law, SMSF allowed to borrow to buy houses). When Coalition came in, I genuinely believe they would do something about the negative gearing, if they are serious about the budget control; this is the best opportunity to change the negative gearing which has been subsidized by tax payers multi-billions each year.
    The Home price will not go down much as (because of the negative gearing removed) there are many factors (interest low, SMSF, foreign investors demands, migration etc.) supporting the market.
    Instead considering negative gearing (Henry Tax Review recommended many years ago), the government is robbing the future (Super saving) for their own interests (voting). Tony said he wants to see more money in peoples’ pockets rather than in the future.
    I just can’t understand the logic, unfortunately the country is run by self-interest politicians and I feel there is no good future for those who are doing the right things, save-up, don’t overspend, stay within the mean etc.
    The system encourages people to borrow as much as they can, spend now (economy need your money), $1 today is not $1 tomorrow in value. Fiat system seems to be good but collapses one day as people (politicians and bankers) are not honest.

  23. Too true md, the market can remain irrational longer than you can remain solvent but it is not a matter of if only when it will collapse.
    Nouriel Roubini pointed out the crash in 2007 was worse than the Great Depression and it would take years for the ramifications to play out. After 1929 it took a decade for the rush to deflate and the concomitant hyperinflation to take the world to war.
    Styajit Das has pointed out how there is no way out of it (
    Charlene Chu has probably identified the trigger (
    Just a matter of waiting and watching.

  24. It is a joke to read Glenn’s talk, who kept denying a housing bubble in this country for ages. Glenn is a key pushing hand to blow up the bubble. But now he says there is a bubble risk after everybody.

    What happened to Greenspan after the bubble burst in US? Everybody suddenly realised that he was the creator of the economic disaster.

    Will Glenn follow Greenspan’s example? Let’s wait and see.

  25. Ken, negative gearing has long outlived its usefulness. The more that prices decouple from rental returns, the higher the sum it’s costing the government (taxpayer). But the government is in a bind – if they remove negative gearing or change it (say for new builds or whatever) then they know that prices will fall.

    And yes, there are other factors supporting the market as you say, but making changes to any one of these factors, like getting stricter on foreign investment, or reducing immigration would have an impact on house prices.

    We are in a “perfect storm” where so many of these factors are in play to produce and maintain one of the biggest housing bubbles ever.

    Just imagine if most or all of these factors were changed (or if change was forced upon us) and the whole thing came crashing down! But meanwhile, yeah, the politicians are a self-interested lot. Still, Bob Day is one to watch – he is the only politician to talk about the housing bubble so far.

    And BurstGodamnIt, the market is irrational but nothing surprises me any more. If it stays like this for the rest of my life I wouldn’t be surprised; and if it spectacularly burst in our faces tomorrow, I would also not be surprised.

  26. Bob Day is a property developer who has recently sold up most(?) of his properties before taking up his position in the Family First Party.

    While he is outspoken against Negative Gearing I still think his motives are suspect.

    Could be a wolf in sheep’s clothing.

  27. As quoted before,

    “The central bank is an institution of the most deadly hostility existing against the Principles and form of our Constitution. I am an Enemy to all banks discounting bills or notes for anything but Coin. If the American People allow private banks to control the issuance of their currency, first by inflation and then by deflation, the banks and corporations that will grow up around them will deprive the People of all their Property until their Children will wake up homeless on the continent their Fathers conquered.”

    The answer is to get rid of the corrupt and criminal religious institutions, government and privately owned central banking manipulative enslavement system. And for we the people reinstate our inalienable rights as beneficiaries of the government we create. Instead of the above mentioned as the beneficiaries. Put into place a sound currency system. Allowing the treasury to issue the currency backed against the assets of our country…


  28. Investment loans, which now account for about 40 per cent of all new lending, have higher probabilities of default and loss severity than owner-occupied credit. This is partly because over 50 per cent of all investment loans are interest-only products that result in no pay-down of the original principal sum.

