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Aus - The Dogs Are Turning On Each Other

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Two stories from different sectors of the market, has the next step been reached in Australia?

http://firstrung.co.uk/articles.asp?pageid...&articlekey=901

David Rew is a real estate agent turned whistleblower, and he wants everybody to know it. He claims to be exposing the industry's dirty tricks.

He's even taken out ads in the paper. Exposing agents' tricks and tactics, it has sent shockwaves through the well-heeled village of Mount Eliza on Melbourne's outskirts.

http://www.heraldsun.news.com.au/common/st...255E664,00.html

Banks battle over credit cards

John Rolfe

14nov05

NATIONAL Australia Bank believes ANZ is playing Russian roulette with shareholders' money by chasing credit card business at the tail end of an economic boom.

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Guest Winners and Losers

My husband and I had 12 mths of dealing with dodgy Australian EA's. They are the pits. They all look and act like used car salesmen! I would not believe a word that came out of their mouths. Someone needs to start taking a stand against their bullsh1t. They could not care less about what happens to you and now they are even more desperate. Luckily, I was constantly sceptical of them and would not be bullied by them, even though they tried every trick in the book. Big changes are long overdue.

Two stories from different sectors of the market, has the next step been reached in Australia?

http://firstrung.co.uk/articles.asp?pageid...&articlekey=901

David Rew is a real estate agent turned whistleblower, and he wants everybody to know it. He claims to be exposing the industry's dirty tricks.

He's even taken out ads in the paper. Exposing agents' tricks and tactics, it has sent shockwaves through the well-heeled village of Mount Eliza on Melbourne's outskirts.

http://www.heraldsun.news.com.au/common/st...255E664,00.html

Banks battle over credit cards

John Rolfe

14nov05

NATIONAL Australia Bank believes ANZ is playing Russian roulette with shareholders' money by chasing credit card business at the tail end of an economic boom.

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My husband and I had 12 mths of dealing with dodgy Australian EA's. They are the pits. They all look and act like used car salesmen! I would not believe a word that came out of their mouths. Someone needs to start taking a stand against their bullsh1t. They could not care less about what happens to you and now they are even more desperate. Luckily, I was constantly sceptical of them and would not be bullied by them, even though they tried every trick in the book. Big changes are long overdue.

I don't think the problem is confined to Australia!

My local EA (Dublin) is a really nice guy - not. A house he sold around the corner me actually had a higher offer from a first time buyer, but guess what? He didn't tell the vendor because the another buyer he had was selling a house that he was marketing also - and he didn't want to break the chain, and miss out on a juicy commission.

When the FTB and the vendor found out afterwards, they were furious. But guess what also? No audit trail is imposed in Ireland. So it is their word against his.

He also likes to get buyers into auctions, with "ghost buyers" to huff the price up.

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Guest Winners and Losers

True, they all arent much chop. We were also given the 'ghost' buyer. An invester offering 440,000. But, said the EA, he can buy a brand new house for 440. I said, 'why doesnt he then?' That stumped them. If you are desperate to sell though, they often have the upper hand. Despite all this though, the market was falling dramatically and it takes a bit of time for the EA's to adjust, especially after its been so easy for them in the recent boom. Property sold itself, now they have to work and they've forgotten how. Vendors have to start being realistic with prices and so do EA's. Part of our problem was that EA's over valued our property and it was difficult to get past that psycolgical price!

I don't think the problem is confined to Australia!

My local EA (Dublin) is a really nice guy - not. A house he sold around the corner me actually had a higher offer from a first time buyer, but guess what? He didn't tell the vendor because the another buyer he had was selling a house that he was marketing also - and he didn't want to break the chain, and miss out on a juicy commission.

When the FTB and the vendor found out afterwards, they were furious. But guess what also? No audit trail is imposed in Ireland. So it is their word against his.

He also likes to get buyers into auctions, with "ghost buyers" to huff the price up.

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True, they all arent much chop. We were also given the 'ghost' buyer. An invester offering 440,000. But, said the EA, he can buy a brand new house for 440. I said, 'why doesnt he then?' That stumped them. If you are desperate to sell though, they often have the upper hand. Despite all this though, the market was falling dramatically and it takes a bit of time for the EA's to adjust, especially after its been so easy for them in the recent boom. Property sold itself, now they have to work and they've forgotten how. Vendors have to start being realistic with prices and so do EA's. Part of our problem was that EA's over valued our property and it was difficult to get past that psycolgical price!

