Australia housing bubble

[kevino]

Go onto any IGA and there will be loss leaders esp chicken meat dairy.
One near me had lamb legs around 7 or 8 $ a kilo.
Get em in to buy the basics and pray they buyer higher margin priced stuff at the same time.
Good business tactic.

[raised by monkeys]

I go to IGA to buy $9 per kg rump slabs and $12 scotch and then go to Coles for others. Although i notice that IGA bananas are often < $3 kg where as Coles standard now is $4, at least IGA is local money.

[XB GS 351 Coupe]

Originally Posted by raised by monkeys

I go to IGA to buy $9 per kg rump slabs and $12 scotch and then go to Coles for others. Although i notice that IGA bananas are often < $3 kg where as Coles standard now is $4, at least IGA is local money.

IGA has some of the best deals on meat, there is an IGA where I go for work once a week and I usually drop in and buy steak and chicken if they have the deals on.

Not only that, the meat is better quality than the other two criminal corporations where I NEVER buy meat.

The only other place I get meat is Aldi, Pork mince under $8 a kilo (great for taco's pasta, lasagna, Asian Mince Recipes etc) and I get the burger mince for home made hamburgers.

Originally Posted by T3rminator

False. Worked for a retailer that did deals and stunts to bring customers in, hoping sale of other goods will more than make up for a single product, and then there is the prospect of repeat business.

Yes, but a bit different to just selling stuff at a loss.

Originally Posted by T3rminator

Who am I to argue with the butcher?

They affectionately call our local butcher 'The Rap!$t', and the title is well deserved for his predatory pricing.

I would not believe a word he utters and I do not give him my money.

He has also been known to steal meat when doing kills for local farmers. Local farmers recently discovered that they consistently get an additional 30-40kg of meat per animal when sent to the abattoir than when he processes them.

But all that is getting very off topic.

[T3rminator]

So where does the RBA shop to get their "basket of goods" prices to calculate inflation?

By the sounds of it, certainly not IGA.

[Citroënbender]

Thomas Dux?

More on-topic, a friend took a bath on his tidy and central inner-city studio auction last weekend. Reserve 400, sold after the auction (same day, on site) for barely 360. Part of me thinks maybe the market is down, part of me wonders if the agent hustled him just to close a sale.

[smoo]

Been looking at house and land packages with the possibility of signing up to one in a few months. They had been what looked like good value compared to sale prices of existing housing stock.
The areas I’m looking at in WA for new builds have increased in price $100-200k across the board over the last 4-6 weeks or so.
Unsure if the increases are justified or home builders are cashing in on a heated market that has seen gains in existing dwellings over the past few years.
And if this has been the case in other states?

One thing it has done is lowered the appeal of a new builds with a potential 18-36 month build time and the associated stress and variation cost blow out that come with it.
Easier to buy an existing house, pay stamp duty and be done with it.
One more contributor to add to the housing shortage I guess.

[fatgas]

You should buy this place smoo:

https://www.realestate.com.au/news/g...tom-cabinetry/

[smoo]

Originally Posted by fatgas

You should buy this place smoo:

https://www.realestate.com.au/news/g...tom-cabinetry/

That is well out of my price range. And since it is Melbourne I’d also need to fill the front yard with American pick ups to trigger the libs and become reddit famous.

[blueoval]

Just to remind people, the NCC (national construction code) in Australia is about to change for all new homes that will require 7 Star energy assessments in the coming months. This means that all new homes will need a higher level of thermal performance to comply with council approval.

What this means, is that the cost of new homes will be increasing due to the requirements needed to meet this new 'green' target for all new construction. Inadvertently, the costs of building a home could vary in pricing of up to $30k or more depending on design.

Careful and clever design practice by Builders, Building Designers and Architects is required more than ever to minimize these costs in conjunction with local council and estate encumbrance regulations.

