One Cartoon says it all
a beautiful cartoon in today's SMHerald .....
From what I hear Robi the ownership of 3 or 4 houses by the Baby Boomers is causing resentment in the 40 year olds and younger as they realise it will be very difficult for them to own a house or flat in the Capital cities unless they have old money behind them.
The problem is everyone who comes to this country wants to live in Sydney.
Just realised my mistake above. Meant $750,000 of course.
Yes Viv, sadly resentment is a natural outcome, but the blame belongs to governments that made multi investment so easy and alluring. Investors are now driving up the price of apartments so even they are moving out of reach.
The Haberfield house I spoke of was a 3 bedroom brick home with a swimming pool. Nothing flash.
we have the howard government to thank for creating a massive 50% discount on capital gains tax. this reduced government income and resulted in floods of housing investors building up their property 'portfolios'.
along with negative gearing perks and high immigration numbers, house prices started to rise and rise and rise and property speculators became richer and richer and richer.
but it can't continue forever. at some stage our over-valued house prices will crash and the speculators will have to pay back their massive debts to the banks.
And then what sweetheart
property becomes an attractive asset to invest in again and so the cycle repeats
More people get into the market
Exactly the same as the share market; all go in cycles...up, down, up down.
The house I had in Sth Western Sydney is now worth 1.2Million was just a 3 bedroom brick
Alternativley, the house I had in the western suburbs of Brisbane lost 20% of its value overnight because some clown in Brisbane listed the area as flood prone, even though the water came no where near my property during any flood on record.
As Radish said, if you speculate you have to be prepared to take the occasional loss. The ones who lose out are the ones who jump ship the moment things get a little rocky.
I have a decent Super Scheme and I also invest myself, I haven't been able to match the overall profitability of the Super scheme over a 5 year period. The brokerage fees and accountants costs are roughly the same as the management fees charged by Super. In my case I would be better off putting it all into Super, the only thing stopping me is the politicians circling Super funds like sharks just waiting for a chance to get their hands on the funds.
I read some articles on this site and I think your blog is really interesting and has great information. Thank you for your sharing.
Better articles on Ben and Friends and the Positivety thread
you'd fit right in
Yes a very good cartoon kika. Thanks for putting it up.
I was going through newspapers recently, throwing out the ones that had been read and decided to read "The Domain" which I haven't looked at for years. There was a house in Haberfield advertised with a price range between $3.3 to $3.5 million. It had last sold in its present state 6 years ago for $1.2 million. The price has almost tripled in 6 years. Only the wealthy or those already in the market exchanging homes in Sydney can afford such prices. And now apartments seem to start at $750 and up. What have we done to our young people in this country?