Comments by "Holger P." (@holger_p) on "Bloomberg Originals" channel.

As soon as you are a home owner, you are happy price is raising. So why you blame politics. Price control is not part of capitalism.
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This has absolutly nothing to do, why Australians wanting a home, not just build one. Do they just sit and wait for somebody else building houses ? No it's cost of building, price of timber, sand, concrete, steel that raised. And that's worldwide. Immigration has a little share on the problem, but some immigration is needed, due to the low birth rate. A shrinking economy is a collapsing econony.
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Every house, 100%, is affordable. A house nobody can afford is empty (and price will drop). That's a definition. A method to lower the price, is to not pay high prices, going in strike kind of. As long as people are paying with their last cent, they demonstrate they can afford it.
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Why do you think, it's not worldwide ? Madrid, Paris, Berlin, Moscow, there is absolutly no difference.
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@hocuspocus9713 this can become a problem on small level. But if they want to refinance by renting out to local people, prices are bound to local income again.
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Singapore has the lowest birth rate worldwide. 1,1 childs per women, almost a natural one-child policy. There is nothing "smart" to copy this. In asian countries, most often it's no difference, if 4, 5 or 6 people live in one appartment. Grandparents, Parents and Kids don't need 3 Appartments, that's more the social secret.
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No, it's 8 billion people living on the earth, who create high demand. And it's people not going to marry, but wanting single appartments. And finally, its partially well paid jobs, and people able to pay such high rents, to raise the prices. If nobody could pay it, prices would not raise, very simple relation.
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Too late to warn, this happens worldwide.
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@hocuspocus9713 You change from renters to mortgage payers, those are mutually exclusive. Your "long term desaster" is just a forecast. Not reality. People are not just buying appartments, to own them as investments, without renting it out, without living their themselves. It exists, but it's a small small phenomenon. I'm just a little optimistic, raise will stop, if people cannot pay any more. On the home-owner side, this will be fast. There, people say "No, I cannot efford it, I don't pay this price" much easier, and this is excactly what lowers the prices. There is no buyer any more. It's not so easy on the renter-market, cause people have to live somewhere, they don't say "I cannot pay any more" so easly, they squeeze the last cent out of their own budget and pay the prices asked for. Renters cannot say "I don't rent", they need to live somewhere. That's something markets are not made for. And yes. The problem is the same worldwide, nothing special to Australia at all. Combination of urbanisation and migration increase the problem everywhere, by raising demand. People are mobile, real estates are not.
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@somethingelse9535 I know. But today the situation is, people can afford it, they pay, but they complain. Catastrophe isn't there. It's more a fear it's getting worse. And people became inpatient. The raise of interest rate is very recent, it needs maybe 18 months to adapt, they aren't really over yet. Sellers wait long for buyers before they lower the price, that's slowing down the market. If majority of buyers have large equities, this means >50% of buyers still have enough money. The poorest of the rich, might be the median income. There is nothing like people hording houses and owning 10 of them without using them. This exists a little on the condominium market, there you have investment corporations, but not so much on single family homes. Cause it's unusual to rent them out.
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@jgill551 That's correct, but the alternative is just moving away from the city, or going from big house to small house. It's simply gentrification and happens worldwide. As more attractive the city, as larger this effect, cause it attracts the international industries. London, UK has this effect also very strong. But the habits of owning vs. renting are worldwide very differently. Maybe Australia had less apparments for rent in general, cause homes were attractive for a long time.
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@AriaTheDisciple if you want to buy you dislike high prices, if you own already you are happy about high prices. A simple point. The economic condition doesn't really change. You are just a little inflation safe. Which is as more important as higher the Inflation.
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@AriaTheDisciple of course. But if one house was 20% more expensive than another house, this relation stays despite inflation. It's fixed if market goes up. Market is always in equilibrium. Having unfullfillable wishes, means demand is zero. You don't want to buy. If they don't find buyers, prices will drop. But thats a slow process, cause sellers often are patient waiting for buyers.
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@chickenbroski99 It's more money theory, but you need a way to issue fresh printed money, other than governement spending. Interest rates are just a way to control money supply. The capitalism, the additional interest by competition between private banks, comes on top. Actually your 0% interest by the central bank, creates your "pure capitalism" by adding nothing else to the price.
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This will make building new homes almost impossible and increase the crisis. Everybody who already owns something, is prohibited to build another house to rent it out. Property is a core element of capitalism.
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Sure, everyone could win in the lottery, just not all at the same time. The myth of working hard is nonsense. If you transport parcels with a truck, instead of a bicycle, you make more money- but this is not working harder, this is beeing efficient.
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That's the only and best way to lower rents. Highrise buildings have the cheapest appartments, cause the cost of ground is divided in so many shares.
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But since you underline, you make more than 2500, and are able to pay it, you show how much the income level has a role in this game. This is hard to compare among countries. Actually we had to compute price in relation to average income, to remove international difference, including currency differences. Due to different habits, I'm not even sure your numbers are weekly, monthly or yearly. I guess monthly.
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@chrisaycock5965 I was going for, average income in Australia is 90K-AUD$, average in USA is 30K-USD$. Across countries it's hard to compare, whether 2500 is moderate or expensive. If you hadn't said you are from california, I hadn't even known the currency. Housing shortage is not really at the point of going into homelessness in quantities. It's only, "vacancy rate is down to 0.5-1%": This means, if you search a home, you cannot pick one from 10, you have to take the first best available. Right now it's more a problem of missing comfort. Everybody is living somewhere and finds something. Just the search became quiet difficult. In US, the situation is much more stressed I would say. But people just live in their cars to solve the problem. Or you have camp-sites and trailer parks. US is more used to this situation since long time. This huge group of people below middle class, is kind of new to other countries.
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It's not number of people raising, it's number of households. Single life became more popular. You just need to organize marriages to lower the demand on appartments. And urbanization of course. The new home-office ideas, since the pandemic could make people move in smaller towns, but it does not show any effect yet.
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