Tuesday, 16 June 2015

Sydney madness - car space sells for $120,000

Pictured. Of course you'd have to have a car to put on it. I guess the poor don't have car spaces either :s

Seriously, this is right out of control now. The warning bells are going off everywhere whilst the gov sleeps. Even wanting housing prices to increase.

People, get a grip. This can't go on forever like this. Look at what's happened overseas. Sydney now has some of the most expensive property in the world.  
Madness has gripped Sydney's and parts of Melbourne's property market; a malaise that, if allowed to continue, could have dire consequences for the nation. 

So far, much of the debate around the rampant real estate market has revolved around affordability and the worrying concern that we are in the process of creating a class system based upon land ownership as wealth is transferred from a generation entering the workforce to those about to exit it. But a far greater and more immediate danger lurks in the shadows. 

The prospect of a reversal - of a sudden decline in property values in the two major capitals - would be enough to tip the nation into a severe economic crisis. 

It's not as though it hasn't happened elsewhere. The collapse in American property markets in 2007 sparked the worst global recession in generations. The UK endured its own crisis borne from overly exuberant real estate speculation. The same thing happened across Europe. 

The east coast capital city property bubble is being driven by investors who borrowed $11.5 billion in April, a 23.5 per cent rise from a year earlier. They sidelined owner occupiers, who borrowed $9.8 billion. 

None of this is being fuelled by wages growth. Beneath this month's GDP figures - which superficially showed an encouraging 0.9 per cent lift for the March quarter - lay the real story. Nominal GDP - a much better proxy for earnings and wages - grew just 0.4 per cent for the quarter and an anaemic 1.2 per cent for the year. more