Links 13 May 2019

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Comments

  1. The schemes for the gov. to take an equity loan in a house to provide a deposit has been going in the U.K for quite a while and is hardly a game changer……..penetration is about 10%

    https://www.bbc.com/news/uk-41473493

    It should also keep a lot of first home buyers out of the market this year while they wait for it to start. It is being fine tuned soon because people who don’t really need it are the main consumers…….the idea is to prop up Sydney values, note the London difference.

    https://www.gov.uk/affordable-home-ownership-schemes/help-to-buy-equity-loan

    • He he he he! You said ‘loan penetration’ … pffft! 10%… sooo… just the tip?

      Ok ok, I’ll see myself out! My excuse? I’m flying back home and I’m waiting for my flight at the airport.

    • bolstroodMEMBER

      The young first home buyers are being setup as the patsies. Who would buy in a falling market ?
      Desperate move by the LIbLabs to re-inflate the market.

  2. Hugh PavletichMEMBER

    Chinese millennials are rejecting dull factory jobs — and transforming the economy … Los Angeles Times

    https://www.latimes.com/world/la-fg-china-millennials-jobs-20190512-story.html

    Life as one of China’s industrial worker ants did not suit Liu Xu: waking up early in factory accommodation, working for 11 hours operating a machine in the tool-making factory, eating all his meals in the factory canteen and going to bed, only to wake up and do it again.

    His parents spent most of their lives in deadening jobs — his father on construction sites and his mother in factories — but 23-year-old Liu Xu lasted just a year in a factory in the southern China city of Dongguan. Half of that was the time his company invested in training him to work the machine before he up and quit.

    Like Liu, a generation of young Chinese is turning its back on the factory jobs that once fueled China’s growth — and they are helping to transform the economy by doing it. … read more via hyperlink above …

    • Lucy Zelic’s (of SBS fame) Dad:
      Born in the tiny village of Vrana on the Dalmatian Coast of Croatia, he moved to Australia when he was just 20 years-old with the hopes of working for five years to save money for his wife and family back home.
      In 1968, he boarded the ‘Angelina Lauro’ ship in the northeast Italian region of Trieste and embarked on the 30-day trip to Sydney.
      When he arrived, he didn’t speak a lick of English and learned thanks to a Scotsman he worked with at the Holden car factory in Pagewood, who patiently taught him using hand gestures.
      “I started work on my second day in the country. My brother was already living here and there were 16 of us all crammed in a house right across the road from the factory.”
      “Because I was under 21, I earned less than the other workers and at the time my weekly wages were $36 sometimes $44 if I worked a half day on Saturdays. That wasn’t easy but you didn’t have a choice, you had to work and that was it.”

  3. From today’s Guardian election coverage blog
    9:01AM

    The other interesting line from that press conference (which I am working on bringing you in its entirety) is when asked if Scott Morrison believed the first homeowner’s deposit guarantee (which Labor has committed to matching) would lead to house prices increasing, Morrison says:

    “I don’t want them to go down.”

    Which is the problem in a nutshell, right? Take Sydney for example, where the median house price sits at around $800,000. Saving 20% of that, without the wealthy parents/living at home/no rent leg up makes it almost impossible. In Brisbane, the median price is just under $500,000, but incomes don’t tend to be as high.

    So house prices not dropping is great for those already in the market. Congrats. But for those who are not, house prices not going down remains an affordability issue.

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