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when a foreigner owns 10 properties in a country that many of the native population cant afford a home to live in, you start to realize how badly the property market has been managed by the government.
Yes, though the Kamala Harris style approach would be more destructive. Socialism kills the parts of the economy that is driven by the desire to achieve more, like with an inventive business venture where hard work and dedication leads to a major success, vs the world where anyone that maoes no effort gets everything the other person does and there is no incentive to put in extra effort and kills productivuty. Then this Fantasy Equal for all system ends up sharing the result of a lower output between all parities. A very sad downward spiral.
🥃 Imagine your favourite whisky, but the distillery starts “watering it down”to make more bottles without using more whisky. You dont feel anything even after 10 glasses, except frequent urination. The only solution is to buy more bottles. That’s currency debasement and inflation! 💸
Australia is one of the best countries in the world, we have great social conditions, we live relatively peacefully, heaps of opportunities, lots of foods, clean air, great medical system, great education system, low unemployment, so people will always want to move here. You can't always look at averages because when you first start working you can't afford anything you are earning the least you will ever earn and you saving rate will be at its lowest in your life. In your earlier years you will tend to spend nearly all your money living. Living is often forgotten about in these conversations. A lot of the young of today are prioritising travel, technology, fashion, status, image much higher than previous generations. Previously people would aim to buy a house first and then have a small holiday to Lakes Entrances or Gold Coast, not do Europe every year and spend $500 at the hairdressers getting a colour put in. Property will always get more expensive as wages go up, population increases and in the next 25 years it will escalate as all the baby boomers die and their wealth passes down. Crazy times ahead, as they will pay off their own home with that money, if they have debt, then invest the rest. Some will buy property and take out more debt which will amplify the demand for property as they might purchase two or three properties with the money and finance from the bank. Good luck everyone. It is possible, Stay focused, save 20% of your wage, if you are still at the Hotel of Mum and Dad save 50%.
@@younghee7411 You can make it life without your parents wealth or non wealth. In fact, you should never count it. The journey of going through the struggle and achievement is fantastic. No easy way, just need to grind away and you will ge there.
I was watching a recent Birchy vid (Nathan Birch), and he talked about 5 items on the checklist, that a property must meet. One interesting thing he mentioned (one of the items), was that the local population needed to have the capacity to double the prices. I.e. the locals would be currently buying at a 50% throttle setting. And that got me thinking, because I reckon in Brisbane, 90% of people couldn't afford the house they are living in now, if they had to start from scratch. The people that are buying now are buying at 100% throttle and then some! There's not much capacity for the locals to double the prices.
Good job PK. It's a topic that is not widely understood. Things aren't getting more expensive, the currency is becoming less valuable. When you normalise the currency against assets like land and gold, the value of the things has stayed about the same, it just takes more of the "money" to buy it. I really like your explanation on why it doesn't matter that many people can't afford to buy a home, and why prices will still go up. There will be a tipping point, and I don't know what that will look like. It would require my tinfoil hat to start making predictions about how that future will look. But I can't see a situation where having hard assets will be bad, so keep going everyone. Truth - I want to see more data!
China or Japan is the tipping point example but we are still long from the crash that happened there! We are heading to a Chinese bubble as fast we can though without a learning anything.
Thanks PK, the fact you can mention the corporate elite new world order shows that you are well aware of all aspects of the current economic situation. Have so much gratitude for the advice you give and no one else comes close to the information you are providing 🙏🏼
This is exactly what I thought after paying off my property in 2014 and I lost so many opportunities to put about $600k in the cash i collected and paid taxes on, thinking how can ppl afford a 1.5 mill mark on their homes, i was wrong.
We don't want corporations or foreigners pricing our Australians, buying homes and renting them back to Australians - we need to vote in a government that will limit foreign ownership and negative gearing to 1 property per person, force them to sell the rest and then this would solve our housing crisis!
