"They've Broken Australians' Dreams" Mark Bouris and Tom Panos #2
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- čas přidán 27. 05. 2023
- On this week’s episode of Property Insights with Mark Bouris, leading auctioneer Tom Panos returns to discuss the human impact of consecutive rate rises in the property market and where we might be headed for the rest of the year.
“The (Reserve Bank’s) strategy is ‘let’s keep putting rates up’. You’re impacting people that are going to make mortgage repayments. What you’re not impacting is the wealthiest group of people.”
People like Tom is how we ended up in this mess to start with. Absolutely no shame whatsoever in spruiking the housing bubble
Dumb Comment. Sell your house cheaper and solve the problem.
You are spot on!
Can't blame Tom. Can't blame anyone. It's a world wide problem. Having the Liberal gov in power for so long didn't help either. Negative gearing doesn't help eithet. Tax loop holes don't help either.
I know it's hard but we shouldnt be asking why the reserve bank is now raising rates. We should be asking why we had to pay so much for a house in the first place..
Mass immigration & mass selling of our properties to foreign investors put a huge strain on the housing market and made it much less affordable, in other words the government is the one who killed the housing market with their idiotic policies
You had to pay so much in the first place because interest rates were too low and credit was too cheap. High interest rates drop asset prices. Its built into the mathematical discounted cash flow model banks use to value assets. Housing will be more affordable in relative terms for the next generation of buyers because of these rate rises.
@@ichrisone I agree with everything you said including the end but only in the long term ( they will lift rates until a market correction occurs imo) Our leaders did everything they could to keep the housing bubble growing. Through cheap money to policy regarding negative gearing to tax grants etc etc and lets not forget foriegn investment, immigration and tax rules to punish savers. I almost own my house with very little debt and on paper I am wealthy but only if I sold everything, The thing is the house I own is my only house and the family home so selling it would mean replace it with something equally expensive so its all relative to me what its worth. For my children and future generations it would be much better if they could buy house with a normal wage again like my parents generation did. It would also be much better for the country. But do any of our leaders think that far ahead or even care?
100%
The problem is that most people can't afford to put their lives on hold until a bank decides to pursue one financial strategy or another. Watching houses grow in price seemingly indefinitely forced the hands of many poor or low-to-middle class families.
It’s not all about property . Rates MUST be normalised.
Savers have been SHAFTED for years.
Governments have done EVERYTHING to make housing unaffordable.
Abolish negative gearing, stop the first home owners grants, have fair stamp duty rates.
Australia is the only country which still gives property investors a free kick on the tax payers back.
This HAS to change.
CORRRRECT.
I agree with thwat you are saying, but what do you say to the people who say renters will suffer if no NG?
You don't learn, without NG the rental will be sky-high. Must be done something else..!! By now we should know, Asians are killing to come to Australia, when that stops then the market will slow down. When you have less properties on the market, the market prices will raise..."
@@TheHealthLife We would have less demand by people who already own homes. Renters would become purchases We would have less inflation of credit chasing already produced homes driving up the price of housing . Housing would become affordable .Withe the end to NG Government would be funded via taxation instead of people reducing tax using NG . If Government was funded with tax instead of deficits because of negative gearing we would have even less inflation as deficit spending is inflation . Australians would have stronger purchasing power as the value of the currency would be stronger , Government would also be held accountable for poor finical management and idiot laws and legislation designed to control us that protect us
We may even have a democracy, perhaps even a democracy where people actually give a hoot instead of the mob rule we have now.
@@gocestojanovski3723 Rents will come down when NG is abolished because house prices will come down, because you won’t be able to negatively gear your loss, therefore investments will have to make the numbers work without the taxpayers chipping in !
Your logic is backwards.
Mark, the alternative is that we go down the same path as Venezuela, Argentina et al. You might not like higher rates, but nobody was complaining when the RBA dropped them to effectively zero during the ‘pandemic’, all while buying hundreds of billions in bonds with freshly printed money, which any amateur economist could see was going to lead to where we are.
You were happy to accept the sugar high while it was there, so don’t complain when the crash arrives.
Goverment is so reckless to introduce so many immigrants in such short period of time whilst rental is so tight. I know some people in no position to buy but have to buy cause they just can’t find rent
Apparently they aren't paying rent either.....but while Landlords think they are safer than the citizens already here, then they wear consequences
The RBA & the federal government are basically 2 people pulling the rope in the opposite direction, and in the middle there's the economy, and it's eventually gonna snap
Then how do you suppose they fill the jobs/skills shortages?
