MacroBusiness Weekend Links 14-15 April, 2018

Morning of the Dust Storm, 1960, Daryl Lindsay, National Gallery of Victoria

Macro, Markets & Investing




Terra Spectofestorus

…and furthermore…



    • GunnamattaMEMBER

      I saw that news earlier in the week. I understand there is a great deal of evidence suggesting the heat transfer mechanism in the far North Atlantic/Arctic has broken down, and this is leading to the ocean ‘conveyor’ (the currents basically) ceasing to work as normal too. I was chatting with some Russian scientists a few years ago (about 8 or so) who were saying that they had detected the issue then and that if it did actually break down then the polar regions may in fact freeze over solidly (because they would get cold and stay that way and not transfer their heat) but also that currents (the Gulf Stream being the classic example) were likely to change course, with significant impacts on the climate of the Northern Hemisphere. I recall they didnt know that much about what the impact would be in the Southern Hemisphere, but they were fairly sure there would be similar issues in play.

      • I was living in Ireland, when it began to snow for the first time in a great many years 2010. I had literally bought my FD RX-7 the night before and then the next 2 days it snowed so much I couldn’t get it out of the driveway. Nothing more frustrating when you just bought a new toy!

        Thought I’d share some photos..

        The thing is the Snow made Dublin a lot prettier than the rain, but I believe it was related to changes in the Gulf stream and it snowed again a couple of years later. Which never used to happen in Ireland.

      • Hey Gav, I spent much of the week practicing TIG welding Aluminum, I’ve got a project car where I want to be able to fabricate some subframe components, wow Tig welding thin tubing is hard. I’ve got a new level of respect for guys that can get such beautiful welds when my welds look like a series of rat droppings and burned through holes. Anyway it feels good to be getting my hands dirty again, I’ve never done Tig welding before and it’s been a long long time since I actually held a MIg or stick welder myself.
        I’m going to spend another week practicing my Tig skills but I think I’ll have to end up just brazing everything because the welds (even when a pro does it) are weakening the tubing, fun stuff.

        I’ve got my donor car motor all sorted out, it’s a BMW N54 motor with a single Turbo (however the turbo incorporates an electric generator/motor ) lots of fun.

      • @fisho I have not done any Tig yet, would love to give it a go. I’m getting better at welding thin sheet metal using Oxy and Mig is ok but messy. Tig is meant to be half way between the 2.

        It definitely takes a while to get good at it any kind of welding.

        You may enjoy these Canadian Guys YouTube channel. His welding is by no means professional but he does a better job than the previous attempts.. 😁

        I got caught up watching quite a few of their videos.

      • boomengineeringMEMBER

        I did a lot of Tig SS, & Alum, until it became popular, now just do weird metals like pure nickel, titanium,bronze cast iron etc.

      • @Boom ever welded Magnesium? I’ve got some rare old Magnesium wheels and 1 is damaged, apparently they can be repaired but require very specialised skills to do so. Risk of magnesium wheels is that they crack.

      • @boom, re weld strength / tubing strength reduction.
        Do you think thin Aluminum tubing can be Tig welded and still maintain tensile strength (with a couple of week practice) or am I better off just doing a really good Silver solder or brazing job. I’m kind of tending towards the brazing approach myself, I’ve done a couple tests where the brazed joins were nearly as good as professional Tig but I’ve got a feeling that it’ll be much easier to avoiding accidentally weakening the tube by overheating if I just decide to braze everything (obviously I can’t destructively test the final product so I want to keep on the safe side)

      • boomengineeringMEMBER

        Gav, yep still have some magnesium filler rods. Stopped doing wheels awhile ago cause some dodgy weler may do work after mine and I get the litigation

      • boomengineeringMEMBER

        Fisho, You won’t silver solder or braze aluminum.
        You may be able to Tig it after a lot of practice thicker materials are easier. Unless you destress welds they will always want to crack nearby due to heat differentiation Try lower AC amps for thin material alum with pure argon gas. Also use a white tip tungsten electode blunt end with slight 45 degree chamfer. Am at the dog beach atm so a bit hard to message and missus wondering wtf.

      • boomengineeringMEMBER

        Gavin, forgot, of course I would do your job but don’t tell your mates.
        Not only do they crack but also thin sections burn

      • boomengineeringMEMBER

        Fisho, just reread your post when you say brazing it refers to bronze or brass filler rods I’m inclined to think you meant oxy welding You may be OK to continue on this path as oxy doesn’t have concentrated heat localization as severe as tig but would still be good to destress

      • boomengineeringMEMBER

        Fisho Aluminum is one of the metals least likely to crack and most jobs don’t need normalization but thicker aluminum tends to be more prone.
        Rather than me taking up pages of MB space you may be better to email as I’ve only scratched the surface of variables

      • @boom
        Thanks, yeah brazing is not the right term it’s really soldering with a zinc/ Al solder.
        You heat the metal to about 400C and have the Aluminum melt the solder. It works and does not compromise the tubing strength but it’s only suitable for certain types of joints.
        Anyway thanks for the help. I’m actually thinking about going back to Chrome Moly tubing because I know exactly how to work with that having built a few custom bike frames in my time. The only reason for thinking about using Aluminum in the first place was to make it easy to weld to with existing BMW subframes.
        unfortunately the build challenge is for both of us to do all the fabrication work ourselves ….I can get as much training and direction as I like BUT I have to be the one doing the welds and all the other work.

      • Fisho – Welding Al is a PITA! Buggerall telltale before it grows pigstits & all collapses in front of your eyes. Plugging the end of the tube with a length of solid should help sink some heat & move any inflection point further from the weld & stressed area. Also if you can either set the joints up so they fit in a socket type joint (like plumbers use) the extra thickness will help. And (if you can) plate across all spars to aid in spreading load. Aluminium might save weight, but it’s brittle wherever there’s stress loading & you’ll always be looking for stress fractures – & they’ll come. I like the idea of electric assist turbo, are you building a track car?

        Edit, just saw your post – Cro Mo is where I’d be going – FWIW.

      • boomengineeringMEMBER

        Colin, thanks for the back up, some aluminium is quite soft in natural state but I’m suspecting his frame would be aluminium alloy (brittle) completely different ball game. He could instead of a heat sink or sleeve, put in neat fitting internal tube to maximize welding ease and strength.
        A client came in once.saying his tech school teacher said diecast alum was impossible to weld so I pointed to the job already done. Diecast is very porous and as you mentioned wants to immediately melt the whole job( collapsing before your eyes) worse than alum. Welded steel to alum once nearly but not impossible. I have to use a lot of different machinable and weldable al daily

      • @Colin Yeah I’ll give myself another week to practice Al welding but if I can’t weld the tubes without blowing holes in the sides or being uncertain about the weld quality then it makes sense to just use CrMo, as you say it’s easy to work with and isn’t so inclined to crack. As for weight, double butted CrMo is about the same weight as any Al tubing that I can ever hope to weld.
        It’s not strictly a track car that I’m building but definitely not street legal in Australia way too much work to try to get it registered in Australia from what I hear, I guess you’d call it a supercar replica except I’m not intending to copy any other car, it’ll be mostly BMW parts and for the most part a BMW M3 as far as handling and driving feel.

