Barefoot Investor terrifies punters with property “sell”

Here’s a beauty from Scott Pape:

The horror, the horror!

David Llewellyn-Smith
Latest posts by David Llewellyn-Smith (see all)

Comments

    • reusachtigeMEMBER

      Yep. It’s a weak call. Bloke is not savvy at all. I hope no one falls for his rubbish and they all hold out for the new boom that is building up right now. This is all just cyclical.

    • Yeah! I don’t see the problem. Lower the rates to negative! Free money for everyone from both Banks and Government ! If official rates are waaaay negative then Banks can charge negative and still make a handsome profit. What’s the big issue these clowns are going on about? Government just goes full Magic Money Tree at the same time.
      In the immortal words of Bill Evans “It’s all good!”

      • Achilles Tskakis

        ’tis not enough to lower teh rates anymore — ScoMo must also open teh gates to more migrants, too!
        That will fix thing!

      • Or as PF asked on twitter this week – when interest rates are at -1.25% and banks PAY YOU to borrow, as a property investor does he borrow to buy the $5m place or the $10m one? MADNESS.

  1. Folks, I am now frail and as impotent as the Royal Commission into Banking, but if I were as virile as Reusa and as handsome as Mig, I wouldn’t wait for the investors to sell.
    Pay now as much as the decade allows and borrow a generous difference to make your dream offer. It doesn’t matter how much you make in a home or two, it won’t secure a bank today. Ah, FFS, I sound like a broken record…

  2. I’m confused.

    If they sell, won’t they become looser renter scum?

    Everyone knows there’s nothing worse than that.

    • reusachtigeMEMBER

      Yep. That’s why thankfully good Aussies won’t sell. They’ll wait until their house booms supreme again then sell for a tidy profit and invest in two new houses. That’s the way it works.

      • Sunlord BCNMEMBER

        Reusa
        You have never been so correct
        They won’t be selling
        Because there won’t be any buyers

      • Sunlord BCNMEMBER

        IMO
        I’d be getting rid of any debt whatsoever
        What ever that entails IPs PPR

        What’s coming is a debt crisis
        If you have no debt (or very manageable debt) you can only catch a virus

        If you have too much debt you can catch bankruptcy and virus

        If you have no debt you really have nothing (much less) to worry about

        • reusachtigeMEMBER

          LOLOLOL. Wrong. If this does blow up, however unlikely that is, you should have as much debt as you possibly can because you will be either bailed out by the gubbermint and the sucker savers or forgiven. And you will have lived it up!

          • Sunlord BCNMEMBER

            REUSA
            I have to 100% agree with you, you may as well have a huge amount of debt because how much debt you have will make no difference to the outcome
            You’ll be going down holding hands with the GUBMINT… they won’t be saving anyone this time
            This is way to big for any central bank or government to stop

          • Reusa’s comment above is all you need to know about the housing market in Australia. If you don’t buy you miss out on the upside, and if it goes down enough the whole financial system is kaput anyway (i.e. not buying a house probably won’t save you as you lose your job and run down your savings anyway).

          • What you say is all true. The line between riches and bankruptcy is a fine one though.

            If you can service that mountain of debt till the bitter end, you win!

    • hey, listen to the callers.. one actually asks what would he do if he sells? he did not say it but it really sounded like he was worried about his image once he sells.

      • Sell his house AND move in with his parents! You bears are delusional if you think that will be happening.

        • Yes, I mean, ideally he AND his parents will “sell”….*cough cough BOMAD and all that..Freeway underpasses are going to be snapped up faster than hot bread (which goes nicely with soup btw).

  3. Great for consumers to have lower house prices.

    Wonderful news much like lower grocery, gas, electricity prices.

    Good no nonsense advice from Scotty Pape for irresponsible borrowers that didn’t put emergency funds aside.

      • That’s it, everyone (backed by the ABS of course) keeps telling me the basket is and has been deflating fast. Somehow my groceries are up 14%YOY and I’m too afraid to look at utilities, insurances, land rates, education and health costs.

        • Yep – watch out for all that deflation, especially the type that reduce your grocery bill to near zero. It’s bad for you apparently.

          Not sure why but if the RBA said it, it must be true.