Universities are proped up with International students,
Rural farm jobs and mining positions are filled with immigrants due to Australians either not wanting to do that kinda work or not having the necessary skills..
Hospitality jobs mostly filled by backpackers/international students due to young Australians not wanting to work?
Immigrants are not the problem..
It's many other things...
using immigration to keep the supply short keeping the housing price bubble up. immigration is the governments Ponzi scheme
@@amyfyffe8158 haha, your dreaming..
Australian dreams were broken years ago. But the nightmare has now begun.
How on Earth anyone thought those stupid rates were sustainable, as savings account holders got nothing,
is beyond me.
After OS investors pumped up our market (housing, you know, things people live in. As opposed to stock market cowboy activity, where it's totally acceptable behaviour), we then printed a ton of covid money, that ended up mostly where? All the time keeping rates too low for way too long. Which in itself pumped the market. Hello Pop! It's not that complicated.
It's truly mind blowing how people couldn't see how constantly shutting down the economy & government mass money printing is gonna result in severe damage
People with savings accounts are making money again now. Interest rate increase are good for savers.
Yes, but that took a while. There was plenty of commentary regarding their sluggish moves on that. They'll need to show some reasonable return before I risk leaving anything much in there.
It’s all part of playing the game mate, who cares if people had their blinkers on, I know people who made more in the last 2 years (via property and shares) than they will ever see again, some bought bigger houses and cars others played it smart and put it in the bank. The pain hasn’t even begun yet, it’s just getting started.
The inflation simply migrated from the covid stock market craze then folks cashed out snd threw those gains into property and savings.
After 2021 they started spending like crazy on everything binging because they couldn’t for two years.
Many people didn't get into the housing market because they know low interest rates can't last forever. Those who rushed in and pushed prices up are now trapped. The governments, banks, and real estate agents are all profiting from the misery.
@@coopsnz1Please take your axe and grind it elsewhere. This is not a political channel and it’s unlikely you’ll get kudos for your simplistic observations.
No, sorry the RBA is just doing its job which is to stop inflation breaking the economy. Given the choice between spiralling inflation and a recession, a central bank will correctly choose a recession everytime.
The problem is Aussies over the last couple of decades have been duped into believing an asset price boom fuelled by debt would make us all rich and never end. A situation which has NEVER occurred in the history of macroeconomics. It's not the interest rate, it's the fact that we have too much debt and as a result a low interest rate by historical standards could now bring the economy down.
Lowe provided misleading financial advice to the masses, time to call a spade a spade
True Shaun; and also the fact that in a capitalist economy , a recession is inevitable. I am seeing one on the horizon
To Greek CLOWNS BASHING THE RBA
@@laurencefarrugia431 these Greek clowns can probably buy and sell you
@@laurencefarrugia431do you have a mortgage?
The problem Tom and Mark, the RBA had rates at 0.1%, and the result was that property went mental.
If the RBA left them there, where the hell would things be now?
Property anther 50% higher?
Properties are actually going to be 50% higher if RBA kept rising them rates, coupled with Albo's flooding the country with migrants beyond it's capacity. The RBA is going to crash & break the economy and land us into sever recession before they can ever bring inflation down
No, property went mental after the Dotcom bubble burst and Sept 11 conveniently occurred allowing for huge money printing by Greenspan. That wave of cash hit property late 2002 all the way to the GFC. House tripled in price in just 5 years.
@@antpoo #thecreaturefromjekyllisland
NZ raised rates to 5.50%. Things seem okay. They will get on top of inflation. It takes time 12-18 months for the effects to be seen. Australia is busy overhauling RBA (seems like some powerful lobbies behind this). it is funny how these two gentlemen keep saying people this and people that. They just speak of property investors who just want the home prices to go north. Everything is in their favor yet they are worried. Those not in that bracket are getting hit by inflation, landlords and lack of wage growth. What if the inflation does not come down? Australia needs to raise rates to >5% and cut later on if required. Housing should not be an investment vehicle. Everyone should have access to affordable housing.
Well said 👏
isn't New Zealand in a recession now?
things are not okay over there. Housing has crashed 20%+ already in many parts of the country. Imagine if that happened here. There might be riots on the streets!
