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God the housing shortage in Canberra and Australia is annoying.

By Maxwell 15 January 2012 104

This is a dead set joke. Don’t try and tell me it has always been like this – I wasn’t born yesterday. Around the year 2000 housing was CHEAP and PLENTIFUL !

I think what happened was around 2006 – 2011 all of the kids of the baby boomers started leaving home and getting jobs and all of that stuff and this created a mini ecoomic boom but also there wasn’t enough housing on the market to cope.

Think about it, in 2004, you had 3 kids at home, 2 at university, then in 2007 they both up and moved to canberra or got jobs in their own towns/cities and wanted to rent a place.

What is the main type of housing being built at the moment ? Apartments. Who wants apartments. Young people. Says it all really.

What’s Your opinion?


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God the housing shortage in Canberra and Australia is annoying.
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Bramina 8:26 pm 20 Jan 12

devils_advocate said :

NoImRight said :

No I didnt call anyone lazy. How do you get that out of that quote? I suggested they didnt want to do what it takes to get what they want. A subtle difference perhaps but a difference. Bit too close to home ( see what I did there?) perhaps?

While I don’t purport to speak for my generation, I think this post hits the nail on the head – it’s not laziness, it’s just a different attitude toward consumption and money (note I said “different” – not neccessarily wrong).

I suspect that high housing prices even play a part here. As several people have said here, there was once a time when young people saved hard to buy a house. It was the done thing.

But I suspect many young people these days see owning a house as an impossible dream. Since there is no need to save, they consume.

arescarti42 7:40 pm 20 Jan 12

You make a pretty reasonable argument VYBerlinaV8, just a couple of points.

VYBerlinaV8_is_back said :

For those who remember me, I’m one of those evil property investors everyone hates, and have been for some time.

There is nothing inherently wrong with investing in property. What is destructive is where people make speculative investments because they think the capital value of property is going to go up (due to warping of the system via negative gearing, tax incentives, etc or a “better get in quick, before it is too late” type mindset).

VYBerlinaV8_is_back said :

The time when property prices were really tested was in 2007/2008. Government stimulus and drops in interest rate not only propped up the market, but caused it to increase. In 2007 the western world was going to be reduced to a smoking desert. Did we see a crash? Nope. Australia currently has low government debt and plenty of room to move on interest rates.

You have to appreciate that Australia didn’t avoid what happened to the rest of the world so easily, it took the US Federal Reserve bailing out NAB and Westpac to the tune of $5 billion so they wouldn’t outright collapse, an Australian government guarantee on our banks so that overseas lenders would still lend to them, $50 billion in stimulus in Australia, and half a trillion dollars in stimulus in the number one buyer of all the stuff we export (China).

That was what was needed to see that Australia didn’t stumble during the GFC. Now that all the stimulus has worn off, the world (and also Australian) economy doesn’t look so crash hot. The question you need to ask yourself is if something else happens (e.g. a slow down in China, global credit event caused by the shitstorm unfolding in Europe, etc.), is there the financial means and political will to see that we dodge the bullet again? I would suggest possibly not.

As for Australian government debt, it is true that it is low enough to not bother talking about. The elephant in the room is the debt held by private citizens. Australians lead the world in personal debt, we have way more debt per person than the Americans or any of those basket case countries in Europe ever did, and it poses a considerable risk to our economy.

VYBerlinaV8_is_back said :

5) Tradies now earn so much that the cost of building a new dwelling is huge (compared to 10 or 15 years ago). As such, some of the money that would have chased new stock is now chasing existing stock.

Construction costs haven’t actually increased all that much over recent years (see link below), and the amount they have risen by can mostly be explained by the fact that houses have grown a lot bigger and contain more costly inclusions (e.g. air conditioners, granite bench tops, home theatres, etc) in recent times.

http://dl.dropbox.com/u/3827353/Housing%20Graphs/ScreenHunter_03-Aug.-17-21.11.gif

devils_advocate 2:01 pm 20 Jan 12

NoImRight said :

No I didnt call anyone lazy. How do you get that out of that quote? I suggested they didnt want to do what it takes to get what they want. A subtle difference perhaps but a difference. Bit too close to home ( see what I did there?) perhaps?

While I don’t purport to speak for my generation, I think this post hits the nail on the head – it’s not laziness, it’s just a different attitude toward consumption and money (note I said “different” – not neccessarily wrong).

Many of my friends earning $100k+ don’t have their own homes, and in my humble opinion their time preference for consumption is large – that is, consumption is heavily weighted towards the present.

I view myself as an exception because I have always had a pathological fear of being poor, as well as a fear of credit; was still a minor when I started my undergrad in law and finance and therefore feared banks before I was contractually capable of dealing with them; and worked in consumer credit regulation, so saw the worst of how banks deal with consumer. So I don’t really have healthy attitudes toward money or banks.

My choices were different to others I know, but certainly I don’t think they’re lazy, just different priorities. And they all seem happy with their choices. The difference is, I wouldn’t abide any of them whinging about the outcomes of those choices or begrudging me any of my “success” (narrowly defined for the purposes of this post) on the basis that it’s anyone’s fault other than their own.

NoImRight 12:58 pm 20 Jan 12

chewy14 said :

NoImRight said :

Yes I can point to where people have complained that house prices arent going up like they used to.

Well do it then. I’m sure I’ve never said anything like that.

NoImRight said :

I have suggested bleating about something you dont like and then demanding someone else pays for it and fixes it for you is not really a practical solution.

I’m assuming you can point to where people have said that someone else should pay for it? Right? I mean you like comments with real content don’t you?

NoImRight said :

The only consensus seems to be some people cant afford everything they want right now and their solution is someone else should fix it by making those that did work for it and can afford it give it away to them. No one seems to want to consider making sacrificing a little and working to achieve something. Thumper is right suck it up, save and buy what you can. If you choose not to well spend some time in the room of mirrors if you want someone to blame.

No, you didn’t call anyone lazy at all.

I’m sure with your A grade grasp of economics you can put together a good argument that refutes a few of the links arescarti and others have provided in this thread? Or are you limited to wild generalisations and making stuff up?

Settle down Angry of Narrabundah its just the internet its not going to get you laid. In any case Ill try again.

TBH its back a few days ago and I really cant be bothered finding it.Its dull enough reading lengthy “why me?” rants once let alone twice. It may even have been one of the other interminable threads on this subject that seem to be popular now.You can believe me or you can look for it yourself. Or can say I made it up if that helps.Ill still be right;-) In any case where did I say you said it? Are you the elected leader now? Or has that damn Lady of the Lake been at it again? Others have been jumping on this jolly bandwagon too you know.

“Others pay for it”. Again its spead over the forum and I dont intend to spend my day going back over it I have useful work to be getting on with. To summarise though some have claimed the Government should provide more support for first home buyers.Where does that money come from? (Actually Im not against a rethink and improvemnt to support for FHO) The bubble fanciers are also eagerly awaiting divine justice falling on those that have dared to already buy and claimed they cant wait to see house prices plummet 50% or some other reasonable figure. In both these cases it would seem they are quite keen for someone else to foot the bill wouldnt you say?

No I didnt call anyone lazy. How do you get that out of that quote? I suggested they didnt want to do what it takes to get what they want. A subtle difference perhaps but a difference. Bit too close to home ( see what I did there?) perhaps?

What links have I suggested needing debunking? I dont recall getting too much into the economics of this more the mindset of those railing against the dark. I dont think Ive made anything up either but I guess for some some cold reality can seem like fantasy or a generalisation. Take it however you will.

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