      • Sounds Interesting Fisho. ICV’s are the Devils work in Oz – just about regulated out of existence which is pretty stupid imo. I’d love to build something like a street legal crossbow with a turbo V8 machined block Hyabusa motor in it. I leaned more toward the Toolmaking/machining CNC area’s. But I’ve helped in more than a few spaceframe track setups & most end up going for the easier option after seeing AL cracks in inexplicable areas (sometimes poor design & sometimes poor execution). Good luck with it, it should be a fun learning curve.

        Boom you’re doing well welding diecast, not many can by what I’ve seen, & I’m not one of them – not enough patience or steady enough…… also just got more out of doing tricky machining gigs…… the now dead side of the trade here.

      • boomengineeringMEMBER

        Tricky machining gigs, reminds me of when Top Tune mechanics from Crows Nest and Mosman went to 6 engineering Co’s to line bore inside a Porsche gearbox to make imperial size. The last one took 3/4 hr explaining why no one could do it, Took me 1 hr to complete. Same guys came with new Shelby Mustang that someone before shipment had put in a hotted up motor in that kept bending pushrods around the rocker shaft, They were at a loss of what to do so I made 16 longer tappet adjustment square threaded screws, no lock nuts just tight fitting so the pivot point started lower than the rocker axis. I had to harden the ball ends as well.
        Too many stories to tell from University of Sydney, Uni of NSW,
        human bone devices, Did a lot of stainless tig Luna Park Wharf etc etc etc.
        One guy from Windsor rang 30 engineering Co’s until one from Penrith said go to Boom he’ll do it.
        Just too many

      • I will Boom – run out of time tonight.

        Kevin & Gunna – Sorry for jacking your thread. I remember seeing a doco quite a while ago about what you describe Gunna & IIRC it basically concluded that if it happened it was a possible mass extinction event – something to look forward to I guess…..

    • St JacquesMEMBER

      That’s yuge. Thank dog for the global elites.; they’ll be looking after our collective futures….oh wait…..

      • Maybe that’s why Lucy Turnbull is packing Western Sydney with immigrants, to create a heat bank to keep her and malcomer warm.

    • reusachtigeMEMBER

      Global warming is just a conspiracy by non-fossil fuel countries who want to take away the competitive advantage and profits from those blessed with the resources like Australia!

        ‘It’s not easy making a living in the knowledge biz these days’ . Academics know this better than most.
        Science developers are no longer home to ideals intent on freeing research from the hands of those that made or funded it.
        A new logic reigns whereby truth is validated by what sells, and access to it,,, is left up to the Market.
        Research that used to be free has become money-making opportunities.
        Researchers are warned of the dangers of sharing research tools/intellectual property without first speaking to the resident knowledge transfer officer; colleagues warmly congratulate each other on the floatation of yet another of their spinoff companies; and the alumnus magazine displays a glossy feature from the principal talking up the virtues of making its degrees fully sit-table online.
        Money, of course, has always been needed to make science work, but who knew that science was just another way to make money?

  1. Rugby here we come

    Landmark Cricket broadcast partnership announced

    Australian cricket fans will have access to more cricket coverage than ever following a landmark partnership with FOX SPORTS and Seven West Media, announced by Cricket Australia (CA) today.

    Women’s cricket has been placed at the forefront of the partnership with all Women’s Commonwealth Bank International matches and 23 Rebel Women’s Big Bash League (WBBL) matches each season to be broadcast on Seven and FOX SPORTS. CA will live stream the remaining WBBL matches on and the CA Live App.

    In addition to women’s cricket, Men’s International Cricket will take a new shape, with Seven and FOX SPORTS broadcasting all Test Matches throughout the summer. FOX SPORTS will exclusively broadcast Men’s Gillette One-Day and T20 Internationals.

    This summer the KFC Big Bash League (BBL) will become a full Home and Away season for the first time. Identical to last season 43 BBL matches will be broadcast on free to air TV through new partner Seven, while FOX SPORTS will broadcast all 59 matches.

    There will also be a new digital partnership between FOX SPORTS and CA’s digital arm, Cricket Network. This partnership will bring more content than ever to Cricket Australia Live App and users.

    FOX SPORTS will also launch a dedicated FOX cricket channel along with broadcasting 13 JLT One-Day Cup matches, the JLT Sheffield Shield Final along with some Tour matches.

    Cricket Australia will continue to deliver broadcast-quality streaming of matches not broadcast by the two networks including International tour matches, non-broadcast JLT One-Day Cup and JLT Sheffield Shield matches, all available through and the CA Live Pass. Fans will also still be able to access all the highlights they have come to enjoy through and Cricket Australia Live.

    The new six-year broadcast and digital partnership will result in overall benefit to the sport worth $1.182b over six years.

    • Sutherland is a hard guy to like. Doesn’t give a toss about the game. Totally profit driven.

      Fox is a wrecker.

      As long as the Tests are on free to air I am happy.

      Hope Channel 7 get some decent commentators. Hopefully no more Taylor, Clarke or KP.

      • bolstroodMEMBER

        I’ll be happy to watch the Women’s cricket team play.
        I enjoyed what was shown last season, good cricket played with a good spirit,
        Not a scrap of sandpaper in sight.

    • KP was a genuine great player Harold. He was that good.

      Unfortunately his commentating is constantly interrupted by his ego and insecure penchant for self grandiose.

      • haroldusMEMBER

        remember him walking out in the 2005 ashes?

        He had a stupid haircut, but we knew he was great.

        We lost that series, but that was probably my favourite series.

        Imagine how it would have gone without mints……

    • Very strange to see 9 get the tennis and 7 get the cricket.

      Does Channel 7 have their own commentators for Wimbledon or do they just relay what is produced in England?

      One wonders how long Murdoch will have sports broadcasting rights for – given that sports can be (but are not) streamed on Netflix, Amazon Prime, iTunes.

      • St JacquesMEMBER

        I’m not one for much idiot box sports but I have to admit that when I do watch i usually like the Pommy commentators. They tend to know what they’re talking about, when to talk and when to shut up, know the history of the game,, etc. They often (or used to) make a lot of Aussie commentators sound like amateurs down from a piss up at the pub, which might be great fun in the pub, but not when your hoping for a relevant or insightful comment on the box. Maybe we should issue work visas for Pommy commentators?