Voting isn't the solution. Don't give away your input into politic by Voting. Democratic system works when constituent are active in all ways from council to government.
@@kparker1615 forced selling is unconstitutional and would never pass a referendum with over 50% of Australia now immigrants or second generation immigrants as per ABS
Ha ha ha what a joke , unemployment will rise to 9 or 10 % if you have net zero immigration .You can start paying to use a public hospital , pay for government schools and forget getting an aged pension . Net zero immigration in theory is great but Australia doesn't have anything except resources. Everything else is services related , it will all come crashing down .We have zero manufacturing and zero tech or IT .We need consumption to keep the economy going .
How about we return houses to being homes instead of investments. If someone is selling a house, first priority should go to a first homebuyer rather than an investor, as long as they’re offering the demanded price. Investors can buy if the property doesn’t get sold after 3 months on the market.
it doenst matter what they could do, the fact is they wont do it. Our savings become worth less each day and this was by design. Spend it or lose it to inflation they say.
@@AusPropertyMasteryWithPK what’s the local government rep going to do? This is a nationwide issue that’s only benefitting people who are wealthy and already in the market, these changes are never going to happen, because why would people in power change what’s benefitting them and the wealthy and high income earners. We wouldn’t need social housing if the private sector was moderated correctly, and hence homelessness in Australia.
@@AusPropertyMasteryWithPK you’re not wrong Pk, however I’m just a 23 year old who’s working to help pay off his parents mortgage cause they’re struggling and I have other responsibilities I have to deal with, and hence already have too much goin on in my life to do that. But the frustration is there as I’m concerned for myself and future generations.
Property prices are rising the same as they always have, it’s just that wages have not kept up The multinationals profits is where it’s going, not sure how bad it will get, there will be a major revolt if it continues Great to hear the truth for a change Tapping into hard assets is the only way to stay afloat The cost of a cauliflower is what I used to earn in 1 hour in 1980
Revolt don't really matter, remember they forced the consent of most Australian to inject themselves with poison/ untested substances. France has a lot less buying power, Macron took the tanks out on the streets, everyone swallowing the theft orchestrated by Macron and its corrupt group or treators.
I understand your premise about free money printing and governments running huge fiscal debts like there is no tomorrow especially the US. So house price appreciation should be a global phenomenon which in some sense is. But what justifies the premium on Australian property where mortgage to income ratio is one of the highest in the world. Would be a good segway to shed light on that. Also higher property prices just makes the cost of doing business prohibtive. The productivity of a nation reduces with high prices as there is less money to generate any output. There seems to be effort in Canada to reign in prices.there is so much talk in Australia media as well on house prices. Is it a hogwash or some realisation this monster needs to be controlled in Australia. This is like the Indian stock market bubble where ppl know there is a bubble but everyone continues to invest. Would be good if you address some of these topics
The government has to stop immigration to foreigners who are rich. Rich people don’t work and are pushing up house prices. Australia needs workers who work and create demand and build our country provided we can build accommodations to suit demand.
The rich foreigners are rich because they are the counter parties to our export trade. By bringing them into our country they are basically repatriating our currency.
I’m closing in on my retirement and I’d like to move from Collinsvale to a warmer climate, but the prices on homes are stupidly ridiculous and Mortgage prices has been skyrocketing on a roll(currently over 6%) do I just invest my spare cash into stock and wait for a housing crash or should I go ahead to buy a home anyways?
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
This is precisely why I like having a portfolio coach guide my day-to-day market decisions: with their extensive knowledge of going long and short at the same time, using risk for its asymmetrical upside and laying it off as a hedge against the inevitable downward turns, their skillset makes it nearly impossible for them to underperform. I've been utilizing a portfolio coach for more than two years, and I've made over $800,000.
Can you provide instructions on how to contact your advisor? I'm experiencing erosion of my funds due to inflation and looking for a more profitable investment strategy to make better use of them.