    Christopher Joye

    I wonder how much equity these investors have? This is of course the buffer that the banks have in the event of a correction.

  29. ABC’s Alan Kohler must also be getting a bit desperate after months of doing his best to talk down the Australian dollar.

  30. David, in a rising market it makes sense to borrow interest-only, and then as soon as one has equity due to rising prices, to take it out and buy yet another investment property. This is, of course, the get-rich model espoused by all property spruikers.

    As we know, the danger is when prices aren’t rising any more. But in this 23 year boom we have been experiencing, the government has made sure that prices always rise. And this is the point I was making earlier.

    The question is – to what lengths will the government go, to make sure that prices keep going up? To allow the bubble to burst, especially now that it has grown so enormous, would be catastrophic. There are more people up to their eyeballs in debt than ever before, and all of it weighted in property, whether for homes or investments.

    And how would they keep the bubble growing? That’s the easy part – just keep all the measures in place that have grown this bubble – high immigration, unrestricted foreign investment, neg gearing, low interest rates, the media keeping up the same “no bubble” story etc. etc.

    So while the bubble causes untold stress and damage to the fabric of society, at least there is a boost to the construction industry, as well as the wealth effect, which keeps people spending. There is already the belief now that parents must help their kids if they are ever going to afford to buy, so it becomes a multi-generational thing. For others, they are waiting for their parents to drop off the perch so they can inherit millions of dollars of property. And for those outpriced, well never mind, properties will still be sold, but now to foreign investors.

    You mentioned earlier that there would eventually be a voter backlash, but that would take many years. There are too many people with vested interests who are profiting from the bubble. And by then, half the country will be owned by foreign investors anyway, so it will be too late to do anything. China’s property bubble might be bursting, but the Chinese are all investing in Australia and other countries. They will sell their Chinese properties if they need to, long before they sell their Australian ones.

    So, in a nutshell, (and to be a bit of a devil’s advocate) does it matter if property owners don’t have much equity? Not while the bubble is kept alive, and this could keep going for a while yet.

  31. What I don’t understand is why there is not more protests and marches. The Abbott government is already unpopular.

    The dole queue is surging Dole ‘emergency’ as unemployment line triples (5th September 2014) and it appears more people are leaving the workforce (giving up) than ever before – just watch the participation rate. And isn’t youth unemployment now at levels not seen in 36 years.

  32. md, your model can only work as long as there is liquidity in the system. The Australian housing market is overwhelmingly reliant on the provision of credit from overseas markets (only 65% of home lending is sourced from deposits compared to USA’s 90%). When this source of credit falters then credit will be choked off and a like a flame without air the fire will out. I disagree the Chinese could be a replacement source of credit as they will suffer the same fate at the same time only compounded as their shadow banking system is currently well and truly in the ponzi phase.

  33. @36 Oh Pete, how I empathise with you totally, but this is Australia, not France. There are no protests and marches because the masses have been dumbed down and disenfranchised by mindless entertainment, junk food and the Murdoch press. I speak to young (and middle-aged) Aussies every day and, not wanting to generalise, but many are totally clueless and apathetic about most issues. The whole thing is a mess.

  34. Personally I think this is going to end very badly for debt holders. I have a house in auckland that I will sell early next year but I wouldnt buy in Sydney. 2 bedroom apartments in Auckland City – 300k, in Sydney, Wolli Creek – 10km from city you are looking at roughly twice that.

    A generation has been lulled into a false sense of security – desperate to keep up with the joneses, coupled with their parents telling them property only goes up, and their parents buying more. We know they go down with a simple study of US home prices. Aussie has had a mining boom over the last decade but house prices have dipped three times – what happens now when mining boom cools?

    Its all great fun until interest rates kick up. This will occur when credit markets cease up again – the catalyst being another market collapse or some sort of increase in global risk aversion – this is not an ‘if’ – this is a ‘when’.

