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when a foreigner owns 10 properties in a country that many of the native population cant afford a home to live in, you start to realize how badly the property market has been managed by the government.
This is exactly what I thought after paying off my property in 2014 and I lost so many opportunities to put about $600k in the cash i collected and paid taxes on, thinking how can ppl afford a 1.5 mill mark on their homes, i was wrong.
I was watching a recent Birchy vid (Nathan Birch), and he talked about 5 items on the checklist, that a property must meet. One interesting thing he mentioned (one of the items), was that the local population needed to have the capacity to double the prices. I.e. the locals would be currently buying at a 50% throttle setting. And that got me thinking, because I reckon in Brisbane, 90% of people couldn't afford the house they are living in now, if they had to start from scratch. The people that are buying now are buying at 100% throttle and then some! There's not much capacity for the locals to double the prices.
Great video PK and spot on. The problem for governments and societies is that the death of the middle class historically always has resulted in a nation in civil war and civil unrest. The middle class is the majority of a nation. Politicians around the world are not realising this and ignoring the middle class for their wealthy donors and backers.
Good job PK. It's a topic that is not widely understood. Things aren't getting more expensive, the currency is becoming less valuable. When you normalise the currency against assets like land and gold, the value of the things has stayed about the same, it just takes more of the "money" to buy it. I really like your explanation on why it doesn't matter that many people can't afford to buy a home, and why prices will still go up. There will be a tipping point, and I don't know what that will look like. It would require my tinfoil hat to start making predictions about how that future will look. But I can't see a situation where having hard assets will be bad, so keep going everyone. Truth - I want to see more data!
China or Japan is the tipping point example but we are still long from the crash that happened there! We are heading to a Chinese bubble as fast we can though without a learning anything.
How about we return houses to being homes instead of investments. If someone is selling a house, first priority should go to a first homebuyer rather than an investor, as long as they’re offering the demanded price. Investors can buy if the property doesn’t get sold after 3 months on the market.
it doenst matter what they could do, the fact is they wont do it. Our savings become worth less each day and this was by design. Spend it or lose it to inflation they say.
@@AusPropertyMasteryWithPK what’s the local government rep going to do? This is a nationwide issue that’s only benefitting people who are wealthy and already in the market, these changes are never going to happen, because why would people in power change what’s benefitting them and the wealthy and high income earners. We wouldn’t need social housing if the private sector was moderated correctly, and hence homelessness in Australia.
@@AusPropertyMasteryWithPK you’re not wrong Pk, however I’m just a 23 year old who’s working to help pay off his parents mortgage cause they’re struggling and I have other responsibilities I have to deal with, and hence already have too much goin on in my life to do that. But the frustration is there as I’m concerned for myself and future generations.
I’m closing in on my retirement and I’d like to move from Collinsvale to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 6%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
🥃 Imagine your favourite whisky, but the distillery starts “watering it down”to make more bottles without using more whisky. You dont feel anything even after 10 glasses, except frequent urination. The only solution is to buy more bottles. That’s currency debasement and inflation! 💸
Thank you for this video Pk! I love your realestate advice but this is an awesome dire to take with some of your new videos, your so right when you said there just isn’t enough people in Australia talking about it!
Thanks PK, the fact you can mention the corporate elite new world order shows that you are well aware of all aspects of the current economic situation. Have so much gratitude for the advice you give and no one else comes close to the information you are providing 🙏🏼
Yes, though the Kamala Harris style approach would be more destructive. Socialism kills the parts of the economy that is driven by the desire to achieve more, like with an inventive business venture where hard work and dedication leads to a major success, vs the world where anyone that maoes no effort gets everything the other person does and there is no incentive to put in extra effort and kills productivuty. Then this Fantasy Equal for all system ends up sharing the result of a lower output between all parities. A very sad downward spiral.
@@sandyman692 If we insist on so called equality we remove incentive for individuals to better themselves and create great things. Then we are left with less to share equally amongst all those people that have no incentive to do anything. The whole socialist notion fails & history has shown this over and over
@@j.folder8276 On that topic. Look into the Fabian Society. Also the Australian Fabians. Thier coat of arms is a wolf in sheeps clothing & I know for a fact that Penny Wong has had meetings with them.
Australia is one of the best countries in the world, we have great social conditions, we live relatively peacefully, heaps of opportunities, lots of foods, clean air, great medical system, great education system, low unemployment, so people will always want to move here. You can't always look at averages because when you first start working you can't afford anything you are earning the least you will ever earn and you saving rate will be at its lowest in your life. In your earlier years you will tend to spend nearly all your money living. Living is often forgotten about in these conversations. A lot of the young of today are prioritising travel, technology, fashion, status, image much higher than previous generations. Previously people would aim to buy a house first and then have a small holiday to Lakes Entrances or Gold Coast, not do Europe every year and spend $500 at the hairdressers getting a colour put in. Property will always get more expensive as wages go up, population increases and in the next 25 years it will escalate as all the baby boomers die and their wealth passes down. Crazy times ahead, as they will pay off their own home with that money, if they have debt, then invest the rest. Some will buy property and take out more debt which will amplify the demand for property as they might purchase two or three properties with the money and finance from the bank. Good luck everyone. It is possible, Stay focused, save 20% of your wage, if you are still at the Hotel of Mum and Dad save 50%.
