The property crash will come when we next have a GFC, it'll come about due to an economic crash opposed to property on it's own crashing. Australia has too much debt, it gets a bit technical but the numbers don't add up for us to survive another economic crisis. The AUD is the lowest it's been since 2003 (except the covid low) that's a sign of a country in decline.
Property prices in Australia are completely outrageous. A friend in the US just bought a five-year-old palace in Columbus for $800,000, while a rundown destructed property in Adelaide costs a staggering $1.2 million. The interesting point is that they earn the same salary in the USD, which is around 1.6 times the Australian dollar. We have ruined our lives unnecessarily here.
I personally wouldn't feel comfortable about any kind of 'ponzi scheme', especially if one of the reasons it hasn't collapsed yet is 'government intervention'.
Actually if you convert the Aussie to USD house prices are about right. Remember USD is the benchmark and our dollar is heading towards 59 cents US. It's our weak dollar causing as so much pain.
So you dont understand anything about socioeconomic status 🤷♂️ If you dont know about the influencing factor on human behavior through supply vs demand, you need to learn about maslows. Something Will knows fair bit about.
There's no law that says the sale price must to be greater than the construction costs. Housing price isn't stuck to construction costs, the amount of bankrupt builders affirms that fact
@galahad6001 only under the circumstance of increasing demand. If demand turns around the construction costs no longer matter, as there'll be nothing to build. Demand can collapse due to high construction costs. Hence construction costs don't lead the cost of housing it's just a proxy for demand
@L9MN4sTCUk the cost of building materials and trades/services are never going backwards. Interest rates will be dropped to enable people to borrow more to pay for housing. This is the nature of inflation. problem is, most people's wages are not keeping up, so welcome to 40 year mortgages
Cost of construction does work its way into house prices. When it is not feasable to develop in relation to resale, people will hold land resulting in restrictive supply, as demand increases house prices go up.
Inflation is a product of Interest being paid to a bank or being paid to an investor, property will never collapse whilst there is the capitalist system in place. With interest being paid annually there needs to be more money printed to account for the interest, barring a world war or something so dire that you do not want to go there, property will always increase in value whilst borrowing and interest is being paid. That being said, property according to demand does not increase in value due to inflation, to be more precise, but in fact to the value of the currency being eroded, therefore additional currency is required to make up the lost value.
The price of real estate has already crashed in real terms, let say about 40% or more in gold price and even more in BTC. In Australian toilet paper money it will never crash, forget about it.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Will is a mortgage broker, so it's in his best interest to present things in a certain light-it's how he earns his living. No mortgages, no commission. He might tell you he's just trying to help by examining both sides of the issue, but realistically, he's looking to generate more demand. The Australian property market is not isolated from the global economy. We're living in a time of uncertainty, with the world facing significant economic challenges that could escalate. In this context, the Australian housing market, without government intervention, behaves much like any other speculative asset-people often assume its value will keep rising, but that’s not a guarantee.
So you think that this mortgage broker presents a biased view in favour of property prices increasing because, in your view, falling prices means less demand for mortgages? You're wrong. The opposite would occur. Sales would soar and there would be a wave of new mortgage applications. You call property a speculative asset? All assets are speculative to some degree. You think that Aussie property prices are determined by the state of the global economy? I can't see the link personally. Basically your whole argument is based on hopium that property prices will fall. The problem is that inflation and a weakening AUD will drive property prices higher because until building costs and all goods and services costs fall, property prices will continue upwards. Look at Bunnings profit reports and the continued increases on building materials and labour costs and tell me which way things are headed. I agree with many others that property prices are too high but unfortunately, they are headed higher because of the continuous strong demand and comparably high building costs which have the effect of subdued construction output.
The property crash will come when we next have a GFC, it'll come about due to an economic crash opposed to property on it's own crashing. Australia has too much debt, it gets a bit technical but the numbers don't add up for us to survive another economic crisis. The AUD is the lowest it's been since 2003 (except the covid low) that's a sign of a country in decline.
The cost is going up because money is worth less and less....
@@itsonlyafl3shwound it's designed to only serve the rich
Property prices in Australia are completely outrageous. A friend in the US just bought a five-year-old palace in Columbus for $800,000, while a rundown destructed property in Adelaide costs a staggering $1.2 million. The interesting point is that they earn the same salary in the USD, which is around 1.6 times the Australian dollar. We have ruined our lives unnecessarily here.
But they say property will go up forever 😂😂😂
High property prices are now more about vested interests holding onto wealth opposed to public interest.
Australia's cooked. Our currency is screwed. USD is the benchmark.
Indeed, I can't believe its gotten this far.
@@ASXStockPicking
Historically real estate prices rise.
The numbers are there, stop with the denial.
🌺
I personally wouldn't feel comfortable about any kind of 'ponzi scheme', especially if one of the reasons it hasn't collapsed yet is 'government intervention'.
So basically anyone who doesn't have a house now is screwed unless they're rich. Wonderful stuff.
