Jump to content
House Price Crash Forum
Te Mata

Australia Faces Its Demons

Recommended Posts

1 hour ago, spyguy said:

The getting hotter bit is bad.

But Oz is getting drier too.

 

Yes, I remember in the 2000s there was talk of creating artificial mountains to encourage rain.

Although it is clear credit is the main driver of housing bubbles, what I don't get is that in the UK HPI was justified by immigration, over-population and the running out of space, but WTF were the Aussies thinking? You could have a 60m population there and there would be still plenty of land, just no water.

Share this post


Link to post
Share on other sites
5 minutes ago, wish I could afford one said:

Plenty of free sunlight so why they're not going all out with desalination plants run from solar PV farms is beyond me.

Because desalin is fine for drinking water. It does not scale to agri water, whuch is where the drought is.

Oz shoukd have insisted all those asian brought their own water supply with them.

Share this post


Link to post
Share on other sites
1 minute ago, spyguy said:

Because desalin is fine for drinking water. It does not scale to agri water, whuch is where the drought is.

Oz shoukd have insisted all those asian brought their own water supply with them.

NO, You did not say that

Share this post


Link to post
Share on other sites
4 minutes ago, prozac said:

NO, You did not say that

Oz can support a very limited of people.

Mainly down to water but its travel infrastructure is sh1t. Oz commutes are insane - long, hot, slow.

Rather than stupidly adding more population, Aus should have paused at 15m and worked on its infrastructure.

Share this post


Link to post
Share on other sites

The bulk of Auz migrants since 2000ish have been Asians, coming from countries with lowe population densities and much better natural resources, in terms of agriland and water.

Share this post


Link to post
Share on other sites
47 minutes ago, spyguy said:

Oz can support a very limited of people.

Mainly down to water but its travel infrastructure is sh1t. Oz commutes are insane - long, hot, slow.

Rather than stupidly adding more population, Aus should have paused at 15m and worked on its infrastructure.

That's what they do at these G20 type summits, exchange the latest bad ideas, well bad for us but very good indeed for "them".

Increasing your population is now "good" so everybody does it. Property poison has been spread around the world, pretty much by us it has to be said. And I suspect via discourse at these summits or by economists generally.

An acquaintance at a dinner party said to me that the leaders of all the main democracies are literally installed by interested forces who rarely slip up. They select a particular type they can manipulate, he went on. I was at first unconvinced but by the time he'd finished it was making sense.

Share this post


Link to post
Share on other sites

More excellent, non-nonsense insight in Martin North's latest video - a man whose commentary seems to be increasingly in demand by the Australian media.

As an aside I love the stark contrast between the  down-to-earth production style of Martin's content and that of the "60 minutes" program upon which he appears (around 23:00). The 60 minutes clip looks like a bloody episode of X-factor by comparison :blink:

[EDIT: Started writing post before Captain Kirk's link to 60 minutes, if it all seems a bit disjointed!]

Edited by ftb_fml

Share this post


Link to post
Share on other sites
On 03/02/2019 at 12:20, spyguy said:

The getting hotter bit is bad.

But Oz is getting drier too.

 

I got about $100K in super there and a similar sum in cash. Not sure whether to leave it or bring it over. Hoping Brexit offers an opportunity to buy sterling at a decadal low. 

Share this post


Link to post
Share on other sites
6 hours ago, Kurt Barlow said:

I got about $100K in super there and a similar sum in cash. Not sure whether to leave it or bring it over. Hoping Brexit offers an opportunity to buy sterling at a decadal low. 

Buy water ... they are not making it anymore there there ...

 

Share this post


Link to post
Share on other sites

It’s a giant desert. 

I might go see the Great Barrier Reef before it dies but other than that the place holds no appeal. 

1 hour ago, spyguy said:

Buy water ... they are not making it anymore there there ...

 

You know The Big Short guy is literally doing this? He’s investing in almond farms in Cali. Almonds use huge quantities of water and California has a law that water belongs to whoever owns the land above it. 

Meanwhile both parties in Aus are obsessed with the short term growth they get from migrants.

https://www.news.com.au/finance/economy/australian-economy/throw-open-the-borders-why-double-immigration-will-save-australias-choking-cities/news-story/4ebea6170aa31db651c2335fc80c75b6

Apparently the solution to too many people is more people 🙄

 

Share this post


Link to post
Share on other sites
11 hours ago, PeanutButter said:

It’s a giant desert. 

I might go see the Great Barrier Reef before it dies but other than that the place holds no appeal. 

You know The Big Short guy is literally doing this? He’s investing in almond farms in Cali. Almonds use huge quantities of water and California has a law that water belongs to whoever owns the land above it. 

Meanwhile both parties in Aus are obsessed with the short term growth they get from migrants.

https://www.news.com.au/finance/economy/australian-economy/throw-open-the-borders-why-double-immigration-will-save-australias-choking-cities/news-story/4ebea6170aa31db651c2335fc80c75b6

Apparently the solution to too many people is more people 🙄

 

Of course it is. 

The solution to too much debt is more debt.

The geniuses at G1-20 have spoken.  To each other. It therefore must be so. Even if it isn't, it will be. 