    • I dunno. I’ve listened to mmm on the way to work this year and he has been on a few times.

      Reasonably conservative guy who has been warning people about the current run up in shares for the last few months, and has previously talked about the problems in the banks loan books.

      Always talks about his debt help line. Yeah he is mainstream, but he isn’t one of the ponzi pushers.

      • I’ve got plenty of time for BFI.

        He says cut up your credit card. Pay off and avoid consumer debt. Get a low fee super account. Have insurance. Save for a rainy day and keep a reserve. Save more every month, also spend some on fun but spend cash, not credit. Buy a house as soon as you can afford to and pay it off as soon as you can. Then start to build shares.

        Sensible advice that will keep regular people out of trouble and as financially secure as possible.

      • working class hamMEMBER

        Not really saying he is a ponzi guy.
        Definitely MSM though. Glad to see the absolute BS of “it’s all good” getting drowned out by real expectations.

        • I think he is trying to be “MSM”. After all that’s how you help the most people by getting the most reach – a simple message that can be digested by the many. Reach is how you save the most people from the most basic financial mistakes – max’ing credit cards and all of that. For the non-financially-savvy it isn’t totally bad advice. Keep it simple so those people can worry about other things than money.

      • Arthur Schopenhauer

        He’s pretty straight down the line. Far more balanced than say, ‘The Property Couch’ better living through debt guys, who in turn seem reasonable compared to characters like Mr ‘I got a T-Shirt’ Birch.

  4. About time the banks thought about the risks of all that easy money they encouraged the punters to gamble with and spend on rubbish.

    We don’t see much of the “Go on, you deserve it” now, do we? When I think of that phrase I picture a Montague Burns type in a back room of the bank chuckling “Go on you saps, you deserve it”.

  5. Point BreakMEMBER

    A cynical mind might think the banks are just baiting the Govt for more Job Keeper $$$. Property mustn’t go down! Let it burn.

    • ErmingtonPlumbingMEMBER

      Its going to be interesting to see what interventions will be made once this disaster really gets rolling.
      The corn kernels tell me that’ll be March/April 2021.

  6. Lol the first caller: thats a big call isnt it.. but what do we do then?? Rent?? So what is after.. u know to give us some hope
    He actually said hope!
    Just goes to show how out of touch even home owners are.. of their own situation!

    • Sentiment drives the marginal buyer/seller in markets.

      The crash is on once they lose hope and join rental loosers.

    • working class hamMEMBER

      The comments section on Domain and RE articles have been a good indicator of hope.
      May, everyone was laughing at crash calls. Today, no one is.
      Property investment Facebook groups have also started to show signs of negativity. Once the “doubles every 7 years“ mantra is broken. Reality will set in.

    • darklydrawlMEMBER

      I also thought the comment he made that many people would do ‘dumb things’ with the newly found equity (aka blow it all quickly) rather than investing it for future use was an interesting (and accurate) observation.

  7. Mortgage rates are going to sub 2% over the next 12 months.

    You can be ignorant or misunderstand everything else that inputs to why Australian RE doesn’t crash but.. see above.

    That’s all you really need to know.

      • lol, only Les could look at the sharply rising arrears from WBC’s report yesterday and still think that the job losses are exclusive to renters.

        It’s Mabo. It’s justice. It’s law. It’s the vibe and ah, no that’s it. It’s the vibe. I rest my case.

        • Also, who does he thinks owns those rentals that the recently unemployed renters cant afford?

          That’s right, specufestors with mega mortgages of their very own.

    • Generally the people that lost jobs due to covid were renters and had no chance of buying anyway.

      The government is paying their landlords thru JS and JK.

      • Yep structurly the unemployment is mainly in the youth of Oz who weren’t in the market to buy.
        How ever are there enough home owners on jobkeeper that without it or less amount of it they can’t pay mortgage and have to sell and that sale will drag the market down dramatically?

      • Arthur Schopenhauer

        It seems to be at the bottom and the top of the market in Melbourne. It has been relatively easy for a professional couple to borrow $1million plus over the last 5 years. It only takes one person to lose bonuses, or take a salary reduction to not make the collection of house, cars, credit card and IP payments.

