numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
What did you upgrade from/to Beeji ?
House prices to keep rising for years
- Thread starter moses
- Start date
- Status
What did you upgrade from/to Beeji ?
numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
Besides the clearance rate did you just invent all the small talk ? sounds really spruikerish without evidence .....
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Indeed. I am 24, and there is absolutely no way on earth I would buy property at current prices if they stay at around these levels, most likely ever, with incomes available to me in the future. Would be a completely different story if prices were what they were 4-5 years ago.
I would not buy property as an investment either in the current environment. The likely prospect of a Japan situation where you never, ever ever get a return on any new purchase is far too high.
Got nothing to do with bitterness for missing out Beej. Can't see how I could have bought property whilst working in the supermarket...
- Joined
- 14 March 2006
- Posts
- 3,630
- Reactions
- 5
Agreed chops.
Much better buys out there
ie. Canada 4-5 times yearly earnings
NZ no stamp duty, PPR exemptions plus no land tax regime.
USA, UK & Ireland huge drops in valuations
Australia 9 times earnings PASS!
Much better buys out there
ie. Canada 4-5 times yearly earnings
NZ no stamp duty, PPR exemptions plus no land tax regime.
USA, UK & Ireland huge drops in valuations
Australia 9 times earnings PASS!
Newsflash - AU national median house price = approx 7 x average full time SINGLE wage right now. NSW, zero stamp duty for purschases under $500k (similar concessions in other states), and nationally, $14k-$21k first home buyer grant available with no means test etc from the government. No land tax for PPOR in AU either thanks!
As for US/UK etc, well they have their own problems that fortuneately we do not seem to be facing here to the same extent.
Upgraded from lower north shore federation semi (which I bought and renovated a while ago) to slightly more upper north shore 4 bed/3 bath, fully renovated 20's built house on a good land in an excellent location with pool/spa etc etc and all the other little luxuries that my wife said she wanted
EDIT: Oh and PS - don't forget: "Happy wife, happy life!"
Cheers,
Beej
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Bollocks.
Tell that to that exorbitant amount of people trying to sell in Perth right now. It's crazy.
Tell that to that exorbitant amount of people trying to sell in Perth right now. It's crazy.
Indeed. I am 24, and there is absolutely no way on earth I would buy property at current prices if they stay at around these levels, most likely ever, with incomes available to me in the future. Would be a completely different story if prices were what they were 4-5 years ago.
I would not buy property as an investment either in the current environment. The likely prospect of a Japan situation where you never, ever ever get a return on any new purchase is far too high.
Got nothing to do with bitterness for missing out Beej. Can't see how I could have bought property whilst working in the supermarket...
Yes but that's all fine. You are young and have a long time to work a few things out - one of them being what it actually takes to own property but more importantly why you will eventually want to own your own house, despite your internet blog induced fears of some sort of Japan style meltdown (which is to a large extent an over exagerrated internet generated myth anyway - trust me I've done business in Japan and spent some time there in the past).
A question - regardless of the PRICE if you could invest in real estate such that it provided a significant cash-flow positive return on an investment based on say a 90% gearing level + some of your capital, would you consider it or would your bias still keep you out??
Beej
- Joined
- 14 March 2006
- Posts
- 3,630
- Reactions
- 5
Correct. Thats what I posted earlier. Im talking about any additional investment property you own that you dont live in doesnt attract land tax
in NZ.
And yes 9 times earnings you bet. Most over-inflated property prices in the OECD. Its akin to buying MQG when they were trading at $100 plus. Now theyre $30.
Much better places for much better prices than Oz ATM! IMVHO
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Seriously?
Baahahahahahahahahahahahaha!
Now please tell me you aren't joking?
Bahahahahahahhaahhaha....
Sorry but you are wrong. Average full time wage in Au right now = ~$60kpa. National median house price is floating around the ~$440k mark, = 7.3 x average full time wage (not 9).
Units of course are cheaper again
Well that would be handy perhaps if you happened to live in and needed a house in one of those "other" countries
Beej
Seriously?
Baahahahahahahahahahahahaha!
Now please tell me you aren't joking?
Bahahahahahahhaahhaha....
Have you ever actually been there?
- Joined
- 28 October 2008
- Posts
- 8,609
- Reactions
- 39
7.3 x average full time wage is a lot.
- Joined
- 14 March 2006
- Posts
- 3,630
- Reactions
- 5
Beej
Is there anywhere else in the developed world that has a higher wages to
median house price than Oz?
Maybe your right about 7.3 annual wages to purchase the average property at $440 AU but how do you think people will handle neqative equity and having to pay multiples of 4 or 5 back to the bank instead of say 3?
Australian property prices are unrealistic with a few exceptions.
Is there anywhere else in the developed world that has a higher wages to
median house price than Oz?