 

 

Share this post


Link to post
Share on other sites
16 minutes ago, Saving For a Space Ship said:

Forced End of “Ponzi-Like Leverage” & “Fraudulent Lending” Turns Australia’s House Price Bubble into “Property Bloodbath”  

https://wolfstreet.com/2019/02/20/forced-end-of-ponzi-like-leverage-fraudulent-lending-turns-australias-house-price-bubble-into-property-bloodbath/

"Bloodbath"!!! I love it!

How long until we start hearing these kinds of headlines over here?

This other thread on HPC seems to be a nice example of the start of things here perhaps?

 

Share this post


Link to post
Share on other sites

www.news.com.au/finance/business/banking/it-is-worse-than-being-back-to-square-one-westpac-hit-with-class-action-over-irresponsible-lending/news-story/6b3d4058db96c442c05ae0e2112f32c6.  

And so it starts. Some really good quktes in here and pictures of tearful ladies. I really don't believe that the borrowers didn't understand what they were getting in to. 

Share this post


Link to post
Share on other sites
1 hour ago, Timbuk3 said:

I really don't believe that the borrowers didn't understand what they were getting in to. 

Yes, this is an interesting line:

Quote

Unaware the interest only period would eventually end, they’ve were faced with $1.6 million in debt they couldn’t afford.

That appears to be the argument underpinning the case, I don't think they'll get too far with that.

Quote

she and her husband Ian were ruined after the bank lent them more than $1.8 million across five properties, despite the family having just one income

...The mum of three says her family has lost everything.

Australia's gambling problem is well known but people who play pokies aren't considered high-status. For some reason, it's considered socially acceptable to take leverage to these extremes and play with your three children's futures as long as the gamble is property.

Share this post


Link to post
Share on other sites
2 hours ago, Timbuk3 said:

 

Quote

she and her husband Ian were ruined after the bank lent them more than $1.8 million across five properties, despite the family having just one income.

Quote

“Everything we were trying to achieve is lost. Instead of striving for financial independence, we are back living pay cheque to pay cheque, tax return to tax return. We have gone backwards after years of hard work and struggle. It is worse than being back to square one.”

F***ing magic money tree! We were standing at its feet, idling for years and received nothing!

Share this post


Link to post
Share on other sites
1 hour ago, Freki said:

F***ing magic money tree! We were standing at its feet, idling for years and received nothing!

Ah yes.

I know someone in the UK who's trying to get rich by taking on vast levels of debt (to her income) to buy property.

 

Share this post


Link to post
Share on other sites
4 hours ago, Timbuk3 said:

www.news.com.au/finance/business/banking/it-is-worse-than-being-back-to-square-one-westpac-hit-with-class-action-over-irresponsible-lending/news-story/6b3d4058db96c442c05ae0e2112f32c6.  

And so it starts. Some really good quktes in here and pictures of tearful ladies. I really don't believe that the borrowers didn't understand what they were getting in to. 

Ms Tate said Westpac trusted a loan broker who provided information about her family’s financial position, and did not independently verify the situation. She said her family would now lose all of their properties save for a block of land.

Nope.

Ms Tate trusted a loan broker.

Smae rules as UK - use the bank directly is you are above board and accept the lendign limitations.

Or pay a broker to lie for you.

Her complaint is with th4e broker, whos prbbaly bust.

 

Share this post


Link to post
Share on other sites

The Tate family appeared on the ABC’s 7.30 program last year. They said the bank grossly underestimated their expenditure.

Did you declare your spend to the broker? Thought not.

Share this post


Link to post
Share on other sites
4 hours ago, Timbuk3 said:

www.news.com.au/finance/business/banking/it-is-worse-than-being-back-to-square-one-westpac-hit-with-class-action-over-irresponsible-lending/news-story/6b3d4058db96c442c05ae0e2112f32c6.  

And so it starts. Some really good quktes in here and pictures of tearful ladies. I really don't believe that the borrowers didn't understand what they were getting in to. 

I wonder what kind of bailout Australia will choose? Any predictions on type and timings?

Share this post


Link to post
Share on other sites

This will have worldwide repercussions in all the areas the Chinese have been buying

"Foreign buyer exodus: China is the largest source of foreign investment into the housing market, in terms of both the number of purchases and value of investment. With China’s central government ramping up capital controls to stem the outflow of capital and imposing jail time for those facilitating such flight, purchases of new and established dwellings have fallen considerably. Furthermore, there is mounting evidence the Chinese government is now forcing the sale of properties owned by nationals and repatriating foreign currency back to the homeland. This will particularly affect the off-the-plan apartment complex market."

From the link above (https://wolfstreet.com/2019/02/20/forced-end-of-ponzi-like-leverage-fraudulent-lending-turns-australias-house-price-bubble-into-property-bloodbath/)

 

 

Share this post


Link to post
Share on other sites

Another take on the wolfstreet article... its gaining traction...

Let the Bloodbath begin........

https://www.news.com.au/finance/economy/australian-economy/let-the-bloodbath-begin-house-prices-in-sydney-and-melbourne-could-halve-in-worst-crash-since-1890s/news-story/5918ea13042d5f819cb13c77629f060a#.y0wyv

If this proves to be correct I expect the first London Pret to have a majority of Australian Servers in 18 to 24months time..

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 349 The Prime Minister stated that there were three Brexit options available to the UK:

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.