http://www.news.com.au/finance/business/banking/banks-are-loaning-too-much-to-people-who-cant-pay-it-back/news-story/57af9a6edf85528f5fa38beddd7bb2e3
Just finished watching to story that 60 Minutes ran about the Australian housing market. According to experts the market is due for a major correction.
>>1103897
Why do markets undergo 'corrections'?
>>1103897
fug
Ausfag here, how do I capitalise on this?
>>1103909
Sell everything and everyone in your life (be creative, there have to be some asians nearby who will take people for money) and move to Germany; they're taking all refugees right now.
>>1103897
I made a thread here a week or two ago about just this topic.
>>1103943
>>1103897
I have the money to buy a house outright, but i'm just too terrified of this correction...
Please happen soon.
>>1103944
>Mr Coulthart said people with an average income who wanted to buy an investment property
had to borrow 10 and 20 times their gross income.
>“That is a preposterous amount of lending,” he said. “Property values in Australia are out of control and the level of mortgage debt in Australia is something like 3.8 times the gross domestic product.”
>>1103897
>>1103943
>>1103944
>>1103949
>>1103957
where can I watch the 60min special of this
>>1103902
They go under corrections because theres a point where they cant borrow anymore and have to pay the premiums, once they cant pay premiums they default, and so does the majority of people which leads to a recession
>>1103981
>where can I watch the 60min special of this
I'm watching it on
https://www.9now.com.au/60-minutes/2016/episode-3
>>1103984
>https://www.9now.com.au/60-minutes/2016/episode-3
Says im not allowed to view it cause im not in straya. How can I view it? (NZ fag)
>>1103985
Prob don't worry about it, it's only a 15 or so minute segment.
>>1103984
>MFW when they were interviewing that DUMB woman who owns 10 properties in bum fuck nowhere mining towns and is in millions of dollars of debt.
>>1103992
Masses know no better, look at america, this was the exact same thing that was happening there.
Good thing for Oceania, actually, makes stocks cheap (dont have the balls to short)
land banking in aus was getting shilled a lot in the past and now there are loads of people in debt
They'll be fine. No one outside of aus cares anyway since it will have no impact globally.
>>1103897
>those low quality pixelated pictures
kek the slow Australian internet memes are true
>>1103909
Sell everything, short real estate firms in Australia.
>>1103897
This is a fairly extreme example.
I think apartment investment is where the biggest bubble exists. Even in Perth they're building thousands of apartments and trying to sell them at $400,000 for 1 bedroom. They're trying to sell it as "apartment living" or whatever the fuck that means. Like if you buy a 2 bedroom apartment for 550,000 in Perth you're practically living in Seattle or New York.
House prices are stagnant or falling, the demographic buying are immigrant families looking in the suburbs. Unemployment is increasing and there are still hundred and hundreds of apartments that haven't been finished or sold still to come onto the market.
I'm sorry if you bought an apartment in the last 5 years.
Who'd have thought decades of government policy encouraging negative gearing would cause a real estate bubble?
>Mfw all the retarded boomers who think the only way to invest is real estate are gonna get REKT
>>1105253
Hmm.
Will this happen in America, too?
>>1105262
Follow up
i am sorry i do not understand, will the correction lower prices or raise them?
>>1105277
Lower. It's "correcting" artificially inflated prices.
>>1105278
so if i am understanding this correct, there will be a huge economic backlash and it will be horrible for australians, but with lower house prices it will be a good time to buy a house?
>>1105294
Prices will crash. Everyone who invested in real estate in Australia will be extremely angry. Young/poor people will be able to afford homes again.
The government will probably try to keep house prices artificially inflated through market manipulation, so prices probably won't crash to where they should be. Residential property will still be massively overvalued.
>>1105294
More or less, also it could really suck if you're a boomer and panic sell your property portfolio.
On the other hand if you get out early and buy near the bottom you could double your portfolio for nothing.
>>1103897
1) It's 60 minutes
2) everyone else panned the shit out of that report in the papers today
3) please wait for the market correction, I'll be here buying properties while you do it.
>>1105296
I seriously cannot wait
Australia is a big open landmass, why can't they build millions more houses?
>>1105296
>>1105308
There is a massive amount of equity in our housing market that's used throughout the economy in small businesses. When the market corrects and 40% is wiped off house prices, you won't be cheering because you won't have a job.
Deflation, unemployment through the roof and retirements wiped out. You won't be immune to the effects, no one will.
>>1105315
If you have enough cash to ride out the storm and pick up some deeply discounted assets you'd be laughing.
>>1105314
because theres literally 5 cities (if that) that have jobs and are worth living in
>>1105314
Pollies don't want to release land for residential development because it would mean they have to spend more on infrastructure/utilities and their investment portfolios would drop. Also it's not popular with the oldies who have most of their capital tied up in real estate.
>>1105348
Politicians don't want to release land because they don't want to see house prices stagnate or worse, fall.
You have understand that a lot of our pollies own investment properties of their own
>>1105314
Most of that landmass is uninhabitable.
I cant wait to see how our bubble popping will effect the Chinese opinion on properties/buildings as stores of wealth, not just here but back in China.
>>1105366
And is a miserable shithole. There's a reason young poms come here to raise a family and never go back.
>>1103992
>mfw that dumb woman is my sister in law
Kill me
>>1105374
How come brits can come to australia and migrate but we can't go the otherway? its unfair
>>1103902
Because greedy /byz/ retards invest too much money into things like stocks and property making them cost more than they are actually worth, and when people realize this they all panic sell at the same time crashing the market with no survivors.
>>1105394
Because the brits who come and stay do so with a skill or trade that allows them to make a valuable contribution to the economy.
The UK doesn't need any more 20 somethings "finding themselves" working in pubs.
>>1105394
it does work both ways... if you're under 30 you can get a work and travel visa...Aussies use it in the UK, Brits use it in Australia... I'm pretty sure there is a similar deal with Canada too
>>1105430
Yeah, there's a stereotype in Britain of the Australian bartender for a reason.
>>1105377
>MFW house prices may crash in time for when I plan to buy my first home.
>>1103897
Someone cap the article please
Sounds eerily similar to Canadian housing bubble. Vancouver & Toronto prices are getting out of control.
>>1105650
WHAT THE FUCK
>>1105650
how do I short housing bubble
>>1106509
Watch The Big Short
>>1105315
>You won't be immune to the effects, no one will.
I will, because I moved away from that retard country three years ago.