@@joelbarton9554 when is NZ not in a recession? Who can afford $2.60ltr petrol?
The reason inflation is so high, because they pumped to much money into the system. If they just waited, all the excess would get spent out of the system and inflation would drop. So not only are we dealing with inflation, we have to put up with high interest rates aswell. Its a double whammy because the RBA cant wait for it to stabilise naturally.
Stagflation
We are at the mercy of sheer incompetence in the government and the reserve bank. That Lowe is a sicko. That 2 year rate prediction was sick. He is deadly dangerous. He makes mistakes and then blames it on us. Then there is no patience. If the treasurer doesn't give him the boot on September then the treasurer is equally sick. How many people acted upon the sick Lowe with that 2 year rate prediction and now they are in the sh_t. He's tone deaf, He takes no responsibilty for his mistakes and he's hes incompetent. on top of that he looks like an effing freak.
People in mortgage financial stress are going to hang on to their houses as long as possible because renting is a worse option.
Why? Do some sums, mortgage interest, rates, water, upkeep (non tax deductible) vs rent your house, use equity to diversify your portfolio (all tax deductible )
The RBA will only stop raising rates until the U.S does. Look at nearly every central bank on the planet and they're raising rates linear to the U.S. If the RBA drop rates now, our dollar will tank even further causing more inflation from higher import costs. Regardless if they keep raising rates or drop rates, its still a loose, loose situation but that's the result of dropping rates ridiculously and unnecessarily low on top of insane levels of quantitative easing during covid. A lot of artificial money floating around that needs to be drained... unfortunately it is much easier to drain money from the poor than it is the rich as poor people are far less financially flexible.
Controlled demolition is what’s going on..
Purposeful destruction
Mark and Tom, this was awesome! 🏆❤️
You said it yourself. They overextended themselves. The other 65% were responsible and for 10 years have been earning nothing on savings and have been priced out of the housing market. The answer is we need deflation of the asset bubble. If they can’t cope with mortgage payments they need to sell. End of story.
Hi guys, 3.85 is not a high rate, just because a few people took the 1. 9 bait duribg covid and borrowed too much! Surely they knew rates cant stay that low for long. On the other side of the coin what about peoples savings, they got no interest from the bank for 2 years. Some people come end of this year might have to make sone hard decisions but dont forget about the rest of us!
average interest rates been 4.7% past 25 years!!!
@@amyfyffe8158 in a perfect world there would a cash rate that would benefit savers and borrowers but is there such a world anymore
Two people whose businesses rely on increased property sales that want interest rate increases to stop and reverse. Why? So property sales increase = more loans for Mark and more auctions for Tom.
Exactly.... lots of whining and no actual solutions from leaders in the industry haha
I love the style of communication. It's like my knowledgeable rich uncles are teaching me investing.
I admire his courage. Bouris is not afraid making his case that if his business goes well at the expense of the rest of us then we can trust his judgement its for the best.
It's clear Australia is heading to a renter nation, with every politician owning a property portfolio there is no way of truly getting good representation for first home buyers. With 700 thousand people coming in they all need somewhere to live. All in all housing as an investment collecting rent is a winner , living in your debt however comes with pitfalls. ( Caveat emptor )
You should do more podcasts together, very insightful and engaging
Inflation is a result of many factors, not just interest rates. However they all have one common factor and that is good old coroporate greed. The market manipulation in everything we see and touch is profound. The fluctuations in petrol pricing tell it all. Milk which must be refrigerated, packed in separate cartons, is subject to weather and climate remains at a stable price yet petrol sold in bulk in a tank thaqt is never cleaned goe up and down in price like a yo-yo irrespective of the world price of crude oil. Australians are taken as suckers of the first order.
'the rich get richer and the poor getting poorer?' its a choice. i said that to my oldman when i was about 20 something and had life in front of me. he said "its always been that way and i had better decide what side of the word "and" i want to be on" i thought about it for a while and decided. got educated , trained up, worked my backside off. made sacrifices . now im 48 . hot wife, two great adult kids, couple of dogs, great house in a great suburb. 4x4 , boat , sports car , bikes, surf boards. retirement plan. Rich is many things. being poor is being a victim. dont be soft and build your own life and be proud. Now i help others get there. employ people. i tell em success is there if they want it. just shout up and listen. Some do, Some dont
but its their choice, just like it was mine.....
