Just Arrived in Australia

[Aussie Prick]

http://www.yourmortgage.com.au/calculators/affordability/[/url]

Banks have returned to conservative lending. But competition is really heating up, banks are eating into mortgage brokers business and offering better deals. If the loan amount is >$250,000, you can negotiate the mortgage rates, just ask.

*** Apologies if I found pessimistic. It is the Mondays blue ***

Ah the good old capitalist boom bust cycle. Add to that the fiat currency argument. Add to that cheap credit/money. We see Europe, US in one camp. Too much debt. Looking at Government Debt AND the critical household debt, the US and Europe are tapped out. We are expecting slow growth there for many years to come as shades of Japan's zombie bank crisis 20 years ago are appearing in Europe. European Banking System is basically insolvent. Banks worldwide hold Greek, Italian, Spanish debt. In USA Consumers are paying down their household debt from 2007's 300% of GDP to 260% today. The Americans are saving again. A few more years of deflation to go, the rich will take a big hit. Meantime the developing world is catching up to the developed world. Don't you just love globalization? And to those who cried when China was admitted to the WTO....

A standout among this sorry state of affairs is, as you stated, Australia. With a Government Debt of 25% to GDP, who can boast such fiscal health in the Western World? Canada is at 72%, the USA is worrying at 90%, as is Germany, but nowhere near as bad as Japan's 220% or Greece's 160%. In Singapore we have more debt at 98%. The other worrying debt - household - is at records in all countries including Australia, but at least the Australian government is far from broke, and you have balanced a budget in recent years. In Singapore we are "rich" because of our budget surplus! We have alot of public and private debt.

The developing world is catching up to the slow growing developed.The entire China growth model is considered the way to go, producer based to service/consumer based, but with consumerism accounting for 30% of GDP the switch to consumerism in the next 5 year plan means letting the Yuan appreciate, wiping out is exporters, spiking unemployment and increasing the riots there. How will they transition? Inflation is high there. We see it much higher than the government reported 6.1%. We see Government infrastructure investment there @50% of GDP unsustainable. We wonder what this means for commodities should the Chinese system unravel and sink us all, despite the Chinese stating they will build 20 cities a year. There are too many economic, political, social and environmental issues that cant be ignored - but if not for China - where else can we put our money today? We are kept awake at night when the Chinese tell us debt to GDP is 20% when Dragonomics tells us its closer to 80%! So how can the Chinese save the world when they seem to have their own problems? Can we trust the Chinese stats/figures? That's the question today For the record - I dont listen too much to what Marc Faber and Roubini have to say, but I do respect Jim Chanos - he's usually right and that wily Andy Xie is spot on.

I wonder what you think of all this living there in the middle of the mining centre there in Perth? What happens when the resource boom ends?

$130,000 a year to live in Perth is alot in my view - $170,000 SGD!!! What's the median income there? Oh well at least in Perth you can get out and see places. I have fond memories of the Margaret River, so you are lucky there

 

[neddy]

Because migrants want a Western Lifestyle. Migrants still consider the West to provide the best education for our children and the highest quality of life going forward.

Typical boom-bust cycle? The system is broken. Because no one wants to take the bitter medicine. Not just the West, the East as well. China is still sticking like a leech to America.

Europe has a Sovereign debt crisis. They can never pay it back, too many people collecting pensions and costs are too high. Bondholders worldwide likely to be bailed out by the next generation of young taxpayers, despite some haircuts on debt there

USA has a mortgage debt crisis, and insurance based health care system. 15% dont have insurance but to those that do, they have access to quality health care at a lower expense to the worker, high expense to the company. Problem is when you stop working you lose the benefit and if you pay out of pocket the cost there is very high without insurance.

Canada and Australia are in reasonably good shape though thanks to commodities. I wonder if more Singaporeans would consider migration to other nations, but for now it seems the West is still the most popular.

1. Europe`s problem is also demographic. Do they really need so much money supply for an aging population? Who is going to pay when more Europeans are retiring? Spain's excess housing stock can supply the whole EU for years to come. Germany has too many factories producing goods for the southern cousins.

2. USA health insurance has a lifetime quota per person until the Medicare kicks in.

3. Australia and Canada governments are beginning to resemble Japan - Unstable. At least OZ govt will take over the private (bank) debts should things turn bad, and we will be the same as any troubled Anglo=Saxon countries. But luckily the energy resources sector will remain strong for the next 30-40 years. Also, OZ do not have the serious aging population problem faced by Japan, Europe & Singapore.

4. Singapore, with its special type of growth policy using more immigration, will hit its physical limit. But still, Singapore will do well because it is like a parasite feeding on its larger neighbours. Media Hub for OZ (ABC News 24 hrs), Energy Middleman Hub for OZ Resources, Air Transport Hub for OZ (Qantas). But there must be a lot of discontented citizens - based on conversations with family & friends there, because the benefits are not trickling down.

5. $130,000 is a lot of money by Singapore standard, but this is Australia. Everything is relative, eg comparing Singapore to Vietnam.

On hindsight, migrants have a much easier time after the dotcom madness and after 9-11, the world went mad on credit. That lasted until 2007.
World leaders are not sorting out the crisis, we will drag on in this zombie state for the next decade.