  2. im just a man sitting here at midnight eating a piece of toast and a slice of tomato for dinner

    • stags i went to the bottle recyclers today.

      the daughter wanted to stay in the car and play because I had just given in and bought her a $5 swimsuit barbie from the purported profit from the shopping trolley of empties – which I had forgotten to drop off ( before going to metro

      anyhoo the fckers don’t take wine or spirit bottles! however it seems they read barcodes. my soda bottles with labels made it through no worries, but the same bottles without labels are refused. don’t pull that label off if you want that 10c!

      only made $1.20 today

      • yep they dont accept wine bottles, milk jugs and anything with a damaged barcode, if the barcode is torn or even ripped a little its not getting scanned.

        you want to prioritise alumnium cans, theyre the lowest volume/weight so you get the most money from them given everything has the same value. i hit up restaurant recycle bins/dumpsters at night and manage to get about 200+ a raid.

      • @stagmal: how pristine do the aluminium cans have to be? I thought I read somewhere that if crushed they won’t accept, but does that mean no dents at all?

      • they dont have to be in perfect condition but they cant be super dumper crumpled or stomped flat. just so long as they semi-maintain their normal shape and the barcode is readable they’re a go.

      • That scene well defined his character as pedantic.
        I still remember him painstakingly toasting a slice, I think, over the stove top… only to be blown up minutes later by one of the hottest chick at the time… Princess Leia
        If you did not, I recommend re-watching it in 1080HD, as I did – and it felt like I’ve not seen it before.

  3. South African farmers, by definition, live far away from the cities. Jacinda Ardern said that immigrants refuse to live in rural NZ. Australia has been importing unskilled men from overcrowded cities and telling some of them “you will only get an Aussie passport if you stay in a rural area for 2 years”. They are given an Aussie passport far too quickly (Hanson wants them to wait 8 years) and they move to something they are familiar with – overcrowded cities.

    Instead, why not import people who speak English and have lived on the farm their entire life?

      • “hey baby i may be a complete loser in real life but im a big hit in the comments section of some obscure economics blog thats read by like 40 people”

      • boomengineeringMEMBER

        Talking to an old Aussie (English decent) woman at Palm Beach ferry to Ettalong last week, she said South African’s ( Dutch Boer) were arrogant. That old excuse for illegally claiming Australia still is alive and well in the minds of her cohort. It’s OK to steal something if you can deride the victim or pretend he/she didn’t want it anyhow.

      • “(haven’t told the missus)”


        Have you heard of the latest spying app? It can send you an instant text message as soon as your target surfs too close to a site for your comport. It only costs $100K to install and $10K per month after that.

        You also have an option to upgrade that comes with an automatic blockage feature for an extra $30K.

    • “Instead, why not import people who speak English and have lived on the farm their entire life?”

      They speak Afrikaans, not English. How many bilingual farmers have you heard of outside of the Nordic countries and Switzerland?

      We already have enough of those who do not speak English, let alone assimilate.

      • Red_Pill, what we import are males from urban slums who say they will enjoy living in the rural parts of AUS – even though they have lived in an overcrowded city their entire life. To boot, the slum itself is illegal and they cheat on the English-exams to get into an Aussie “uni”.

        As opposed to farmers in South Africa who have lived on a farm their entire life.

        I watched a documentary of the closure of the Newcastle Steelworks. One former steel worker got a job as a security guard at the site after the mills went cold. He quit soon after because he said it is too quiet for him now.

  4. That is a RRRRRRRRRacisttt…. really roll that tongue on the R..

    Do it properly numpties…haha

    “If employers wish to signal racial or ethnic preferences in candidates, they often use the coded message of proficiency in a workforce language, whether it is ‘Mandarin is a plus’ or ‘perfect English is required’.”

    Would be funny if the ad said, preference given to white South African farmers.. 😀

    *ducks for cover..

    • Oh no, don’t tell me that we are not allowed to say “Swiss, Norwegians, Swedes, Danes and maybe Finns are welcome but Afrikaners are not”?

    • reusachtigeMEMBER

      It’s a fair ad. The area is an Anglo haven, thankfully. I think it’s ridiculous that you can’t advertise for the right sort of people. If I was a curry muncher opening a curry house I sure as hell wouldn’t want any Anglos working there, or those other types of curries like Siks. And that’s what everyone would expect. When I open a massage joint I will be advertising, through dark employment channels, for Thai girls only (no Chinamen ladies). It’s just how I want the ambience to be for it to maximise profits.

    • ErmingtonPlumbingMEMBER

      A spokeswoman for the Fair Work Ombudsman said it was “unlawful” under the Fair Work Act 2009 for employers to “discriminate against an employee or prospective employee on the basis of a range of specific protected attributes, including race”.
      Other attributes covered under the act include colour, sex, sexual orientation, age, physical or mental disability, marital status, family or carer’s responsibilities, pregnancy, religion, political opinion, national extraction and social origin.”

      How is “Positive Discrimination” not affected by this leglistation.
      My ALP has mandated, 40% femal representation to all “elected” and awarded positions within the Party and yet they (females) represent easily, less than 15% of active branch members who turn up every month and participate.
      I intend to consistantly criticize this policy, while at the same time my party continues to engage in almost Zero activity, to expand party membership,…Male or Female!
      I suspect they (the party leadership) want their easily controllable, little 50k membership base to remain small and “manageable”,….this $hits me to death!
      It should $hit you to!
      If so do something about it,

  5. Suspect caught in China at music concert after being detected by facial recognition technology

    a “social credit” system beginning in May that will dock low-ranking citizens in ways like banning them from buying plane or train tickets for up to a year.

    I wonder what old data/photos got fed into the camera system? Even if it needs high res photos to work, you could simply mandate that every Aussie passport holder must have their photo taken at certain studios and the studio must upload the photo onto a government server farm in high resolution.

  6. boomengineeringMEMBER

    1st time this year, Beaten to the top by my 41 yo mate this morn, 60 klms, if I can’t handle the heat I should.get out of the kitchen.(fall apart when hot) but he is 20kg lighter.

    • Scummo and treasury are threatening ministers with cuts to their portfolios if they support a cut to immigration.

      That Scummo is using the media to signal in this way suggests that they are losing the war internally. Winners don’t resort to such things.

      ‘Secret budget rules’ what a crock.

      • They lost the argument ten years ago, but ABC and other media betrayed us and suppressed all debate. Until most Australians have said “enough”.

        Defund the treasonous ABC. Regulate journalist salaries across MSM. Dismantle MSM connections to housing and big business.

    • Exposing that makes them look like bigger idiots than Australia already thought they were.