You must enjoy people calling you a C&$#.
ok boomer, good luck starting from scratch in 2023
Sure bro
I stopped reading after ‘hot wife’
@@emilyl.771
Sorry to offend you petal.
We built our life together and I love her even more after a fabulous 30 years.
I should have said "Beautiful", its a better choice of words. She's quite the package you know? In short she's smart, funny , caring, intuitive, artistic, awesome cook, fit as and out and out sexy
She has raised our daughters to be 'beautiful' as well.
Im always trying to be more articulate so I really do thank you for your input.. Its a big part of maturing and building a wealthier life..
So your " cancelation ' was accepted.
All the best,
GEN X
The one thing no-one ever talks about are the people who HAVE the money. Tom briefly eluded to the tricky decision they have to make like whether to travel business or economy. The age group from 65 onwards who tend to sit on their wealth rather than use it. If the government isn't going to help, then it puts the onus on these people who have paid off mortgages plus redundancies, inheritances to help. The unfortunate thing is, even this group (with $$) has been trained not to trust the government so they just stopped helping others and are keeping their money tight for their retirement. There is alot of mistrust out there. It is becoming a case of everyone for themselves. Mark mentioned it too... Aussies will let go of everything else except the house. Thats because generally the house is in the area, school they want.... it took years to plan and execute so it's not an easy decision to abort all that. The other area besides lower class that is affected are the sporting organisations, small businesses, holiday industries as no-one will have spare change. Basically that will all get levelled to the ground. Talking about consumer spending, ask Kerry Packer his mantra was 'the more you make, the less you risk'. If consumers are doing ok financially, they are less inclined to make dumb, panicky decisions.
So the RBA effectively want to increase forced sales of homes to bring down house prices. Mark is right they want to break something and won’t stop until they do. To them breaking the middle to low class is what needs to happen to curtail inflation.
Evil
Your right, they want in theory the middle class to be extinct
I think you missed an important point here. Rapid interest rate rises are nothing more than theft, taking people's savings in an effort to counteract poor policy decisions which lead to ridiculously low rates in the first place. Coupled with so called quantitative easing flooding the market with money,. Now those least able to pay the bill are being hammered while the rich circle around only too willing and able to snap up the bargains that must now come!
I reckon the rich will be hit very hard this round. When banks are on the chopping block they will liquidate everyone, even their mates if it mean survival. Productive people will have a lot to gain (anyone that can generate strong inflation adjusted cash flow = business with low debt, that are efficient and have hard workers/owners). Thats my thoughts RE your comments! In these past crises yes, the rich have got richer, because interest rates were lowered and their assets were never repossessed.
There's one solution for all this: Cheaper housing.
Yes, the voting public seems to want their house values going up and up and up, but income multiples are now too high.
supply. build more houses & things will become more affordable
@@amyfyffe8158 Correct, and I hope the government gets on with it, but Labor has a poor track record on this.
@@coopsnz1 Sure these costs have gone up, but it's still possible to build quite a nice, premium, low set house in Brisbane, for around 300K.
It's the price of the dirt which is the real issue.
@@coopsnz1 No, this is still possible in Brisbane. Low set, around 200-220 square meters (including garage). But with some premium features.
Stone bench tops etc.
@@amyfyffe8158 Yeah, let's keep knocking down trees, building more houses & endlessly breeding. It's this shallow thinking that has got us into this mess!!!
I’ve learned so much in this podcast. Thank you mark and Tom. This is why I listen to your podcast. It’s relevant, fresh and never boring just straight to the point. Keep it up
In the theoretical context, neoliberalism is an economic thought that emerged towards the end of the 19th century.
neoliberalism, embraces marginalism as one of its theoretical components, opposes the Marxian theory of labor value and places the emphasis on the free choice of the consumer and on the determination of value through the market mechanism.
Marginalism holds that the value of a commodity is determined by its price, which in turn is influenced by the free choice of the consumer.
Marginalism considers the marginal consumer (final consumer) as the main determinant of the value of a commodity.
The marginal consumer is the one who makes consumption decisions based on marginal utility, i.e. the added value obtained from the purchase of the last unit of a good or service. According to marginalism, the price of a commodity reflects the will of marginal consumers and the interaction between supply and demand in the market.
In contrast to Marx's labor theory of value, which claims that the value of a commodity is determined by the labor employed in its production, marginalism claims that the value of a commodity is determined by the dynamics of supply and demand on the market and by individual consumer preferences.
the value of a commodity does not depend on the labor incorporated, as argued by Marx, but on the choice of the final consumer.