Do migrants want to go to China or India? I doubt so. Even with the Asian century, the human development factor in the West are still much higher for the foreseeable future.

 

[Sir_Fcuk]

5. $130,000 is a lot of money by Singapore standard, but this is Australia. Everything is relative, eg comparing Singapore to Vietnam.

.

Depends also if you are single or have 3 kids waiting to go to private school

 

[Don Muthuswamy]

, but for now it seems the West is still the most popular.

Wel, used 2 b at lest but wif US & Europe in bad shap, its now a betr bet if ur in Asian cuntries like china or HK.

 

[Fook Seng]

1. Europe`s problem is also demographic. Do they really need so much money supply for an aging population? Who is going to pay when more Europeans are retiring? Spain's excess housing stock can supply the whole EU for years to come. Germany has too many factories producing goods for the southern cousins.

2. USA health insurance has a lifetime quota per person until the Medicare kicks in.

3. Australia and Canada governments are beginning to resemble Japan - Unstable. At least OZ govt will take over the private (bank) debts should things turn bad, and we will be the same as any troubled Anglo=Saxon countries. But luckily the energy resources sector will remain strong for the next 30-40 years. Also, OZ do not have the serious aging population problem faced by Japan, Europe & Singapore.

4. Singapore, with its special type of growth policy using more immigration, will hit its physical limit. But still, Singapore will do well because it is like a parasite feeding on its larger neighbours. Media Hub for OZ (ABC News 24 hrs), Energy Middleman Hub for OZ Resources, Air Transport Hub for OZ (Qantas). But there must be a lot of discontented citizens - based on conversations with family & friends there, because the benefits are not trickling down.

5. $130,000 is a lot of money by Singapore standard, but this is Australia. Everything is relative, eg comparing Singapore to Vietnam.

On hindsight, migrants have a much easier time after the dotcom madness and after 9-11, the world went mad on credit. That lasted until 2007.
World leaders are not sorting out the crisis, we will drag on in this zombie state for the next decade.

Do migrants want to go to China or India? I doubt so. Even with the Asian century, the human development factor in the West are still much higher for the foreseeable future.

Seems to me a situation spiralling out of control. You need a $100k to $130k pa to survive because of the taxes and the rising cost of property (sounds familiar?). This inspire of the budget gain from taxes on commodities. If the world economy is going into recession, worst still - Great Depression 2, further stress will be placed on commodities revenues. Will taxes be further raised?

 

[xenomorph]

sydney qantas baggage handlers earn $90k before shift allowance. australia very good at numbers.

 

[neddy]

Late Numero Palmist Peter Ong used to live in this Perth property, now for sale.

24 Jubaea Court, Canning Vale, WA 6155
From $549,000

A True Family Home with Space & Quality **Open By Appointment**
SPACE & QUALITY are two of the main features of this ideal family home. In Livingston Estate, you will love the convenience and the privacy of this quiet cul-de-sac location.

An inviting home, set high on the street, boasts three living areas, true double sized bedrooms, open plan living areas and high ceilings throughout. With separated wings for parents and kids, space will not be an issue. Features galore! To save you money and time this home is priced below replacement cost. An inspection is guaranteed to leave you impressed

Some of the features include:

• Ducted reverse cycle Fujitsu air conditioning
• Polished jarrah floor boards throughout the home
• High ceilings throughout the home
• High windows and doors
• Large kitchen with SMEG cooking appliances + separate wok burner
• Sunken formal lounge
• Separate study
• Semi en-suite to one of the minor bed rooms
• Minutes from the Livingston Shopping Centre
• Landscaped rear gardens complement framed gable patio
• Don Russell built home
• Three Large bedrooms (one with a semi ensuite)
• Large master bedroom with split system air conditioner
• Remote controlled double lockup garage

Land area of 600sqm,
Total house area of 281sqm
http://www.realestate.com.au/property-house-wa-canning+vale-108001436

 

[ZorrorroZ]

Nice! And the price seems so affordable compared to SG home prices...
what is "semi ensuite"?

Semi en-suite to one of the minor bed rooms

 

[chupacabra]

Hey Neddy, what's the best bank loans to buy a house overseas in OZ. Need to get a house for my mom as I will be getting rid of my pigeonhole when i get PR.

Will probably get an apartment in JB. Old people abit stubborn and reluctant to migrate la. Also I'm not good at banks stuff and shit.

Thanks mate.

 

[neddy]

Nice! And the price seems so affordable compared to SG home prices...
what is "semi ensuite"?

Usually refer to as "secondary access" (Eg Master Bedroom bathroom accessible to another bedroom)

But I love the Jarrah flooring, it is a real thing, not some hollow-sounding engineered floor.

The location is not far from the Singapore cafes (Bamboo and Taurus)

Hey Neddy, what's the best bank loans to buy a house overseas in OZ. Need to get a house for my mom as I will be getting rid of my pigeonhole when i get PR.

Will probably get an apartment in JB. Old people abit stubborn and reluctant to migrate la. Also I'm not good at banks stuff and shit.

Thanks mate.

If you are looking for Aussie banks,
Try http://www.infochoice.com.au/