Maybe your right about 7.3 annual wages to purchase the average property at $440 AU but how do you think people will handle neqative equity and having to pay multiples of 4 or 5 back to the bank instead of say 3?
Australian property prices are unrealistic with a few exceptions.
- Joined
- 3 January 2008
- Posts
- 209
- Reactions
- 0
Beej, you're pretty consistant with these generalisations and assumptions and it does get rather frustrating when you use them to underpin your fundamentals ~ maybe it's time you did some research...
FYI, I didn't arrive in Australia on a permanent basis until 2005 and would have only been able to purchase early last year (at the very earliest!) straight after the permanent residency application had been approved...
More of your assumptions below :
https://www.aussiestockforums.com/forums/showpost.php?p=368574&postcount=2531
This has been covered a few times before:
* AU is more urbanised than any other western country, which means our houses (or more precisely our LAND) cost more on average. Check out the wage/price multiples in the major CITIES of many comparable countries and you will get a shock at the prices - even the bear beloved US/UK cities where things are so bad right now, are still very expensive places to buy property relative to national average wages in those countries.
* The reality is that there are plenty of affordable/cheap houses around in all our cities, just not in the most desirable area's (and there are obvious demand driven reasons for this!)
* Culturally, home ownership is high up on the list of aspirations for most aussies. perhaps more-so than in many other countries (for whatever reason).
A fair point granted. I did say "some", not "all", and therefore I think should stand accused of a partial generalisation only.... Of course there are many different circumstances that people are in that can change ones perspective, plans and actions. But I do try to focus on what I believe the majority trends are based on my own research and observation of the market.
Cheers,
Beej
numbercruncher
Beware of Dropbears
- Joined
- 12 October 2006
- Posts
- 3,136
- Reactions
- 1
More bollocks ....
When I purchased my first property in 01 there was plenty of Houses available for 3 to 4 times average income and interest rates similar to now, the FHB at only 7k provided a bigger % of the purchase price than it does now.
What subsequently happened was a temporary credit bubble that is now popping along with the worlds economy ..... you can talk up Aussie RE as much as you wish but you cant hide that prices have already fallen and you can be sure Aussie RE wont continue " to rise for years " while the worlds economy continues to contract along with our crashing resources industries.
Beej you maybe good at RE mumbo jumbo sales talk but you completely ignore our currently globalised economy - Im nearly convinced you work in the RE industry?.
Keep talking it up, its entertaining The debate is " House prices to RISE for years " which clearly is not happening.
Gen-Y have not been sucked into this ponzi scheme only 5pc of them have taken the mega gamble despite the Governments desperate ploys.
One way or another RE will return to its long turn average on a Price to Incomes ratio.
When I purchased my first property in 01 there was plenty of Houses available for 3 to 4 times average income and interest rates similar to now, the FHB at only 7k provided a bigger % of the purchase price than it does now.
What subsequently happened was a temporary credit bubble that is now popping along with the worlds economy ..... you can talk up Aussie RE as much as you wish but you cant hide that prices have already fallen and you can be sure Aussie RE wont continue " to rise for years " while the worlds economy continues to contract along with our crashing resources industries.
Beej you maybe good at RE mumbo jumbo sales talk but you completely ignore our currently globalised economy - Im nearly convinced you work in the RE industry?.
Keep talking it up, its entertaining
The debate is " House prices to RISE for years " which clearly is not happening. Gen-Y have not been sucked into this ponzi scheme only 5pc of them have taken the mega gamble despite the Governments desperate ploys.
One way or another RE will return to its long turn average on a Price to Incomes ratio.
- Joined
- 14 March 2006
- Posts
- 3,630
- Reactions
- 5
I agree with you NC. It is the next bubble to pop.
For those who dont know what a bubble is
http://www.nicholsoncartoons.com.au... Housing bubble markets flatten a bit 530.JPG
For those who dont know what a bubble is
http://www.nicholsoncartoons.com.au... Housing bubble markets flatten a bit 530.JPG
chops_a_must
Printing My Own Money
- Joined
- 1 November 2006
- Posts
- 4,636
- Reactions
- 3
Are you for real?
If visiting leads me to the conclusion that Japanese property has been a fantastic long term investment and that global rates aren't going to 0, I'd rather stay at home thanks.
- Joined
- 14 March 2006
- Posts
- 3,630
- Reactions
- 5
0.3% in Japan at present.
England lowest interest rates since 1694.
US cruising on 1%.
Its like an old western movie when the train runs out of coal they start to strip the fixtures from the train to keep the furnaces running.
But this time Ben's using a helicopter
England lowest interest rates since 1694.
US cruising on 1%.
Its like an old western movie when the train runs out of coal they start to strip the fixtures from the train to keep the furnaces running.
But this time Ben's using a helicopter
Attachments
- Status
Similar threads
- Locked