Some states already have implemented this plan already. But it will soon be Australia wide and builders will then be forced to pass on any additional costs incurred to the owner to meet the minimum requirements on top of an already expensive and life changing purchase.

https://ncc.abcb.gov.au/news/2022/bu...s-and-guidance
https://thefifthestate.com.au/innova...ew-7-star-ncc/

What are recent changes in the NCC 7-star program?
The NCC (National Construction Code) 7-star changes refer to an increase in minimum energy efficiency building standards for new homes from 6 to 7 stars under the National Construction Code 2022. This change aims to make homes more comfortable to live in, cost less to heat and cool, and help reduce greenhouse gas emissions. The new energy efficiency provisions for NCC 2022 allow for flexibility across design, materials, and orientation.

Key points regarding the NCC 7-star changes:

The increase to minimum standards for new homes will be introduced from 1 October 2023 in most states and territories.
The new energy efficiency provisions for NCC 2022 allow for flexibility across design, materials, and orientation and do not place any specific restrictions on window size.
The style of window, type of glazing, window coverings, and external shading are ways that windows can be made to be more energy efficient without compromising on size.
There will be a transition period before the mandatory introduction of the new minimum 7-star standard for new homes. The changes will not be compulsory for homes that have a building permit issued before 1 May 2024.
The new minimum requirement for new homes is a rating of 7, which means a higher level of thermal performance. Thermal performance is essentially how well your building uses and stores energy for heating and cooling.
The new energy efficiency and condensation mitigation requirements will commence in Victoria on 1 May 2024. The changes will make homes cheaper to run, more comfortable to live in, and more resilient to extreme weather.
These changes are expected to result in more comfortable and energy-efficient homes, contributing to a reduction in greenhouse gas emissions and promoting sustainable living.

[Citroënbender]

As so often, a bunch of waffle in its final iteration.

There’s still no meaningful steps towards sustainability in preliminaries, no mandated recyclability standards for incorporated materials, no enforceable and meaningful green space requirements, no commensurate spot penalties.

It’s going to be more of typical Australia; gaming the system while avoiding more actual work. Once consumers are exposed to these costs the bleating will commence: “Nobody told us!” (never mind they could have done their own research) and companies “We need more time to comply, and our struggling customers need a break in government fees”…

So we’ll see an uptick in imported materials of alleged but questionable compliance (there will be zero enforceability when breaches are found), and the ongoing waste of recyclable elements will be simply BAU multiplied by population growth increases.

[FoxtrotGolfXray 5.0]

So, the latest inflation figures (4%) now have economists predicting that the next move by the rba will be an increase to the official cash rate.

Wonder what sort of impact this will have on those already struggling with the cost of living?

[prydey]

I'm just a dumb nobody but I fail to see how punishing those that have a mortgage will make any difference to those that are doing the spending.

[ute83]

Originally Posted by prydey

I'm just a dumb nobody but I fail to see how punishing those that have a mortgage.

Maybe that's the idea.

[T3rminator]

Goods and services over 6% for the month were Tobacco, Auto Fuel, Insurance and Fin services, Rent, Electricity and Health.

With the exception of tobacco, can't see how a rate rise will affect the others. And why do we even care about tobacco, its not an essential for most consumers. Fees for the other items will naturally level off with or without rate rises IMHO. Things like insurance and health, people will either pay what they have to pay or go without.

Looking around, there are still many with cash to splash. Take a walk around the CBD on a weekday lunch time, and all the high end restaurants are chockers. Plenty of new cars on the streets. Plenty of cash for events.

[prydey]

Originally Posted by T3rminator

Looking around, there are still many with cash to splash. Take a walk around the CBD on a weekday lunch time, and all the high end restaurants are chockers. Plenty of new cars on the streets. Plenty of cash for events.

First world country but class divide is wider than ever.

Like I said above, the ones with money and spending are not the ones being hurt by rate increases.

[blueoval]

The idea will eventually be to get rid of the middle class by any means necessary. Thus widening the classes between the ultra rich and poverty classes. Its not a matter of if, but when.

