The Australian Housing Crisis Just Got Worse.
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- Опубліковано 28 чер 2024
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Australia, and many other countries such as the U.S are facing a housing affordability crisis. The average home price in some cities is now 10-15 times the average household income. And at the same time, interest rates are at the highest point in over a decade. But if buying a home is so unaffordable, why are prices still going up so fast? Why are they expected to continue rising for the foreseeable future? And if you’re in the market to buy a property, should you buy now or wait for conditions to improve?
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Disclaimer:
The information in this video is general information only and should not be taken as constituting professional advice from Hamish Hodder.
Hamish Hodder is not a financial adviser. You should consider seeking independent legal, financial, taxation or other advice to check how the information relates to your unique circumstances.
Hamish Hodder is not liable for any loss caused, whether due to negligence or otherwise arising from the use of, or reliance on, the information provided directly or indirectly, by use of this video.
I bought my home on the Gold Coast for just 8 grand. I moved in a month ago. It is a 2006 Honda Accord.
8 grand is a bit expensive for a 2006, no?
@@DuncanL7979depends on when he bought it right?
Don't you mean Holden Commodore or Ford Falcon? Fancy Honda home eh?
@@Central-Scrutinizer Is that your attempt at humour or something mate? Ha freaking ha??
Yeh non of this is realistic to a massive population of the country..
People don’t have any money left over each week.
2 adults working at minimum wage makes it near impossible to save any money after just general living..
The housing market here over the last 7-8 years is unlike anything i have ever seen. Homes that were bought for $130k in 2015 are now being sold for $590k. I’m talking about tiny, disgusting, poorly built 950 square foot shit boxes in quite mediocre neighborhoods. Then you have got better average sized homes in nicer neighborhoods that were $300K+ 10 years ago selling for $750k+ now. Wild times.
A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
On the contrary, even if you’re not skilled, it is still possible to hire one. I am a project manager and my personal portfolio of approximately $750k took a big hit in April due to the crash. I quickly got in touch with a financial-planner that devised a defensive strategy to protect and profit from my portfolio this red season. I’ve made over $350k since then.
@@hunter-bourke21 Interesting I think this is something I should do, but I've been stalling for a long time now. I don't really know which firm to work with; I feel they are all the same but it seems you’ve got it all worked out with the firm you work with so i surely wouldn’t mind a recommendation.
Research and choose someone with a plan for consistent portfolio growth; "Camille Alicia Garcia" has done well with my investments, and I believe she has the qualifications and expertise to help you meet your goals.
Camille. Has the appearance of being a great authority in her profession. I looked her up online and found her website, which I reviewed and went through to learn more about her credentials, academic background, and employment. She has a fiduciary duty to protect my best interests. I sent her an email outlining my objectives and also booked a session with her; thanks for sharing.
Damn, I knew I should have bought a house instead of being in year 3 :’(
Your only hope is If your parents own their home maybe you will inherit theirs assuming they don't downsize or end up in a nursing home. Also you'll probably have to share it with siblings if you have any.
Haha! Don't be so hard on yourself. You still have plenty of time to make your dreams come true.
20 years ago housing wasnt a investment it was a home.too many people with mummys and daddyas money deciding to buy multipule investment properties.too many poeple watching the block thinking they can buy a fibro dump and flip it for a quick million.then people buy the thinking well the price is gonna be higher later i have to buy now.then the cycle continues demo rebuild resell.
@@Mister_Skar Both my parents have less than 1k in their banks and don't own a property, RIP
Tents are still cheap
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Government puts more people in debt
It’s getting wild by the day. The prices of homes are quite ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 7%). Sometimes i wonder if to just invest my spare cash into the stock market and wait for a housing crash or just go ahead to buy a home anyways.
Due to my demanding job, I lack the time to thoroughly assess my investments and analyze individual stocks. Consequently, for the past seven years, I have enlisted the services of a fiduciary who actively manages my portfolio to adapt to the current market conditions. This strategy has allowed me to navigate the financial landscape successfully, making informed decisions on when to buy and sell. Perhaps you should consider a similar approach.
please who is the consultant that assist you with your investment and if you don't mind, how do I get in touch with them?
Well, there are a few out there who know what they are doing. I tried a few in the past years, but I’ve been with Margaret Johnson Arndt for the last five years or so, and her returns have been pretty much amazing.
Govm in Australia will never fix housing affordability because most of them own investment properties and get tax breaks for them.
Yep :') they've been the landlords bleeding us dry this whole time
@@damien678happily stealing First-nation Australian's wages whilst probably investing these ill-gotten gains, only just acknowledged, about 100 years later.
Soooo it has zero to do with the Albanese govt. letting in 250,000 migrants in 24 months? Fucking cannot take any nuanced debate on housing that overlooks this issue seriously.
@Edgar-xh8iu both major political parties are in bed together when it comes to our economy, thinking otherwise is just dumb. It's just a good cop/bad cop machine.
As much as people like to shit on government (I like to as well), we have to acknowledge a big problem as well is Negative Gearing and CGT. When Labor tried to run election campaigns on those issues, they lost. It showed a majority of the voting population obviously has a stake in the property market and aren't willing to see concessions made in regards to them. I blame them as much, we need to see a shift in the landlords of australia, which unfortunately, was marketed to the middle income earners as a supplementary income source, especially at the higher end of middle income earners, and has now become common for them.
I never knew that when I became an adult that a HOME to live in will become a scarce commodity that's reserved for rich people
Same
That's been the historical norm throughout civilisation. The richest 1-2% own everything and everyone else serves the rich as slaves, serfs or subjects. It's derived from our heritage as one of the species of apes. Apes run around in packs or tribes with one as the Alpha leader and the rest in servitude to the Alpha. The human drive to greed, wealth accumulation and obsession with social status is deeply instinctual. It's also why we spend so much effort waging useless wars. Apes are highly territorial species. I blame in part natural selection for social misery. If only self-consciousness & language had evolved in cats instead of apes we & the planet might all be much better off...
This video didn't mention that there is a state 'transfer duty' of property deeds when you buy a property, more commonly known as 'stamp duty' here in Australia. Each state is a bit different, but here in NSW for a house over $1,168,00 (which in Sydney is basically all of them). Stamp duty is $47,295 plus $5.50 for every $100 over $1,168,000 ON TOP of the principle to purchase the house. Then there's lawyer fees, moving fees, inspection fees, real-estate fees etc etc. So that can add another 100k easy to a 1.3 million house. This is another reason that state governments LOVE insanely expensive housing, because they make an absolute FORTUNE in stamp duty tax coffers, and they are hopelessly addicted to this $$$$ scheme.