    Stock market is only going up cause smart money can manage liquid investments (heard the smart money is moving into liquid largecaps) – debateable whether there is more value now than pre GFC. The rest of us unsophisticated investers can only get our head around property…..No rational investor would take Sydney yields unless they are betting on capital gains. If this fails to materialise ther is a very real risk they will run for the door at the same time.

    A significant hunk of middle class equity will be wiped out fairly hastily if interest rates rise. This could happen if there is a currency crisis and countries try to support their currency as markets loose faith in fiat. Gold will go many times higher and bitcoins too.

    I will be short banks, long physical gold and gold stocks and short property/debt before long – Dont talk to me about utility when you have very crappy interest rates now and stocks like CBA that could wipe out your 5% divis in an afteroon if things heat up. Soon savers will be rewarded very well but will there much money for middle class to invest?

    I believe this engineered not to make the wealthy super wealthy , but to make the middle class ‘wanna be’s’ broke – induced mainly by their own foolish greed. Makes me laugh how many women I see wearing LV who take the train to work – probably had to save 6 months for it.

    All in my humble opinion…..

  35. I also meant to mention that based on the unattractive yeilds and increasing interest only loans on ‘quality’ properties in Sydney, isnt most new investment property purchases really just speculation?

  36. @36

    Rupert @38 +1

    Yep: Lets compare things.

    Greece: No pension until you’re 55=Burning banks and government buildings

    South Australia: No pension until you’re 72=Nothing, get to work as per usual (Oh, but we did line up over night for iPhone5 and Crispy Creme donuts!)

    If people don’t understand why this is happening, watch the 7 stages of empire by mike moloney: It’ explains a whole lot of what is going on in the western world.

  37. You guys do know there’s dozens and dozens of other countries you can live in with way way way better standards of living and cheaper houses than Australia yer?

    Australia is pretty much signing yourself up to slavery. It’s great for immigrants coming in from war torn countries. But for the rest of you… Imaging living the prime years of your life with no hopes, dreams or aspersions… that’s Australia for the next 100 years. Also, working till you’re 70+ W…T…F…. you do know most people stop around 50-60. You guys are getting royally royally fked so hard. Youre slaves to feed baby boomer retirementioned funds (houses) all because they don’t know how to invest in productive assets.

    Plus those ‘urban growth boundaries’ should be called ‘urban supply constrictions’ in no way shape or for should the words growth and boundary be used, talk about choosing words carefully lol. Wow. If I introduced a ‘fiscal refund return ammendment’ but then used it to jack up income tax 50% you’d sure as shit take notice but hide it behind an essential commodity and pow, blissful ignorance. You’re as complacent as a teen at a rohypnol party.

    Enjoy being slaves. So glad I’m in the US now. I took all my savings, shoved them on PayPal. Converted it to USD. Funny as. Didn’t declare taking it out of Australia. Used it to buy a house here. Still have about 100k left which will last us for decades.

    Now we’re free to do anything we want. Been to Disneyland twice this year . . And I’m looking at buying a second house outright already and we’re not even 30.

    Honestly fk Australia and screw both the libs and labour for turning all my mates into slaves. I’m gonna get as many of my hard working friends and family to leave Australia because I want them to be free and have the opportunity to succeed. Really succeed. Not this phony nonsense of ‘just getting by’ but being millionaires.

    If a man can physically build himself a house in 3-5 years why does it take him 30 years plus his wife’s income as well to do the same thing in Australia. Why? Because his effort is going into someone else’s pockets. Yer rates are low but I’d still rather pay 10% on 100k than 5% on 500k.

    Good luck Australia but without a crash and a reset your workers are fked for a couple of decades. Enjoy being slaves and living like Japan and having your suicide and depression rates skyrocket and your windowless ‘luxury apartments’ get smaller and smaller.

