I assume that was directed at me? It's an enlightening post in a number of ways, and I am glad you posted it in its full ignorance and implied home ownership elitism.
To be honest, I find excessive posting of personal details on here unnecessary, and sometimes can be used to appear superior. But in this case, I feel I best inform you of some of my circumstances, as your elitism appears to be leading you to make assumptions that, frankly, make you appear ignorant. See below:
- The mum and dad's basement comment is funny, not just because it is the automatic retort for someone trying to argue your side. But funny, as my parents live in Toronto, Canada. Hell of a commute. When they visit here, which is often, I rent them accommodation to stay at, so not even in their basement then! (and Australian homes don't have basements, like back in Canada, so not sure where that even comes from?)
- I arrived in Perth 6 years ago, and worked as an engineer at a consultancy servicing the mining industry. I still work there casually on a project by project basis.
- I did a Master's at UNSW part time while working in Perth (undergrad back in Canada before emigrating)
- I started a PhD about a month ago, in my field of engineering which is directly related to the mining industry. The research topic is on an emerging technology related to a component of mining (so a bit more relevant than medievel poetry, say). I am studying this PhD as it is clear to me that this mining boom cannot last forever. The boom has spoiled me, as engineers in Perth can get about 20 job offers in an hour if they care to. This makes life very relaxing. When the mining boom ends, I do not want this situation to end for me. Hence my decision to further specialise in a component of the industry, and develop skills that will enable me to name my price regardless of the price of iron ore (largely a result of Bernanke's printing press, and China's overbuilding).
- I should apologise, as my PhD is receiving some government funding. This funding would obviously have been better directed in some form of housing market subsidy, rather than on R&D to enhance the profitability and safety of our mining industry.
- While I am a part time student, I have zero debt, and still do quite well thank you consulting in this city, where anyone who can use MS Office can do quite well to be honest (for the moment)
- I live with my girlfriend in rented accommodation (she is also a post grad qualified professional). We both have substantial savings, and could easily buy now. In fact, when we met, she was debating buying as she was being emotionally blackmailed by family members to do so, and her peers who owned were treating her in a way similar to how you treat renters you know, I imagine (as your previous post implies). I was able to explain to her the various reasons I (and many) believe that prices will not continue to go up, in fact will do the opposite. Recently after the release of data showing if she had bought back then, her investment would be down ~7% in nominal terms (~10% real terms), she thanked me for having convinced her not to buy back then. We may buy in a couple years, but renting and saving is being good to us so who knows? We like the idea of working in Asia in the future, so not having to deal with a place back in Perth would probably be easier if we do. Who knows.
Sorry to all for the above if it is over the top and provides personal details that aren't really for hotcopper sharing. But I wanted to explain to Les that just because one can observe that prices are falling in Perth does not mean that one is a peasant (although many people I know who bought a year ago, and are in negative equity, and struggling to make payments, could be called that).
I guess separate to all that, does your ignorant and elitist reply to me do anything to indicate that prices aren't falling here in Perth (nominally and in real terms), as everyone can see?