[raised by monkeys]

Received a GOV document yesterday with SA gvernments plans to increase GOV housing closer to adelaide as you can imagine, greater adelaide regions and regonal inc. renmark, millicent, kadina etc. Nothin on the EP. Interesting enough with GOV in the media dismissing the impact of migration a image graph with data taken from BOS 13/06/24 shows overseas growth in 2022 and 2023 at 30-35k previously with numbers between 10-20k.

"As the growth in the supply of new dwellings has
not kept up with the demand, housing affordability
has continued to worsen for South Australians.
During the COVID-19 pandemic years, significant
financial incentives and very low interest rates
contributed to strong demand and increased
competition for housing, which ultimately led to
increased housing prices in both the metropolitan
area and regional towns.
While interest rates have risen in recent years,
strong post COVID-19 pandemic population
growth has contributed to continued demand and
price increases. In the year to December 2023,
South Australia’s estimated resident population
increased by 30,222 or 1.6 per cent"

[Citroënbender]

Re tobacco, I don’t know any smokers in Sydney who purchase “legal” tobacco; it’s all chop-chop and Chinese cigarettes. The former is far from the bargain it once was, and quality appears much lower, too.

[Syndrome]

Originally Posted by blueoval

The idea will eventually be to get rid of the middle class by any means necessary. Thus widening the classes between the ultra rich and poverty classes. Its not a matter of if, but when.

The socialist/communist countries tried this and it failed spectacularly. The middle class produces and consumes most of the goods.

[blueoval]

Originally Posted by Syndrome

The socialist/communist countries tried this and it failed spectacularly. The middle class produces and consumes most of the goods.

True, but I believe there are bigger fish than the socialist/communist countries wanting rid of the middle class here.

[Itsme]

Originally Posted by blueoval

True, but I believe there are bigger fish than the socialist/communist countries wanting rid of the middle class here.

It will never happen while you got capitalism!

[blueoval]

Originally Posted by Itsme

It will never happen while you got capitalism!

Agreed. But neither socialism or Capitalism will work in the end. The UN will be asked to intervene I reckon. By that time, the world has gone to truly to hell.

[Itsme]

Originally Posted by blueoval

Agreed. But neither socialism or Capitalism will work in the end. The UN will be asked to intervene I reckon. By that time, the world has gone to truly to hell.

Beg to differ, capitalism is what keeps the world going.

[blueoval]

Originally Posted by Itsme

Beg to differ, capitalism is what keeps the world going.

It is, but its not what the elites want.

[FairmontGS]

Lizards?

[b0son]

Originally Posted by Itsme

Beg to differ, capitalism is what keeps the world going.

Where do we have true capitalism? On either end of the spectrum? Unions of employees are allowed to extort their employers for higher wages, but when businesses band together, that's a cartel and illegal. And on the flipside, when businesses get too big, they are deemed too big to fail and their losses outsourced to the taxpayer.

[Citroënbender]

Originally Posted by raised by monkeys

I understand the market dictates, but regardles off yard size, $700 per fotnight to share a house is preposterous.

Nearly a year later, this arrangement continues to work well.

[John 13]

Originally Posted by Itsme

Beg to differ, capitalism is what keeps the world going.

OK, as long as there is economic growth manifesting itself in increased profit in listed entities. It is notable that in many cases the increase in profit is achieved through reduced consumer choice, just in time stocking, apparent reduction in quality of stock items (eg. Bunnings), and cost cutting, services replaced by consumer DIY/online activity.

[John 13]

Originally Posted by b0son

Where do we have true capitalism? On either end of the spectrum? Unions of employees are allowed to extort their employers for higher wages, but when businesses band together, that's a cartel and illegal. And on the flipside, when businesses get too big, they are deemed too big to fail and their losses outsourced to the taxpayer.

WA government effectively bailing out large over committed "builders" in order to get homes completed. Appears that some MAY have used a pyramid scheme; over committing, tying up customers with contracts and then using new customers deposits to fund jobs in hand.

[Syndrome]

Increasing interest rates are causing cash flow issues. Yet house prices continue to rise. Auction of a local property on the weekend makes me shake my head in dismay.