I totally agree with this, there is no incentive for the government to stop the ballooning house prices or sales as it would negatively affect themselves and the taxes each state receives.
Finally someone else says this!
@@philus85 There is plenty of incentive. Pushing up home prices and therefore rents lowers the standard of living for people of a lower socio economic status. Those people then need more government support, which costs them heaps more.
We had a government that was phasing out stamp duty. We voted them out.
@@Foetoid2k6 How does that incentivise State and Local Politicians/bureaucrats? They just give themselves a pay rise to cope with higher living costs and more. The government support is mostly federal and they just tax small business and the workforce, all the while blaming each other as the cause.
Australia also allows non-residents to buy property. A significant number of properties are being bought by overseas investors that have never lived and never intend to live in Australia; being kept vacant to be flipped for future profit. Inner city apartments on the east coast in particular are notorious for this.
They also park their money here in property because it's safer. Some countries have governments that can literally take your wealth from you. It's not safe for them to keep money in their own countries.
Should just move into those places. They'll never know LOL
Yep 😅
I agree with that
Not to mention visa opportunities, and I've seen a few residential get bought out by foreign grow and then they whack in a cash only business to the side of it with signage out the front like it's a slum 🎉
so sad, all my neighbours here in Melbourne aren't even here. They live in china and invest their money in australian houses. Immigration has not helped.
same here in Perth. Doesn't help!
That's a very polite way of saying Chinese commies are taking over Aussie real estate lol
The government needs to implement a ban on foreign ownership and force mandatory buy backs. This would do wonders for the locals as it would increase stock and potentially lead to a decline in prices.
This is the same reason why Londons richest areas are empty
Immigration is a stain on the country, terrible idea, absolute retardation of the Australian government. Anyone Chinese shouldn't be allowed to buy any property unless they live in the country and are a citizen.
My issue with the housing crisis is I feel it is all artificial. The government will do their very best to prevent prices going down.
Wait till a company like Blackrock exist there. Maybe after the bubble burst
@@sn5301679govt will do everything to prevent a bubble
And they are quite effective at it.
That's so true.
@@furry_homunculusall governments around the world are terrified if housing prices come down. They will do ampnythingnto keep the housing prices going up. Every govt has printed too much money. Or borrowed too much. They cannot shrink their govt. It needs higher prices and higher taxes to continue. The need more and more debt to continue to grow. If property values drop then we get mad and ask why we pay such high property taxes. Then they threaten all the money to help the old and poor will be gone if we don't pay super high taxes.
As an Aussie this was great, I would love more high quality videos on the Aussie market like this here on UA-cam. Mad appreciated!
Respect i have for u
My uncle in the 90s. A 24 year old apprentice sparky. Bought a house on his own in Richmond. Unbelievable
My mum and dad in the mid 80s bought a house and land in Sydney with cash...
@@adamj8099 When they die you are rich.
Everything was more affordable before John Howard
@@user-ss8rz9mr8p Government is in talks now to introduce an inheritance tax to stop this
@@adamj8099bloke at my work built his house with 80k . .
knew i should have bought a house back in grade 3 😩
😂😂
When I first started working (1998), a 3br house was $200,000, but I was single and living in shared house accommodation earning under $30,000, so wasn’t able to enter the market then. Then market took off and even though I got higher paying jobs, housing prices were much higher by that point.
Maybe get rid of bogan culture ? Delete centrelink . Your parents should have prepare properties for you . Why you guys think every property owners are Chinese and Indians . We have correct mindset
@@nonotthaonewhat are you exactly saying? That it's unfortunate to be born white?
exactly dude, survival of the fittest, adapt or die. just admit aussie bogans are spoilt. stop complain. you have no right to protest about any issue, unless u have contributed to the financial stability of your family. before that , be quiet. SHHHH@@nonotthaone
Don't forget the average household income is pretax income, but the house price is aftertax money with stamp duty etc on top, so if you calculated it that way, would be more than 10-15 times
good point
Plus with very high cost of living, the amount you retain of said inome as savings for a house is lower than normal so this metric is further blown out. The avo on toast argument aged poorly.
@@nfc14g It's absolutely impossible to save for a house if you're renting too, you're forced to either live with your parents or share your living space with atleast two other people.
Taxes made from all things property should not be overlooked also. I never hear anyone talk about gov revenue multiplying merely by encouraging bubbles.
and that's just the cost to get the home, that's not factoring in stuff like owning it, i.e. council rate. Which of course won't be that much more, but it still adds to it.
My dad in the early 2000s managed to buy a home, supporting mum, and three kids at the same time.. he worked 2 jobs and it killed him but that would not even be close to being possible these days.
Same, my old man got a house in '95. He worked as a labourer. Sometimes on the weekends and I helped him. Paid it off in 10 years.
if you had 2 jobs these days you'd be lucky to even think about buying a house
I do that now days?
I bought a 300m² land and house package, $365,000, suburbs of Perth. I was earning $55,000 before tax at the time of getting the loan, with a $35,000 deposit, still had money to spare in my budget after the house was built. Now I earn $100,000 before tax, and very easily have the capacity to support a family. I started the process 4 years ago though.
I didn't think I could get a place, I was just curious what I could get and how much I'd need, so I looked around a few builders, found one with a good track record, and went in for a meeting just out of curiosity, came out of that meeting with a house on the way.
@@N3G4T3You’re lucky. I never thought about moving to Perth I’m from Sydney and would consider country NSW or VIC but even those prices have exploded. I once saw a shop for sale in some area in WA it may have been 2hr drive from Perth and it was dirt cheap.
Melbourne really isn’t the best place to live, let alone in the world it’s not even the best in Australia. It is rampant with crime, both the people and the politicians. I’ve lived in Brisbane and Adelaide and Melbourne doesn’t come close to either, don’t believe the hype it’s normally younger people living in the city, partying etc thinking it’s great vs families wanting peace and quiet. I’ve been here 3 years and had several murders near me and I don’t even live in a bad area, people don’t even follow the basic laws on the road and the police presence is almost zero.