@@younghee7411 You can make it life without your parents wealth or non wealth. In fact, you should never count it. The journey of going through the struggle and achievement is fantastic. No easy way, just need to grind away and you will ge there.
You must be a new arrival or you would know that our standard has dropped markedly over the last 20 years and this drop is accelerating as immigration accelerates
@@testicool013 I disagree. Unemployment at a 4.2% compared with 6%-7%. We have had consistent economic growth leading to higher average incomes and improved job opportunities. Improvements in the health care system leading to increasing life expectancy and quality of life. Greater access to education and vocational training has improved skill levels, leading to better job prospects and a more skilled workforce. Internet and technology has transformed communication, work, and daily life, making services more efficient and accessible. There’s been a growing emphasis on work-life balance, with more flexible work arrangements contributing to improved mental health and well-being. Just to name a few. Australia the best country in the world.
I understand your premise about free money printing and governments running huge fiscal debts like there is no tomorrow especially the US. So house price appreciation should be a global phenomenon which in some sense is. But what justifies the premium on Australian property where mortgage to income ratio is one of the highest in the world. Would be a good segway to shed light on that. Also higher property prices just makes the cost of doing business prohibtive. The productivity of a nation reduces with high prices as there is less money to generate any output. There seems to be effort in Canada to reign in prices.there is so much talk in Australia media as well on house prices. Is it a hogwash or some realisation this monster needs to be controlled in Australia. This is like the Indian stock market bubble where ppl know there is a bubble but everyone continues to invest. Would be good if you address some of these topics
Hi PK, Yes, truth, all the way. All my subscriptions are about : geopolitics, economy and PK of course 😂. I am always trying to find that bridge/ connection between future Australian property and what's happening around the world that can affect us here in Australia. Even Things like BRICS and dedollarisation. Trying to be ahead of what is to come. I loved this video.
Prices have risen 30% across the board because the dollar was devalued a similar amount by all the free corona money. Euro, pound and us dollar all did the same thing at the same time. Wages haven't kept up because it's a controlled market.
Thanks PK, great video as always. Question, if houses prices continue to grow on the back of demand from the upper classes and wage growth does not keep up, what does this do to yields? The lower and middle class who are not investing and cannot afford to buy are forced to rent. However if wages have not kept up, there is only so much they can pay before we reach a tipping point. On that basis, would yields drop significantly, making real estate a less attractive asset class to invest in.
Australia has gotten way too carried away with the money printer since covid. The more money in circulation chasing the same amount of goods means prices have to go higher. Unfortunately, if you are someone who works for a salary your pay has not kept up anywhere near the amount of money that has been printed. People have to exert energy to make a wage but the government can make money for free by printing more of it (since it is no longer on a gold standard). This makes anything you save in money become worth less and less as time goes on. Because our money is such a poor store of value people are forced to store what saved value they have in hard assets like realestate. But realestate is not a good asset to store value as it has so much leakage (eg rates, wear & tear, repair costs, interest payments, stamp duty, depreciation etc). Its because money which can be borrowed in large amounts makes realestate able to increase in price and because of this leverage allows the borrower to sometimes beat the leakage and actually make a profit in real terms.
Truth mate. If you want to know what asset prices will do, watch what central bankers are injecting as liquidity. Liquidity is everything in today's monetary system.
Appreciate you PK, loved listening to this one. Agree I think there eventually be some kind of social calamity as you called it. Also appreciated the meditative cricket that appeared to be humming along in the background audio 🤣
Great that you are helping people understand such a complex topic. Should have mentioned when you borrow money from a bank, they just type the number in a computer and instant money! I do think property has limits. The rich can just buy homes, investment properties rely on lower/middle class to rent. So what happens if the investment property grows to $10m, the renters can only afford to $35k per year, but just your council rates are $42k. So it becomes a money pit! Obviously too extreme but my point is if lower/middle wages don’t grow, there is a point they can’t afford to rent, so you are limited by how much to charge. Return from rental income, becomes low, but cost to hold property keep increasing.
We don't want corporations or foreigners pricing our Australians, buying homes and renting them back to Australians - we need to vote in a government that will limit foreign ownership and negative gearing to 1 property per person, force them to sell the rest and then this would solve our housing crisis!
Voting isn't the solution. Don't give away your input into politic by Voting. Democratic system works when constituent are active in all ways from council to government.
@@kparker1615 forced selling is unconstitutional and would never pass a referendum with over 50% of Australia now immigrants or second generation immigrants as per ABS
Ha ha ha what a joke , unemployment will rise to 9 or 10 % if you have net zero immigration .You can start paying to use a public hospital , pay for government schools and forget getting an aged pension . Net zero immigration in theory is great but Australia doesn't have anything except resources. Everything else is services related , it will all come crashing down .We have zero manufacturing and zero tech or IT .We need consumption to keep the economy going .