        Keeping up with the Joneses.

        • ChristopherMEMBER

          I love living at the bottom end of the market with a top of the market salary. Feels good to be debt free and 3+ years living expenses already in the bank. Keeping up the Joneses is for patsys.

        • Half? I don’t think that’s the truth. CBA assessed it as 12% of deferred which are around 11% of the total outstanding value.

          Also, A2, remember that not all home owners have a mortgage. Check the percentage.

          • I didn’t say CBA. I said WBC and NAB, which have reported in the last few days.

            Whereas you said mortgage holders haven’t lost jobs! 😂

        • Very interesting article! Similar culling of middle level management also occurred in North America in the recession of the early 1990’s. I wonder whether this trend bypassed Australia, or whether (more likely) businesses did trim down in the 90’s but then became bloated again in the 2010’s with the rivers of gold flowing from high iron ore prices, fee-paying international students etc. (depending on the sector).

          • Yep my dad was middle management and laid off in the early-mid 90s. Luckily house paid off and only had to hang on a year or two before accessing super

      • Reus's largeMEMBER

        Bullsh1t, the loan deferrals and data coming from the banks says the opposite, there are 10000’s of mortgage holders that have lost their jobs, had their hours cut or the partners have lost their jobs.

      • Les, I know of plenty of Homeowners/ investors that have had their pay cut by 20/30 % due to covid. I’d say that might have some impact on financial decisions going forward. My 2c

      • Les, I don’t know what you do for a living but it doesn’t involve maths, economics or finance.

        Stick to what you know, buddy, because the Gubbermint ain’t saving this situation. It’s not in their power to do so.

    • With interest rates at 2% or lower, even a $1m interest only mortgage can be paid on unemployment benefits. It is still cheaper than renting. If a couple both lose their jobs, there is enough government money to be not be a forced seller.

        • are you the new DrX?
          $1m at 2% is $20,000 per year.
          unemployment benefits are 282.85 for a single unemployed person. that’s $14,708 per year.

          your thesis that $14k is enough to repay $20k and put food on the table?

          yeah, nah. give the garbage posts a rest mate.

          • There is no doubt a number of people (idiots) who will still make the decision to purchase with joblessness hanging over their heads. Someone on here posted an example from FB where the girl and her husband were on JK and spitting because the banks had knocked them back on an investment that was ‘paying for itself’. FFS! We need a decent lesson in this country and hopefully this is it. But don’t overlook the fact that a family with two kids in school is probably more likely to be drawing $35-40K in welfare and would gladly eat grass to be able to brag about their investment portfolio, such is the lunacy.

          • Last time I checked job seeker and job keeper were far more than 14k per annum. You are incredibly naive if you think there wont be huge pressure to keep those going if there is no quick recovery.

          • Arthur Schopenhauer

            It’s not just mortgage payments. There’s the cars, the school fees, the holiday loans and the credit cards. Have I forgotten anything? Boat, caravan or jet ski?

          • How about rates, utilities, maintenance, insurance, etc?

            As Kohler said a few weeks back, unemployed people don’t pay mortgages.

  8. The Banks are just trying to get as many mortgages off their books before there is the full rush for the doors.

  9. The smart money sold two years ago and have invested their equity in the MB Fund. I’m loving being a loser renter scumbag. Can’t wait to see specuvester faces when they realise they don’t matter to the government as much as the banks do. There’s nothing that can done other than packaging up the bad loans and selling them to the RBA.

    • AirtourerMEMBER

      Exactly Bungle – that has been our strategy and we’re biding our time in Melbourne.

        • AirtourerMEMBER

          Yes, that would be an awesome acquisition. The Victa is in for its’ annual – needs a new canopy and a strip and paint. Not sure where to go for the latter – any recommendations?

          • Heard good things about Aeropaint (YHSM) and Yarrawonga but no personal experience with them. Any recommendations from your LAME?

  10. Goldstandard1MEMBER

    This is actually massive because he connects to 100s of thousands of mainstream people via his books and his blueprint club.
    If he’s made the call to call the crash in the media, it’s a lock and will help the damn wall completely break.

