ABC News 24 interviewed Dr Nigel Stapledon on the Australian Housing Market on Friday. The interview upload is courtesy of Macrobusiness.
Dr Nigel Stapledon remarks, “Well Australia has been pretty lucky on the housing front in recent years. In the US we saw a major correction downwards in house prices, Australia missed out that, and a lot of it’s to do with the resources boom.”
“So if you go back in the early 2000’s house prices in Australia were probably, at least as over valued than they were in the U.S., where the correction in the U.S. happened by a sharp correction in prices, here it has actually happened by a significant up trend in rents, so that has corrected the sort of misalignment in the house price, and that significant rise in rents very much aligns with the resources boom.”
“And as we know the Treasurer is having trouble balancing the books because with the resources boom coming off, revenues are getting a bit tighter and the same things are going to start to happen to household incomes and hence also a slowing also in rental growth.”
We will let you decide if there has been a “significant up trend in rents” and if this will save us? But most of what Dr Stapledon says is good information and the video is worth a watch. He uses the word ‘lucky’ to describe our situation, dismisses the notion that inflation will reduce the value of your debt, and warns against borrowing to the hilt and with the idea that house prices will double every 7 to 10 years.
» How mining saved housing – Macrobusiness, 29th April 2013.
Now that was a dull uninspiring interview if ever I have heard one. Yet, it does at least hint at things to come.
Until stories like this are on ‘A Current Affair’ or ‘The Project’ and all the other crap shows on the dumb-ass channels (7,9 & 10), the sheeple will continue living in blissful oblivion of what’s really going on.
Added to which, I agree with Glenn @1 – what a dull and uninspiring interview. Is that the best they could do?
Bit off topic, bit on topic, relative to this vid. You don’t want to be the ones earning less than $80K, and negatively geared with a big debt.
Negative gearing losses jump
http://www.macrobusiness.com.au/2013/04/negative-gearing-losses-jump/
In case this sparks off NG replies/arguments here, I do see eye to eye with AverageBloke’s stance on NG. It should go, but no party will dare touch it.
If the Dr. is right, and the Gov has a $12 Billion black hole, things may not end well for some, or many.
Home loan growth stuck at record lows
http://www.abc.net.au/news/2013-04-30/credit-growth-remains-subdued/4660054?section=business
Things are looking up here in WA, I know a couple of families that were approved for around the 1 million mark to buy.
House prices have taken OFF! … Of course April was an anomaly by retreating 2.5%.
Investors are the ones buying up, housing construction is taking off and the vacancy rate has broken it’s downward trend and is climbing appreciably.
Watch for Household debt to take off during the conclusion of this national embarrassment!
NG debate as posted on The Age website today. Lets see if Eslakes’ comments/opinion gets any traction, particuraly with this revenue blackhole now becoming a reality.
http://www.theage.com.au/national/negative-gearing-losses-a-key-drain-on-revenues-20130430-2ir6h.html
Australia is going to be the new Monte Carlo…
Aus might see a Japan style housing crash were there is simply no price growth for a decade+ and this is possbily the best result for the country from this point. The current Australian government government deficit of 12 billion is actually pretty small and the media seem to be over stating the significance.
What is very possible is a tightening of government spending for a number of years to come and the combined effect will be significant.
http://m.theaustralian.com.au/news/wayne-swan-warns-unemployment-rate-will-rise-as-mining-jobs-evaporate/story-e6frg6n6-1226632637333
Why don’t they ever brag about creating the most expensive housing in the world?
Oh that’s right, you don’t brag about bad stuff…
The decision for Wayne Swan
1. Waste taxpayers dollars on NG, FHOG to keep the housing ponzi scheme afloat, root the economy further, make housing even more unaffordable. But appease Property Investor voters for the next election.
2. NO more grants, make changes to the NG tax handouts. Allow the market to correct itself, stability returns to the market … housing and rent is more affordable, spending improves. BUt baby boomers and Property Investors are pissd off and don’t vote Labor …. but were they going to vote Labor anyway? I doubt it.
http://www.macrobusiness.com.au/2013/05/leith-van-onselen-on-abc-national-news/