Data released from the Reserve Bank of Australia today, show Australian’s are continuing to shun housing debt despite interest rate cuts.
Annual Housing credit growth has hit lows of 5.1 percent in May, continuing its downwards trend.
ยป Financial Aggregates, May 2012 – The Reserve Bank of Australia, 29th June 2012.
It won’t be long before Real Estate Agents earn their keep by representing purchases with fees based upon how much money they can save a purchaser. For example if a purchaser engages a Real Estate Agent to find them a property that they are willing to pay 500k and the agents successfully negotiates a sale price of 400k, saving the purchaser 100k, then the agent is entitled to a percentage cut of the 100k saved. The more money the agent saves the purchaser, the more they earn.
@ Michael Francis. I love it. For too long it’s been about how much money the REA can make the vendor!
Just to add to your idea, what if every house on the market had two REAs, one repping the vendor and one repping the purchaser? The commission would then be split between the two of them 50/50. Or even better than that – get rid of REAs all together! If you want to sell your house, do it online (small advertising fee to website) and put a sign up outside your house. When someone makes you an offer that is acceptable to both parties, bring on the conveyancer to do the legal work. No estate agent fees at all!
Well, who would have thought this would happen? The dithering fools in the banking system who mostly created this mess, must be crapping themselves!
Finally the individuals are taking their power back and not being swept up in this notion that debt is good, it’s quite the opposite in my opinion, particularly, if you don’t assess your ability to repay in a realistic manner. If you look at the graph, the falls for finance started back in 2004, almost 8 years ago, so why are the banks only now posting this decline? They must have really been deluded if they thought that people could just keep loading themselves up on debt forever. The party’s over kids and apparently has been for a number of years.
Unfortunately, I have friends and family that are still blinded by the housing ponzi scheme in this Country and are indebted up to their eyeballs, thinking that they have been smarter than everyone and smugly making mention of how many houses they OWN….hehehe, this type of thinking makes me laugh, they don’t OWN any of them, they will be debt slaves until the day they die because they didn’t do the research and continued to believe the hype that capital growth will out perform any other investment class. The funny thing is these people are supposedly intelligent, well educated, accomplished people but what I have learnt from human nature is the more elitist you are the more you think you deserve/are capable of. In a word (GREEDY)
This is why our society is so divided and the well off have taken more than their fare share of the pie, so to speak. It’s about to turn on them big time and many will regret the debt mismanagement. Oh dear! Can’t say I feel sorry for them, infact they would do very well to learn this one analogy – for every action there is a reaction, some positive, some negative! This is exactly why a thorough risk assesment is vital in any decision you make in life.
My evaluation is that the whole system is failing and the next few years are not going to be pretty.
On another note, if anyone is interested in astrology, do yourself a favour and google – Uranus square Pluto, this will explain a little bit about what may happen during this planetary transit, it first began in 2008 when Capricorn entered Pluto and will remain until 2024. (Capricorn, rules big institutions like banks, governments, religion, etc) The last time these 2 planets had transits like the ones we will witness over the coming years were during the depression of the 1930’s. Anyway, a bit of food for thought if anyone has the inclination to find out more. It is really facinating and frightening at the same time.
Best wishes!
I remember as a kid in the late 80s ads on TV for an agent -ljhooker- where they found a family their home with the catch phrase ‘Thank you Mr Hooker’. An REA advertising to buyer. Can’t wait until we see this again.
Prices are falling. They might rise briefly before continuing on to the historical mean. A good thing.
But even then the majority will see buying at a lower price a bad thing.
Buy at the top: astute investor. Buy at bottom(or reduced price) Vulture.
My 2 cents.
Its about time. Let this housing market crash and bring housing prices back to earth.
@Michael Francis
Great idea to get the agents working bit harder.
However the “buyers agent” businesses that have come out of the woodwork
Over the past 10-15 years really serve that purpose.
It’s a pity more people don’t take advantage of that service.
Banks crapping themselves?
Oh you’d better believe it. The banks have started their first round of margin calls on small business. They need small business to tidy up their loans immediately.
Small business is the engine of the Aussie economy.
We must be 6 months (IMO) from having banks pull the funding on Large corporations. The GFC is finally begining to hit Australia.
Watch Roy Morgans unemployment firgures spike.
While Canberra wastes days creating bills that have no possible chance of passing the Senate.
What a bloody shambles.
WHO CRASHED the economy. VICT BC, BSA QLD, Corrupt government departments, meant to HELP homeowners. salararys, and RIPP OFF. Certified houses defective. CONFIDENCE none. I have lost my house, IT is worthless and rotting, due to BSA QLD. Refusing Insur. monies, and deleting proof. not helping. CORRUPT protection of them by the CMC, QCAT.
Health commision now corrupt. I am glad now that the builders will now go under. I HOPE all of them protected by useless VBC, AND BSA criminals. BSA Qld need a full commision ENQUIRY, joined to the VBC criminal investagation. Add to that GILLIARD. No payrises, escalation of all costs. ELECT. Cant afford to eat. People losing jobs on Centrelink Newstart. calling them dolebludgers. Kick them when they are down. SAYING there are JOBS.
well I want them ALL OUT. Austrlia is ruined. What took a few decisions by Gilliard, will never recover. She TAKES, then say I am great I gave you $100 dollar cash payout. ONE PAYMENT. False advertising, wasting on pamphlets, WASTE and ABUSING our taxeS to send us all to the GUTTER, while the FAT CATS keep their JOBS.
Vic building shambles, perks, deals and HOMEOWNERS let down, Qld bsa a CARBON COPY, add to that HEALTH debacle, SLIPPER all government departments. THEN ADD the tribunaLS just a claytons COURT, MISUSING taxes using our homes as PAWNS. wHO WILL EARN money of us today.
CONFIDENCE in anything Government, GOVERNMENT CRASHED everything. Everything we took years to build up.
No one in the shops, yet GOVERMENT is praising themselves. JOKE
cost of living. stuffed. JOBS pay STUFFED. COSTS more than your pay to LIVE, because GOVERNMENT have kept wages down, but let prices rise. PENSION age put up, knowing there isn’t any JOBS to 67. JUST MONEY COLLECTING,
letting down people who have work 65 years. giving our taxex everyday of our life, let down when we need it.
NO GET BACK TO WORK. thanks I want to leave AUSTRALIA