Housing

Originally posted by Crom Valen: ↑

A) Why do you consider people that invest wisely to be greedy?

House prices started dropping a couple of years back when the Aussie central bank went to raise rates, so they had to start cutting again. I'd say this is not so much 'investing wisely' as a large group of lemmings needing bailing out every time it looks like the market will sink. The country is now being held hostage as we simply cannot have people going into 'negative equity'.

Making a motza out of housing is just too easy for what goes into it.
1/ Go to an open home.
2/ Read some reports. (Probably optional these days).
3/ Get finance sorted.
4/ Out-bid others at an auction.

I don't think the government and central bank exists to underwrite and bail-out property investors, but the voters seem to think they do.

B) If such a decision could even be made, and one of the outcomes truely resulted in Australian citizens no longer being able to own property.Then Yes. Of course. Everyone would. What's the point in having any gain if the state is going to take it off you. But I refer to my question above for you to detail why you think such an event is going to occur.

It would be something that happens gradually. The more money that pours into property the larger the bail-outs that are required when something adverse happens. One day the bail-out may need to be so large that housing becomes nationalised. I don't subscribe to the idea that if you buy a house, and the market crashes and you are without a job and deep in negative equity then you should keep your house and have your debt written off - we can't have people securing valuable assets & then getting them to retain them when they find they have made a losing bet. A 'wise investment' is only seen to be wise as things stand here and now....we don't know what tomorrow will bring. I bet anyone saying in 2019 that we were on the cusp of a global pandemic then they would be viewed as alarmist, probably even crazy. But we know these major events do happen - history is the guide that shows us the future.

Expand

A) I don't think you have shown that investors are greedy. Nor do I understand why this only applies to property investors.
Further, the central banks didn't start cutting purely because of property. The economy as a whole needed help in the wake of the GFC and end of mining boom and now Covid.
You seem to be saying that all actions taken by CBs is for the benefit of property investors. I think this is far from reality.

B) What are you even talking about? Again, you are essentially saying that bail outs are due to an overheated Australian property market.
Let's take a look at that.

GFC - had absolutely zero to do with Australia property. Your "bail outs" which I assume you mean rate cuts and stimulus was for the economy as a whole and if anything more for the stock market which had plummeted, than for property. Yes property prices rose on the back of it, but it was not property that was bailed out.

Covid - again, your "bail outs" and rate cuts are to avoid a recession or depression.

Also when have any Australian's had their debt mortgage debt written off? This is not Australian law. If you default on your home loan, you lose your home, further, if the bank sells it for less than you paid for it, then you still owe the bank that money. You actually don't know what you are talking about.