Comments on: Revealed: The Housing Shortage Lie

By: Albert

Albert — Mon, 08 Feb 2010 06:23:24 +0000

I saw a report on TV last week that the ‘average’ home for the 1st time buyer in Sydney cost over 500K .
So we have 1st time buyers committing to a mortgage of what ?
The report didnt say … i mean you could put 250K deposit and have a mortgage of 250K couldnt you ?
The REAL info which was missing was HOW MUCH WERE THEY BORROWING !!!! not how much the property was worth ….
The maniplulation and misinformation propagated by the news channels REALLY does need to be legislated.
These guys are becoming the modern day snake oil salesmen but who pays the station to air such views ?
How many 1st time home buyers in each state, the costof the home and how much deposit they put down, and how much was borrowed …tells the REAL story.
So why are we not getting it ???

By: swissjim

swissjim — Tue, 02 Feb 2010 07:50:54 +0000

it is sad that the government of the day,thru their own selffishness ,trying to prop up the hugely inflated housing market.when are we going to wake up?when oversea lenders call back their money,we may need to print more of our money to pay them.hope the day won”t come!

By: baby_swallow

baby_swallow — Tue, 02 Feb 2010 01:24:42 +0000

The whole housing market is like a big auction. There are many players of different kind. Just saying that ‘there is a huge demand and not enough supply’ does not tell the whole story. Yes there is a huge demand. In fact WE ALL wanted to buy a house. But the question is “At what price?”.
Fundamentally, house price should only rise relative to household income. But what happened during the last ten years, and especially the last 12 months saw the Ave house price to income ratio increased from about 3 or less to 4. (In some cases up to 6). This is unsustainable level.
This is how the house price will tumble.
Now that the stimulus is gone and the rates starts to rise, buyers stays on the sideline or wait for the house price to cool down (ie. lowering their bid). First players to crack are the house speculators. Because they can’t sell at higher price (no bid), they start to sell at lower price to cut their losses. The next are the empty nesters – when they see the prices starts to decline, they decide its time to sell. This time the market is inundated with sellers, but no buyers so prices will continue to decline. Then are the the First home buyers. Seeing that house prices are declining, suddenly they realise that they owe more than the value of their house, they start to “fire sale”. Now the market is full of sellers, but not much buyers. Price continue to decline to the “crash” level. Next group of sellers are the new unmemployed caused by the recession. This is the final ingredient to the crash. Prospective buyers will further lower their bid knowing that recession will cause the rise in unemployed.

By: Ihateaustralians

Ihateaustralians — Mon, 01 Feb 2010 16:12:32 +0000

people who criticize this article and believe housing should and will keep going up should be killed!!

Do they want us to live in a $#%$^#$ DRAIN PIPE!!! WAKE THE %$# UP SHEEP

By: W. Australian

W. Australian — Wed, 18 Nov 2009 18:09:25 +0000

“There is no housing shortage.
That’s because it is price that is the major problem in the housing market. Prices are at unsustainable levels brought about by the manipulation of demand and supply by the various levels of government.
As soon as the manipulation ends, price discovery will lead to a collapse in the housing market.”

Perhaps you could provide a similarly lengthy and detailed exposition of this manipulation as you have of the numbers put forward by the National Housing Supply Council.

By: Rod Rye

Rod Rye — Sun, 13 Sep 2009 10:44:00 +0000

Now that I’ve read the data I now realise that if we were to all become homeless tomorrow there would be 100% vacancy and the shortage would be over. And since we were homeless none of us would be bidding at auctions for the chance to own a home, so prices would crash until homes were free, but we still wouldn’t move in, because that would damage the vacancy rate.

Coincidentally I imagine if prices were to drop demand would increase as people currently sharing to shelter from the high prices enter the market. When prices rise either they correct or peoples expectations do.

By: sylvia

sylvia — Sat, 29 Aug 2009 21:24:26 +0000

Hi to all @ MM, I have been reading your newsletter for a few months now, and as a complete novice in the world of “markets”,housing/stock, I must say you have me really worried about the future….. I own my home, but am in the middle of renovating…….(which means Bank loan) I know I can`t ask you for advice, so what does a person do when faced with your info, but not savvy enough to steer through to safe waters??? I also would like to invest in your recomendations (small cap) but again it`s just too much language I don`t understand……… Don`t you have a nursery for those of us who want to learn, but are “a bit slow”…………Sylvia…

By: Zippy

Zippy — Sat, 29 Aug 2009 16:47:59 +0000

you guys are a brilliant alternate financial voice in an otherwise advertiser influenced media.

By: gotosteveg

gotosteveg — Sat, 29 Aug 2009 08:56:22 +0000

Good stuff… This has confirmed my suspicions

By: Daphne Laverack

Daphne Laverack — Sat, 29 Aug 2009 06:28:14 +0000

I do totally agree with you guys on the fact that there will be a property crash and I have not been too keen on buying a house as a result of my gut feeling.