Welcome to City-Data.com Forum!
U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > World Forums > Australia and New Zealand
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 11-09-2014, 07:49 AM
 
2,441 posts, read 2,588,381 times
Reputation: 4644

Advertisements

Quote:
Originally Posted by dirtyjerz View Post
I don't agree that it isn't a primary suspect. If you took the tax incentive out of housing investment, demand would plummet. Nobody's relying on yield anymore and expectations for capital gains are lower, I think.

Take foreigners that shouldn't legally be purchasing property as well as investors and prices would be like Wile E. Coyote going over a cliff. The government has increased the distortions and penalized the thrifty.
Yes, the policyinentivises investment over residential buyers.
Reply With Quote Quick reply to this message

 
Old 11-09-2014, 09:15 AM
 
1,008 posts, read 2,001,701 times
Reputation: 581
Quote:
Originally Posted by WildColonialGirl View Post
Most of the first world countries do, excepting of course the US. Any moral society is goingto institute a welfare system once the average proserity is high enough to afford it.
Does US have its own superannuation/retirement pension systems? How is it different to Australian/Kiwi's? Which one is more "generous?"
Reply With Quote Quick reply to this message
 
Old 11-09-2014, 03:30 PM
 
1,337 posts, read 1,936,591 times
Reputation: 855
Quote:
Originally Posted by dirtyjerz View Post
Obviously Australia is somehow different. It's different because we have been selling huge amounts of iron ore to the Chinese. Australia is also different because of negative gearing. Of course, none of this means that we don't have a housing bubble. We do. Negative gearing is one reason why it hasn't popped yet.

I was living in the USA during and after the bubble. I sold my property and shorted the stock market. Australian real estate is dangerously over-expensive.

You know you don't have to be a mathematician to spot a trend here, and its clear some markets crashed while others powered on (for now). You could add most other OECD nations to that graph that would look virtually identical.

http://www.whocrashedtheeconomy.com/...uk_sep2012.png


The rapid price growth throughout the OECD started at the same time. Most countries don't sell Iron ore or have negative gearing :P and many have lower rates of population growth for the record.

The largest contributing factor to this phenomenon is banking deregulating changes throughout the Western world in the late 90's, it pretty much allowed banks to lend to anyone and removed LTR restrictions that caused huge borrowing and a speculative housing market.

I am not suggesting negative gearing, state of the economy and immigration does not have SOME effect, but those factors are clearly not the root of the problem.

Why does the mainstream media not pick up on this?, well who are amongst the mainstream media's biggest clients?.....Banks & Real Estate, they prefer other explanations
Reply With Quote Quick reply to this message
 
Old 11-09-2014, 04:11 PM
 
1,111 posts, read 1,222,579 times
Reputation: 474
Quote:
Originally Posted by OZpharmer View Post
Does US have its own superannuation/retirement pension systems? How is it different to Australian/Kiwi's? Which one is more "generous?"
Contibutions to the the Australian scheme are very generous and are set to get better, details can be found here Superannuation Changes, Tax & More » Industry Super
Reply With Quote Quick reply to this message
 
Old 11-09-2014, 04:20 PM
 
125 posts, read 162,216 times
Reputation: 110
Quote:
Originally Posted by Battleneter View Post
You know you don't have to be a mathematician to spot a trend here, and its clear some markets crashed while others powered on (for now). You could add most other OECD nations to that graph that would look virtually identical.

http://www.whocrashedtheeconomy.com/...uk_sep2012.png


The rapid price growth throughout the OECD started at the same time. Most countries don't sell Iron ore or have negative gearing :P and many have lower rates of population growth for the record.

The largest contributing factor to this phenomenon is banking deregulating changes throughout the Western world in the late 90's, it pretty much allowed banks to lend to anyone and removed LTR restrictions that caused huge borrowing and a speculative housing market.

I am not suggesting negative gearing, state of the economy and immigration does not have SOME effect, but those factors are clearly not the root of the problem.

Why does the mainstream media not pick up on this?, well who are amongst the mainstream media's biggest clients?.....Banks & Real Estate, they prefer other explanations
I don't disagree with you, but LVR restrictions aren't going to implement themselves now. If we implemented macroprudential controls, wouldn't it exclude all but debt-fueled equity investors rather than new homeowners? LVRs aren't going to cut now and it won't be tested.