Melbourne is an absolute dump
I'm born and bred, Melbourne. In the 80's and early 90's, it was a magnificent city. That's changed. And it's changed, a lot. I left Melbourne 27 years ago. I go back now and can't believe the devastation. It's become a traffic congested cultural void. And everyone seems so darned angry and uptight. No one has the time of day, for anything.
The city is too big. Community is gone. It's just a bunch of ghettos now, that no one can really afford to live in.
@@davidbrayshaw3529 Melbourne is truly magnificent because I live there.
sHHH.... don't tell them that because then you'll give the halfwits an idea about moving out of this cancer infested shithole. Let them stay in their LiVeAbLe city.
@@davidbrayshaw3529Sydney syndrome... everyone is scared to make eye contact, a random smile is never reciprocated, and "excuse me, sorry" is a phrase that doesn't exist in anyone's lexicon anymore
As a home owner, id say prices went up hard due to the influx of overseas money, especially those that came here to "hide" their money in property, and most of them didnt care about the proce or just outbid the rest of us.
Demand and availability....yeah...30,000 new homes a year and a 300,000 immigration.
No chance of affording a place anymore.
Hey, I'm a kiwi and Perth looks good. I've got equity but if I sold here I'd get an average house at best, you guys pay high wages, kinda makes sense for us
Canada has put a ban on foreign investors to get the house prices down
The fact is- if the government stopped immigration last year we would be in a recession.
@@dominicwang5846 because people like me cruise over and pay a high price for a home except to us, coming out of Auckland, it's much cheaper than home so we drive up prices. Sorry....
Don't live in a city. Move out to the country
I think its a rort that no politicians have done anything about this. How many days or hrs did it take them to put covid restricitions in place, and how strict they were about it.
Why do you think they want to change it?
Labour did, they took it to an election ... and against all odds ScoMo won. I 100% believe it was because Labour were going to do something about investment properties ... that they lost an election everybody predicted they would win. The voters fkd it ...bunch of turncoat Labour ppl voted Liberal because they had or wanted to get an investment property
Because polititians usually have multiple investment properties, in addition to their ppor. So it is in their own best interests to enforce policies that keep the ponzi scheme going. ie, increase imigration to keep housing demand high.
Their primary voter demographic owns at least one property, many of those owning two or more. They keep their jobs by ensuring prices increase, regardless of whether they themselves own property or not.
The Greens are constantly working to change exactly this.
The other issue keeping prices high is the government not reducing immigration, maintaining record high immigration is ensuring the demand outweighs supply. And also governments acting slowly on development approval and land releases adds to this issue. We basically need the government to recognise they are the biggest part of the problem and do something about it, issue there is many MPs have property portfolios so you are asking them to take actions that will negatively impact their personal wealth... This is exactly why members of parliament should not be allowed to invest in the stock market or property because when they do it creates a conflict of interest.
Oh they know they are part of the problem, they don't care because being slow is profitable for most people working on the project.
This is why the indigenous communities never see a dollar of the tax supposedly garnished into programs to help them.
Absolutely right. Apparently we'll have a net migration of HALF A MILLION PEOPLE this year, which is a solid percentage of the existing population. We'll never have affordable housing with the insane levels of competition this amount of immigration brings.
it is the immigration that STOPS the economy going to recession. It is also the immigation that works hard and pays tax for centerlink@@Rollin8.0
Don't forget the biggest voting bloc are boomers whose net worth is tied to their house
They know they are part of the problem. They just have zero incentive to change.
My parents bought our 7BR family home in Melbourne 1988 for $138,000.
The fact that doesn't even equal a house deposit for a 3BR home these days is absolute bonkers
that would be the equivelant of buying a 7br house for 350k ish, pretty depressing
@@minutemangangplank8599 Yep. Massive block of land too, all on dad's $60k salary. Plus we had an onsite caravan in Anglesea and we didn't want for anything. That Aussie dream. It's so fucked up that my wife and I earn so much more but with kids and soaring rents, we can't put money aside for a $200k deposit.
@@PyjamaLlama it really feels like the ladder has been pulled up and the door slammed in our face aye
Enjoying that generational wealth? hahaha
@@minutemangangplank8599more like $750,000 if you look at average wages and interest rates
There's also the quality of the properties which is falling because developers are getting squeezed and materials are getting harder to access, and there's the projected cost in property taxes which is probably going to keep getting raised because it's one of the only things the country has left to tap into. At the end of the day, it's worth considering whether you're getting value for money and what else you could do with that money, following everyone else chasing momentum just means you're part of the bubble.
Developers aren't getting squeezed lol, they are doing it intentionally to make more money rofl
The quality of Australian houses has always been appalling.
Everyone's being squeezed except the banksters and the politicians.
This is a typically superficial analysis. It focus is on symptoms rather than the disease. The disease is criminal governance and private corporate money supply control by banks given the power to PRETEND to create and issue AND periodically constrict the issuance of fiat debt tokens fraudulently called money by the banks and the Australian federal government.
In a huge EXTORTION RACKET the federal government COLLUDES with privately owned banks to gift to them the right to PRETEND to create and issue money AT INTEREST. That means that the banks STEAL the full amount of every loan amount they place in a so-called "borrowers" account PLUS compound interest on that imaginary sum. That's highway robbery! Even counterfeiters don't charge COMPOUND INTEREST on the money they steal, for years after the event, but banks do.
See eg:
ronchapman.substack.com/p/cosmic-consciousness-and-its-energetic
ronchapman.substack.com/p/the-incredible-mortage-scam-explained
ronchapman.substack.com/p/home-mortgages-and-bank-interest
ronchapman.substack.com/p/cashless-society
ronchapman.substack.com/p/the-fed-and-all-the-rothschilds-central
The reason Australia is becoming a dystopia in which young people cannot afford to buy a home and raise a family (a situation concealed by the government bringing in huge numbers of immigrants to fill the gap caused by Australians' failure to replace the population naturally), and that most people are miserable wage slaves scrabbling to live is because the federal government is a private corporation OWNED by the same plutocrats that OWN the banks, As a result, the government does what the bank owners tell them to do.
This crime is so huge that people refuse to believe it and videos like this REINFORCE that situation and control by the banksters.
IF people refuse to research this matter and reject governance by these criminals they must live with the consequences. IMHO endless whinging about the situation is no compensation for the misery.
My Indian Uber driver the other day was bragging about how many on his rich relatives have immigrated into Piara Waters in the last 4 years and how much money they have made on their properties that I could not even dream of purchasing at the moment. And our government has just made it easier for more to follow, scary times..
