Mortgage, have you changed your stance?

[bowser]

Having been brought up and lived in another country, I have a question (Im not going to say which country but the nation considers its people to be second wealthiest in the world, see if you can guess)?

Equatorial Guinea??

 

[karmatik]

Equatorial Guinea??

Nope, its in Europe....

 

[wayneL]

Nope, its in Europe....

Norway or Denmark

 

[bowser]

Ireland

 

[wayneL]

Having been brought up and lived in another country, I have a question (Im not going to say which country but the nation considers its people to be second wealthiest in the world, see if you can guess)?

Do any of you consider that the rising property prices in the likes of Melbourne are in fact reflecting the true value of the property and have been undervalued up until now i.e. they are now reflecting their true value?

In most places, not at all.

If not, what should we be using as a yardstick to measure an Australian propertys true value?

There are a number of valid measures, a couple of which are:

rentable value
wages/house price ratio

By any sensible measure, housing is historically way over the top... greater than 2 sigma.

​

 

[karmatik]

Ireland

Bowser is the winner!

Hard to believe isnt it, 30,000 millionaires in a population of 4M? Some would say that the progress in Ireland is intense but its actually really bad. The road and transport system is cripled, the medical system is about to implode and property prices are twice what they are here.

Its all going to come crashing down on them.

 

[pepperoni]

Bowser is the winner!

Hard to believe isnt it, 30,000 millionaires in a population of 4M? Some would say that the progress in Ireland is intense but its actually really bad. The road and transport system is cripled, the medical system is about to implode and property prices are twice what they are here.

Its all going to come crashing down on them.

God help us! The only thing worse than highjacking a thread is suggesting that ireland is wealthy

Their "wealth" is no doubt more fictional that australian "wealth" and based solely on their "on paper" PPR equity increase caused by ....... a worst housing bubble than in aus!

Id say that perceived rather than actual wealth is the main reason for people borrowing more and hence the vicious cycle of housing inflation - more borrowing against equity - housing inflation. If only people would wake up to themselves.