      FFS, can some adults enter parliament we can vote for.

      LNP backbenchers are getting very nervous. We should do what we can to antagonise that.

      • boyracerMEMBER

        It certainly supports what Peta Cretin was asserting on Sky (Bolt report possibly) a little while back. How did we get to a point where only economic outcomes are considered in the decision making process on population? We are supposed to evolve but this is regression.

      • If the Government is too gutless to stand up to Treasury and call a halt to this madness, I will do it for them: by voting One Nation.

        Context: I have just spent an evening shift in the ED listening to the family of a 64 year old migrant woman who does not speak a word of english and has multiple complicated medical problems tell me that ‘they thought Australia had a good medical system but the hospitals are all too crowded now and the waiting is too long’.

      • D6, you could suggest if they are unhappy with the services provided, they are more than free to make a one way journey home but then you’d be racialist

      • @Wing Nut: I would also be sacked.

        I have already been warned in no uncertain terms to keep to myself my opinions about the need for more hospitals to meet increased demand from migrants.

        You would have an easier time denying the holocaust in modern Germany [disclaimer: I have no interest in doing that] than contradicting the current Government dogma that migrants don’t increase demand for public services. I have it on good authority that it is exactly the same inside the Police, Fire and Ambulance services. Asking for more resources in public sector organisations because of population growth is career death.

      • D6, all you can do is grin and bear it until (?if) you have the opportunity to exit to private. At least there you can avoid the more entitled patient groups with private fees.

        Remember doing a home visit and seeing a patient who’d been in the country 30+ years and didn’t speak a word of english. That can extend the consult time by 2-3x longer due to needing an interpreter, which is also funded by the public system.

      • @L: I believe in the public system and want to stay in it. I mainly want an end to the Government lies about young healthy immigrants who come here to pay taxes and not use any services. Anyway, at least I don’t work in Western Sydney, where by all accounts it is 10x worse.

      • A lot of the new young arrivals, don’t look to be in good health – higher rates of smoking, overweight – and come from ethnic groups where diabetes is ripe. I believe there is a great deal of fraud with the medicals that are being undertaken as a part of their PR applications.

    • DodgydamoMEMBER

      Congratulations and credit due to the MB boys for getting this deliberately unspoken story into the front page (well top spot on the Age website this morning anyway) Never thought I’d see the day…

    • cycledseasoning

      The notion that this is a “rule” that Treasury enforces on Parliamentarians is rubbish.

      Governments have a remit to set their own budgets with advice from Treasury, and if they determine they wish to cut immigration and run an increased deficit, they have that prerogative. Treasury can bleat about that all it likes, it does not have the power in our Constitution to enforce budget rules. The best it can hope for is to set guidelines, which a government is free to ignore as it sees fit.

      You have to understand the mentality of the people you are working with in Treasury. These are pathological individuals, not well rounded intellects, they are not providing objective advice – their framework is an ideological construct.

      Treasury should be entirely gutted and cleaned out every decade.

      Time for some courageous and purposeful Parliamentarians to start ignoring Treasury’s advice, stop letting the tail wag the dog, and pursue a genuinely democratically endorsed strategic vision for this country. Such a vision would never include running immigration at 190,000 per year.

      • St JacquesMEMBER

        Their framework is an *ideological construct*,
        Thanks. Now I know what they call meningeal neurosyphilis these days

  7. Hill Billy 55MEMBER

    I wonder if it would be appropriate to trash the economy so as to see the bigger fish, aka China also fall. I’m sure if we had a sensible government they could restart the economy on a sounder footing once the excessive leverage is wiped off the Banks Balance Sheets. They could then nationalise them and enable a fairer, more egalitarian Australia to emerge.

    • bit too late. Most of the manufacturing and know-how is gone.
      And for bringing China down by wrecking our own economy.. I can’t see how this can happen. China does not depend on the exports to Oz. Oz is too small market for China do worry at all. On the other side, if we wreck our wrecked economy then we will be even more desperate to export even more dirt to China.. for even lower prices.
      I am not being sarcastic but I really can’t see how we can bring China’s economy down.

    • St JacquesMEMBER

      Yep, agree with you Nikola. It’s the real reason I was always banging on about the car industry- because of its extensive supply chain. And much of our resources can be supplied from places like Canada, South America, Africa and Russia. We’d be a mere nuisance for a little while at best.

  8. A CFO wants to buy $800k 3 bed apartment in Liverpool as IP. ARRRRRRRRRRRRRRRRRRGH.

    For those not familiar with Sydney – Liverpool is one of the slumps – worst than Minto these days. And Minto is Sydney’s favela.
    No wonder prices at the lower end are up.

    • Lol $800k “investment”.. Martin North’s data suggests people in Liverpool are the hardest up against the wall in terms of mortgage stress. When things turn to custard, that area will become a nuclear wasteland.

      • She does not live in Liverpool but wanted to invest in.. withdrew the offer but the fact she made one..
        Here are some updates on prices from the Southwest which are in line with Corelogic data:
        A house that did not attract a single bid at auction back in Dec sold for $1.05m – this is Middleton Grange. I thought I will never see another sale above $1m in this area.
        An auction just finished 4 houses up the road and wife just told me (I was sent to do shopping) bidding started at $759k ad finished at $792k – Agent was saying “no need for any renovations, you just move in or rent for $500-$550 per week”. Not sure if it sold but the hell before Christmas same houses were selling for $760k. Middleton Grange again.

        So it appears we (the southwest of Syd aka the favelas) are the all the rage..

        Edit: if my calc is right (and they can get $500-$550 per week) this still makes sense – 6-7% return.

      • Haha more like gross yield of ~2.6% max… I’m surprised folks can afford $500 P/week if they live out that way. Rental stress comes to mind. I reckon unemployment will sky rocket in that area following a recession.

        Better off in term deposit. That’s what I’m doing for now.

      • same with us – in term deposit and some gold bullion.
        But yeah rents are about there – we pay $540 p/h now. I can see lot of larger houses that “investors” try to rent are struggling to attract tenants as asking rents for the mansions are around the $800 p/h.
        But even at $550 p/h people go in and out way too often – I monitor few of them that are very close to my place. After taking in consideration these properties are empty for about 8 weeks every year while in between tenants, total return on rent is probably around 1%.
        Nevertheless prices did move up since Dec.

    • St JacquesMEMBER

      Very important. People are finally waking up to what’s really going on and it’s only going to get worse..

  9. 30-40% repayment increases looking likely.

    As many as 1.5 million mortgage holders are set to face sharply higher payments over the next four years as interest-only loans convert to principal and interest loans, the Reserve Bank has warned. Bank officials revealed the figure on Friday, labelling the switchover an “area of potential concern”.

