So Australia is different?
Depends on what your perspective of positive is - from an investors point of view it's very positive. Largely the articles are commenting on a lack of affordability, lack of housing supply, rental being pushed up, etc. Most then infer from this that it's a housing bubble, further feeding the hopefuls that a big 'correction' is due to
take place and they'll finally be able to jump into property.
The thing is prices have been forever trending up, with small pockets of pullbacks or flat prices. This is the nature of this asset class. On balance prices will increase exponentially, as they always have and always will.
As they say, the best time to buy a house was yesterday. People should focus less on timing an illiquid, and ever increasing market and focus more on HOW to get in profitably and have appropriate controls in place to mitigate the effects of any stgnant periods.
It is. There are many large and tangible differences between the environment of the US sub-prime bubble, and the current Aus housing environment.So Australia is different?
The thing is prices have been forever trending up, with small pockets of pullbacks or flat prices. This is the nature of this asset class. On balance prices will increase exponentially, as they always have and always will.
It is. There are many large and tangible differences between the environment of the US sub-prime bubble, and the current Aus housing environment.
On balance prices will increase exponentially, as they always have and always will.
Not a mathematician are we
Not a mathematician are we
I have a very strong grasp on mathematics, clearly you don't if you disagree that prices rise exponentially over time.
At a basic level, conventional wisdom states that house prices rise 7% yoy. Plot that across a timeframe of greater than one year and you have exponential growth.
Yoy growth IS exponential growth. Inflation, wages, population, energy consumption, food prices, etc ALL grow exponentially over time.
The fact that you're using a % to calculate growth means that when you track that growth over time you get an exponential function.
Plot a graph of house prices, inflation, median wage, whatever you want over the last 10, 20, 30 whatever years and you'll see what i mean.
Understand yoy growth and the exponential function and you understand how silly it is to scream and cry that prices are 2 times what they were x years ago or 3 times y years ago.
Really,
Last time I flew out of Melbourne I did notice massive parcels of undeveloped land as far as the eye could see, same with Perth, Sydney, Brisbane.
that argument is retarded, Sydney cbd also has a land shortage if u look at it that way... i know northern beaches folk dont realise theres a world outside that north of the harbour bridge
I don't know what is wrong with you blokes. This is what adds4 wrote:Most people that build a new house in Sydney dont build it in the northern beaches?
and I responded by saying that in some areas there is no more land and there isn't, simple as that. Where can I buy land in Manly or Collaroy for example? You can't, you must buy existing dwellings which you must pay a high price for the privilege to live there. Some people have been born and bred in an area and will pay a high price to live there. They could not entertain the though of living heaps of kilometres away from their job, friends and family. They are areas in high demand and short supply. They simply can't make more land in some areas. Do you guys understand this? There is plenty of land in the rest of Australia but not in some areas. SHHthis notion of a land shortage is just crap
Hello kincella nice to see you back. I did just that, live in a nice suburb 100 kms North of Sydney and rent out my Northern Beaches unit. Nice and relaxing up here and I just sit back collecting the rent, nothing beats it.I cannot understand why more people dont venture out to explore the regional areas....that is another heaven
I just have to figure out what to do with all this free time now...
cheers, and enjoy the spoils
I really like the idea of the new houses, just north of Melb city....not in the heavily treed, fire risk areas though, 2 mins to the toll/freeways, 20 mins from the city and work...
20+ square metres, 4 beds 2 baths etc, huge living areas....below $300k's
Do you mind me asking where this is?
Have you actually looked at the difference in lending practices between here & the US? Sub-prime being compared to PPOR purchases (where there is little difference in credit standards between FHBs and people buying their 10th property) are chalk and cheese.All it took to pop the US bubble was an increase in interest rates. Sub-prime mortgages went first, and spread to "safer" mortgages. US Sub-prime = Australian FHBs in my opinion.
hmm....traps for players.....
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