It's called replacement.
@@user-di7ww6pm3c you bots need to be programmed to be more convincing.
Work 70 hours weeks 6 days a week and no hope of buying a house
Australia needs to crack down on the artificial scarcity and thus artificially high prices of housing. This far and no further. However, every time the ruling party even thinks about doing that, figures of the realestate business and property developers and career landlords make sure they won't go through with it.
The BIGGEST driver of house prices BY FAR is the state governments restricting the development of new land for housing ... they haven't even developed enough land to cover population growth and immigration ... and their excuse ...SAVING THE ENVIRONMENT
in 2022, mid pandemic my landlords took my rent from $250 a week to $450.. absolutley ruined my life
now im at my parents house as a 29 year old
the prospect of renting doesnt even go through my head anymore, i gave up looking at rentals online cause theyre just rediculous
you get excited for a crack house thats falling apart because the rent is reasonable (then the house still gets 30 offers)
Should have got a friend to move in, otherwise move to a different location with cheaper rent. $450 I still cheap lol.
Don’t live with a victim mentality.
I've been applying for flats/houses for over 3yrs!! Ive neen living in backpackers accommodation, Motel (too expensive long-termat $130per night, couch surfed for a year, now pay $350 for a room in a closed down hotel. When you go see a rental and 'rich well off' offers 6months in advance how can the average person EVER get accepted?!! F Air B&B too!! They get a week's rent in a night why would they rent it out. How can i ever get a home to be the nanny my grandchildren deserve with this crazy rental market atm!!
What's sad is that all the young adults and mid to late teenagers have already given up on ever buying a house, it's out of reach for 90% of us so why bother. Even if the housing market was half of the value it is now, it's still scary. All we can hope now is that we never go homeless. I always thought owning a home was one of our rights to live but it seems I was wrong. At this point it'd be safer to move out into the middle of nowhere and build your own house with nothing but primitive tools but even land is absurdly priced. A single person can work there entire life and only have a fraction of what they need to afford a home... the real question is, will the housing market ever improve in that person's lifespan... Will the market ever drop to the point where a house is within reach for a single person who earns minimum wage? The fact that it doesn't seem like they even should be able to afford a house is part of our problem, who cares about the job itself, anyone who dedicates 40 hours a week to society at the very least deserves the right to live comfortably but that is not currently the world we live in.
I've been spreading this sentiment to my fellow millennial and gen Z friends, but my ideal living scenario now includes nothing but a motorhome towing a caravan. If my whole generation says "nah fuck that" to the current housing market and we all just move into mobile homes, we won't have to worry about this shit til retirement age + get to live wherever we want 🤷🏼♂️
Why does a single person need a house? I bought a unit on minimum wage in my 20s, but with that mindset with you looking at giving up won't help.
@@74_pelicans My personal lifestyle does not allow me to live in a unit, let alone how shit most of the "affordable" ones in my area are.
Homeless is free atleast. Better to be homeless then a slave to greedy banks and politicians that lead us to this mess in the first place.
@@4bidn1I'm with you, until I had kids. However, I managed to pay off most my loan while living in the van, partly thanks to my tenants and I bought in 2019 just before the prices went crazy. Bit of pain, long term gain 😅. You could cry about the house prices or you can find another solution. Nothing wrong with living in a van, id still be living in one quite happily if I didn't get pregnant.❤
I recently did some reading on the Japanese housing market (I have ancestry there) and their houses actually depreciate over 30 years. There are a lot of factors that go into it, and Japans economy is a a mess, but if Australia adopted that system then this would disappear overnight. And I know its a good idea because if you talk about it to Boomers they get defensive and mad because their artificial wealth will suddenly fall apart.
I suspect that is partly because of Japan's decreasing population. If we cut immigration, then our population will stop growing and houses might be more likely to depreciate over time. I don't think that's a good idea though.
I have no idea if it is possible for our government to make houses depreciate through policy. But I am generally concerned whenever the government gets too involved in the economy.
@@mitzee8621 their houses lose value due to the constantly updating earthquake-resistance standards.
But one thing none of my research mentioned is it also keeps primary industries going. Timber, metals, concrete etc are always in some measure of demand and blue collar workers always have something to do.
You don't have to be a citizen to buy a house in Japan but why would you? Foreign investors are big driver in Australian house prices and it's because they appreciate very aggressively and are often only left over for holiday homes for said investors. You wouldn't buy a house in Japan unless you absolutely need to.
A house in Tokyo is only USD$250k. That's about 2/3 of the value of a house in Brisbane, which has about 1/8th of the population.
Again, I know it's not a great comparison but there are additional perks to this system that nobody wants to talk about because it's too much of a change to the status quo. You're paying over $1 million in Sydney for a house built in the 1940s that has seen nearly zero maintenance, or about half that (after conversion) for a house in the largest metropolitan area in the world with some of the most efficient infrastructure.
And I agree, I don't like the government getting involved in things either but we can't continue to have a society that feels aimless and sees no value in working towards a goal when the basics our grandparents had are now considered "upper class things." That won't be good for us long term, and could lead to instability that will be worse than some people having to make a loss on some dog properties.
True
It will be interesting to see if some houses in Australia depreciate due to climate change - flooding, bush fires, coastal erosion ?
@@mike_d_melb_music_fan5229 The IPCC 6th Assessment predicts about a 0.7m sea level rise around Australia by 2100. Given the general topology of Australian coastlines, I would be surprised if sea level rise on its own would have much impact on property value.
I'd need to understand coastal erosion more to be able to say anything confidently. A quick read suggests that around 39,000 buildings in Australia are within 100m of soft shorelines, which are apparently the types of coasts most susceptible to coastal erosion. In the worst case, there will likely be some depreciation in the value of coastal property, though informally, it seems like it might not be a very significant factor in the overall property market in Australia.
Bush fires have always been and always be an issue for property value. This and increased storm activity are probably the most likely to cause depreciation.
I'm also curious to see how our economy will respond.
China. $3.8 billion... Compared to the next highest investing country at $600 million. Foreign investment is definitely pushing up prices.
and when foreign investors pay no foreign investor tax on new-build properties. The government doesn't give a shit about Australian people.
@@tommygunTW1😂they do 4+12.5%
Wow 2% of the market, it's a really big problem!!!