Even those who own a house are in a precarious position if they have too much debt.
Actually if you convert the Aussie to USD house prices are about right. Remember USD is the benchmark and our dollar is heading towards 59 cents US. It's our weak dollar causing as so much pain.
Why do people have this delusion that every human in the world is entitled to have a property. This wasn't the norm ever in history
Because that is how Australia was for generations before we were flooded.
Just when you think the housing market will collapse, the dollar crashes making international investment into Australian property cheaper
And internal inflation worse for Australians because of rising import costs.
Much better options in US
u are wrong. This does not happen to Japan 😅 despite Japnese yen has been week for decades.
@@stephen3966 Japan doesn't have an investment driven property market like Australia. The returns from Australian property are world class
Good🎉
I wouldn't put your trust in a mortgage broker.
you just said a lot of nothing.
He is very good at that
So you dont understand anything about socioeconomic status 🤷♂️
If you dont know about the influencing factor on human behavior through supply vs demand, you need to learn about maslows. Something Will knows fair bit about.
@@nickk5731 your message is as worthless as his.
Can you explain this nothingness? He seemed to say plenty of things that made sense.
@@rexxx777 Dribble
The thing that is not being discussed is the price to build .. its going to push prices .. up ...
There's no law that says the sale price must to be greater than the construction costs. Housing price isn't stuck to construction costs, the amount of bankrupt builders affirms that fact
@L9MN4sTCUk I'm not sure what you point is.. mine is that construction inflation is going to have a effect on the cost of housing...
@galahad6001 only under the circumstance of increasing demand. If demand turns around the construction costs no longer matter, as there'll be nothing to build. Demand can collapse due to high construction costs. Hence construction costs don't lead the cost of housing it's just a proxy for demand
@L9MN4sTCUk the cost of building materials and trades/services are never going backwards. Interest rates will be dropped to enable people to borrow more to pay for housing. This is the nature of inflation. problem is, most people's wages are not keeping up, so welcome to 40 year mortgages
Cost of construction does work its way into house prices. When it is not feasable to develop in relation to resale, people will hold land resulting in restrictive supply, as demand increases house prices go up.
Inflation is a product of Interest being paid to a bank or being paid to an investor, property will never collapse whilst there is the capitalist system in place. With interest being paid annually there needs to be more money printed to account for the interest, barring a world war or something so dire that you do not want to go there, property will always increase in value whilst borrowing and interest is being paid. That being said, property according to demand does not increase in value due to inflation, to be more precise, but in fact to the value of the currency being eroded, therefore additional currency is required to make up the lost value.
The price of real estate has already crashed in real terms, let say about 40% or more in gold price and even more in BTC. In Australian toilet paper money it will never crash, forget about it.
Indeed, that's a great point. The issue I have, is my employer keeps paying me roughly the same amount of decaying dollars.
@ I know my friend, we are all in the same boat.
This has been designed on purpose.
I will get a Mortgage, the price will crash that same day.
Smart Investing Made Simple: Bitcoin as a Key to Retirement Planning 🇺🇲
Many new tra-ders face challenges without proper guidance. I found success by learning from James Clark's expertise.
@@TravelingwithKristin1Exactly, that's why I always rely on Mr. J. Clark's guidance in everything I do.
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Hi Will first time ive noticed down bottom left of you on screen youve got ‘block chain wins’
Is that a reference to Ripple ledger and Xrp crytpo?
Keep up the great work, you are screaming into the wind…. But keep screaming, nothing stays the same forever
Hopefully this is a hard lesson for the young: Don't vote left wing.
The so called right is just as guilty
Will is a mortgage broker, so it's in his best interest to present things in a certain light-it's how he earns his living. No mortgages, no commission. He might tell you he's just trying to help by examining both sides of the issue, but realistically, he's looking to generate more demand. The Australian property market is not isolated from the global economy. We're living in a time of uncertainty, with the world facing significant economic challenges that could escalate. In this context, the Australian housing market, without government intervention, behaves much like any other speculative asset-people often assume its value will keep rising, but that’s not a guarantee.
So you think that this mortgage broker presents a biased view in favour of property prices increasing because, in your view, falling prices means less demand for mortgages? You're wrong. The opposite would occur. Sales would soar and there would be a wave of new mortgage applications. You call property a speculative asset? All assets are speculative to some degree. You think that Aussie property prices are determined by the state of the global economy? I can't see the link personally.
Basically your whole argument is based on hopium that property prices will fall. The problem is that inflation and a weakening AUD will drive property prices higher because until building costs and all goods and services costs fall, property prices will continue upwards.
Look at Bunnings profit reports and the continued increases on building materials and labour costs and tell me which way things are headed.
I agree with many others that property prices are too high but unfortunately, they are headed higher because of the continuous strong demand and comparably high building costs which have the effect of subdued construction output.
no collapse rising forever
explain how you came to this ?
supply < demand plus FOMO. cost to build increasing from inflation. scarce property types ie houses