    • Arthur Schopenhauer

      I heard that he’s also started a vege garden in his backyard. Maybe he’s really a shutin in disguise… 😀

    • It’s not massive. He’s offering rational advice. Money’s emotional and he’s talking about the most emotional of assets. You always hear the terms fight or flight, one that should be added in there is freeze. When overwhelmed another group of people do nothing and hope things will work out. No one will be selling their house on this call, they’ll be waiting until the locks are changed and wondering why ScoMo didn’t come around and sort it out for them.

  11. Scott Pape may call himself the barefoot investor but he certainly didn’t make his way in life thru investment.

    His current income comes from the government thru his subsidised debt helpline. Also from a few MSM appearances here and there.

    But the brand name is catchy and his name is Scotty so he’s got that going for him. Strayans should listen to him i guess.

    • If you follow Scott’s broad principles, you cannot go far wrong.
      He has the ability to present sensible financial advice in a readable way.
      We have encouraged our kids and nieces/nephews to read his books, most have followed some of his advice.
      I would like to think it is genetic 🙂

    • Errr how did you miss the bit about selling a gazillion books? And he doesn’t claim you should make your money through investment. He’s all about advising normal people who are earning a wage to use it wisely.

      You are getting tiresome mate.

        • Usually yeah.

          But get this.

          He’s sold 2 million books.

          TWO MILLION. Just in Australia.

          That’s why if his word on this gets out, it is huge.

  12. Whatever.

    Here in my little upmarket semi-rural northern NSW town, houses are selling like hotcakes, no sooner listed than “Under Offer”. Prices up 10% on a year ago.

    No sign of a downturn or crash here

      • boomengineeringMEMBER

        Correct, taking to a local at Old Bar, said a RE friend sold 20 properties last month.
        I was talking to a RE agent a week ago that said 2 1/2 people a day were going to Port Macquarie. Didn’t ask how many left or died though.

        • UpperWestsideMEMBER

          Old Bar – Nice!
          Used to caravan there as a kid,
          well “caravan” is a bit of an overstatement.
          I really mean popup tent on trailer.

    • Don’t worry, chief. The downturn will find you eventually. When there’s no more urban cashed-up types to buy rural properties they’ll tank like every other. It’s a pyramid scheme, remember?

  13. ‘the first caller: thats a big call isnt it.. but what do we do then?? Rent??’
    Ummm, yeah either that or scope out the best bus shelter in your area before the next guy does.
    What I don’t get is that, depending on your mortgage payments, renting a similar spec’d property will cost you the same as your mortgage anyway, so if you can’t pay your mortgage then what chance do you have of getting and keeping a rental property?
    Basically, I guess the elephant in the room is that this expected ‘equity’ will then be spent on the rent until you can get another job. At that point you are either working again, with little hope of buying another house as you’ve spent all the equity, or not and then will be out on the street or at your parents. Not alot of ‘hope’ in either of the scenarios…..eek!

    • Totes BeWokeMEMBER

      One slogan, “rent is dead money”, has hypnotised a nation.

      The sums don’t lie, but I know reasonably sensible people who still say it.

    • Some people could actually rent a smaller, cheaper place during difficult times. I know it is an out-there suggestion, but surely a pandemic and recession is grounds to consider belt-tightening.

  14. Totes BeWokeMEMBER

    During the GFC Rudd opened EXISTING housing to foreign buyers (lol….Australian youth still vote Labor).

    Australian property will not fall materially without LNP having first opened teh gates, selling new and EXISTING to foreigners, selling future access to Australia for elderly migrants, selling ports, infrastructure, farmland, rights to fishing, farming, exploration etc etc etc etc.

    Until Labor are gone, and until LNP run out of all the options above (and more), house prices are going nowhere.

    Your country has been sold out ever since the elites took over the Labor party.

      • Totes BeWokeMEMBER

        Calling me a troll is not a counter argument.

        You literally have nothing to defend the treasonous Labor party.

      • Totes BeWokeMEMBER

        Answer this.

        Why would an LNP troll set out to destroy the Labor party that makes it all possible?

        None of this can happen without Labor. That’s why they have to go to save Australia.

        • Why would an LNP troll set out to destroy the Labor party that makes it all possible?