So nobody cares how a commodity is produced, it only matters how it is sold. This is the world we live in.
Who cares
I'm debt free but don't own property.
If interest rates force people to sell that foolishly chose to buy at record highs without proper deposits or buffers that is actually good.
Hopefully it happens and more supply brings down prices a bit and people are more sensible in the future.
Spot on
@@jackchristodoulou197 housing is a need for life, not a luxury. The cost of housing should never be an investment. People who bought houses 40yrs ago for 50k are selling them for 1.2m it's insane. To wish bad on people who are simply trying to house themselves and their children for your benefit is pretty poor. The cost of housing should never have been that high. In the 1970's a houde was approx 25-30% of your wages it is now approx 60-75% and is not even close to sustainable.
@@mgreenesco9955 i agree
they wont though, like he said in the video.. al the developers have the RP data so they keep stock levels low forever.
Another property podcast that dances around the truth!
Interest rates are low and below the long-term average.
Australian Property is overpriced.
Sell.
I got burnt on the Gold Coast in 2011-2012. RBA under Glenn Stevens saw 10 interest rate rises in 8 months, property values fell on lowered bank valuations, real estate agents deals fell over on buyers finance based on lower bank valuations. Got really p'd off when John McGrath spoke on Switzer about property values down 30% on the Gold Coast during this period. Actually happened, units in Broadbeach went from $800K to $450K. When the market feels hot, get out and chill out .
The east coast of Australia, particularly regional areas (like the Gold Coast) are going to see similar falls like the GFC. Tradies will be out of work and there’s going to be a bull run on FIFO jobs again. Just sit back and watch it all unfold.
John McGrath is a convicted scammer... what he did with the McGrath IPO is the scummiest thing ive ever seen guy should be in jail.
Thanks for sharing. These experiences tend to get bottled up but are an important message for people to consider
High inflation affects 100% of Australians, only 33% of Australian's have a mortgage. We must raise interest rates above the inflation rate to fight it, we learned this lesson in the past.
I didn't see any of these videos being made when interest rates were below 3% for over a decade, which created (this) the largest housing bubble in Australian history.
People need to understand that they made the mistake of over-leveraging themselves, they need to own that mistake and pay the piper.
Totally agree!!
Yes 30% have mortgages but it’s 14% of those that are problematic
Great discussion gents and very enlightening. Agree 100% that the RBA is broadening the divide between the haves and have nots.
Time to wake up.
Mr Mark Bouris you alway’s cut straight to the chase and deliver the truth with style and class!
Just a bit of inside information: Joe Biden came to Australia unannounced in 2016 with the whole cavalry and armoured presidential limousine.that’s enough to ask questions. However, working in management for teaching international students in 2019, the government began the reject normal students, and only started to accept students with access to $100K plus (usually a $20K requirement). This resulted in inexplicable staff layoffs 10 months before the COVID-19 (aka SARS 2002 bird flu) ‘pandemic’ hit again. Put that bit of detail together yourself; obviously the government didn’t want international students with limited resources to come here during the pandemic as they would have struggled to find work during lockdowns and become potentially homeless. However, the financial requirements have since dropped for international students again. It’s obvious to me (2x Master Degrees) that these muppets think we don’t notice anything. I’m my interpretation, we are witnessing gang warfare. As Trump said: “ They are not coming for me, they are coming for you!” but they also came for him 😢
"They've Broken Australians' Dreams" > removing negative gearing would do :D
As a first home buyer my spirit was crushed. I decided renting is all I can afford and will probably only be able to afford. The amount of couples bidding on the same homes was overwhelming. One big rat race on top of financial stress. I gave up and I’m glad I did. However, it’s sad many will come to the same conclusion and won’t get what our parents had.
It’s blindingly simple. Money in the form of credit is being created faster than houses. Understand that and understand also that real estate is at the top of the money food chain. ALL the excess credit winds up in real estate.
"I'm worried that property prices will cop it". That sounds like good news for all those young people who can't afford to buy a property.
Bouris and Panos - you are two that would be flying to Europe 1st class - and hats off to you both for being financially healthy and top of your industries.
Only people with mortgages are suffering.
Our youngest (23) purchased their first property 12 months ago and has decided to move out and lease it turning it into a quality rental that will deliver a 7% yield - as well as double up on payments to quickly hit the principal and gain equity in the next couple of years!
