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Got a question I need to know the answer to robots.

Is it common knowledge that house prices double `on average` every 8 to 10 years? If this is so, would a $500k house be realistically affordable at $1mil. in 10 years?
 
Soft Dough said:
A plumber earning $22 per hour is not getting anywhere near market rates. It seems weird. Or does he work 19 hours per week ?

I have put reasons as to why tradesmen's wages artificially look low, and it is very logical.
Click to expand...

Not everyone works in a capital city. You are trying to blanket all plumbers into the same wage rate and discounting a lot of factors. Per hour earnings are not always a guarantee over the year. The wage range would more than likely be from $25k to $100k^.
And there would be a lot out there working a full week (10-12 hours a day) and earning under $50k
 
Wysiwyg said:
Is it common knowledge that house prices double `on average` every 8 to 10 years? If this is so, would a $500k house be realistically affordable at $1mil. in 10 years?
Click to expand...

my 5c

Very unlikely as these 3 factors are required :

1. Wages growth continues at historical levels ( unlikely )
2. Credit growth continues to grow much faster than historical levels ( almost impossible )
3. Bank access to greater credit at low rates ( unlikely )
 

hello,

Yes there has to be a slowdown.

thankyou
wysiwyg
 
hello,

you asked is it realistically affordable? many will afford it, many wont just like the situation today

thankyou
robots
 
robots said:
hello,

you asked is it realistically affordable? many will afford it, many wont just like the situation today

thankyou
robots
Click to expand...

No I don`t think so. I just don`t see the average wage per year being $100,000 in 10 years.
 
Wysiwyg said:
No I don`t think so. I just don`t see the average wage per year being $100,000 in 10 years.
Click to expand...

hello,

whats average wage got to do with it?

you asked:

is it realistically affordable? yes, see above details

a great initiative I introduced on the other thread was Q & A, a bit like that show on ABC, i guess we can kick it off in this thread as well

next question

thankyou
robots
 


Your logic makes no sense. Average wage has everything to do with it. How can you afford a 1mil house with todays average wage?!
 
hello,

you would need a lot of savings ie. cash, shares, money boxes

dont get so wound up on average wages, its irrelevant

thankyou
robots
 
Wysiwyg said:
No I don`t think so. I just don`t see the average wage per year being $100,000 in 10 years.
Click to expand...

On this point, as of Feb 2009 the average full-time adult earnings are $1214.50/week = ~$63k/year. (Source: ABS; http://www.abs.gov.au/ausstats/abs@.nsf/mf/6302.0)

So I think it's totally conceivable that in absolute terms the average wage could hit $100k in 10 years time. A decade is a long time!

Cheers,

Beej
 
MrBurns;429431stop insulting people who cant punch you in the face like you deserve. [/QUOTE said:
Burns, I'm willing to have you take me on in the ring for charity. You name the place.

Say a dollar figure to every punch landed. Knock me out and the charity gets a bonus.
Click to expand...
 

Inflation has not really been working itself into wages in the past few years (for selected industries it has at the expense of others). On average income hasn't appreciated nearly as fast as housing and other assets. I'm not so sure if wages will ever catch up to house prices where they are now. The usual money created by RBA inflation targeting is being used increasingly in the global wage arbitrage and imports (exporting the inflation elsewhere). If money inflates anymore probably all we are going to find is that more jobs leave the country. That's my opinion only. America is trying to inflate, but as it has been said this has bid up the prices of housing and assets more so than wages before with globalisation there is wage competition.
 
Dowdy said:
Your logic makes no sense. Average wage has everything to do with it. How can you afford a 1mil house with todays average wage?!
Click to expand...

You can't afford it with today's above average wage.

And then, again, not everyone wants to lock up $250,000 in a deposit and pay a $750,000 loan. That's $5000 a month in loan repayments, when you could rent the same house for half that. Maybe the house is worth 800k in 12 months. Maybe you don't have a job in 12 months, and have to sell at the bottom of the market to carry around a debt of 200-300k on a personal covenant as to the mortgage while you still pay rent.

Makes the idea of owning a home, a pretty risky proposition, at least for that price. If people can afford it, better off buying a unit - to be buying million dollar properties, you either need to have of balls of steel or so much money it doesnt matter what you buy.
 
Stan 101 said:
Burns, I'm willing to have you take me on in the ring for charity. You name the place.

Say a dollar figure to every punch landed. Knock me out and the charity gets a bonus.
Click to expand...

Only a goose tries to engage someone they've never met and have no idea of what they're dealing with.
 


You should hang around the property group more often

this is a stock market forum
we are always bear in property even if people here
own their home and have some holiday properties ....

don't understand why a property person are so keen to hang around
stock market forum for so long? try to pick up some trading tips
for flipping properties for profit ?

Here we learn about Uncle Warren and Gordon Gecko from Wall Street
some where else they may learn from Trump so maybe you should find your own group
else you feel lonely here.

you have a weird ways learning your trade ...if i want to learn about property or bull on property
i go to property forum...if i want to learn about stock market I go here...

but you seem to go here to learn about property and justify your property cause... Justify to property group they love it there, they give you free beer and say..Well done mate
here we are very savage, we cut our lost and we let the profit run.
 
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