Well I'm glad the government spent $400 million on the referendum, that will definitely help with affordable housing 🤬🤬🤬🤬
Referencing EIU's liveability index is not a real reflection of how liveable the cities in those lists are. It's used for businesses relocating high-earning individuals and focuses on more on private healthcare and education than most people would consider including things like availability of 'high' quality housing (aka expensive homes). It is used for adjusting salaries for the cities in the list. Denmark being so high on the list is also laughable because they are very insular nation and generally very unwelcoming to outsiders.
I worry Brisbane is going to be another Melbourne and Sydney, already we have expensive house price, more toll road, more pay shopping etc..
Brisbane is built to be a small city. The infrastructure simply can't handle the boom it's had recently.
@@tommygunTW1 neither capital in Australia was built to be a big city. Sydney traffic is crippling, even with paying tolls.
@@InfinityIsland2203 i agree the roads are a nightmare. Melbourne was the only city i saw with any forward planning. Shame the weathers so bad
rampant crime, councils/local-members who are deaf to their constituents. I always say to look at the quality of the roads and public gardens in an area and it will show you if there's high levels of corruption in the local government or not.
brisbane is already 50% asian and increasing daily
They want you to own nothing and be happy.
"Brilliant insights! Your video has given me a fresh perspective on investment opportunities. I love how you simplify complex concepts and make them accessible to everyone. Your passion for investing shines through, and I can't wait to apply your strategies to grow my wealth. Your channel is a goldmine of valuable information! Thanks for sharing your knowledge with us.
Do you have any tips for those of us who are just starting to dip our toes into the world of investing? Thanks for sharing your story!
Interesting you mentioned Evelyn Infurna, she is the best and her strategies works like magic. I've been making over 80% of my investment weekly since I started investing with her trading service
Run a quick online research with her name.
Evelyn Infurna
She's quite popular for her services. She can work with anyone irrespective of where you're located.
Make it illegal for foreign entities to own real estate, and limit immigration.
Damage is already done
Limiting immigration would work if young Australians could afford to have children. You see the problem here? We HAVE to bring immigrants in in their current numbers.
@@DV-zv4ox I wonder who made that happen and why :)
Ya should put a rule for that.
We've brought in 600 000 k immigrants per year over the last three years. Thats more than the population of Tasmania each year.
1st is to stop allowing foreigner buying property.
They wont let that happen as existing Aussie family fall of the mortgage cliff going from fixed rates they will let foreign investment rise and of our 600k immigrants this year many have sold off assets before coming here so are cashed up. The banks books are holding such high volume of mortgages on their books a 10% housing price fall it would put balance sheets in the red. They will do everything to protect the banks unfortunately we need a a National owned bank which would keep profits in Australia and provide loans for small business and housing unfortunately our 6 biggest banks have the same biggest shareholders BlackRock the biggest one.
I heard New Zealand has done this not too long ago.
@@clinton4161and just like removing negative gearing, it didn't do anything to bring down prices.
@@74_pelicans did it at least make prices more stable?
The incompetence and corruption that runs through this administration are getting more ridiculous. I feel for people with disabilities not getting the help they deserved. Thank you Arleth Toledo, imagine investing $1000 and receiving $4,300 in a few days🇱🇷
If you don't find a means of multiplying your income you will wake up one day to realize you didn't plan good for yourself.
This is not the first time I have heard about Ms. Arleth Toledo and her exploits, but I have no idea how to contact her.
Please how can I reach her??🙏🏻
SHE'S MOSTLY ON TELEGRAMS APPS
WITH THE BELOW NAME
Arleth Toledo
Hey I did a little digging, the graph at 1:43 is actually wrong. Median house price in Sydney is $1,333,985 while average sydney salary is $80,000. Meaning it's actually 17.5 times salary, not 13-14.
You're assuming that first property purchase is a house! These days you need to get a modest unit you can afford and trade up over time
The net migration figure is currently a staggering 450k+ per annum adding heavy demand to property. It's really uneconomical to build housing to match excess demand. (Diseconomies of Scale)
Also just the sheer fact that land is a pretty finite resource. Prices are never coming down.
@@obliviouzyeah but Australia is huge. Land isn't as big of a factor as it seems
@@peekabooicancu Still is, because most of that land is inhospitable, and even more lacks the infrastructure and jobs to support that much immigration into their local areas.
@@peekabooicancuexcept 90% of Australia is literally uninhabitable. We might as well have a country the size of Italy
@@brownie43212 It's not a land shortage that we'll ever have, it's a lack of resources that we face when expanding these suburbs further and further away from the coastline and large rivers and lakes. For example, if you doubled Bendigo's population from 120k to 240k, they'd have a diabolical water shortage - same goes for Ballarat... Australia's natural resources can support a maximum of around 30 million people, and we're most of the way there.
China already bought more than half apartments everywhere around sydney and keeps them empty without renting out.. Thats the root cause of where all this rent crisis began in the first place
because owning a home in china impossible majorty public housing
Another factor hitting the Australian Housing Crisis is dodgy builders. I'm wondering how many homes will need to be torn down and rebuilt, or have really high repair bills in 10 years.
Yea but that’s the funny thing coz I’m a tradie and that didn’t use to be the problem u only had one here and there but now days they are everywhere. To many non Australians working in the trade and not doing there job properly because there is so much more work need to be done coz ppl r trying to move into the country.
@@jowhharvey8944 not to mention the bad inspectors who approve dodgy builds.
And then there's the VBA who don't properly punish dodgy builders
The new Labor government is currently allowing a notable influx of migrants to enter the Australian housing market, in addition to foreign investors who are funneling funds into Australian real estate, potentially for undisclosed purposes. This situation is exacerbated by a severe shortage of available homes. An issue that warrants attention is the active participation of companies like BlackRock and Vanguard, which are acquiring properties on a global scale and possess significant ownership stakes in at least 51% of all Australian banks. From my perspective, this scenario may be mutually beneficial for various stakeholders, but it could put the Australian population at a disadvantage.
Those same Blackrock and Vanguard companies are pressuring governments to "save the environment" by restricting the release of new land for housing ... which drives up costs for houses... and their investments
Immigration is bipartisan mate.
I was listening to a guy on the ABC . Christie he sells house and units to Chinese buyers. He said he has had a 400 % increase in Chinese enquiries. He said they are building units for the Chinese market in Australia. This is probably the reason we don't have builders for house's or they are affectively going off shore. Australian homes for Australian. This is something that needs to be stopped.