    You guys have been indoctrinated to think you can’t do anything by yourselves. You’re like babies waiting for handouts. None of you seem to understand just how much potential each one of you has. It’s like the baby boomers have said to you all ‘you’re worthless and can never do as well as us’ so you’ve all sat back and accepted it. Grow some balls guys and girls youre so much more than your parents and grandparents. They know it and will do anything to stop you building a future because if you do their past then becomes worthless.

  38. Let’s not forget that politicians are rich people themselves and no doubt would have invested heavily in property themselves (there was a recent article on that). Here we now have a corrupt position not unlike what you get in Asia. Our policy makers have their own personal wealth tied to their decision making. Self interest kicks in for the limited period they know they will be in office. To their defence, if I was in their shoes I’d probably do the same. Why would I kill my wealth creation engine AND commit career suicide by implementing a policy everyone will find unpopular! In many ways, Australia is no better than most other developing nations, we just think we’re developed because we inherited our culture from our developed ancestors and frankly it would be shameful to be the only “white” english speaking nation to be considered developing. We have a resource heavy economy sucking the wealth out of the nation into the pockets of a corrupt few. Our political system is a bit of a joke, with such little faith from the population that we force everyone to vote.

  39. @Matty, what, you worked hard, paid taxes all your life, and you want a pension? That’s where the government comes along and tells you you’ve got an ‘entitlement complex’. Oh, and they’ll need to dip into your super at some point too. Can’t be planning for the future while profits can be made today!

    As others have suggested here, the best form of insurance you can have is another passport or two. The great south land is becoming the great debt hole…

  40. OZ great country even better people.20 years ago the future looked good.Houses were affordable.Wages(by numbers)were almost the same as today.What went wrong in this land of equal opportunity for all participants(semi skilled,skilled and professional).The freemasons,that rule,implemented Agenda 21 and sustainable development,tightened the screws and destroyed the OZ workers.Did you know that farmers here get $30 for 1000 kilos of oranges.Free trade and globalism must be replaced by protectionist policies.As it once was,when this nation was prosperous for all.Otherwise,things will only get worse.The reserve bank(private corporation)must be shut down and replaced by a government for the people by the people.Pronto.Say NO to NWO.

  41. 46. Well I used to joke that if Australia started as a penal colony and the inmates outnumbered the police, most of Australia’s population today would carry those “opportunistic” street-wise genes… A similar thought pattern could explain why Australian women are considered beautiful by world standards… 😉

  42. Does anyone know how to a build a house cheaply in Australia, without paying hundreds of thousands of dollars in excessive taxes? Something like a tiny house, which could be knocked up in a few months.

  43. In USA, the national median price of a home for sale March 2014 was $169,800. The US has way higher population density than Australia. We are getting scammed beyond belief.

  44. This idiot has done nothing but degrade the living standards of ordinary Australians…I wish someone would shut his jawboning trap once and for all…we need a better person to be RBA rep. that will actually do us some good, not an idiot with a trap that wont keep shut giving us all a greater cost of living expense…, so GO AWAY GLEN STEVENS…, get lost…period…you dishonour Australia and Australians…

  45. Truth,

    Agree with you. Glenn Stevens shall be ousted from the governor’s position. He has done nothing good for the public. Purposely keeping cash rate below inflation, he is the creator of the housing bubble, which sucks the blood the economy into the cruel speculation game.

  46. Yes, my saving $1 yesterday is not $1 today anymore. My saving $1 today won’t be $1 tomorrow either, it is teaching not to be saver, (good job, RBA). In my opinion, politicians who allow foreigner to buy (old) property for investment and forced Australians to compete with them are traitors too. I won’t vote for them, Never!

  47. get rid of glenn, and another will fill his shoes perfectly. he will do what all in his position have (and will) done which is keep reducing interest rates as they continue their decline, and jawbone.

    his position serves the elite. as does the fed reserve in usa.

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