The good ea’s out there (yes, there are some!!) are probably not as fearful of a slower market as you may think. Over the past 8/9 years of almost constant price increases many new ea offices have sprung up as property was effectively selling itself and most sellers only seem interested in 2 things: “what’s the highest price I can ask?” and “what’s the lowest fee you will charge?” If the market becomes less prolific the bad ea’s will (hopefully) begin to disappear. That should get us to a situation where the ea’s that are left will be the good ones capable of giving an honest and realistic interpretation of the market. Anyone can go round to a house and tell the owners their property is worth an unrealistic figure, the skill is in accurately quoting a price that can be confirmed through sales of similar properties

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Folks,

Check out this site; www.jenman.com.au

Mr Jenman is a bit of a consumer advocate for Estate Agent customers and has done much to expose the scams and dirty tricks in RE here.

Needless to say he not very popular in the industry :lol:

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Folks,

Check out this site; www.jenman.com.au

Mr Jenman is a bit of a consumer advocate for Estate Agent customers and has done much to expose the scams and dirty tricks in RE here.

Needless to say he not very popular in the industry :lol:

Member No 3500 - Congrats HPC! :)

I wonder how many lurkers there are out there? :unsure:

(Sorry for digressing)

Edited by erranta

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The good ea’s out there (yes, there are some!!) are probably not as fearful of a slower market as you may think. Over the past 8/9 years of almost constant price increases many new ea offices have sprung up as property was effectively selling itself and most sellers only seem interested in 2 things: “what’s the highest price I can ask?” and “what’s the lowest fee you will charge?” If the market becomes less prolific the bad ea’s will (hopefully) begin to disappear. That should get us to a situation where the ea’s that are left will be the good ones capable of giving an honest and realistic interpretation of the market. Anyone can go round to a house and tell the owners their property is worth an unrealistic figure, the skill is in accurately quoting a price that can be confirmed through sales of similar properties

Bubble markets attract the shonks. The long term players have a long term strategy. Fly by Night agents will move to the next big thing when the market implodes.

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Welcome to HPC. No you know where my real estate quotes on ASF come from! :D

Yes and good stuff it is Smurf.

It seems though, that most Aussies are still on LA-LA land. Despite R/E prives coming off, property bears are viewed as some sort of kookie apocalyptic sect...it's almost a waste of time trying to discuss the possibility of a further correction, but entertaining reading the responses nevertheless. :lol:

It's a bit like the end of a share bull. Everybody's a freakin' genius and bears are viewed as some sort of pariah.

It's all fun. :lol:

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From here regarding this article

Subject: First home buyer exodus :14nov05

From: EJS,

Comment: What do they expect, theres not a bottomless pit of 1st home buyers, it just can't go on for ever, after all we have only 20 million people in this country, and besides i think the $300.000 morgage for the average working family is just about over.

Subject: First home buyer exodus :14nov05

From: Jacob Delafon, The Gap

Comment: Australia needs to rethink and change the way it supports home buyers. First we need to get rid of negative gearing which only supports multiple home buyers and assists them to avoid paying tax by purchasing an investment which leads to inflated house prices. All taxes on housing should be scrapped with the exception of capital gains which should apply to all property the only exception being the principal place of residence providing it is not sold for eg 7 years. Housing interest rates should be set for the term of the loan ie no floating rates on housing.

If you buy a house in Australia you can be sure that the price to you rises in the form of usery from the banks. Real Estate agents in general are a crooked lot and there are far too many of them. The same real estate agent should not be allowed to act on behalf of both seller and buyer and they should charge a set fee (not a commission ) that is paid at the time of sale/ purchase. Acting on behalf of both seller and buyer is a conflict of interest especially when their sole interest is to jag a fat commission.

Subject: First home buyer exodus :14nov05

From: Michael H, Toogoolawah

Comment: In the course of my occasional forays into the 'burbs, I had been keeping an eye peeled for this mass exodus. I was expecting to see freeways filled to overflowing with 4WD's, as they fled. Nope. Nary a sign of 'em.

Sorry, I can't keep it up - Stuart Littlemore, QC, where are you when you're needed most?

Subject: First home buyer exodus :14nov05

From: Bernard, Brisbane

Comment: This could be the start of the downward spiral due to the upcomming IR butchery. Consider these questions. How many thousands of ordinary workers no longer feel confident enough to borrow money over 20 years? How many banks will lend to workers in the knowledge that their jobs are no longer secure? How many jobs will be threatened as a result of a national housing slump? The tip of the iceburg is showing.

Subject: First home buyer exodus :14nov05

From: Courtney Barratt, Nundah

Comment: I completely agree that first home buyers are being locked out of the market. As a 28 year old female, it is daunting to have to take on a substantial loan on your own to buy something that is so far out of the city or the other option is getting a small 1-2 bedroom unit which is phenomenally overpriced. I have to look for a house as far out as Strathpine, Bray Park and Lawnton and the infrastructure in place to travel backwards and forwards into the city is very poor and in peak hour it takes over an hour to get into the city.