I love Australia. I grew up here since I was seven, but the more and more I continue, the less I can see myself living here in the future. I definitely don't want to spend 30+ years paying of a home loan and living in near poverty while doing so. More and more of us are leaving, and I will be too in a couple of years. I've been looking at New Zealand South Island. Far more affordable
Lower Sth Island but very bleak costs are high and medical is tortuous and they have mass immigration and soon will open housing market to overseas buyers under Luxon who owns 7 houses.
New Zealands cooked
New zealand isnt too much better unfortunately
Sorry to burst your bubble but NZ are on the same path as Australia. Not as bad, and bc they have a smaller population it will take longer to worsen but the numbers don't lie
I was thinking of making NZ my back up plan. But I'm not so sure now after some of these comments. Is there anywhere left in this world?
Inflation hasn't finished going higher and rates will follow. Just look at the US10Y. What everyone is missing is who sets the price of a house, the bank. If they won't lend >1m anymore, then that sets the price. The house of cards is shaky. It's not complicated.
Yeah - agree. Risk pricing is the potential key factor. Another significant international event might be the last straw.
This kind of videos are more interesting and educational than the previous ones. Keep doing this way.
I'm happy that you read and appreciated my comment❤️. I have been following you for many years and I am a fond follower of yours. I really want to continue seeing you discuss educational and interesting topics.
We imported 600,000 new people last year...
You forgot to mention the fact development companies artificially keep places empty to reduce supply and increase demand!
I'm building my dream home in minecraft. But they made diamonds harder to find, so development time has increased by 30%. Also, lightning struck my wheat field, setting it ablaze, so I'm often hungry. And I play single player, so there is a significant factor of loneliness.
all by design, they have record immigration during a housing shortage in many countries now
Late-stage neo liberalism at play here, things are going to continue getting exponentially hairier, fun times ahead.😂
Here in Canada mortgage rates dropped to 1% and prices skyrocketed about 2 years ago. Prices are down about 20-25% since then.
Thanks for the property market detail and for helping me to understand the current property market. Awesome work!
I work for a bank in the call centre, we get a lot of people in this scenario. It's really hard to see what choice to make, so my partner and I are renting instead of commiting to buy and growing our money in other ways.
Don't forget that if ur not careful, the things you buy will end up owning you.
You forget the costs of actually owning a house across the term and also the fees incurred. Insurances, brokerage and legal fees, commissions, rates. All this makes owning a home alot higher.
Over the ditch, here in NZ, situation is the same, buying, building and renting is a disaster too, Auckland and Welligton the worst. Crazy inflation in all 4, of those areas too, at same time, all at once, Buying is hugely unaffordable, renting is worse tho Edit: it's cheaper to pay a mortgage payment each month or year, then rent in many places. I know of 100 people looking through rentals on open home days and offering bribes and higher rents to landlords, to secure a rental. Then giving up and buying a car to live in or but as a group asset. Single or a couple, on good, double incone of 60-70k getting no where. It's a mess for same reasons you speak of
Beginning 2024, I think we'll start to see more market diversification. I'm hoping to invest about $300,000 from a recent home sale into the financial markets, but I'm still not sure how rates will effect the market just yet, which worries me a lot. Like how long will the bull rally last before the reset?.
You see in the stock market, bigger risk begets bigger results that can work in the bulls' favor. I think investors who are wary of the changing market trends should seek out bear/bull mrkt directions from certified strategists.
You're right mate! I’ve been using a fin-market expert for two years now and I own a 7figure diversified portfolio from investing in stocks. Currently, my portfolio is worth over $1m.
How can I participate in this? I sincerely aspire to establish a secure financial future and am eager to participate. Who is the driving force behind your success?
AILEEN GERTRUDE TIPPY’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
Thank you for this amazing tip. I just looked the name up, wrote her explaining my financial market goals and scheduled a call.
I'm wondering if folks who went through the '08 financial crisis had a tougher time than I am having today, my plan was to work, save money and retire at 55, but high price for everything is now an obstacle *sigh, do I look towards the stock market to fuel my goal at this point?
real estate, dividends, etc. they are all good but none is perfect or free. I was very fortunate to refinance my house at 3.5% interest fixed rate 10 years ago, and it has never increased
A coworker once proposed the idea of diversification to me, hopefully for positive results to offset any negative performance. I backed it up using professional guidance in order to avoid mistakes, and thankfully, I can attest to the success of this approach seeing my portfolio grow from $225k to almost $500k just this year... maybe you should do the same.
I’ve shuffled through a few advisors in the past, but settled with Katherine Nance Dietz, she's the most resourceful, extremely intelligent, cautious, and shows a great deal of expertise, you can vet her info online. @Johnny
Retire at 55 is ambitious. I'm Asian so maybe it is because of my culture, but my plan is to work, save money, buy real estate and retire at 70.
Better off putting your extra money into your super fund
Keep an eye on those construction companies in administration. See how many give themselves a new name and carry on.
You can’t anymore. Government gave everyone a Director ID. If your company gets liquidated, you can’t be a director of another one.
What people don’t talk about with the Mortgage Cliff is:
Let’s say they fixed in 2021 and are coming off a fixed cliff in 2024, the annual average pay rise has been 3.9% and now the average salary is 96k. (Government stats).
This means those people “falling off the cliff” now have a pay increase of approx 11 000 dollars per year! And if those people are couples that’s a pay rise of 22K per year to try and meet there repayments. There’s no cliff for those people.
Note: if you’re below average salary you probably borrowed less so it’s all relative.
Even if you have $1 million in cash to buy a property. You will then need $60,000 to pay the Victorian government just for the privilege of buying it, aka Stamp Duty. Then insurance, maintenance, council rates etc will be an annual expense of $15-$20 thousand dollars every single year for the rest of your life. And politicians want us to blame these greedy landlords for needing to put up the rent.
Keep crying passively building wealth off land sucks money out of the economy.
You don't actually care about addressing the housing crisis you just want the government to remove barriers that make it harder for you to get more investment properties.
20k a year? Are you doing bathroom Reno's every six months?
Awesome and informative content brother, very well structured and put together, well done 👌
Thanks for the informative video. Keen to follow progress on the housing situation in Melb. Being burned by crazy rent on a lousy townhouse but am ready to buy.. it doesn’t feel like it’s ever going to get cheaper here in inner Melb for a house and as you said, that population xwill be growing in the next ten years, so if I stay renting, I can expect my rent to go up too. I think I’ve gotta bite the bullet 😬
Similar situ in NZ, and def seeing the liquidations in the construction sector. Thank you, very insightful.