It is call the time value of money. My take is that every 10 years the value of money is half. What property does is that it offset this with the appreciation of the property. When you sell a property after 10 years you hold the same value after removing the interest to the bank and CGT to the government.
70 percent of the Australian rental market is owned by Aussies with just one investment property! The next 20 percent just own two investment properties. Thus not only over 90 percent of landlords are Aussie whom have worked and saved for their investments whose rental income covers council, water rates energy bills and taxes. So calling folks like us parasites is frankly perfidious, after all by the sounds of it you need us!
@@steveungerboeck4823 As a landlord of two investment properties and whom is about to study as a buyers agent I think I have a firm grasp on this subject. My rental yield is nothing to kid about m8!
House price will corelate to the infaltion and wages only if it is a close system. Artifical injection of money from outside is what is disrupting the equation. When the citizens are struggling, there are alot of people from outside Australia investors who are willing to pay any price. Hence the house price is not stablaised. Also, the bank will not allow the housing crisis to be over amd let this bubble burst as there is a lot of stake for them and this will make the bank collapse. It is a cyclic thing. See the level of profit posted by banks in these tough times.
The government has to stop immigration to foreigners who are rich. Rich people don’t work and are pushing up house prices. Australia needs workers who work and create demand and build our country provided we can build accommodations to suit demand.
The rich foreigners are rich because they are the counter parties to our export trade. By bringing them into our country they are basically repatriating our currency.
Truth. Content like this from someone who understands investing and property so well, and has so much experience in the area, is so important and hepful. By the way, I didn't know that 7.5% pa figure... that's actually really helpful! This gives me something to aim for.
Property prices are rising the same as they always have, it’s just that wages have not kept up The multinationals profits is where it’s going, not sure how bad it will get, there will be a major revolt if it continues Great to hear the truth for a change Tapping into hard assets is the only way to stay afloat The cost of a cauliflower is what I used to earn in 1 hour in 1980
Revolt don't really matter, remember they forced the consent of most Australian to inject themselves with poison/ untested substances. France has a lot less buying power, Macron took the tanks out on the streets, everyone swallowing the theft orchestrated by Macron and its corrupt group or treators.
Truth for sure! One of your best thoughts and sharing mate, so I always thought the way banks and government are printing money that tipping point will happen soon or later, I got into the market as home owner was think to get into as investor also but decided to wait coze my filling is no matter how delusional prices seems to go up, inflation and all of kind of rates to maintain a property still make you not making money, the best scenario might be at least holding the value of your saving.
I have noticed your narrative has changed since you have been in America. Makes sense. It’s America. You are a smart guy PK and love your videos. It’s a free world you can post videos on whatever you like. Just please don’t get sucked in to American ideology. I fear it’s detrimental to democracy. The boiling pot of politics over there is alarming to say the least. Be safe.
I've heard 2 minutes of this and finally it's becoming freely spoken about and people have had enough. This is going to be a brilliant podcast. Thanks PK
Truth! Thanks PK. Also a kind request, if you can talk about how national and international policies, government can influence market in short/long term that will be icing on the cake 🙏🏼
Truth truth truth...we need more of this content. Fundamentally knew this and yet never consciously thought about it. certainly makes thoughts of future directions for the world much more calamitas.
IMO this was one of the best videos you have done. I appreciate the truth as it helps me make informed decisions. The last thing we need is more people providing the same government narrrative. Gaslighting is and saying that everything is just fine, go back to sleep. So thank you. I would love to see more info about how to navigate the real economic environment
I think Australia had enough housing b before Covid. The problem began after Covid, immigration allowed grants overseas ppl to comeback Which was their plan to suffer Australian citizens. So they can bubble price properties and inflation. It’s a trap we are. Poorer more poorer coz we work for hours, richer get more richer coz they can invest and eat up small business to demolish. 2024 world is really suck ever I seen so far in Australia. There is no life in Australia. We can only work and pay bills. Live for day by day with no saving. What kind future can give to next generation?
So property prices have doubled every 10 years. This compounding has got to a critical point where we've reached the million dollar mark.... If growth was to continued at the same rate were talking 2 million 4 million 8 million and the compounding goes on through decades to come... I think in the next decade or so property prices have to slow down to an absolute trickle of the growth we have seen. Just my thoughts. What do you think?
My take is even if capital city house prices are $2-4m so no one can afford them if you haven't bought previously, it will be apartments that will stay 'reasonable'. This is increasingly what people will be living in and buying going forward like most European and asian countries. 2 bedroom apartments for $1m sounds about right and supply of apartments is easily added verus houses.