While staying at my parents house in Nundah to save up a deposit, I am shocked that the price of their house has tripled in the last four years. Housing prices are out of control and it's about time the government looked at re-introducing the $14,000 first home owners grant as it is actually required now more than ever!

Subject: First home buyer exodus :14nov05

From: Terri Feltham, Coorparoo

Comment: Today you require two good incomes in order to purchase a home. Those of us who are single are virtually stuck in the renting trap, even though you have one decent income coming in. If you are unable to afford the $300.00+ a week in order to rent decent accommodation, you will be stuck with landlords who couldn't care less about the state of their properties, and the constant uneasiness caused by the possiblity that you will be asked to move if the property is sold.

Subject: First home buyer exodus :14nov05

From: Ian, Brisbane

Comment: Is this really any surprise? Look at housing prices, then look at average wages and do the maths. No kidding first time home purchases are down! Heck, I make well over the average wage and it still makes no sense for me to purchase a house right now, as Im paying less in rent that it would cost for an interest-only loan for an equivalent house in an equivalent neighbourhood. Im better off staying in the rental market and putting the money I would have otherwise spent on mortgage interest aside in an interest-bearing investment. Many others like me have figured the same thing out, and we're holding off on purchasing a house until it makes financial sense to do so.

The flood of people buying investment properties over the last 5 years has caused a large portion of the insane rise in housing prices, and its lead to the stupid prices that people still think that they can get for houses in todays softing market. The only people even making hints at rises in the housing market in the next 5 years are these investment property owners and real estate agents (who both, coincidentally, have a vested interest in seeing increases in the market). Funny that.

Wages will have to increase, and the market will have to slide a bit before things will pick up again. Its purely a mathematical equation a $300k+ mortgage is not a feasible option when average household income hovers in the $55k range. Its that simple folks.

Subject: First home buyer exodus :14nov05

From: Danny Brown, West End

Comment: Howard has been so good to me that there is no way I can ever afford my own home - and I'm supposed to have a good job! Too bad for my little brother and his family. They've less money than me and with the changes to IR laws there's no way they'll ever have the security required by the banks.

Subject: First home buyer exodus :14nov05

From: Martine Atherton,

Comment: First home buyers can no longer afford to buy into the housing market. When an unimproved house at Inala sells for over $200 000 then you know it is not about young people wanting too much or fancy houses. Single income families just simply do not earn enough to be able to afford any house anywhere, no matter how much they scrimp and save and go without, no matter how hard they study and work. The housing market is completely beyond their means now.

Subject: First home buyer exodus :14nov05

From: Dieter Kock, Bowen

Comment: Buying a home is a difficult decission, and I experienced that an early purchase can create a handycap.

Changes in employment and work location may prohibit the use of your own home by yourself.

Renting it causes in many cases deterioration and adds to the tax burden.

Subject: First home buyer exodus :14nov05

From: Roger A Stockburger, Burleigh Heads, QLD

Comment: That's only to be expected when you have a Government and a tax system that favours the richest members of the community whilst severely punishing the poor and the working class. Negative gearing, something the US abolished in 1987 and we should get rid of without delay, is a tax loop-hole specifically designed to favour the rich allowing them to purchase investment properties at overinflated values, rent them out, and get a tax deduction against their six figure incomes from the negative cashflow generated by these properties.

This stupid system must be abolished without delay, by keeping property prices high, rents are kept higher than they should be, which in turn compounds the effect of keeping ordinary people out of the spectre of home ownership, the economy as a whole suffers adversely because the rich get tax breaks which are simply not available to people on more ordinary incomes because they cannot afford to get into owning investment properies, the money that should go into provision of services and infrastructure gets flushed down the big toilet, the workers and the poor pay the highest proportional share of income tax and the GST, the rich own negatively geared investment properties and reduce their income tax liability, often to near-zero levels, and yet they still have the audacity to cry poor and demand a dropping of the top marginal tax rate. There's no tax breaks for ordinary people like you, me and most people around you.

I'm all for lowering the top marginal tax rate, but only after the tax-free threshold is raised to such a level that ordinary people have minimal if any income tax liability if all they're doing is getting from one pay packet to the next, living very modest lifestyles and doing little more than getting by, paying the bills and putting food on the table, then get rid of negative gearing and use the billions saved by getting rid of the real estate ponzi scheme by bringing prices back down to realistic levels, and dropping the top marginal tax rate to 30 or 35 per cent. Make this once-great country fair for everybody, not just a select few.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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