    • I’m so cynical of government/decision makers these days, I wouldn’t be surprised if they allow refinancing of interest only loans. Too much at stake to not to allow it. Do you really think they will allow the bubble to burst if P&I was found to be the straw that implodes it???
      Not a snow flake chance in hell!

      • Oh but we’ve learnt the mistakes of the GFC! We’re Straya – won’t happen here!
        We will rollover! So much so we’ll be doing somersaults.

      • Interest only, only makes sense when prices are rising. When they stop or go backwards you’re screwed either way… even if you can refinance, what’s the incentive to HODL?

      • The authorities will try to extend the party by all means until they can no longer. They will not stop until they have exhausted all the ammo available to them.

        This is not to say that the market will not overpower the authorities before they run out of ammo.

  10. Jericho’s article about the labour market is standard “progressive liberal” echo chamber stuff. “Globalisation, technology, services” blah blah blah. 90% of the problem is that unions stopped caring about workers when they became political action groups / recruitment centres for politicians. Best way to increase wages / reduce inequality would be for the ACTU to cut ties with Labor and become a pure industrial group again.

    • Trade unions yet another corporate entity cashing in on the population ponzi. More people = more union members

    • Nikola, how old are you? Does name Leb i Sol or Vlatko Stefanovski mean anything to you?

      • They are coming on 2nd of Dec. Anyone interested to hear one of the best guitar players in the world..
        Or search kings of strings on google where he played with Tommy E.

  11. Liberal figure promoted alleged mafia don to Italian business chamber

    A Liberal Party figure appointed by Opposition leader Matthew Guy to lead the state’s property development agency personally promoted the alleged head of the Calabrian Mafia in Australia to a prominent business body. Tony De Domenico used his position last October as president of the Italian Chamber of Commerce and Industry in Melbourne to make alleged mafia boss Tony Madafferi, a chamber member.

    The move prompted the intervention of the Italian embassy, which demanded Mr Madafferi’s membership be blocked because of his notorious reputation. Mr De Domenico pushed for Mr Madafferi’s membership of the chamber’s Melbourne chapter just weeks after Mr Guy was enveloped in a public scandal over revelations that he met Mr Madafferi at a lobster restaurant in April 2017.

    Mr De Domenico is a former Liberal deputy chief minister in the Australian Capital Territory and more recently the head of Victorian branch of the private sector development lobby, the Urban Development Institute of Australia. He is, and has been, a member of a slew of semi-government boards and was formerly a deputy chancellor of Latrobe University. Treasurer Scott Morrison, in his former role as social services minister, appointed Mr De Domenico to chair the Australian Housing and Urban Research Institute in 2014. He has also served as Trade Commissioner to Italy.

    In September, The Sunday Age also revealed that Mr Madafferi was pressing through one of his companies, Madan Nominees, for government approval to develop a semi-rural/green wedge property he owned in Melbourne’s south east that would deliver him a windfall of as much as $120 million.

    • LInks between Vic Libs and mafia seem to crop up quite often, through the vegetable industry of all things. Let’s just say you don’t wanna find a big old zucchini in your bed in the Dismal State.

  12. Faark it’s clear that the MIC is running the show, the west is sick! These bastards won’t stop poking until theres a world war, with the world financial system screwed war will be the end game. I am disgusted in my country and the west in general, we have no business in the ME.

  13. Holden sales crash
    Can’t say that I’m at all surprised I recently drove a Holden Craptiva and as they say the name tells you everything you need to know about the car. Build quality aside I really didn’t like the drive feel of the car left me totally unimpressed. As for that rebadged Opel, how can anyone think this is a Commodore, why would you buy this, if you wanted this sort of car than just buy a Camry, what don’t they understand about product positioning and market differentiation.
    Oh well if sales continue to crash it won’t be long before someone has to make some hard decisions.

    • TailorTrashMEMBER

      Last Holden I owned was an EK ….a tank of a car ..and a chick magnet to boot ……( or was that me in my prime?) …….never owned a car before or since that was so solid …loved that car ..(and the chicks .)………they can rebadge the fcuk out of the brand all they like …….but it is finished …..just like the Straya it represented .

  14. ANZ demands strict new rules for mortgage broker loans
    [ANZ is sending an 11-page “quick interview guide” – and four pages of explanatory memoranda – setting out dozens of questions mortgage brokers will have to ask before making a mortgage recommendation.

    Brokers will need to sign a declaration they have discussed and recorded enough detail to describe the reasons why the applicant chose a specific loan type, or features.

    They will also need evidence about how the applicant will repay the loan, particularly if there is a change of events, such as a retirement, or parental leave.

    There is a requirement they check for “consistency in the responses” across all the questions.

    “You will be able to justify your acceptance of the requirements and objectives provided by the customer if a review of the application is done by internal or external parties,” the guidelines warn.

    ANZ’s interview guide questions are mandatory for all new or additional loans for a mortgage, refinancing existing mortgage loans or consolidating mortgage debts. They will apply from 30 April.]

    • pull anew loan app with NAB and you have to have a lawyers letter drafted to present to NAB that the T&C have been read to you and you sign off stating you understand them.

      apparently wa law society advises members to avoid this business

    • It’s pretty telling how abysmal our banking sector has gotten when the fact that they are now going to start asking questions about whether people can actually afford to pay back loans is actually news. Talk about an industry run amok….