People expecting interest rates to stay at near 0 for all of time is extremely dangerous.
I feel sorry for anyone what buys a new house in Melbourne tofu dregs type buildings. that are basically all the corners cut to make a house as quickly as possible. The houses in Melbourne wont last a few years. The money in the system is not enough to pay the debts in the Ponzi scheme
the money isn't enough? are you talking about the unlimited supply of money they can print whenever they want to get out of trouble or something else?
You are both correct. The current quantity of currency in the system will not extinguish all existing debts, but more currency can be created from greater and greater loan creation.
Same goes for the whole Greater Western Sydney area. The new build garbage quite literally is not built to last. Old homes from the 1800s in the inner areas still standing strong. The cookie cutter estates with poorly designed homes on postage stamp sized blocks of land are also not built with climate and the environment in mind. Black roofs as far as the eye can see. So many of them with huge west facing windows in the living area and upstairs bedrooms that turn into ovens on hot days. The 'solution' of split system AC for every living area and bedroom simply pumps more hot air outside, increasing the ambient temperature. We're about to head into an el nino summer, 50C coming to an outer estate near you!
Didnt you think about what would all tradies do after the homes get build?
Come back and fix em ofcourse xd
Made of hummus
Foreign and corporate property investment should be banned and no more than 2 homes owned per person and no more than 5 per couple
Or 2 per person, 5 per couple based on every 1 child
You wouldnt need to open the gates for migrants if you were capable of producing capable talent at home.
No one needs 5 houses (even 2 is debatable). Tax the hell out of investment properties. Since the Howard government, Australia has actively incentivised property investment through the CGT discount.
@@Millez if my family didn't own investment properties that they worked hard for in the 90s and 2000s then i'd never be able to afford to move out. blame rampant chinese investors instead of australians looking out for their family interests.
@@handlehagglerUnfortunately it's not talent, it's open for whoever will work for less and not have an issue with it. Because at the end of the day it's much better than what they can get in their countries. All the talented people stay in their country because they're successful and can make it.
Thanks, Hamish very informative, well presented and well explained!
The issue is zoning in my opinion. It encourages urban sprawl and discourges mixed use. Change regulations and zoning laws and our cities could be more like Tokyo affordability.
Prices will drop, but every home owner now will oppose this, as this will devalue their investments.
That's what happen when politicians use the housing market as a cover for the real economic state of their country.
Materials and labour costs are through the roof and extremely expensive, this wont help prices at all
It's utterly insane! Despite high interest rates the market continues to pump.
Not only Australia and USA share this problem. On my playground which is Poland afford a own rent house or apartament is quite expensive not mention buy house on you own. Same situation in nearly entire EU.
great video hamish, i enjoy your aproach of paiting a picture and giving all the information in a coherant manner
I've been wanting to buy this year. Listings are low and I just feel like virtually all of what's for sale is garbage. And let's not talk about agents..
Too much debt, too much immigration. So easy to fix, but they'll do everything else plus more to keep the bubble inflated. Sadly I've given up trying to wait for the pop. What's the lesser of two evils - being in crippling debt, or being reliant on others for housing for the rest of my life?
The property market is massively manipulated, so I'm dubious about all these models being of any true relevance.
Well put 👍
For goodness's sake, get into the market. Buy what you can afford to buy, not what you want. Waiting for a "crash" or a "correction" is a mug's game. If that happens, you're toast whether or not you're renting or buying. It doesn't matter, either way. And, top tip: Renting in Melbourne is about to get really, really hard. State government land tax revisions have got investors (landlords) fleeing the market en masse. And get it through your head!!! You are not "investing in property", you're buying a domicile. Somewhere to sleep, eat, store your stuff, have a shower and cook a meal. Collectively, we have lost the realisation of what the value of our own home really is. Don't get sucked in! It's not about "getting rich". It's about a good night's sleep, for the foreseeable future. And if everything goes pear shaped, you'll end up living in a tent in a local park or under a bridge, just like you would if everything goes pear shaped and you're renting. The only thing that you have to lose is your fear. LOSE IT!!!
@@davidbrayshaw3529 Mate, the housing market is extremely manipulated. Don’t shower me and others with this “JUST BUY” crap. This country needs to have a good hard look at itself and it’s people like you who are the worst of the lot
We need to get rid of the politicians holding the house prices up with their policies and denie immigration for a few years and also denie non citizens buying property.
Thank god you have no position of power, you would fk this country back to the Stone Age.
what does denie mean?
We tried.
Last election (not the most recent one) had labor try and get rid of negative gearing - population said no.
Unfortunately a decent chunk of our population has their money held up in property investments, so they hate decreasing house prices. It's not just politicians, there are people actively fighting to put them there.
Well said & presented @hamish, keep up the great work.
I think it's time to make it more appealing for potential buyers. the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
A lot of folks downplay the role of advisors until being burnt by their own emotions. I needed a good boost to help my business stay afloat, hence I researched for license advisors and came across someone of due diligence, helped a lot to grow my reserve notwithstanding inflation, from $275k to approx. $850k so far.
How do I find this financial counselor ?
I take guidance from ’NICOLE DESIREE Simon’ a well qualified California-based fiscal counselor with over a decade of experience, luckily her profile is widely visible on the internet, you should simply research.
excellent share, just inputted her full name on my computer and searched online, top-notch credentials. Ive seen commentaries about advisers, but not one looks this phenomenal
This is 100% a consequence of currency debasement. It's no coincidence the money supply chart has the same shape as the housing price chart.
When there's more dollars chasing after the same relative supply of scarce desirable assets the price goes up.
The problem is, those new dollars do not get distributed evenly (see cantillon effect).
And debasement intensifies whenever America gets involved in yet another war
Well, that, and the massive taxation that is used to recuperate the costs of all the inflation but of course, we still run deficits.
Sorry, but this country is just an open air prison that taxes you out the ass.
I’ve noticed that the message is always, “enough to survive.”
It’s never, “what if I want to work more and become wealthy, and not get punished for making jobs or trying to improve my own life.”
Why is that never part of the conversation, I wonder?
@@BringMoreDread I see we and the rest of the western world are following the American model; much to our extreme detriment.
@@rogerc6533 FIAT currency has been around a long time, and it always goes to zero for the same reason.
It is printed to pay for everyone’s stuff, because people want free this and that, and don’t want to pay for it.