Supply and demand people !! Do what you need and capitalise on market and diversifying your investment spread.
Good chat fellas. Spirit building! Thank you both.
When the currency collapses, all deposits in bank, and property gone. The banks have no money.
Everyone's responsible for their actions. I deliberately avoided the FOMO in getting into real estate. Do your homework and live within ones means and that includes making provisions or buffers for changes. Why should we bail everyone out at the expense of a raging inflation?
Broken Australian dreams, LOL. They have broken the ticket clipper dreams of making so much money from inflated assets because of stupid low rates. Bring back 10% IR and allow assets to deflate big time plus reward savers.
I’m barracking for RBA! Hope we see a wave of defaults and a massive crash. Would be so good for future generations to have affordable property again.
Not gonna happen. It's only going up
Watching guys like this start to fret is hilarious
It’s going to unravel whether you kick and scream or not
Clocks ticking mate
The RBA governor gave people the green light to purchase homes by way to much in auctions, because he said interest
Rates will be on hold until at least 2024 during the Covid 19 pandemic. He should lose his job, he is partly to blame for the
Current state of affairs with the housing crisis in Australia.
Loved it! Thanks guys!!
Being a therapist I have many clients both on fixed income and business people that are really struggling both with interest rate increases and cost of living. The level of anxiety and depression is increasing rapidly in our society.
As an example, I had a woman that has a beauty business that came to see me struggling with a lot of anxiety. What is causing the anxiety is the amount of people that have booked for treatments and up to 40% don’t show up for the bookings and when she asked them the reason they’re not able to come. It’s always financial they say, I just don’t have the money we are struggling.
I know people will say it’s not a priority to go get beauty treatments, but it’s still a business and it has been around for 15 years and a family lives out of that Business. But this trend is being seen across the board, whether it’s hospitality, mechanical, retail even supermarkets, I can’t see that there would be many business that would not be affected dramatically, because business people across the board are noticing that there customers are spending less and some people are not able to afford some of the most basic needs like food.
I just don’t think the RBA has really not acknowledged or looked for the evidence that people are really struggling and what the true Impact of the rate rises and cost of living are causing to every day Australians.
When interest rates are high, it will make it more expensive for people to borrow money and it will reduce consumer spending. If inflation is high, it can reduce the purchasing power of consumers and lead to higher prices for goods and services. Both these events have happened in Australia right now. Any renter or mortgagee are greatly affected and despondent about these events as you both stated. However I didn't hear any of you speaking about increasing the pool of housing by increasing land available for new builds and reducing local govt bureaucracy to increase new builds. Government policies for a big Australia proves that not nearly enough housing is being built in short enough time to supply them.
If the cost escalation of land for new housing makes the development of new housing unaffordable, the supply of housing stagnates and demand is forced to chase existing stock. This has lead to an increase in house prices and rents, which makes it more difficult for people to afford a home. As you both stated it's not the prices of homes but the volume of houses sold where realtors and Bankers make their money. Therefore this industry needs to pressure all govts to make it easier and more affordable for Australian to buy and keep a roof over their heads.
Excellent discussion! Love how you get into consumer psychology which drives so much in the market. Podcast it please 🙏🏻 🌟 🤩
Thanks, check out our episode with Effie Zahos czcams.com/video/xvMIcCqWrlk/video.html
@@yellowbrickroadtvProperty prices are related to supply and demand 😳😳😳Sorry but it's too stupid what you say😂😂😂
@@KoDeMondoAnd what drives demand? Fear & Greed. How people feel and what they do next impacts supply & demand.
Interest rates are NOT the problem with Mortgage Holders. The problem is you lent them more than they could afford so you could get rich Mark. Now those poor families are tied for life to a loan they can’t afford. Rates are still very low. 33% of Australians have a mortgage of which 45% are in Mortgage stress. 100% of Australians are adversely affected by Inflation. We have to break the back of inflation if that also breaks a small percentage who bit off more than they can chew. So be it. Don’t lend people more than they can afford Mark then try to blame it on the RBA so you can sleep at night. GM
I find your podcasts quite insightful as both an owner and investor as well. Keep up the great work.
Considering Australia is likely already in a recession in per capita terms, I think the public and our parliamentarians from all quarters need to be asking at what point will immigration be cut to reflect this economic reality.
Hawke and Keating did it, why not Albanese.
