Housing bubble.

[Jalpha]

In this country the traditional investment strategy for anyone with wealth has been suburban property. During the days of the boomers the guys who wanted to build wealth would purchase their first home property. Then after paying it off they would purchase another, and another. Capital gains tax does not apply to properties purchased before 1985.

Gen x began doing the same thing, although they will pay CGT if/when they sell up.

Now in this last few decades the millenials have joined in. High rates of immigration, the first home owners grants, a better educated generation (which means a larger proportion of them will buy property) and foreign investment have increased demand. Property prices have risen to inflated values. Most of these properties are on loan from the banks.

I've stood back and watched this in some kind of horrified fascination, waiting.

If house prices have fallen at the end of this month it will be the first time since 2008 that the price has fallen for twelve months in a row.

The housing market here has been due for a collapse for some time now. I expect this will be a very long, slow and drawn out fiscal collapse unless something comes out of nowhere to prop up our economy. I doubt this will cause as much of a problem as the housing crash in the USA but it does share many similarities.

It looks to me as though many people from my generation will spend their lives paying off a loan for an amount which is greater than the value of their home. It's a pretty crazy situation.

[Granger]

Having a Nonrecourse Debt is helpful in such a situation, some sane legislations mandate these for (at least the first) own house one buys so the banksters can't fuck you over completely and eternally.

[Alitis]

Why do you need to post this in a game forum ? Stop posting irrelevant things please

[NOOBY93]

Why do I have to read this in a game forum ? Stop posting irrelevant things please

It's the most random subforum and a descriptive enough title (maybe he should've made it 'Australian housing bubble'). What made you click on something when you already know what it will be by the title? Who is forcing you to read every single post that pops up on the forum?

[Vigilance]

Why do you need to post this in a game forum ? Stop posting irrelevant things please

these forums THRIVE on pseudo-intellectuals talking about these sorts of things

[Zentetsuken]

What's the deeeal with the housing market?

Am I right?

Crazy times we live in ... with this current economic situation

and how it effects the price of housing

and in turn

how it effects our debt, loan and banking situations

crazy times ...

[Ailaa]

The H&H forums are great! I always come here for financial advice.

[neeco]

Why do you need to post this in a game forum ? Stop posting irrelevant things please

He's posting in the right place for this kind of discussion. There is a reason these forums have a place for non-game discussion. You're in the wrong, not him. If it annoys you, happily go fuck off to a part of the forum that's not listed as "General discussion and socializing".

[Granger]

Why do you need to post this in a game forum ? Stop posting irrelevant things please

I think you already got enough backseat moderation to get the point.

Please be kind enough to leave 'stop posting' comments to the moderators.

[DDDsDD999]

What's the deeeal with the housing market?

Am I right?

Crazy times we live in ... with this current economic situation

and how it effects the price of housing

and in turn

how it effects our debt, loan and banking situations

crazy times ...

It's unbelievable Jerry! All this housing coming out of the market's wazoo, Ho ho! The housing prices are going nuts on that debt and loan! Who do those realtors think they are! Heh, now let me tell you Jerry, if I was in charge of them they'd all be living with their parents!