Truth Appreciate PK's content, explains what I am already on the edge of understanding based on observation of the world around me in simple terms, typically backed with data. Think there may have been a technical issue though, as the lines he was drawing on the screen with his finger didn't seem to show up on the video 😜
Please talk more about these topics. Also about how political policy impacts investments and business. A lot of People have no idea on how politics ties in with the economy which ultimately impacts all of our lifestyles.
Thanks PK for speaking the TRUTH 🙌🏽 (which they try and label as “conspiracy” in the MSM to debunk the truth getting spoken). Love listening to Robert Kiyosaki as he isn’t frightened to speak the truth. Nice to have some in Australia 🇦🇺 doing the same thing. Keep being real and you ❤
Hi PK, I understand the need to get into the market etc…spoken to a couple of brokers but they comment that the borrowing capacity is low hence it is difficult. Could you perhaps share some tips on how to bump up borrowing capacity as both first home buyer and as investors please? Thanks
Truth - please PK. Only way we can protect ourselves and others is through curiosity and knowledge. Your doing great. Keep it up. Be brave to speak the TRUTH.
I always knew this house flipping scam was going to bite us in the ass. I'm in my 60's working class... never owned property and never will. When you price all the service workers out, who's going to make your latte ?
How can you possibly get started saving for a deposit if youre just starting your career? It takes time to save and the k-shaped economy is only going to worsen as time goes on. Is it hopeless?
There are and have been many wealthy folk that have conspired. There have been other less wealthy people that have theorised that this was happening and they are called conspiracy theorists yet this does not mean they are wrong or crazy.
How can governments implement currency destruction when citizens are already upset about high prices? First, they need to silence you. Second, eliminate your options to run away from the currency. Thirdly, enforce the expropriation with the motto, “You may have nothing, but you will find happiness
PK I’ve listened to a few of your videos now and thought you were some guy trying to sell a course just like everyone else But you bringing light to how inflation is going to destroy the middle class living standards is what separates you from the rest hats off to you for talking more than just property The bubble will pop if they tax foreign investors which will cause oversupply A lot of foreign investors were happy to pay high because they received low interest rates from their home country I.e china was lending at 1%
People in Australia will always afford housing prices in Australia. They will find a means and simply borrow more money to buy a house. Both owner occupier and investors will keep housing prices going up. Property prices will never crash, the government and stakeholders will not let it happen. Just keep increasing immigration and reducing interest rates to near zero and it will be ok. 😀
Well explained PK, if there is unlimited supply of money, with banks and super wealthy, why banks have to lend money and let profits to investors? Why can’t they own properties?
The population is stabilising everywhere, even in India the birth rate is around replacement rate, look at Korea and Japan and even China, In just 10-20 years we would see the real effects. And only lever Australia has migration, which has caused other issues too and we had to scale it down. The wage is going no where, how will the investers invest if its only going to go down from here.
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when a foreigner owns 10 properties in a country that many of the native population cant afford a home to live in, you start to realize how badly the property market has been managed by the government.
@@george1521 aren't you a foreigner too? Lol
@j.folder8276 nope I was born in Australia
This is exactly what I thought after paying off my property in 2014 and I lost so many opportunities to put about $600k in the cash i collected and paid taxes on, thinking how can ppl afford a 1.5 mill mark on their homes, i was wrong.
I was watching a recent Birchy vid (Nathan Birch), and he talked about 5 items on the checklist, that a property must meet. One interesting thing he mentioned (one of the items), was that the local population needed to have the capacity to double the prices.
I.e. the locals would be currently buying at a 50% throttle setting.
And that got me thinking, because I reckon in Brisbane, 90% of people couldn't afford the house they are living in now, if they had to start from scratch.
The people that are buying now are buying at 100% throttle and then some!
There's not much capacity for the locals to double the prices.
Great video PK and spot on. The problem for governments and societies is that the death of the middle class historically always has resulted in a nation in civil war and civil unrest. The middle class is the majority of a nation. Politicians around the world are not realising this and ignoring the middle class for their wealthy donors and backers.
Good job PK. It's a topic that is not widely understood. Things aren't getting more expensive, the currency is becoming less valuable. When you normalise the currency against assets like land and gold, the value of the things has stayed about the same, it just takes more of the "money" to buy it.
I really like your explanation on why it doesn't matter that many people can't afford to buy a home, and why prices will still go up. There will be a tipping point, and I don't know what that will look like. It would require my tinfoil hat to start making predictions about how that future will look. But I can't see a situation where having hard assets will be bad, so keep going everyone.
Truth - I want to see more data!
Cultural revolution in China, you d get killed for owing properties.
If things crash you could hedge yourself shorting REIT etf?
@@ianthomson4427 truth
China or Japan is the tipping point example but we are still long from the crash that happened there! We are heading to a Chinese bubble as fast we can though without a learning anything.
How about we return houses to being homes instead of investments. If someone is selling a house, first priority should go to a first homebuyer rather than an investor, as long as they’re offering the demanded price. Investors can buy if the property doesn’t get sold after 3 months on the market.
it doenst matter what they could do, the fact is they wont do it. Our savings become worth less each day and this was by design. Spend it or lose it to inflation they say.
