Thread: Good bye Johny!!!!!!!!!!!

Originally Posted by stooge

Hmm, and I suppose it was Labour all these years that have caused HUGE price increases in real estate, grocery bills that are unbearable to most working class families and job security you can might as well call 'Casual labour'. Its sooo easy to forget the past aint it.

Now, Land Rovers, arent they a great machine

Yep,
We may not have 17% interest rates but who could afford to go out and buy a reasonable house now without at least $300k deposit and still live.
Steak up to $30 a kilo when farmers get a fraction of this. The list could go on and on.
Our limit to buy a house is about $300-350k and at the moment you will only get a real piece of crap for that. Liberal government looking after developers and investors again.

Originally Posted by 4bee

...........................& we haven't even mentioned the Republic yet.

.....which will not get up,

The govt, no matter who they are - liberal or labor, does not cause increases in house prices. It's simple demand and supply, fed by a buoyant economy.

The govt doesn't set policy or legislation to make prices increase. (Although state govt's capitalise on the situation with immoral stamp duty charges).

If the govt of the day started legislating caps on house prices (which mind you would be damn near impossible due to the diversity of types and markets), then we really would be heading down the path of a totalitarian regime.

Yeah, but Landcorp have a lot to do with amount of land, forcing up prices and passing on infrasructure costs to developers, so in a round about way have a large effect on land pricing.

Originally Posted by Jamo

The govt, no matter who they are - liberal or labor, does not cause increases in house prices. It's simple demand and supply, fed by a buoyant economy.

The govt doesn't set policy or legislation to make prices increase. (Although state govt's capitalise on the situation with immoral stamp duty charges).

If the govt of the day started legislating caps on house prices (which mind you would be damn near impossible due to the diversity of types and markets), then we really would be heading down the path of a totalitarian regime.

Spot on, give that man a cigar

Perhaps he meant the GST charges?


Who ever believes that Sales Tax came off & then the GST was applied is living in cloud cuckoo land.

Yes, it was supposed to, but in my experience it didn't, as the suppliers always seemed to be able to justify the increase with their normal bollox.

It might help if a few more controls were imposed on mortgage lenders. No more 105% mortgages or re-draw facilities, for example. If it becomes harder to borrow ridiculous amounts of money, it could help to cool the property market. For sure, demand and supply has an effect, but in addition it doesn't help when people are foolish enough or have little choice but to buy properties that are quite simply overpriced, AND they can get the borrowing. Those prices quickly become the new market standard and the upward spiral continues. Estate agents will be happy to support and exacerbate the situation, because it means bigger commissions for them. Inflation rises, and to control it interests rates are raised. Those people who have borrowing they should never have taken in the first place because they can't actually afford it begin bleating.

Such a situation is nothing to do with the government. It's the free market at work. The credit controls I suggest go against the free market philosophy, but the crisis in the property market needs to be firmly addressed.

Those people who have borrowing they should never have taken in the first place because they can't actually afford it begin bleating.

I can remember that before you bought anything on HP or from the Banks, you had to justify & prove you could repay the loan, Stove, Fridge etc all had to be approved.

These days it seems, the Lending Institutions just want you to take the money. How you pay for it is not their problem.