          Because in a two-party system, when you eliminate one party, only one party and a powerless, divided rabble remain.

        • Totes BeWokeMEMBER

          Yep.

          The only difference I see is LNP are the elite and go getter party.

          Labor are the elite and go getter party and also draws in the unfortunate youth, and dumb vote, tricked with token social and environmental policy.

        • You, sir, are correct!

          But there still exists an impressionable majority, with limited intellect, that believe otherwise.

    • I’ve mentioned it multiple times perviously, as soon as some form of migration during COVID can be sold to the electorate, our boarders will be as effective as flyscreens on a submarine. And lets not discount the prospect of a Hong Kong humanitarian visa, $1m in the bank? willing to buy 2 off the plan appartments? then come on down, permanent residency for you!

      Once COVID is no longer an impediment, any and every policy pitched by every political leech and rent seeker in the country will be fair game. If you thought ‘extraordinary times’ and ‘jobs and growth’ already had their time in the slogan sun, strap in baby!

      I’m not suggesting that housing can’t crash, but I think many are discounting that the powers that be will do ANYTHING in order to try and prevent it, better still, allow it to fall just 10-15%, that should be sufficient to rally all the voter support you need to raid the treasury (and the treasury of the next 3 generations). Only a brave and/or naive man bets against that. my 2c

  15. Sunlord BCNMEMBER

    Now we are about to see the stampede stage and any experienced trader who has been in a crash knows what happens ……..NO BUYERS…

    Selling into fresh air…….

    The is the GREAT GAP down until we find a new price equilibrium, I’d guess into early next year it’ll be 20 to 50% maybe much more for some markets some areas

    This isn’t going to be gradual

    As prices crash and banks start to crack due to risk, credit spreads are going to blow out

    Home loan interest rates are going to start rising out of cycle Q 4 this year into Q1 next year

    • Totes BeWokeMEMBER

      I’ve been a housing bear for many decades and was not smart enough during the GFC to realise or comprehend housing is everything to greedy self serving politicians state, federal, LNP, Labor, Greens.

      They haven’t even started propping it up imo.

      We’ve just watched them announce 300 students to SA 2 days ago, and now it’s off the front pages, Birmingham still has a job and young Australians are still here defending Labor.

      Young Australians will be shipped out to make room before house prices fall, and frankly they deserve it.

    • They’ll find the buyers eventually…….but it might be 70% below the current ‘heart price’ as the agents call it.

    • Rba to step in and ensure cost of funds stay low for banks. It may blow up but that is far into the future, not in the short to medium. Govt willingness to do whatever it takes is significant. If prices go down 50% it wont be good for anyone including the commenters on MB who are excited about the pain of others.

        • Government debt is still very low by other developed economy standards….plenty of room there

          • Sunlord BCNMEMBER

            Our government debt fed and state is growing exponentially it was low, this is way to big globally for the RBA to do anything this time, they’ll try but it won’t work
            You wait, 6 months, you’ll see out of cycle rate increases as banks need to increase their margin and will also probably need to increase deposits rates to attract money
            If you’ve read my comments I don’t want to see anyone get into trouble
            Unfortunately there is nothing that will stop this crisis

            It’s going to be a bitter pill

        • Maybe. At least I am not a 40 year who has been priced out of property and hoping everything falls apart so I can finally buy.

          • No, I’m a 40yr old who owns a 6 bed house on a large block with pool, and tennis court. You?

          • I enjoy being a 60 something who is happy to welcome a property crash so affordability returns. It will hurt those last on board with little equity most but they took the risk. Affordability is coming back and well before overseas travel returns .

    • I think it was Swampy that said the other day he’d been offered around 4.7x debt to income by ANZ.

      Given banks were lending at 10x a few years back and had cut it in late 2019 to 7-8x, the Les’s of this world have to be thick not to see prices have nowhere to go other than seriously south. Nowhere enough loose credit to fund purchases at sellers’ 🤞 price demands…

        • Thanks Swampy.
          Hopefully, that’ll shut up the idiots who say credit isn’t a problem and prices can’t fall.
          Same for the muppets who can’t do the math and keep saying the LVR going from 90% to 80% means their borrowing capacity is only reduced by 10%. Idiots…the house you can afford is reduced by 50%!
          Example for the dimwitted:
          $100k deposit lets you borrow:
          @ 90% LVR = $900k
          @ 80% LVR = $400k
          At least a dozen moronic baby boomer speculators at my golf club have said to me “that can’t be right!”
          D’oh!!!!
          It always amazes me how these folk think they’re so smart because they’ve amassed a property portfolio off the back of dumb luck and no brains.