  15. A Chinese exodus will decimate our property market. GOTTLIEBSEN May 5, 2015
    For the first time in many years leading apartment developers have become very nervous about a pending fall in the values of Sydney and Melbourne apartments plus parts of the suburban residential housing market in both cities.
    Already, prices of inner city Sydney apartments have started to fall — something we have not seen for many years.
    The new forces that are emerging are far more important than anything the Reserve Bank decides on interest rates because they could hit the biggest driver of the economy in the post mining boom era — apartment building.
    And if dwelling prices fall, then it will almost certainly reduce bank profits.
    The current danger has been triggered by inexperienced politicians in both Canberra and Victoria simultaneously deciding that there is community support for attacking Chinese and Asian buyers even though they are the dominant buyers of major parts of the residential markets in Sydney and Melbourne.
    The Victorian and Federal moves raise only small amounts of money so are simply about garnering political support.
    To understand why the new Chinese taxes and penalties are so dangerous, you need to grasp what is now happening in the Sydney and Melbourne property markets.
    In Sydney, over 80% of inner city apartment buyers are Chinese or Asian investors. In Melbourne’s CBD the figure is even higher.
    The Chinese buyers are not big institutions but rather they are mums and dads that have made some money in their home country and see Australia as a good place to invest. Often they have been driven by a herd mentality in communities where families inspire each other to buy Sydney or Melbourne apartments — it’s similar to what happens at suburban barbecues in Australia.
    In any market, when a herd gets frightened it can turn viciously in the other direction.
    And that’s the real danger we face.
    The situations in the two capitals are different but they are also linked. Let’s start with Sydney.
    In recent months, Sydney apartment rents have been edging up partly because more people are living in each apartment but, in contrast, the actual prices of inner Sydney apartments has started to fall. Yes fall. No one has heard about falling apartment values in Sydney for a long time.
    The good news about Chinese investment in Sydney is that the biggest developer, Meriton, insisted that the Chinese families who bought apartments rent the apartments so there is no big vacancy overhang.
    In Melbourne it has been a different market. The biggest developers are Chinese institutions often supported by Chinese banks. Some 20,000 apartments have been approved in the CBD, almost all are Chinese/ Asian backed developments and the number of apartments in the inner suburbs is of a similar magnitude, also with a high level of Chinese buying.
    These are massive figures and the current and planned construction is underpinning the Victorian economy.
    In most developments, Chinese and Asian investors pay a deposit (10% is normal but it may be lower in Chinese bank funded projects) and on that basis the apartments are built — it’s a straight ‘off the plan’ property development system. But, unlike Sydney, many of the apartments that have been completed have not been leased. So there is a vacancy overhang which makes the market more vulnerable than Sydney.
    Chinese residents in places like Hong Kong, Beijing, Shanghai and Guangzhou who buy new developments off the plan are legally entitled to make such an investment.
    But if they make an investment in an existing dwelling they are breaking Australian law.
    But it is a law that has never been enforced and given we are dealing with many thousands of small Chinese families it is likely that large numbers will not know about what must seem a strange law.

    Nevertheless, a substantial number of ‘mum and dad’ residents of China were told that it was better to link up with relatives, friends or an ‘introduced’ local in Australia to buy the properties.
    In nominal terms, the registered owner of a large number of suburban houses and apartments then becomes a local Chinese business person, often running a business such as a restaurant but in fact they are fronts for overseas Chinese residents.
    This has been a lucrative trade for local Australian families of Asian origin and many have over-indulged.
    If only one or two properties are bought based on an existing business, it might make sense and the front would withstand investigation.
    But when people have bought a large numbers of apartments, it will become difficult to conceal the fact that the local Australian Chinese are fronts for Chinese buyers.
    So, in chasing votes, Tony Abbott & Co have blundered into very dangerous waters by imposing new penalties. But there is a period of grace and so we are likely to see a number of Chinese families sell out rather than risk penalties should their ‘front’ activities be revealed.
    On its own the danger from Federal action might be contained because it is enforcing an existing law but simultaneously the Victorian government has put a stamp duty levy on apartment developments sold after July 1 and then a half per cent levy on the annual returns achieved.
    Given that returns are low, this continuing charge is a massive impost. On its own, perhaps Victoria’s action might be managed but developers say the combination could be lethal.
    To comprehend the full danger we have to understand how we attracted this vast volume of ‘mum and dad’ Chinese investment in Australian dwellings in the first place.
    They simply fell in love with their image of the country — its fresh air, its health services, education and so on. One day they, or their children, might live here.
    We rolled out the red carpet and slick sales people all around the region sold Sydney and Melbourne apartments and residential properties in the same way as encyclopedias, electricity and various kinds of investment scams have been marketed here in Australia.
    Suddenly, two governments are sending messages that many Chinese may interpret as meaning they are no longer welcome.
    If a few Chinese feel unwelcome and start selling properties, the message will get out that there are big losses.
    In Melbourne, there is already a big difference between ‘off the plan prices’ and the sale value of completed units. In Sydney, if Chinese buying turned into selling, the market would collapse and that collapse would affect values of a wide range of Sydney residential properties.
    As we have seen so often in other markets, there is always a danger that the herd mentality that drove the buying will also drive the selling.
    Victoria desperately needs those apartment developments to get it through a difficult economic period. If the apartment market cracks, it will spread to the inner suburbs and Chinese investment there.
    Australian banks have over leveraged their loans on residential property.
    David Murray’s warnings that extra capital is required are now terribly important given the dangerous game the Federal and Victorian governments are playing.
    I hope my warnings prove to be false and anyone writing about what Chinese investors are going to do is in high-risk territory.
    That said, people I trust in the real estate sector are looking more nervous than I have seen them for a long time.
    WW April 2018, and the sooner the Chinese are booted out of here the better.
    Gotti is an absolute prizewinning stooge. Thinking, as he does, to support the massive ponzi of relestate has ruined this country. His head will be on a spear point.

    • “In Sydney, over 80% of inner city apartment buyers are Chinese or Asian investors. In Melbourne’s CBD the figure is even higher. The Chinese buyers are not big institutions but rather they are mums and dads ”

      We need to look after all those foreign mum and dad investors that are buying nearly all of the apartments within reasonable travel distance of Australian jobs.

    • This is the best comment on this thread.

      Sometimes I wonder whether Australians are stupid, ignorant, greedy or God knows what.

      There should be public outrage about foreigners being allowed to buy real estate in Australia. Nope. There’s public outrage about homosexual marriage, a cricketer rubbing sticky tape on the ball, gender balance on company boards and (only high income) jobs, Married At First Sight, MKR, etc. I just shake my head and continue to plan my exit out of here. A nation of idiots it would seem. I used to be proud to be Australian.

      • Come to Canada, weather’s kinda crummy half the year but if you ski or snowboard you can make the best of it.

      • They don’t care because as owners of real estate they benefit from increased values. There is a lot of young angry Millenials who see it for what it is. I’ve been in taxis with Indian migrants, angry with Chinese buying up everything in Sydney.

        It’s just the media that is useless, they decide on where the moral outrage should be focused.

    • ‘For the first time in many years leading apartment developers have become very nervous about a pending fall in the values of Sydney and Melbourne apartments ‘

      This has been Gotti’s lead line in any property article he’s written over the last two years. His HRH advocacy role in Government scaremongering mode.

    • TailorTrashMEMBER

      “its fresh air, its health services”………….get an apartment and get health care in your old age ……I think a lot of disappointment coming up ….crumbling apartment and crumbling healthcare system awaits them .
      …and this article should be marked ….advertising material paid for by Meriton …….reading it I can hear High Rise Harry’s whining money craving voice
      all through it .

    • I looked at the results for Melbourne, and one I know of was listed as sold yesterday, yet it was sold on 28th March. That says it all to me. How many of the sold are actually sold on the day. Also, at one point Melbourne meant Melbourne, but now they include many of the victorian regional sales in the figures. Don’t let the truth get in the way boys…

  16. Sydney auctions: 271 / 354 / 604 (sold / reported / listed)

    Actual = 44%, Domainfax headline = 62%

    • Next Friday weekly price falls will be scary. This will scare the shite out of the buyers in the slumps too as it will be all over the msm. MSM will not be able to ignore these falls.

