Buyers beware: RBA says housing market will cool off

Posted to The Age (26/3/2014) on 26/3/2014 at 5:18 PM
Commenting on "Buyers beware: RBA says housing market will cool off
http://www.theage.com.au/business/the-economy/buyers-beware-rba-says-housing-market-will-cool-off-20140326-35hsl.html

For months I have been alerting my clients and friends about the current real estate boom cycle that it is going to be a very short-live one. The cycle will cool as early as April / May 2014, unless another miraculous recovery in EU and US economies.

China cannot do it alone. Internal circulation of money or spending cannot and will not last for long. Debts need to be repaid and speculative investments will halt when reality checks set in. Goods produced must be sold to overseas buyers, which in turn generate income to buy raw materials such as coal and iron ore from Australia.

Current Chinese government policies targeting at corrupt officials or business operators really scare the pants off many who have lined their pockets with monies that cannot see daylight. Money has been channelled out quick and fast before their fortune turns into a puff of smoke. Obviously, there are many genuinely honest wealthy Chinese who choose to settle in Australia.

Not long ago Melbourne property buyers pay above the market value near "school zones" where the schools are recognised to "produce" top-mark students. They could have considered home schooling and hire a full time, most qualified or the best tutor to couch their children to score the top marks in all subjects.

It is frightening to witness how the Chinese bid at auctions. Once a Chinese enter bidding ring, who probably thinks as though there is no tomorrow, the game is almost certain to be over for non-Chinese bidders.

Owning a house is no longer a necessity for some; it is a status symbol, and it is represented by how much more one can offer for a property.

I do believe that the forthcoming bust cycle will hit the real estate market hard and swift.

Know the drill, do your homework

Posted to The Age (4/12/2012) on 4/12/2012 at 4:17 AM
Commenting on "Know the drill, do your homework"
http://theage.domain.com.au/home-investor-centre/know-the-drill-do-your-homework-20121130-2ajh5.html

It may look good in drawing, or even from the scale-model, but looking down from the real thing are the ugly roof tops of many old buildings. You may be also looking into someone's bedroom or lounge through the window in the opposite block, unknowingly become a peeping Tom. Similarly, your neighbour across may be watching your movement and activity.

Many people believe that it is safer to live in apartments, free from burglary or assault, but then there are always tenants who do not know the security rules, and kindly allow strangers to follow them into the building, or even press the elevator button for them.

Balcony has its advantages and disadvantages. Due to fire risk, many smokers do smoke in the balcony, but unfortunately the prevailing wind blows the smoke into the neighbour's apartment. Although the wall separating the adjacent apartments may be thin, it does form a much better sound barrier than the wall-less balcony. The noise of neighbour's chitchat, especially on mobile phone with their mates can be very distracting if one is watching a show on the television, or doing school work that requires concentration.

Instead of paying a substantial amount pay to owners’ corporation, I can afford to live in a bigger house having Jim's mowing to mow my lawn, paying Chubb to monitor my security alarm or buying enough food for a big Alsatian dog.