‘’Marisa Michelle Litwinsky’’ is the licensed advisor I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
It is call the time value of money. My take is that every 10 years the value of money is half. What property does is that it offset this with the appreciation of the property. When you sell a property after 10 years you hold the same value after removing the interest to the bank and CGT to the government.
Thanks PK, great video as always. Question, if houses prices continue to grow on the back of demand from the upper classes and wage growth does not keep up, what does this do to yields? The lower and middle class who are not investing and cannot afford to buy are forced to rent. However if wages have not kept up, there is only so much they can pay before we reach a tipping point. On that basis, would yields drop significantly, making real estate a less attractive asset class to invest in.
I think Australia had enough housing b before Covid. The problem began after Covid, immigration allowed grants overseas ppl to comeback Which was their plan to suffer Australian citizens. So they can bubble price properties and inflation. It’s a trap we are. Poorer more poorer coz we work for hours, richer get more richer coz they can invest and eat up small business to demolish. 2024 world is really suck ever I seen so far in Australia. There is no life in Australia. We can only work and pay bills. Live for day by day with no saving. What kind future can give to next generation?
Isn't this what core capitalism is about? Take from the poor and give it to the rich. Not only from resource distribution within Australia perspective but also between core and periphery countries. I wonder how much more do we have to endure this system.
I've heard 2 minutes of this and finally it's becoming freely spoken about and people have had enough. This is going to be a brilliant podcast. Thanks PK
I have noticed your narrative has changed since you have been in America. Makes sense. It’s America. You are a smart guy PK and love your videos. It’s a free world you can post videos on whatever you like. Just please don’t get sucked in to American ideology. I fear it’s detrimental to democracy. The boiling pot of politics over there is alarming to say the least. Be safe.
House price will corelate to the infaltion and wages only if it is a close system. Artifical injection of money from outside is what is disrupting the equation. When the citizens are struggling, there are alot of people from outside Australia investors who are willing to pay any price. Hence the house price is not stablaised. Also, the bank will not allow the housing crisis to be over amd let this bubble burst as there is a lot of stake for them and this will make the bank collapse. It is a cyclic thing. See the level of profit posted by banks in these tough times.
Please talk more about these topics. Also about how political policy impacts investments and business. A lot of People have no idea on how politics ties in with the economy which ultimately impacts all of our lifestyles.
Australia has gotten way too carried away with the money printer since covid. The more money in circulation chasing the same amount of goods means prices have to go higher. Unfortunately, if you are someone who works for a salary your pay has not kept up anywhere near the amount of money that has been printed. People have to exert energy to make a wage but the government can make money for free by printing more of it (since it is no longer on a gold standard). This makes anything you save in money become worth less and less as time goes on. Because our money is such a poor store of value people are forced to store what saved value they have in hard assets like realestate. But realestate is not a good asset to store value as it has so much leakage (eg rates, wear & tear, repair costs, interest payments, stamp duty, depreciation etc). Its because money which can be borrowed in large amounts makes realestate able to increase in price and because of this leverage allows the borrower to sometimes beat the leakage and actually make a profit in real terms.
Truth. Content like this from someone who understands investing and property so well, and has so much experience in the area, is so important and hepful. By the way, I didn't know that 7.5% pa figure... that's actually really helpful! This gives me something to aim for.
Truth mate. If you want to know what asset prices will do, watch what central bankers are injecting as liquidity. Liquidity is everything in today's monetary system.
Truth! Thanks PK. Also a kind request, if you can talk about how national and international policies, government can influence market in short/long term that will be icing on the cake 🙏🏼
People in Australia will always afford housing prices in Australia. They will find a means and simply borrow more money to buy a house. Both owner occupier and investors will keep housing prices going up. Property prices will never crash, the government and stakeholders will not let it happen. Just keep increasing immigration and reducing interest rates to near zero and it will be ok. 😀
Hi PK, Yes, truth, all the way. All my subscriptions are about : geopolitics, economy and PK of course 😂. I am always trying to find that bridge/ connection between future Australian property and what's happening around the world that can affect us here in Australia. Even Things like BRICS and dedollarisation. Trying to be ahead of what is to come. I loved this video.