@@Kirin2199 tell that to your local government representative
@@AusPropertyMasteryWithPK what’s the local government rep going to do? This is a nationwide issue that’s only benefitting people who are wealthy and already in the market, these changes are never going to happen, because why would people in power change what’s benefitting them and the wealthy and high income earners. We wouldn’t need social housing if the private sector was moderated correctly, and hence homelessness in Australia.
@@Kirin2199 then why are you complaining if “nothing is ever going to change”.
National politics starts at the local level.
@@AusPropertyMasteryWithPK you’re not wrong Pk, however I’m just a 23 year old who’s working to help pay off his parents mortgage cause they’re struggling and I have other responsibilities I have to deal with, and hence already have too much goin on in my life to do that. But the frustration is there as I’m concerned for myself and future generations.
I’m closing in on my retirement and I’d like to move from Collinsvale to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 6%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
🥃 Imagine your favourite whisky, but the distillery starts “watering it down”to make more bottles without using more whisky. You dont feel anything even after 10 glasses, except frequent urination. The only solution is to buy more bottles. That’s currency debasement and inflation! 💸
Thank you for this video Pk! I love your realestate advice but this is an awesome dire to take with some of your new videos, your so right when you said there just isn’t enough people in Australia talking about it!
Thanks PK, the fact you can mention the corporate elite new world order shows that you are well aware of all aspects of the current economic situation. Have so much gratitude for the advice you give and no one else comes close to the information you are providing 🙏🏼
The main issue is equality. Rich are getting richer. Poor are getting poorer.
Yes, though the Kamala Harris style approach would be more destructive.
Socialism kills the parts of the economy that is driven by the desire to achieve more,
like with an inventive business venture
where hard work
and dedication
leads to a major success,
vs the world where anyone that maoes no effort
gets everything the other person does
and there is no incentive
to put in extra effort
and kills productivuty.
Then this Fantasy Equal for all system
ends up sharing the result of a lower output
between all parities.
A very sad downward spiral.
that is how the lefty country works
Haha sounds like I socialist
@@sandyman692 If we insist on so called equality
we remove incentive for individuals to better themselves and create great things.
Then we are left with less to share equally amongst all those people that have no incentive to do anything.
The whole socialist notion fails
& history has shown this over and over
@@j.folder8276 On that topic.
Look into the Fabian Society.
Also the Australian Fabians.
Thier coat of arms
is a wolf in sheeps clothing
& I know for a fact that Penny Wong has had meetings with them.
The people need to hear the truth, whether they dislike it or support it. I like this path you will be going down.
Australia is one of the best countries in the world, we have great social conditions, we live relatively peacefully, heaps of opportunities, lots of foods, clean air, great medical system, great education system, low unemployment, so people will always want to move here. You can't always look at averages because when you first start working you can't afford anything you are earning the least you will ever earn and you saving rate will be at its lowest in your life. In your earlier years you will tend to spend nearly all your money living. Living is often forgotten about in these conversations. A lot of the young of today are prioritising travel, technology, fashion, status, image much higher than previous generations. Previously people would aim to buy a house first and then have a small holiday to Lakes Entrances or Gold Coast, not do Europe every year and spend $500 at the hairdressers getting a colour put in. Property will always get more expensive as wages go up, population increases and in the next 25 years it will escalate as all the baby boomers die and their wealth passes down. Crazy times ahead, as they will pay off their own home with that money, if they have debt, then invest the rest. Some will buy property and take out more debt which will amplify the demand for property as they might purchase two or three properties with the money and finance from the bank. Good luck everyone. It is possible, Stay focused, save 20% of your wage, if you are still at the Hotel of Mum and Dad save 50%.
What about if parents don't have any asset to pass down to their own grown-up children?
@@younghee7411 You can make it life without your parents wealth or non wealth. In fact, you should never count it. The journey of going through the struggle and achievement is fantastic. No easy way, just need to grind away and you will ge there.
Great post this.
You must be a new arrival or you would know that our standard has dropped markedly over the last 20 years and this drop is accelerating as immigration accelerates
@@testicool013 I disagree. Unemployment at a 4.2% compared with 6%-7%. We have had consistent economic growth leading to higher average incomes and improved job opportunities. Improvements in the health care system leading to increasing life expectancy and quality of life. Greater access to education and vocational training has improved skill levels, leading to better job prospects and a more skilled workforce. Internet and technology has transformed communication, work, and daily life, making services more efficient and accessible. There’s been a growing emphasis on work-life balance, with more flexible work arrangements contributing to improved mental health and well-being. Just to name a few. Australia the best country in the world.
I understand your premise about free money printing and governments running huge fiscal debts like there is no tomorrow especially the US. So house price appreciation should be a global phenomenon which in some sense is. But what justifies the premium on Australian property where mortgage to income ratio is one of the highest in the world. Would be a good segway to shed light on that. Also higher property prices just makes the cost of doing business prohibtive. The productivity of a nation reduces with high prices as there is less money to generate any output. There seems to be effort in Canada to reign in prices.there is so much talk in Australia media as well on house prices. Is it a hogwash or some realisation this monster needs to be controlled in Australia. This is like the Indian stock market bubble where ppl know there is a bubble but everyone continues to invest. Would be good if you address some of these topics
Hi PK,
Yes, truth, all the way.
