The future of Australian property prices
- Thread starter Joe Blow
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Here's an article that would make Robots happy..
http://www.news.com.au/couriermail/story/0,23739,26624513-5003402,00.html
Just a shame the "average" person won't be able to afford it.
Better open up the borders for some more foreign money to come in.
http://www.news.com.au/couriermail/story/0,23739,26624513-5003402,00.html
Just a shame the "average" person won't be able to afford it.
Better open up the borders for some more foreign money to come in.
this should scare the socks off anyone....Malvern Vic the poorer suburb (compared to Armadale which was up about 82%)
houses up 56% in the past 4 years
units up about 40%
I note home ownerwhip...outright with no mortgage is around the 40% mark
choose a suburb that interest you and find out how it faired
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
then look at this one....in regional vic...how affordable is this....basically been stagnant...past 4 years....
home ownership is a whopping 47%....it must be the oldies staying put
big horse stud is moving there
not sure how much rain they had recently to break the drought....
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
houses up 56% in the past 4 years
units up about 40%
I note home ownerwhip...outright with no mortgage is around the 40% mark
choose a suburb that interest you and find out how it faired
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
then look at this one....in regional vic...how affordable is this....basically been stagnant...past 4 years....
home ownership is a whopping 47%....it must be the oldies staying put
big horse stud is moving there
not sure how much rain they had recently to break the drought....
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
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Here's an article that would make Robots happy..
http://www.news.com.au/couriermail/story/0,23739,26624513-5003402,00.html
Just a shame the "average" person won't be able to afford it.
Better open up the borders for some more foreign money to come in.
Yep, that never ending escalator just goes on and on. Just jump on for easy money. Life is easy. No excuse for being poor.
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Here's one for the bears
Tighter credit rules to halve home loans
With every politician in the world jumping on the box and saying the GFC is over how can this be? What are Westpac doing? Don't they watch TV or read The Age newspaper??? lol
The real question is will the other 3 banks follow?
Tighter credit rules to halve home loans
With every politician in the world jumping on the box and saying the GFC is over how can this be? What are Westpac doing? Don't they watch TV or read The Age newspaper??? lol
The real question is will the other 3 banks follow?
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Here's an article that would make Robots happy..
http://www.news.com.au/couriermail/story/0,23739,26624513-5003402,00.html
Just a shame the "average" person won't be able to afford it.
Better open up the borders for some more foreign money to come in.
There are opportunities for those willing to look. There are house and land packages in Melton (Melbourne) at the moment that are barely over $200k (with FHBG). 40mins from the city centre. If you can't afford that, then maybe it's time to look at your spending habits.
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From above linked article.
Gav, couldn't agree more if homeownership is a priority in your life.
Cheers
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87% is still too high. It should always be a 20% deposit. Can't afford that, then you can't afford the house
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Has anyone read the latest DHI report on housing affordability??
http://www.demographia.com/dhi.pdf
Where on earth do they get their median household income of $60,000 for Melbourne from? Does this imply that most households only have 1 person working? This seems like a strange figure to me, all the households I know have incomes > $100k.
Interesting report nevertheless and I guess it points to a few things:
1. Median house prices should be assessed against projected incomes as opposed to past incomes - i.e. places like Detroit will have declining incomes if (when) their industry goes broke - similarly Aussie incomes will rise if the China boom continues
2. Property does not track fundamentals of earnings well and goes further to prove the aussie house market has been inflated on the back of debt and not equity
3. Will we (or should we) end up in equilibrium - i.e. Chinese stop investing in Oz properties and start investing in US properties until they have pushed the level where there is comparability?
http://www.demographia.com/dhi.pdf
Where on earth do they get their median household income of $60,000 for Melbourne from? Does this imply that most households only have 1 person working? This seems like a strange figure to me, all the households I know have incomes > $100k.
Interesting report nevertheless and I guess it points to a few things:
1. Median house prices should be assessed against projected incomes as opposed to past incomes - i.e. places like Detroit will have declining incomes if (when) their industry goes broke - similarly Aussie incomes will rise if the China boom continues
2. Property does not track fundamentals of earnings well and goes further to prove the aussie house market has been inflated on the back of debt and not equity
3. Will we (or should we) end up in equilibrium - i.e. Chinese stop investing in Oz properties and start investing in US properties until they have pushed the level where there is comparability?
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When does REIV start their weekly auction results again?
