numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
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What do the bears think of these numbers relating to Sydney house prices.
Data shows % change to average house price - 1970 - 2003:
% change
1970 18,700
1971 21,200 13
1972 23,700 12
1973 27,400 16
1974 31,800 16
1975 34,300 8
1976 36,800 7
1977 39,200 7
1978 43,200 10
1979 50,700 17
1980 68,850 36
1981 78,900 15
1982 79,425 1
1983 81,425 3
1984 85,900 5
1985 88,350 3
1986 98,325 11
1987 120,025 22
1988 141,000 17
1989 170,850 21
1990 194,000 14
1991 182,000 -6
1992 183,300 1
1993 188,000 3
1994 192,375 2
1995 196,750 2
1996 211,125 7
1997 233,250 10
1998 248,750 7
1999 272,500 10
2000 287,000 5
2001 322,500 12
2002 387,500 20
2003 454,250 17
What do the bears think of these numbers relating to Sydney house prices.
Is that an ad?
Sydney reached an equilibrium point in late 2003 where people could no longer afford Sydney houses. Simply put, Sydney house prices reached the ceiling of affordability in 2003.
So the real question is where is the data from 2004 onwards? Anyone worth their weight in gold, knows it corrected a few percent then leveled out. Why is this data missing? Why does it just happen to stop at 2003?
hello nunthewiser,
i think it commences around November 2008,
hope you have had a great day
thankyou
robots
How about - stating the goal as having a REALLY nice, luxury roof over your head with enough room for your family, lot's of living space, landscaped gardens, pool, entertaining area etc etc, in a quality, wealthy area of one of the best cities in the world where everyone wants to live, with good schools and infrastructure all on hand. Plus own it outright so no rent or interest to pay, and all income earned goes towards investments for other lifestyle desires (sports cars, holidays, hobbies etc), and a financially independent retirement.
Does that sound better? That's how I see the goal.
Even if you choose to rent and have the discipline to invest in other sectors to achieve the financial benefits that owning your own house will provide, at some point in your life you will have to cash that in and buy a house anyway! Unless you want to still be renting and moving every 6-12 months when you have teenage kids in the local school, or are retired etc etc. And that's the point - everyone needs somewhere to live, and to a large extent where you live defines your lifestyle and quality of life, as you spend a LOT of time there!
PS: To MrDamage - good posts - read some of my posts on this thread for a different view than many of the responses you have got here already. Pay off your mortgage as quickly as you can, in a few years you will look back and realise you own an asset with real value and that you get to live in rent free while all the doom-sayers here will still be paying ever-increasing rent and still whining about how expensive houses are WHERE THEY WANT TO LIVE! There are plenty of cheap houses around of course but the guys here don't want to live in those areas!
PPS: When I heard about the increase in the FHBG I laughed and laughed! Tried not to come and read all the rantings that would produce on this forum but I couldn't resistStill sick of arguing here and have made all my points before - just add this grant increase to the interest rate reduction cycle and it's not hard to figure out what happens from here for FHBs.
PPPS: I noticed that all the negative mainstream press articles get posted here, but NONE of the more positive ones like this one: http://www.smh.com.au/news/national/sydney-property-buoyant-in-slump/2008/10/08/1223145446496.html, which actually states how Sydney property is actually holding up pretty well. I have stated many times that I think Sydney is near/at the bottom now, but that Perth and other parts of the country etc are a couple of years behind the Sydney cycle. Those looking for 40% falls are living in fantasy land - this property cycle is just like the early 90s downturn and it is playing out exactly the same so far.
Cheers,
Beej
It could be argued though that we have reached this same point a couple of times before according to the data set - wouldn't you agree? - e.g. 1982 - 1985 & 1991 - 1995.
And then I think well, at least I can afford it..
Have a fair lump sum of cash in the bank and maybe I will even buy a house and keep some spare cash on the side..
Doesn't this just lead poor first home buying lambs with very little capital and a world possibly on the brink of a recession/depression to the slaughterhouse!?
I just think it's quite a dangerous gamble...
So you think bribing young people to buy houses when our economy is on the brink is funny? Well laugh it up. We certainly know where the government stands now dont we! The plan is to do whatever is neccessary to save the price of your houses and to hell with affordability. This is one of the most irresponsible policies ever seen in this country. If FHBs pile in now and it all crashes next year will rudd give an apology to the young people who he has encouraged to financial ruin??
Just look at the national saving rate would have scared you.
It was negative in the US for a while, and has since creeped up back to 0% to slightly positive %.
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