Hawke and Keating had Australia’s best interests at heart as did Howard, Albo is just a career leftie virtue signalling knob … who owns 3 houses … while never having worked in the real world.
Because Albanese is WOKE not AWake
The dream died years ago...imagination killed Australia... its a joke of a country now. Tom is a really genuine guy.
Inflation is another word for TAXATION.!
Just relying on interest rate increases to cool the economy is old school economics. It may have worked in previous decades like the
1980’s and 1990’s but not anymore. Raising the GST to 12.5% affects everybody not just people with a home loan. The extra revenue
Can pay down government debt. Todays younger generation do not know how to stop spending, they have never experienced a recession before and credit is readily available to them.
Well done guys appreciated .
It is happening all over the world, we are not special 🤦♀️
Great interview and real outcomes. Tom’s advice at the is good ::: drop ego expenses, do a situational analysis and make a decision
New sub. Quality conversation.
Awesome conversation!
I like Mark he seems like a no BS type of guy.
How long were people expecting that the ultra low rates would last for? I remember the late 80's and early 90's with double digit rates.
Great comedy channel 👍🏽
I’ve been thinking of selling. Mrs saying same. But your right just can’t be sure where to go.
All the banks , brokers and govt worked hand in glove to create this specific problem
Absolutely excellent chat guys.
And yep I know so many people on fixed off this year. I know someone who’s mortgage will go from $5k to $8k! It’s going to be a rich persons buy up bonanza
If only some of the people from this comment section had been present in the interview! One thing we might all agree on is the gap between the haves and have-nots is widening fast.
thanks guys great team
The buying power of the Aussie dollar is shot😢
Well what are they supposed to do about inflation? The RBA raises rates to control inflation, if inflation gets out of control it's a far worse situation. I don't understand why people don't get this?????
Meanwhile Woolies increased their profit margin percentage by 13% last year.
Dividing, spot on. By design ? 🤔
The corporate scam artists have suppressed Australian wages for 16 years. A house costs 10x the price of a house in 1950's at 3.3x The place is done. What is more critical than stable housing for a family? Many people are just debtors for life.
higher and higher debt is to sustain this ponzi has driven inequality.. 10 -15 years of deliberate policy in juicing up house prices will tear society apart...this is a nightmare years in the making
Spot on Mark and Tom. I am in that exact position with spirit broken and my fixed rate ending in January. Not sure if I should sell or hold out for the completion of the Western Sydney Airport before selling
Everything is now Extortion! Rent is through the roof people are barely affording to pay there rents and then they don’t have enough left to eat! Kids are going hungry WTF is going on.?
About time interest rates were raised. They were too low. Very low rates discourages saving. Property values exploded due to very low rates. A correction is needed to the good of the entire nation.
10 years of debt racked up doing all those Block renovations. Never seen so many “Sold-price withheld” listings. Even portfolio investors are feeling it after living the lifestyle on debt. Let’s hope unemployment doesn’t rise too much 😬
Something id like your opinion on that i didn't hear covered here was the previous governments policy of allow super holders access to 20k and what significance this had on inflation and the current situation.For those who bought in the last two years on small deposits are in a difficult situation due to not having much of a buffer zone for higher interest rates.The current situation of skyrocketing utility bills and the extra diesel tax is causing people to be financially squeezed .High migration will keep property prices high due to supply and demand.
I wish they had covered the impact of mass migration
They won’t all be impoverished
Though in reality most will be a burden on our citizens for life!
@@mariecameron1644 Mass migration is what they do both sides of major parties.Younger people are being robbed of a chance to own a house by these idiots.
Interesting discussion and a topic of conversation across the nation.
The issue has been people buying max loan borrowing on unsustainable rates not planning for this jump. Smart people have factored in rate rises, borrowed 70% of borrowing capacity and are sitting sweet.
For some, sitting tight, cashed up and waiting to swoop on good buys!
Rates will start deceasing in last quarter/1st quarter 24 with the current indicators (last night shows 1.2% decrease in inflation) which is very sharp decrease and the RBA needs to tread lightly on putting on the brakes and let spending trends catch up.
Interestingly enough, Brisbane prestige market is stronger than ever with record prices still being seen and the only thing is property on the market a little longer!
Panos - speak to Lancashire for his take on the market ….
Buy up people - but only what you can afford ‘comfortably’ and demand will outweigh supply for the foreseeable future in residential property!
