Dear Property Bulls,
Does realestate go up on average 10p/c per annum , ie - Double every 7 years ?
yes,... certain areas will achieve this growth rate
I love ExcelThat means Sydney is going to have one hell of a year, In 1890, the average Sydney home price was $1,446 (£723). If property really does double every seven years then, in 2009, the average Sydney home will be worth $189,530,112.00.
That means Sydney is going to have one hell of a year, In 1890, the average Sydney home price was $1,446 (£723). If property really does double every seven years then, in 2009, the average Sydney home will be worth $189,530,112.00.
Interestingly enough, working that calculation to give Sydney's current average house price (~ $540K) comes in at 5.1% per annum coumpounded.
This means a doubling every 14 years over a 119 year sample.
Wonder wait the average inflation is over this same period?
You tell me Robi,
Your Labourer mate earns 60k p/a incl super, 55k after super, 40k after tax or 800 p/w.
This trashy house in Melton would cost 400p/w over 20yrs in repayments plus another 50 for rates/Insurance/Maintenance.
Your Labourer mate would have to spend well over 50pc of his take home pay to service it, Mortgage stress is defined as 35pc or more of your income going on housing.
House prices up by 20pc
By Mark Schliebs
February 04, 2008 12:13pm
HOUSE prices increased by more than 20 per cent in two capital cities last year, according to figures released a day before the Reserve Bank decides on a possible interest rate rise.
While the average increase in house prices across the eight capital cities rose by 12.3 per cent in 2007, homes in Brisbane and Adelaide experienced an increase of more than 20 per cent, according to figures released by the Australian Bureau of Statistics (ABS).
Houses in Brisbane increased in value by 21.6 per cent in the 12 months to December, while homes in Adelaide went up 20.2 per cent.
Numpty you are so full of the proverbial.
Who takes a 20 year mortgage again? And when did a 60k job pay $800 a week?
10% deposit equates to $281 a week on a 30 yr mortgage (@ 8%). With $911 a week clear in income that comes to 30.94%. You, I, and anyone with half a brain reading this knows that %age can be brought down a number of ways.
Want a house in a less 'trashy' location and I think you'll find the missus will be heading off to work too. Or you'll need more than 60k a year in income. Or you'll need a bigger deposit.
ASX.G
An interesting article from news.com.au today:
More here: http://www.news.com.au/business/story/0,23636,23155967-462,00.html
Good news for property owners in Adelaide and Brisbane.
I have worked in the mortgage industry for a number of years so I my figures are based on what I'm approving, our own broad figures (reg. vs unreg. debt) and what the vast majority of our "can we do this?" enquiries are. If there are broader figures available by loan volume (not number of loans), I'd be very interested.Do you have some stats on this? Or are you calling Renos investments? I guess it adds value to the house.
The data I have seen (Which I must admit I can't find now) suggests the bulk of it goes into Renovations (Kitchens, Bathrooms, additions etc) and Debt Consolidation. Naturally consolidating the Credit Card debt and other personal loans generally leads to further spending.
Other categories was Holidays, 4WD (O.k. any Vehicle inc Caravans), Education Expenses etc. I do remember other investments and investments in real estate, but they were under the reno & debt consolidation.
Possibly the data I have was a couple of years ago, and I would have no trouble believing after a couple of years of things only going up, the incentive would be there for people to bail into investments that well, you know, only go up.
A decade ago, a conversation like this would have been absurd. The fact that you're trying to argue that a 6-day-per-week tradesman can (barely) afford a **** house in a **** suburb speaks volumes about how unsustainable the current situation is.
Dear Property Bulls,
Does realestate go up on average 10p/c per annum , ie - Double every 7 years ?
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