The way this thing pops is going to be different in terms of the way the punch bowl is pulled. I've been early and wrong for years, but after having had no opinion for years, I believe that we are finally at the event horizon.

If AUD falls faster than prices increase, we lose safe-haven status with foreign investors. Why would anyone buy Aussie bonds?
Reply With Quote Quick reply to this message
 
Old 11-09-2014, 09:20 PM
 
1,008 posts, read 2,001,701 times
Reputation: 581
Quote:
Originally Posted by Samuel,J View Post
Contibutions to the the Australian scheme are very generous and are set to get better, details can be found here Superannuation Changes, Tax & More » Industry Super
Australia considers ditching pensions freedom and copying annuities | This is Money

Then, how can you explain the above article? Does the Australian gov't really have plans in changing the current system?
Reply With Quote Quick reply to this message
 
Old 11-09-2014, 10:38 PM
 
Location: Brisbane
5,021 posts, read 7,426,595 times
Reputation: 4476
Quote:
Originally Posted by OZpharmer View Post
Australia considers ditching pensions freedom and copying annuities | This is Money

Then, how can you explain the above article? Does the Australian gov't really have plans in changing the current system?
That has got nothing to do with the amount of contributions, but how you draw the money out. Currently the Australian system allows most retired people over the age of 60 to take out as much as you want, when you want, and tax free.

Which of course leaves it very open to abuse. You get some people using their Superannuation Pension to fund luxury cars, luxury homes, pay off that mortgage you could not afford in the first place, overseas holidays etc etc. Only to find the Superannuation money runs out very quickly and they end up relying on the government pension to fund their retirement, which the Superannuation Pension was meant to pay for.

Still I think the current guarantee rate of 9.5% is not high enough.

Last edited by danielsa1775; 11-09-2014 at 11:42 PM..
Reply With Quote Quick reply to this message
 
Old 11-10-2014, 01:00 AM
 
1,111 posts, read 1,222,579 times
Reputation: 474
Quote:
Originally Posted by OZpharmer View Post
Australia considers ditching pensions freedom and copying annuities | This is Money

Then, how can you explain the above article? Does the Australian gov't really have plans in changing the current system?
I don't know. It's a British newspaper's comment on a report the Australian government commissioned, whether they act on it is another matter. You'd have to find something more authoritive in the Australian press to get a fuller picture.

Retirement is a long way off for me but is buying an annuity a bad thing or good?
Reply With Quote Quick reply to this message
 
Old 11-10-2014, 07:58 AM
 
2,441 posts, read 2,588,381 times
Reputation: 4644
Quote:
Originally Posted by OZpharmer View Post
Does US have its own superannuation/retirement pension systems? How is it different to Australian/Kiwi's? Which one is more "generous?"
IDGAF about retirement/super. People dying of exposure because the society wants to punish them for being a shtty employee is a bigger deal.

Is it fair that a man who was arrested for possession of a joint at age 16 is sentenced to starve at age 54?
Reply With Quote Quick reply to this message
 
Old 11-12-2014, 03:25 AM
 
1,337 posts, read 1,936,591 times
Reputation: 855
It seems the New Zealand Reserve bank has somewhat proven LVR limits have a significant impact (realistically the biggest impact) on house prices growth in a time of the economy doing well and high immigration having upwards pressure on prices. Big surprise for anyone aware of the banking regulation changes in the late 90's


Before anyone cries "NZ first time home buyers are being overly penalised" which is the NZ banks paying for negative press spin, its worth noting first time buyers in NZ make up a far greater percentage of new mortgages than in Australia ooops!

New Zealand Reserve Bank says home lending limits working well - ABC News (Australian Broadcasting Corporation)


As for Australia, I am betting the banks are panicking as most of them also operate in NZ a very similar market and a precedent has either been set or at the very least growing.

The Australia Reserve Bank imo knows LVR is the problem but like the current Aus climate change policy, its all boils down to bringing in government $$ revenue with a lot of power and vested interest groups preventing action.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:


Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > World Forums > Australia and New Zealand
Similar Threads

All times are GMT -6.

© 2005-2024, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top