      • Not to be the grammar nazi, but i’ve seen you write it a couple of times now. It’s “slums” not slumps. (I realize english is probably not your native tongue)

    • Oh dear. Now the preliminary clearance rate is in price fall territory. The final is going to be mid 50s. That’s a big fall.

      • If this trend continues it won’t be long before the listed numbers fall to zero (I suspect they will stop reporting the numbers altogether before it comes to that).

      • Historically inaccurate.

        The so called good years make Pinochet look like an alter boy…. the non fiddled with type.

      • In a Proudly Diverse Asia, Yellow People Still Run Almost Everything. You really like arguing for the sake of arguing don’t you skip, or maybe you don’t live in the current year.

    • In a proudly diverse Australia, being white whilst male is considered to be a hate crime

      • Book them Lou! One count of being a white male, and one count to being an accessory to being a white male!

      • Don’t forget to mention in the indictment any circumstances of aggravation such as: expressing an opinion whilst being a white male, earning an income whilst being a white male, being heterosexual whilst being a white male, being cis gendered whilst being a white male, not wanting this country to slide any further down the toilet whilst being a white male …

      • Oh god, will you please give us a trigger warning before you write all that privileged stuff!

  17. pushed a shopping trolley for 2 km through the cbd tonight

    got about 80 pieces of trash by walking past pubs post-closing and picking up all the discarded bottles and cans left by the inebriated

    two drunk guys dared me to drink a half empty bottle of beer i pulled out of a bin for $5

    tasted fine

    • To non-complacent this not just cast doubt over *every* “gassing” in Syria as “confirmed” by so called “intelligence community” but makes it most probable explained as series of false flags.

      But hey, the news of the week is the bombing of Syria and ‘Mission accomplished!’

      • Mining BoganMEMBER

        El Trumpo says ‘Mission Accomplished’.

        That’s taking trolling to a whole new level. The man is a genius.

  18. Could at least one person admit that they found the juvenile joke I made at April 14, 2018 at 1:06 pm at least slightly amusing?

  19. Just a thought for the day everyone……and respect to Winx and connections, but,
    If Sam Destyari or Andrew Robb say had been Winx’s trainer how many races would she have won to date😜

    • St JacquesMEMBER

      Ground zero for a real estate explosion. lol

      edit: Oh, of course! They’re running out of land in the desert of central Oz. Totally logical in an upside down, retarded Oz way.

      • Mining BoganMEMBER

        Every sunday morning the ABC produces one of these rubbish house boosting stories. Started about three months ago. I come home from my run, grab a coffee and there it will be on my tablet. No need to add a punchline even because they’re all ludicrous anyway.

        Speaking of running. I just saw a Scotsman collapse on the marathon course. Truly frightening. It took an awful long time for anyone to help him. Lovey came out to see why I was yelling at the tv so early in the day. Pretty poor response.

    • TailorTrashMEMBER

      Well land around Alice is in short supply …and it’s not as if you could just bulldoze a freeway or two through the desert ……so demand and supply results in price pressure . Nothing says bullsh1t in Straya like this story .

    • St JacquesMEMBER

      Thanks MB, I can’t get this one out of my head and I’m usually RE immune. The mindboggling absurdity! Then I started realising canny investors saw potential for renting to Russian and Chinese agents, and then it hit me, central Oz is just a massive beach. It all makes sense.

  20. Moments like these you need a Minsky

    You’d swear, by the incredulous expressions, it was filmed at the conclusion of any real estate auction in Australia, yet is is not that asset class.

    Those filmed are at an auction house, yet consider them nosey neighbours (except the guy a 3:07 mins, he may have a chance – with a liar loan).

    Its market is completely unregulated, because only the rich play in it, no punters to get hurt, yet that means it is like Australian property, not is!

    The seller is a Russian, some say it has questionable provenance, fake news would say Putin did it.

    • mate,
      That video in itself is an artpiece…
      Those expressions, those people convey a million different stories…. Awe inspiring…

      Those of you who have not seen the video, watch.. it… You will immediately relate to most of them and you will be in awe of the entire piece.. and baffled at what the hell are they watching that is so powerful to bring those emotions! Just too good!

      Please do not corrupt that video and those people’s true expression by labeling it with Aussie-RE-Auction!

      • Moments like these you need a Minsky

        you could see it that way or……
        you could see a beautifully executed piece of corporate messaging by Christies aimed at HNW individuals or sovereign wealth funds to illustrate the mass audience appeal of a work that they are suggesting will easily recoup its $450 million price in rent and capital appreciation at museums around the world, regardless of whether it was painted by a da Vinci or DiCaprio.

        Sorry to pop the bubble.

  21. TailorTrashMEMBER

    Half a trillion up for reset ……that’s got to hurt somewhere ……good thing the punters don’t watch these sort of programs ……..this might put just the teensiest doubt in their minds that Sydney houses only go up in price.

    • Oh dear.
      Watch retail shops shutting down starting somewhere between this Christmas or next March. there simply won’t be enough money to spend.
      To be fair we would’ve gotten to this point in 5 years anyway even if easy money policy would’ve continue as house prices would have keep going up until we would have hit the point where we could not service interest only loans.
      Falling prices will also cause lot of pain for investors with multiple properties- especially for those that bought one or two properties in the last 2 years as they will not have enough equity. But watch out once prices fall over 12% and especially once these falls pass the 18% – 20% mark.

  22. TailorTrashMEMBER

    All this talk of banks tightening credit for houses make me want to break into song
    ……so what about a rousing rendition of …Flower of Confidence ?

    Oh Flower Of Confidence
    When will we see, your like again
    That over lent for
    Yer wee bit hill and glen
    And stood against it
    That Royal Commission
    Untill Ms Orr She sent ye homeward
    Tae think again

    Ok…..all together now

    Aplolgies to any Scots …..but it is a stirring song to uplift the spirits .


    Global slowdown
    But the report, which puts price movements of Australian cities in a global context, also shows the slowdown that has hit housing markets globally.

    In 2016, the 15 Chinese cities tracked by Knight Frank’s index averaged 23 per cent growth year-on-year. Last year, by contrast, the same 15 cities averaged just 1.6 per cent growth. The global average pace of price growth slowed to 4.5 per cent last year from 7 per cent in 2016.

    In the global picture, Melbourne rose to 21st place from 24th in the global ranking in March last year, even as its pace of growth slowed to 10.2 per cent from 13.4 per cent, Knight Frank said.

    The factors holding back Australian prices were likely to continue, Ms Ciesielski said.

