Australia housing bubble

[Franco Cozzo]

Originally Posted by Sprintey

Got the impression after the shock election all the stops would be pulled to keep housing going. Dropping cash rate from 1.50% to 1% seemed to trigger AUD beating and PMs went on a rampage. A large proportion of the world's bond market is in negative rate territory, and effective US Fed funds rate of 2.13% (just looked, St Louis Fed) is 95% of global positive sovereign yields!!! We are at 5000 year lows in interest rates...

Are houses going up? Ads on the telly are telling me it's the best time ever and to jump before I miss out.

Business, well AUD down so tourist areas should stay healthy, strong demand off season here and summer should be very busy. Tradie reports are that it is still strong for new construction locally, still asking for labour.

If it does get to crisis levels, the govco can copy my idea: The First Pet Homeowners Grant. $50,000 toward a first property for your labrador, budgie, etc. That should support prices.

I'm in what's left of our manufacturing industry, we're a wholesale distributor as well.

Unfortunately all our suppliers are paid in USD except the local raw materials.

We're taking a hit on margin with the Australian peso at the moment.

Though good time to break into supplying the US market as we're Pacific Mexicans.

Speaking on housing prices, realistically people should probably give up the idea of a house in the suburbs on a 1/4 acre block because it's creating a huge metropolis.

Melbourne and Sydney are both monsters with gridlock chaos because everyone keeps going further and further out but the work is in Melbourne/Sydney and they're travelling in.

It would make more sense for people to live in apartments and build upwards rather than outwards.

You can get yourself a two bedroom apartment in Melbourne with a car space for $500K-$600K, it's cheaper than suburbia.

They keep on expanding suburbia South East and West.

Pakenham and Cranbourne are both considered a Melbourne suburb now and they're a long way South East.

Dandenong can take you two hours from Melbourne CBD and it's only 30km or so away from CBD in peak hour.