All my subscriptions are about : geopolitics, economy and PK of course 😂.
I am always trying to find that bridge/ connection between future Australian property and what's happening around the world that can affect us here in Australia. Even Things like BRICS and dedollarisation.
Trying to be ahead of what is to come.
I loved this video.
Prices have risen 30% across the board because the dollar was devalued a similar amount by all the free corona money. Euro, pound and us dollar all did the same thing at the same time. Wages haven't kept up because it's a controlled market.
Thanks PK, great video as always. Question, if houses prices continue to grow on the back of demand from the upper classes and wage growth does not keep up, what does this do to yields? The lower and middle class who are not investing and cannot afford to buy are forced to rent. However if wages have not kept up, there is only so much they can pay before we reach a tipping point. On that basis, would yields drop significantly, making real estate a less attractive asset class to invest in.
Australia has gotten way too carried away with the money printer since covid. The more money in circulation chasing the same amount of goods means prices have to go higher. Unfortunately, if you are someone who works for a salary your pay has not kept up anywhere near the amount of money that has been printed. People have to exert energy to make a wage but the government can make money for free by printing more of it (since it is no longer on a gold standard). This makes anything you save in money become worth less and less as time goes on. Because our money is such a poor store of value people are forced to store what saved value they have in hard assets like realestate. But realestate is not a good asset to store value as it has so much leakage (eg rates, wear & tear, repair costs, interest payments, stamp duty, depreciation etc). Its because money which can be borrowed in large amounts makes realestate able to increase in price and because of this leverage allows the borrower to sometimes beat the leakage and actually make a profit in real terms.
Truth mate. If you want to know what asset prices will do, watch what central bankers are injecting as liquidity. Liquidity is everything in today's monetary system.
Loved this one , truth !
Appreciate you PK, loved listening to this one. Agree I think there eventually be some kind of social calamity as you called it. Also appreciated the meditative cricket that appeared to be humming along in the background audio 🤣
Great that you are helping people understand such a complex topic.
Should have mentioned when you borrow money from a bank, they just type the number in a computer and instant money!
I do think property has limits. The rich can just buy homes, investment properties rely on lower/middle class to rent.
So what happens if the investment property grows to $10m, the renters can only afford to $35k per year, but just your council rates are $42k. So it becomes a money pit!
Obviously too extreme but my point is if lower/middle wages don’t grow, there is a point they can’t afford to rent, so you are limited by how much to charge.
Return from rental income, becomes low, but cost to hold property keep increasing.
We don't want corporations or foreigners pricing our Australians, buying homes and renting them back to Australians - we need to vote in a government that will limit foreign ownership and negative gearing to 1 property per person, force them to sell the rest and then this would solve our housing crisis!
Voting isn't the solution. Don't give away your input into politic by Voting. Democratic system works when constituent are active in all ways from council to government.
@@kparker1615 forced selling is unconstitutional and would never pass a referendum with over 50% of Australia now immigrants or second generation immigrants as per ABS
No mate dropping immigration to net zero for a decade would solve our crises, not any amount of financial fiddling.
Ha ha ha what a joke , unemployment will rise to 9 or 10 % if you have net zero immigration .You can start paying to use a public hospital , pay for government schools and forget getting an aged pension . Net zero immigration in theory is great but Australia doesn't have anything except resources. Everything else is services related , it will all come crashing down .We have zero manufacturing and zero tech or IT .We need consumption to keep the economy going .
@@keepitreal2902 you are joking 😄. Australia is build on immigration and growth is based on immigration
It is call the time value of money. My take is that every 10 years the value of money is half. What property does is that it offset this with the appreciation of the property. When you sell a property after 10 years you hold the same value after removing the interest to the bank and CGT to the government.
Truth. Great video and completely agree. Adapt to the situation and flow with it
Parasitic multiple property investers and 95% of the government has destroyed the great Australian dream.
Stop the cap, have some accountability
70 percent of the Australian rental market is owned by Aussies with just one investment property!
The next 20 percent just own two investment properties.
Thus not only over 90 percent of landlords are Aussie whom have worked and saved for their investments whose rental income covers council, water rates energy bills and taxes.
So calling folks like us parasites is frankly perfidious, after all by the sounds of it you need us!
@svenerikmoeller8809 government stat's are all manipulated m8, stop kidding yourself
@@steveungerboeck4823 As a landlord of two investment properties and whom is about to study as a buyers agent I think I have a firm grasp on this subject.
My rental yield is nothing to kid about m8!
House price will corelate to the infaltion and wages only if it is a close system. Artifical injection of money from outside is what is disrupting the equation. When the citizens are struggling, there are alot of people from outside Australia investors who are willing to pay any price. Hence the house price is not stablaised.