    “The influence by the Australian Prudential Regulatory Authority on the lending environment has certainly been felt, with many investors retracting from the market on the east coast,” she said. “This risk-adverse environment is likely to remain for some time given the current banking royal commission.”

  24. And now this..

    “No one’s spared. It’s not people on the street; it’s people in your street. It’s in every community across Australia.”

    Collin Peebles, chief executive of the Geelong Food Relief Centre, said demand had exploded for services over the past three years.

    “Only recently we had a seven-year-old girl walk into the Foodbank on a Thursday afternoon, she hadn’t eaten anything for five days,” he said.

    He said mortgage stress and the cost of living were driving families to use foodbanks for the first time.

    • Fake Greg Jericho

      Geelong currently the second strongest RE market in the country .. prices up 10% yoy as families desperate to escape melbourne prices avail of 20k grants

    • Someone needs to go around these soup kitchens handing out Pauline Hanson how-to-vote cards pointing out how globalization and mass immigration is pushing up bills and housing costs and exporting jobs overseas.
      That’ll soon divert some federal pork from sporting stadiums 😉

    • TailorTrashMEMBER

      “Never been a better time to be an Australian “
      Malcolm Turnbull
      Prime Minister of Australia

      • “Never been a better time to be a hungry Australian “
        Malcolm Turnbull
        Prime Minister of Australia

        Fixed that for him…

      • No Ino, “no better time to be in the elite circle in australia” Let the rest of them eat iron ore and coal.

      • But we are all too busy talking about North Korea or Russia oh.. what the hell, why not, Assad chemical weapons..

      • After reading the article I donated $120 to FoodBank Victoria. We need to look after Australian families.

  25. TailorTrashMEMBER

    Nice summary from Martin ………….looks like reality is slowly creeping up on Straya …..

    These sort of views are coming from all sides at the moment
    …..can Straya hold the line with it’s battle cry of …never been a better time to buy

    ……Reusa prepare the cavalry for rapid deployment .

    • The Traveling Wilbur

      Dear Modbot: I believe all these posts should have come with a Trigger warning.

      Thank you, thank you. *bows to audience*. Please tip the veal and try your wait-staff. Thank you and goodnight.

      • The following presentation may cause sudden ejection of beverages, apoplexy attacks and general loud swearing; there are known situations where severe banging of the head against the table followed by loss of consciousness and control of bodily functions may also be encountered.

    • Maybe a thoroughly modern virus, starting from sound bites with easily digested but empty calories, aching for the euphoria from that first time ….

      Just sat down after being busy, or out, all day (the lad is 15 tomorrow). Just skimmed Innes above and will read and digest soon. Noting preamble to #2 stated no rebuttals received, are there any refinements or criticism to Innes pieces in the 100 years since?

    • I know skip… terrible amount of comments that don’t just incoherently ramble on about… well who knows, because no-one ever gets to the end of your rants without banging their head on the desk.

  26. Scott Morrison must have missed his Qantas or RAAF flight tonight, he’s travelling virgin tonight thru T2 domestic Sydney. Must have missed his AFP bodyguard too.

  27. I went to have a sticky beak at the auction for this place over the weekend (out of general interest):

    There was a fairly large crowd assembled and three registered bidders – one young couple, one middle aged man with his daughter, and what appeared to be an investor in his fifties. The first bid of $920K was rejected, at which point the couple were out. The investor and middle aged father bounced back and forth in $10K increments until the price hit $960K and bidding stalled.

    The auctioneer tried unsuccessfully to harangue the investor into bidding $975K (“it’s not worth that much” – his words), he then turned his attention to the middle aged father and dragged him into the next room for a chat. After a few minutes the auctioneer emerged with a triumphant grin on his face and announced that the bidding was now up to a million and we were on the market.

    I think he assumed things would kick off again at that point, but after five minutes of badgering the crowd it was pretty clear nobody was willing to part with their shekels. Sold to the middle aged man and his daughter for a cool mill. I expected to see it go for $1.2M – $1.3M so the outcome was a bit of a welcome surprise.

    After that I went to take a look at a tiny, mouldy townhouse over in Thornleigh and ran into the same young couple who had been bidding at the auction. The agent indicated that the owner was looking for a million… but that all sensible offers would be considered. I pointed to the giant NorthConnex smoke stack being constructed less than a block away and asked if he thought that was the reason there were so many “for sale” signs in the area. Apparently Thornleigh is booming and the residents hadn’t even noticed the construction going on.

    As I was walking out I noticed the young bloke comforting his missus while she quietly cried. I genuinely felt for them. I remember that feeling.

    I’ve been watching the Turramurra/Wahroonga/Killara/Thornleigh area for a while now and there’s an eye watering amount of stock on the market in the bottom end of the market. I’ve also noticed that all the recent sales have been “price withheld”.

    It seems we’re living in interesting times now that the Chinese contingent has withdrawn.

      • Buyers. The couple that had been knocked out on the opening bid at the previous auction in Turramurra were at the same open house over in Thornleigh. When the agent said he was expecting the place to go for a mill they stormed out and I saw them outside as I was leaving.

        I know only too well the frustrating of losing out at auctions (whether official or silent over the phone after offer) and the intense feeling of competition at open homes. There’s nothing more soul crushing than showing up, doing everything right, and still missing out because some dickhead wanted your potential starter home as his third investment property.

        I remember house hunting back around 2014/15 – I stopped asking for contracts after a few weeks because agents would invariably announce (loudly) that the property was “now under contract”. That usually predicated a stampede of boomers and bused-in mainlanders all crawling over each other to get their greasy mits on paperwork.

        We gave up after about six months of looking. In that time we put in offers on 10 properties, usually $50K – $60K over asking, and missed out on all of them. Every week the properties we could afford became shittier and shittier and it eventually got to a point where we couldn’t continue on with a grinding frustration of it all. We’ve been renting and saving ever since. It’s cheaper than owning.

    • Thank you for taking your time. It was like reading Hemingway ( my favourite writer is Emil Zola). Anyway, could me just me, or just me with 5 shots of rakija and 5 beers. There used to be a decent guitar shop at turramurra that turned into a fluff but no substance- no one that can give you proper advice on what you should buy.
      And for the crying btch I wish she was married to me and I had his age and my wisdom of today..

    • Sounds beautiful, my missus has been upset and angry when we have missed out, but never tears. I guess you want to start your future at some point and this bubble is toxic to family formation. I’m starting to widen my net and look further out in Melbourne. Found a place with 10 acres of land (not all usable for building, but a big parcel none-the-less) and 15 mins drive to Eltham station. Give it a while longer and places like that will come down from $900k to $800k then $700 and $600k.. I can wait.