The Serious Money Is In Housing… But…
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- เผยแพร่เมื่อ 26 มิ.ย. 2024
- The ABS released their latest data on Household Wealth in the March 2024 quarter today. They say in aggregate terms, household wealth was up 2.7% in the March quarter, or $431 billion dollars.
The value of assets is skyrocketing at the moment, but incomes are hardly growing. So if you're lucky enough to own any assets (like a residential property, or superannuation savings), your wealth is likely increasing. But if you don't own any assets, you're missing out.
So, the story continues, with asset prices continuing to swell, in response to policy from Central Banks and Governments, but there are two questions to consider, first will the asset growth continue, or are we reaching levels where the higher for longer interest rates will start hitting home and second, what of the growing number of households with zero assets, and a cash flow deficit.
While superficially the ABS numbers might sound promising, actually they tell a sad tale, of asset inflation, but one which few want to recognise. At least for now.
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I think I’ll be ok this year…
I just got a 2% pay rise 😅
I delayed buying a house for years not because of what Martin was saying but because I agreed with what he was saying. Logic and history said this can kicking could not go on forever and a price reset surely must happen. I was wrong and now believe that the right time to buy a house is 10 years ago or right now.
The OZ housing bubbled has defied a black swan event (covid)and a sudden spike in interest rates both which should have resulted in a fall. Now loan serviceability is shot without the bank of Mum,Dad,Granny and Grandad chipping in a huge deposit. You would think this idiocy must end soon ?........ but I wouldn't bet the house on it.
all by design! Martin was in on the whole thing being a secret gov agent!
2500 millionaires have relocated to Australia, over a million people have immigrated. Do you think those immigrants are poor? Same amount of housing stock, but dramatic increase in demand cause by rapid increase in population. I have the same sentiment ( i was saying before covid theres something wrong ) well before I found this channel. There is what should have happened and there is what did happen. Government has figured out that it can turn the immigration leaver to balance there books at the citizens expense.
@@douglasgreene9340 yes Martin knew this but failed to tell us
So true - I wish we had known that 10 years ago - following this program was detrimental to the advice I gave my poor family. I could see the logic too of a definite fall in the Housing Ponzi, but all that ever came was a historic huge rise in house prices. I think house prices in Australia rose by 25% over that ridiculous period 2020-2022. And now left as renters and learned the hard way never to trust economists. Economics is not a science, and never will be.
What a disaster this housing monster has become thanks to the failure of all governments.
Probably go on till 2029 then 2030 u own nothing
Property is the guaranteed way to get rich, unless you buy an appartment you literally can't lose.
Yup, this is why everyone wants in, buy a house, buy an investment property, pay them of and never have to work for the rest of your life. Wouldn't it be nice if you just don't have to work at all while getting enough money to live a comfortable life.
@@Zilron38 "Yup, this is why everyone wants in, buy a house, buy an investment property, pay them of and never have to work for the rest of your life."
Well, the irony is the younger generation may have to work for the rest of their life in order to pay off their mortgages (if they can get their foot in, that is). Also, The idea that you can afford not to work for the rest of your life once your mortgage is paid off is rather silly, btw - you still have other bills to pay, and your main residence is not going to pay those expenses as your house doesn't generate any cash flow.
@@uberboiz yup, that's kind of where I was leading. There is just so much incentive to buy property and use it for investments that it has driven the house prices so high that the majority of new comers trying to buy a home to live in, except those who have very high income, which is less than 10% of the population, cannot afford to buy anything. It has really screwed so many people out of retirement and a future. Basically we will be working and renting until we are dead, there is no retirement for us now because the pension cannot even cover just rent, forgot about food or anything else.
Also, if you have 2 fully paid of free standing homes, one you live in, one as investment, you might higher disposable income than what I currently have, even after all those bills, because I have to pay rent, home owners don't. Sure I might make more, but I have less in my pocket at the end of the day.
@@Zilron38 I think you miss my point, but I'm not surprised by your perspective - most people in this country who take conventional wisdom around home ownership without critically assessing it would share the same views as yours.
My point is, complaining about housing affordability is as unproductive as complaining about why the weather is so cold in winter. Why would anyone in their right mind want to borrow 8x their annual salary to buy overpriced and unproductive brick and mortar, and spend the rest of their working years (or even into retirement) just to pay off the mortgage anyway? Hopefully you'd realise sooner than later that a dependable passive income stream is more valuable than home ownership when you are no longer able to work.
Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property ,
With inflation Borrow , Buy Property , you will not Lose ! Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property , Borrow , Buy Property !
Great until you have to pay it back😂
Borrow buy no cashflow
This is great for you if you can keep buying. But absolutely terrible for everyone else.
@@davidhayman7623 so far no one has had to pay it back
@Zilron38 they are racking up debt so not great for them but they are too dumb to realise
I'm sort of torn whether this extreme increase in house prices is the biggest increase in living standards in history, or the biggest drop in history.
I guess if you start out today, the same house in Brisbane now costs 70% more to buy, or 58% more to rent than it did in 2018. That could be considered one of the biggest falls in living standards in Australia's history.
On the other hand, traffic in Brisbane is mental, indicating that the economy is rip roaring. You cant get a hotel booking on the coasts until you are rich. But on the other hand, they are almost booked out. So everyone seems to be rich. And new vehicle sales are setting records.
It really does seem like there's a new 1%. Those 1% are Aircraft Maintenance Trades people. The other 99% have become crazy rich with covid!
Great as always thanks
Glad you enjoyed it
1929
Yes, average price in Sydney was $920. Even though there was a temporary fall to $750, they quickly recovered. Of course Sydney was tiny and therefore these were properties close to the city on giant blocks so I'd say those original properties are averaging 10 million each now.
wait till they start taxing those unrealized gains!
Yep, an obvious target....
@@WalkTheWorldDFA and it will hit me hard , as i will not have the money to pay the tax . the only winner will be black rock ,
a lot investers think they are safe , but in the end , everybody will be taxed out of there house .
Cheers Martin , easy to understand 10 points, very well explained , while our leaders argue over nuke issues and plastic panels families living in tents , when I was a young boy I was constantly told to get my priorities right ! Pity our leaders can’t do the same,
I would love to know how many Australian households have $0 in savings?! Thank you Martin 💜
Anyone tried spanian kebabs at haberfeild ?
To be fair Martin you have talked sense on here but been horribly wrong for a long time.
Indeed, that's the case!
just like i have been wrong all these years . if i had known the government would give me an unfair tax advantage, forever . house's would be ten times where they are now
First ! YEEHAA