Also, the bank will not allow the housing crisis to be over amd let this bubble burst as there is a lot of stake for them and this will make the bank collapse.
It is a cyclic thing. See the level of profit posted by banks in these tough times.
The government has to stop immigration to foreigners who are rich. Rich people don’t work and are pushing up house prices.
Australia needs workers who work and create demand and build our country provided we can build accommodations to suit demand.
The rich foreigners are rich because they are the counter parties to our export trade. By bringing them into our country they are basically repatriating our currency.
Truth. Content like this from someone who understands investing and property so well, and has so much experience in the area, is so important and hepful.
By the way, I didn't know that 7.5% pa figure... that's actually really helpful! This gives me something to aim for.
Property prices are rising the same as they always have, it’s just that wages have not kept up
The multinationals profits is where it’s going, not sure how bad it will get, there will be a major revolt if it continues
Great to hear the truth for a change
Tapping into hard assets is the only way to stay afloat
The cost of a cauliflower is what I used to earn in 1 hour in 1980
Revolt don't really matter, remember they forced the consent of most Australian to inject themselves with poison/ untested substances.
France has a lot less buying power, Macron took the tanks out on the streets, everyone swallowing the theft orchestrated by Macron and its corrupt group or treators.
Wrong , property prices don’t always go up.
cash is only king if you park it in land, gold and btc
Excellent presentation by PK !!!
Truth for sure!
One of your best thoughts and sharing mate, so I always thought the way banks and government are printing money that tipping point will happen soon or later, I got into the market as home owner was think to get into as investor also but decided to wait coze my filling is no matter how delusional prices seems to go up, inflation and all of kind of rates to maintain a property still make you not making money, the best scenario might be at least holding the value of your saving.
What an eye opener. Well said. You are hands down the most genuine and articulate “property” youtuber in OZ.
I have noticed your narrative has changed since you have been in America. Makes sense. It’s America. You are a smart guy PK and love your videos. It’s a free world you can post videos on whatever you like. Just please don’t get sucked in to American ideology. I fear it’s detrimental to democracy. The boiling pot of politics over there is alarming to say the least. Be safe.
I enjoyed this vid as i do enjoy the practical vids about step by step investing. Thank you
Do more videos like this PK! Very insightful
Yet a great video again mate!
Thanks for sharing and Yes please more of these TRUTH videos!
100% agree with you. This episode truly resonates. Thanks for coming out 😊
Great episode PK, looking forward a part 2 of this
I've heard 2 minutes of this and finally it's becoming freely spoken about and people have had enough. This is going to be a brilliant podcast. Thanks PK
Nobody will buy them. they will rent.
TRUTH!!! have subscribed
Truth! Thanks PK.
Also a kind request, if you can talk about how national and international policies, government can influence market in short/long term that will be icing on the cake 🙏🏼
Truth. Well done and it's nice to hear about Australian geopolitics which is influencing all our finances.
Truth truth truth...we need more of this content. Fundamentally knew this and yet never consciously thought about it. certainly makes thoughts of future directions for the world much more calamitas.
Amazing video 😊! Thank you.
IMO this was one of the best videos you have done. I appreciate the truth as it helps me make informed decisions. The last thing we need is more people providing the same government narrrative. Gaslighting is and saying that everything is just fine, go back to sleep. So thank you. I would love to see more info about how to navigate the real economic environment
Definitely please do make more of such truth videos. Does make lot of sense
I think Australia had enough housing b before Covid. The problem began after Covid, immigration allowed grants overseas ppl to comeback
Which was their plan to suffer Australian citizens. So they can bubble price properties and inflation. It’s a trap we are.
Poorer more poorer coz we work for hours, richer get more richer coz they can invest and eat up small business to demolish.
2024 world is really suck ever I seen so far in Australia.
There is no life in Australia. We can only work and pay bills. Live for day by day with no saving.
What kind future can give to next generation?
TRUTH. This has been your BEST upload in recent memory, PK! We would absolutely love more videos on this topic please! 🙏
Truth! Need to do more of these, at least once a month!
So property prices have doubled every 10 years. This compounding has got to a critical point where we've reached the million dollar mark.... If growth was to continued at the same rate were talking 2 million 4 million 8 million and the compounding goes on through decades to come...
I think in the next decade or so property prices have to slow down to an absolute trickle of the growth we have seen.
Just my thoughts. What do you think?
Truth! Bring on the next episode!
My take is even if capital city house prices are $2-4m so no one can afford them if you haven't bought previously, it will be apartments that will stay 'reasonable'. This is increasingly what people will be living in and buying going forward like most European and asian countries.
2 bedroom apartments for $1m sounds about right and supply of apartments is easily added verus houses.
Your “rant” is one of your best videos. Loved it! Please continue covering these. TRUTH
Truth
Appreciate PK's content, explains what I am already on the edge of understanding based on observation of the world around me in simple terms, typically backed with data.