          • Just got out the pencil and paper and after much swearing and solving for L, worked out that for an LVR of 70% you can borrow approx 233 with a deposit of 100K, giving the house a value of approx $333k

            Which to me seems reasonable.

          • kierans777MEMBER

            I’m more interested in how much the tax payer is going to be on the hook for having covered the cost of LMI so that people with no deposit, and little sense can buy into an overinflated market. FH* schemes since Rudd have been brain dead stupid and the current lot are complete numpties. Wouldn’t trust Sukkar with anything related to housing as all he does is cry “supply, supply, supply”.

          • Genworth has had the cash stripped out of it, bought back its own shares and is levered to the Challenger Space Shuttle. Going to end oh so well.

          • Gross.

            Discounted lumpy second income that equates to > the full P&I repayment across the year. We shaded that to 0 to be conservative. In reality it’s more like 4.

            I do recall in late 2008 we were being offered something like 10x LTI for Bayside Mel purchase.

      • mdsee,
        I have seen evidence that max LTI you can achieve with the Big4 is around 4.7-4.8. Ubank is much more brutal with 4.5-4.6.
        There are always exceptions, and one of them is that if the household income is greater than 350K you could get max LTI of 5.3. If above 500K then you could get max LTI 6. Greater than 6 is currently not possible barring non-bank lenders. However with non-bank lenders you can touch 6, may be 6.2 but anything over 6.5 may not be possible at all in the current environment.

        • Thanks Virus. So prices can only fall and fall a long way – unless mass foreign purchases occur

          • To be honest, Aus house prices feels like $TSLA share price atleast for now. The saving grace for $TSLA could be that it has a greatest, best and monopoly working product in that space. Cannot say the same thing about Aus houses, but I dont know.

            ReFi should be getting very tricky for many (may be ALL) investors but I am still not seeing that many forced sales. May be they are already happening but it is not that obvious. Spring should tell.

          • TSLA?!
            Most of their “sales” are regulatory credits and offshore markets sales that are effectively channel stuffing. Giant effing Ponzi scheme and yes, they have a lead – for now – but no moat they can defend over time as the big boys wind up their own battery-powered toy lines.

            Tesla’s PE Ratio a mere 849. A mere 14 times sales. A mere infinity on Price to Net income (minus $862M). I don’t care how fast their market grows, that’s plain nuts. Musk is a genius but a genius fraudster too. A complex motherfu<ker for sure, but he can't be trusted.
            Who's the bigger and more narcissistic control freak – Elon, The Donald, or Zuckerberg?
            I'd expect his next "business" will be a global crypto he'll pump and dump like Solar City

            Forced housing sales always take a while to percolate, but sure as hell won't take 18 months

          • At that is the black swan (well, shouldn’t be by strict definition). While we all poke fun at our market here, we forget the relativities. Pre COVID, Australia was still a very attractive destination for cashed up foreigners. Post COVID, hard to see how it has gone backwards in global standings, if anything, it’s attractiveness has increased?

            My side bet is that coming out of this, a whole host of new visas will be made available. Easily pitched excuses galore “yes we have granted 500K new permanent residencies, but thats really only catching up for what we lost in the last 2 years” “Oh, the kong kong visas are in addition to that, because it’s an anti china, humanitarian program.”

            It will be some combinations of $ in the bank to qualify, or hell, just get straight the point “You must by an off the plan development to qualify” really cashed up? well buy an off the plan dog box from harry and we will waive all the other FIRB rules for you as well, so go ahead and buy that PPR in the leafy Aussie suburb you so desire.

            There is no denying that a tsunami of cashed up migrants of that magnitude is more than capable of exerting influence over our local market. If the commentary on MB for the last 5 years has been correct, then a foreign wave that large would be highly influential.