PK I’ve listened to a few of your videos now and thought you were some guy trying to sell a course just like everyone else But you bringing light to how inflation is going to destroy the middle class living standards is what separates you from the rest hats off to you for talking more than just property The bubble will pop if they tax foreign investors which will cause oversupply A lot of foreign investors were happy to pay high because they received low interest rates from their home country I.e china was lending at 1%
Truth for sure! One of your best thoughts and sharing mate, so I always thought the way banks and government are printing money that tipping point will happen soon or later, I got into the market as home owner was think to get into as investor also but decided to wait coze my filling is no matter how delusional prices seems to go up, inflation and all of kind of rates to maintain a property still make you not making money, the best scenario might be at least holding the value of your saving.
Truth - please PK. Only way we can protect ourselves and others is through curiosity and knowledge. Your doing great. Keep it up. Be brave to speak the TRUTH.
How can governments implement currency destruction when citizens are already upset about high prices? First, they need to silence you. Second, eliminate your options to run away from the currency. Thirdly, enforce the expropriation with the motto, “You may have nothing, but you will find happiness
Zoning laws artificially constrain supply Get rid of tax breaks on houses over 300k. Depreciation interest exprnses Raise property taxes on expdnsive and vacant homes.
There are and have been many wealthy folk that have conspired. There have been other less wealthy people that have theorised that this was happening and they are called conspiracy theorists yet this does not mean they are wrong or crazy.
The population is stabilising everywhere, even in India the birth rate is around replacement rate, look at Korea and Japan and even China, In just 10-20 years we would see the real effects. And only lever Australia has migration, which has caused other issues too and we had to scale it down. The wage is going no where, how will the investers invest if its only going to go down from here.
How can you possibly get started saving for a deposit if youre just starting your career? It takes time to save and the k-shaped economy is only going to worsen as time goes on. Is it hopeless?
IMO this was one of the best videos you have done. I appreciate the truth as it helps me make informed decisions. The last thing we need is more people providing the same government narrrative. Gaslighting is and saying that everything is just fine, go back to sleep. So thank you. I would love to see more info about how to navigate the real economic environment
Truth truth truth...we need more of this content. Fundamentally knew this and yet never consciously thought about it. certainly makes thoughts of future directions for the world much more calamitas.
Looks like there are many sudden geniuses with an opinion in the comments section This is all happening by design by the ones that own and control the financial system
because they need to work to put food on the table, and if they are on the lucky side of the equation, invest what is left it. Until you are worth millions, which is most of us, we still got to grind.
Hi PK, I understand the need to get into the market etc…spoken to a couple of brokers but they comment that the borrowing capacity is low hence it is difficult. Could you perhaps share some tips on how to bump up borrowing capacity as both first home buyer and as investors please? Thanks
Truth Appreciate PK's content, explains what I am already on the edge of understanding based on observation of the world around me in simple terms, typically backed with data. Think there may have been a technical issue though, as the lines he was drawing on the screen with his finger didn't seem to show up on the video 😜
If they remove the negative gearing, the market will get lot os houses which will make the price lower as there is no much buyers, I can see this happening
Well explained PK, if there is unlimited supply of money, with banks and super wealthy, why banks have to lend money and let profits to investors? Why can’t they own properties?
PK, love your truth here. Would you say this perspective is what got you into property investment in the first place? Or is this a view that you have come to more recently?
Am I correct to assume that Tangeable assets like "Real Estate" are safer in both an Inflationary & in a Deflatioray Environment ? I hope you answer this or make a video on that. Love your work Mate 🙏
Truth. The issue is inequality. it will reach a tipping point socially unless there is a policy change to tax capital / property. Easier said than done though