Australia has done something different where we tax people to pay for all this welfare, both public and private, but doing that means that there will never be any grass roots innovation because why bother when you get taxed to pay for someone else’s school, medicine, place to live etc.
The governments around the world can talk all big, about fighting inflation but it’s the people who have caused and the government spending is the problem.
The government being corrupt is just a feature. As much as Australians don’t like America, the American system of hierarchy seperate power is superior to what we have here.
The problem is, when you fill the government with people who will bribe the populace with money, that isn’t theirs, you can’t expect much.
I’m a small government guy, there isn’t much of that down here in Oz, the problem, as you mentioned, is that this “cucked” communism is encroaching everywhere, so there isn’t anywhere worth going to.
We are boned, enjoy the decline.
@@rogerc6533 We need a cap on owner occupier mortgage rates. Perhaps +0.25% of the official interest rates
People think prices will go down, yet everyone you speak to wants to buy. Good luck to those who are waiting to purchase.
Prices won't decline until more people leave Australia than come in, more die than are born, and fewer exports than imports.
House prices where I live have gone up about 100k in the last 2 years 🥲
Even if I was saving every scrap of expendable income I'd be falling well short of being able to buy a home.
Its unfortunate mate but a lot of people in the same boat. I ended up buying further out than i would have liked. Cant all live in our favourite suburbs@@Waywind420
@@Waywind420 Don't buy where you live. I bought my first house 20km away from where I want to live 10 years ago. Even now I still not living in the place I want to live unless I choose to rent. It's a sacrifice that you have to make if you want to own your house.
Negative gearing needs to be abolished. People who can't afford to pay one mortgage own three houses creating more housing shortage. The government need to incentivise first time home owners by scrapping stamp duty and giving an additional support.
How does that create housing shortage, they are providing 3 rentals 😂
Neat video m8, keen to see more, good job exploring a topic
Love your videos! It's absolutely getting crazy in Melbourne. My husband and I planned our property purchase super conservatively and managed to get a really great apartment that we'll live in until the interest rates calm down and eventually turn into a rental property. It gave us a foot in the door and we made sure to build a buffer so that even if the rates keep rising for 2 more years we'll be okay.
Amazing content. Thank you mate. I am considering to buy a house next year. You paint a very clear picture. Well done
Awesome video. Breaks down the different factors impacting the crisis really well.
Great video, thank you for the explanation. It actually made sense.
Thank you for this articulate and transparent overview. I do wonder, or perhaps worry, about what my (little) kids living arrangements and options in and around Melbourne will be when they get older. I do also appreciate being born and raised in Melbourne, whilst bearing the epic mortgage that came with establishing my family’s base here as well. I feel for people who are struggling to absorb the interest rate rise impacts.
Thanks Hamish great Video. My question is, what happens when the cost of property is so high that people can't afford it even with full time job? As our wages have not gone up much.
That happened 5 years ago. Now we have mass immigration. Some will have the money to buy, others will rent
You will own nothing and be happy
Would love to see an explanation of different tax systems and how they affect the property market. Capital gains, wealth tax, inheritance tax, etc
Lately you had put very good videos! This is the best so far. Congrats
Yet 'Rich People' always claim that there at lots of jobs out there. Minimum wage jobs. But jobs. Just got to be poor and happy I guess. But as long as we all keep on paying rent, it supports these Rich People and their Dreams.
You will own nothing and you better be happy about it.
Move to the regions plenty of jobs and houses out there... Remember that Barnaby? Remember? What a Gronk... Who's gonna flip burgers and make coffees in Double Bay then huh?
Plenty of jobs... for migrants. Not so much for people who know how read their Award and can figure how dodgy their boss is.
I just sold my Brisbane house for double of what I paid for it seven years ago. I am now renting in a better property and sitting on a bundle of cash/gold waiting for the housing market crash. My house sold in one day which the realtor said was a record for them. This is crazy!
Your experience is an anomaly. (Unless you’ve left out renovation)
You're going to get priced out of getting back into a similar house when the market increases over the next few years and your expected crash doesn't happen
Lol, this ain't it cotton.
Just subscribed. Really good explanation of the drivers and what we're seeing.
Insightful video, great job!
Sydney infrastructure score at 100 made me laugh out loud.
Yeah what would japan and netherlands be then, 200?😂
One key point that was not mentioned: Australia has the most centralised population in the world.
That is, 85% of people live within 50kms of the coast and most of them live on the East Coast too. So population growth (demand) is not very strong in Broken Hill or Dubbo, for example.
And Demographia has been employing the same flawed methodology for years. It's all about the price to income ratio? Today, many families are using the equity in existing properties to finance their children's and/or grandchildren's properties. And why do some locations with a high proportion of low income earners (retirees) have such high median house prices? Demographia deems such locations "unaffordable" simply because they are inhabited by wealthy retirees who have comparatively low incomes.
That would make sense, but Australia has 30 times the land area of Singapore, just in the section from Byron Bay to Noosa, and going 100km inland.
We have a shortage of "permission to build" rather than a land shortage.
@@williamcrossan9333Australia is a very different country, compared to Singapore, for all number of reasons. Arable land is at a premium, in Australia. Water, during times of drought, is at a premium, as well. Suitable catchments for dams are limited. The tyranny of distance means that providing services is very expensive, by comparison.
And our cities evolved at a very slow rate for the best part of 200 years, only to double in size in only two decades or so, meaning that infrastructure is now stretched beyond reasonable capacity.
@soulsphere9242 The problem with living outside of the state capitals in Australia is that opportunities are limited and so is the land available that can sustain larger communities.
Melbourne’s biggest rental real estate issue is all the Chinese that have flocked here and run out rent prices up through the roof in the city an dinner suburbs
Overall a nice short video, great explanation without providing any wild unqualified recommendations!
Well put together video. I dont beleive the mortgage cliff actually exists on mass. There is only a very small percentage of the entire property market that maxed out their borrowing capacity two years ago to upgrade or purchases a home. This small section of the market will really struggle as they come off their fixed rate. I don't see this significantly impacting stock levels or property values.
A trippling of interest will hit alot of people who didn't max out their borrowing. Though i agree there won't be a cliff.
Bought a little block of land in a rural town just before covid for 10k. Got offered 60k for it not long ago.
which suburb
Great movie, very informative and presented well - thanks mate
Awesome video. Good info mate. Subscribed.