Interest rates in themselves aren't the problem when it comes to home ownership. Low interest rates are bad for retirees getting by on term deposits. High interest rates are bad for younger people trying to own their own home, but only because housing prices are so high in the first place. A few percent make a big difference. The high cost of housing is just all round bad. Except of course for property moguls who rely on price inflation.
30% of OZ property owners are mortgage free.
Prob another 30% have minimal mortgage left.
RBA can jack rates to the moon and these folks aint gonna blink.
I get what you’re saying, but it’s not totally true, as a pensioner who paid off his mortgage at the age of 60 and as a lowly carpenter, went on to work until I was 70, I still have bills to pay, fuel and food etc to buy, and children to help, I paid for two superannuations and saved hard for my retirement so we could travel, the last 3 years put paid to that and now it looks like I might have to dip into my savings because inflation is so high, when they say they have broken Australians spirit, I couldn’t agree more.
@@ricochet2977I never mentioned inflation. Most people have been smashed by inflation. You are not going to be destroyed by higher interest rates. People with debt, wage earners and renters will be wiped out in many cases.
People with a lot of debt or renting have been smashed by inflation and now on top of that are getting destroyed by interest rates as well. People in this situation would have been better off if RBA did not have low interest rates for years.
@@TDubya811
But it’s our idiotic government who kept printing money over the last 3 years and paying people to stay home is what caused inflation which led to interest rates rising, inflation is the cause of the problem! I’m sorry but if people didn’t see this coming especially after the 2008 debacle they really need to get their heads out of the sand.
@@TDubya811 you never mentioned inflation true, but high interest rates ARE inflationary. They force everyone to raise prices in the general economy over and above the monetary inflation.
@@antpoo Spose it depends on how much debt you have. I expect higher interest rates to reduce home prices and car prices. But those with variable rate debt on these probably would probably view higher interest rates as inflationary. People will spend a higher percentage of their wages on essentials so prices of many discretionary items probably falls.
The problem is where people gonna to live in such tight rental market. There will be people have to sale for sure, I already see it (most off market), but they will have to pay big rent now. Supplies is big issue
Sensible people who are renting waiting for buy will buy from the distressed and the distressed will then become the renter
Rates still need to go up by 100 basis point more. Tom, I know you're leveraged to your eyes but RBA will have to increase the rates as long as US Fed increases two more times this year.
For better part of history Aussie rates have been higher than American, the time for this low rates drug is gone, we will be above US rates again. SOON.
RBA has said inflation won't come down until 2025. THAT MEANS RATES WONT COME DOWN UNTIL 2025. THATS 2 YEARS OF HIGH RATES.
I'm locked in at 1.98%. Everything is sweet. You believed the Reserve Bank ? Bwahahahaha......
Yeap me too don't have massive loan only 200k left to pay plus job that pays 180k a year. I'm going on massive shopping spree
Why is a Private Bank interferring in the Australian economy?
Greed Always ends in suffering, the greedy deserve this..
This entire discussion amuses me in many ways. If either participant found themselves at the grocery store, confronting ever-increasing food prices, I believe the conversation would shift dramatically. This issue may not be as impactful for those with a financial cushion, but let's face it, everyone has to eat and home ownership is not a reality for the majority. Moreover, many homeowners actually possess multiple properties! The argument that investors should be given special considerations no longer holds water. They've enjoyed their privileged status for too long. The past decade has heavily favored them, transforming the housing market into a no-loss game. If a chicken could have invested in property, even it would have turned a profit! But now, the game is changing as their playground has metaphorically been run over by a garbage truck. It's high time investors face genuine risk, and it's only fair. People shouldn't assume that wealth should automatically perpetuate more wealth, but that's exactly what has been happening for the past decade. I advocate for more stringent measures. Let's level the playing field. It's time for this lopsided game to end.
Property prices coming down is what Australian needs so it should be a good thing not a bad thing
My favourite of your guests - Tom Panos. He speaks a lot of common sense and has compassion.
Great episode
Why is it such a bad thing if property prices reduce a bit ??
Economic investigator Frank G Melbourne Australia is still watching this very informative content cheers Frank ❤
As interest goes up, house values go down. If you can't pay the mortgage, it's a problem.
Now that the debt ceiling was raised, we will have dollar devaluisation.
The currency is going down.
We are all just a bunch of cash cows getting squeezed every way possible