Think there may have been a technical issue though, as the lines he was drawing on the screen with his finger didn't seem to show up on the video 😜
Thanks for speaking the truth. We are playing a game of price illusion.
Foreigner
lots of FOREIGNERS?
Please talk more about these topics. Also about how political policy impacts investments and business.
A lot of People have no idea on how politics ties in with the economy which ultimately impacts all of our lifestyles.
Thanks PK for speaking the TRUTH 🙌🏽 (which they try and label as “conspiracy” in the MSM to debunk the truth getting spoken). Love listening to Robert Kiyosaki as he isn’t frightened to speak the truth. Nice to have some in Australia 🇦🇺 doing the same thing. Keep being real and you ❤
I had to pause the video and comment, i like your sentence when you said poor are price taker and rich are price maker, 1000% true statement.
Hi PK, I understand the need to get into the market etc…spoken to a couple of brokers but they comment that the borrowing capacity is low hence it is difficult. Could you perhaps share some tips on how to bump up borrowing capacity as both first home buyer and as investors please? Thanks
Send it PK don't hold back, you were deep in the corporate world please share everything you learnt.
Truth.
Truth - please PK. Only way we can protect ourselves and others is through curiosity and knowledge. Your doing great. Keep it up. Be brave to speak the TRUTH.
Truth!
Don't hold back PK
One of the most trust worthy voices I listen to in property. I'd love to do your course at some point PK.
You're right not many people want to tell the truth, currency debasement and inflation are increasing
Excellent vid!
100% Mate, on the money. Keep up the truth & good work 👍
Get rid of negative gearing on more then one house that will help fix it
Hey PK your truth speaking and genuine authenticity is wonderful and appreciated. Thank you for keeping it real.
I always knew this house flipping scam was going to bite us in the ass.
I'm in my 60's working class... never owned property and never will.
When you price all the service workers out, who's going to make your latte ?
Love these types of videos! And all done with without using a expensive buyers agency 😂
Good job please add more real life examples ❤
2015 real estate situation for investors in USA is good case study
How can you possibly get started saving for a deposit if youre just starting your career?
It takes time to save and the k-shaped economy is only going to worsen as time goes on. Is it hopeless?
There are and have been many wealthy folk that have conspired.
There have been other less wealthy people that have theorised that this was happening
and they are called conspiracy theorists
yet this does not mean
they are wrong or crazy.
How can governments implement currency destruction when citizens are already upset about high prices? First, they need to silence you. Second, eliminate your options to run away from the currency. Thirdly, enforce the expropriation with the motto, “You may have nothing, but you will find happiness
Thank you PK, more truth please !!!
What do you think opec countries do when their consumers want to trade their oil with fiat currencies?
PK I’ve listened to a few of your videos now and thought you were some guy trying to sell a course just like everyone else
But you bringing light to how inflation is going to destroy the middle class living standards is what separates you from the rest hats off to you for talking more than just property
The bubble will pop if they tax foreign investors which will cause oversupply
A lot of foreign investors were happy to pay high because they received low interest rates from their home country I.e china was lending at 1%
Hey PK how much is the course?
People in Australia will always afford housing prices in Australia. They will find a means and simply borrow more money to buy a house. Both owner occupier and investors will keep housing prices going up. Property prices will never crash, the government and stakeholders will not let it happen. Just keep increasing immigration and reducing interest rates to near zero and it will be ok. 😀
true, it's not free market country rather strong controlled country, gov or stakeholders will do everything to prevent to loose the value
Haha you might need another channel, truth all the way! I've detected this in many of your posts in your FB group, and I love it. You're not blind.
Excellent stuff PK. I'm new to your channel and will be following you closely from now on. Thanks mate and keep the truth coming!!
truth
so much respect for you PK. easily the most genuine person in this industry - sam smit
Wow, what an eye opener. Gave me a lot to think about. More of this please.
Hi PK. Really love your blatant honesty in telling the truth.
I made a derogatory comment on a vid you made 12 months ago, but you were right on that vid and this has been a good vid too. Nice work.
There is one scarce and truth asset my friend; Bitcoin ;)
Such interesting points. I don’t think with much bias either 👌🏽
Albo and Dutton cronies would buy all the houses and properties in Australia
Love it when you chat about economics. I always regretted not taking that elective in high school. Always appreciate your insight PK 👍👍👍
Well explained PK, if there is unlimited supply of money, with banks and super wealthy, why banks have to lend money and let profits to investors? Why can’t they own properties?
Yes please speak truth. I agree with what you are saying.
The population is stabilising everywhere, even in India the birth rate is around replacement rate, look at Korea and Japan and even China, In just 10-20 years we would see the real effects. And only lever Australia has migration, which has caused other issues too and we had to scale it down. The wage is going no where, how will the investers invest if its only going to go down from here.
We all need to know the truth. There is nothing new except for what is forgotten.
Inflation is not a problem so long as it is predictable . Jerking interest rates up and down is the cause of all financial woes.