  16. I present reality here and I get emotional, angry, child-like and a.bus.ive responses.

    As I’ve previously said, I would love nothing more for Aussie RE to crash and all the associated s.c.um to burn.

    The sooner commenters understand reality, the better.

    Meanwhile, hundreds of millions are laundered weekly primarily in the Sydney and Melbourne RE market and international students are crammed into places in cities paying individual rates in cash. But that goes unreported and is completely ignored.

    • No one wants immigration other than the vested interests and their useful woke idiots at SBS and the ABC
      Credit spigot has been screwed way down.
      Lots of permanent job losses and SME closures coming.

      Just how much money can the government throw at this?

      • I’ll second that Swampy.
        I appreciate Les’ (and other posters) views even if they don’t accord with my own.

    • Agree. Many on MB have a thesis of disaster as it suits their own theoretical view of markets and economics, and potential suits their own circumstances. What we should try to factor in is that traditional theories simply dont apply anymore. Should housing crash to the extent predicted by many here, then everybody is stuffed, even the smug commenters here who think they are smarter than everyone else. Dont get me wrong, we have destroyed housing affordability in Syd and Mel and made life difficult for future generations, however dont right off other alternatives just because it doesn’t fit your world view. The echo chamber is intellectually dangerous.

      • working class hamMEMBER

        I don’t think your insults are warranted. Most people have an open mind and are willing to accept new info as it arrives.
        Financial disaster is only ever a few bad choices away, worrying about the carnage if this is the big one, is a little late.

    • Hey Les – yes your counter views are good to see and thought provoking but let’s not pretend you don’t get abusive in return so bit of pot/kettle if you’re happy to give but not take.
      BTW – looks like you’re seeing a bit of value given the amount of articles you comment on…….
      Cheers,

  17. Bit contradictory isn’t it? Sell now before its too late but also a great time to buy because rates are low?

    • boomengineeringMEMBER

      Not that contradictory. Sell now if foresee you may be struggling now or in future. Buy now if you are cashed up or don’t need to borrow much.
      imo why not just wait ( unless you find a once in a life time residence and want to bring up your family with permanent roof over head)

      • Totes BeWokeMEMBER

        Hey Boom. I’m really really not sure what I said in the email to you that offended you so much you can’t reply, and said on Sunday’s MB…..

        “The missus just said but everywhere is full of drug addicts, so why denigrate that particular area.
        To infer that I actually thought you may have known a lot about the area, hence the attempt to contact”….

        when I hadn’t mentioned drugs….

        I thought I spent quite a bit of time giving you really valuable information from someone who actually knows the area very well and OWNS TWO properties there.

        WTF? Help me understand.

        • boomengineeringMEMBER

          Reply probably got lost in malaise . Will look it up but do remember replying to a post with no counter reply.
          Btw I’m un offendable , so say what you like, free speech is valuable and I have no diplomacy so don’t expect it from others.

  18. I listened to the interview. Here I see a very odd headline and very strange commentary. So it was the NAB CEO who said that if – IF – it looks like you’re going to be in trouble, act now and sell on your terms. If it does go bad, you don’t want to be stuck in negative territory. Scott agreed. Why wouldn’t he? Also said that the best time to buy is when you can afford it, have a deposit and find a house that you love. And that now is a great time to buy if you fit into that category. Made no predictions about the property market. No scaremongering. Different advice for people in different situations. Careful and measured all the way. Don’t understand this thread.

    • You should rest easy, its probably nothing. Do not worry. Carry on with whatever you are doing.

    • Also said that the best time to buy is when you can afford it, have a deposit and find a house that you love. And that now is a great time to buy if you fit into that category.

      This.

      • I fit into that category, however, I am not buying because I dont want to work for the bank for the next 20 years and retire with stuff all.
        The BFI comments are worthless rubbish. I dont care how you look at the current situation, now is definitely not a “great time to buy”. Anyone who is not holding off to see how the next 6 – 12 months pans out, regardless of their situation (even if they can pay cash for a house) should be certified as “nuts”

  19. So are we all piling onto Scott because he said “SELL!”, which he didn’t, or because he said “BUY!” which he didn’t?