It's been over 5 weeks since we've seen some auction results...........I'm starting to have withdrawals
cheers
It's been over 5 weeks since we've seen some auction results...........I'm starting to have withdrawals
cheers
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Of course my last comment gets back to where a few of us differ in our assumption that housing is homogenous. Also probably flawed in that foreign ownership is probably isn't a level playing field accross nations either. And then there is that issue of chinese currency not being floated....maybe a chinese yuan appreciation might trigger a recovery in US house prices as they become even cheaper for chinese investors??
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Mid Feb was when they started again last year.When does REIV start their weekly auction results again?
It's been over 5 weeks since we've seen some auction results...........I'm starting to have withdrawals
cheers
here is some history for the past 4 years....note the big spikes in some suburbs in 2007, before the GFC crisis of 2008.....note the FHB dried up after the stimulous was cut on Oct 2009......
the further out from the city you go....there may be no growth at all.....but here a 4 suburbs around Melb....take your pick....from 6% pa to 20% pa
6% growth...Melton...a way out suburb
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3337&email=&fsrName=&widget=true
and Nunawading averaged 10% + pa...notice the huge spike in 2007....still out on the fringe
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3131&email=&fsrName=&widget=true
Malvern almost 13% pa....an inner suburb
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3144&email=&fsrName=&widget=true
Armadale...next door to Malvern.....a whopping 20% pa growth....big spikes in 2007
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
the further out from the city you go....there may be no growth at all.....but here a 4 suburbs around Melb....take your pick....from 6% pa to 20% pa
6% growth...Melton...a way out suburb
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3337&email=&fsrName=&widget=true
and Nunawading averaged 10% + pa...notice the huge spike in 2007....still out on the fringe
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3131&email=&fsrName=&widget=true
Malvern almost 13% pa....an inner suburb
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3144&email=&fsrName=&widget=true
Armadale...next door to Malvern.....a whopping 20% pa growth....big spikes in 2007
http://www.myrp.com.au/viewFreeRepo...ir=&postcode=3143&email=&fsrName=&widget=true
Its not all rosy out there...there is trouble brewing .......rates will need to come back down....or stay put.....our pollies will not have learnt the lesson from 2008.....
Some hiccups on the China story...will emerge sooner rather than later....then the house of cards will come crashing down.....Australia is so reliant on China....they put all their eggs into this one basket....all the dreams of avoiding a recession are reliant on China alone....we have nothing else....
Dunn and Bradstreet report on the news today, says families are using their credit cards to buy food, and not paying off the cards......
The US have kept their rates on hold.....
Our govt and RBA continuing with the farce they played in 2008....when they kept hiking rates.....when every other country was cutting their rates.....
there is no need to spike the rates, when inflation has been kept on hold....
higher rates affect small business, and jobs.....
the banks are tightening their loan criteria for home loans, and they stopped lending to small business and developers a long time ago....
the govt is considering taxing the miners.....
Woollies sales figures showed the stimulous, then the failures...
the second wave of recession hit in Oct last year, but it takes a few months after the event before the world wakes up....
wakey wakey....its time to wake up
Some hiccups on the China story...will emerge sooner rather than later....then the house of cards will come crashing down.....Australia is so reliant on China....they put all their eggs into this one basket....all the dreams of avoiding a recession are reliant on China alone....we have nothing else....
Dunn and Bradstreet report on the news today, says families are using their credit cards to buy food, and not paying off the cards......
The US have kept their rates on hold.....
Our govt and RBA continuing with the farce they played in 2008....when they kept hiking rates.....when every other country was cutting their rates.....
there is no need to spike the rates, when inflation has been kept on hold....
higher rates affect small business, and jobs.....
the banks are tightening their loan criteria for home loans, and they stopped lending to small business and developers a long time ago....
the govt is considering taxing the miners.....
Woollies sales figures showed the stimulous, then the failures...
the second wave of recession hit in Oct last year, but it takes a few months after the event before the world wakes up....
wakey wakey....its time to wake up
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Why should they keep them low? If housing hadn't been allowed to become unfordable in the first place, a few interest point rises wouldn't be the problem. We still have historically low IR's. Inflation is on its way up because KRUDD spent to much money he didn't have. He also has created a subprime. People has knocked me for saying this but watch and see.
By protecting the people he did them a disservice, they went and borrowed more.
You still don't get it, households are over indebted. No more big TV's and new cars.
Why should my retired parents get crap returns on their term deposits so that the spec property investors can profit and families are forced out of the market.
Even with low interest rates, business lending has been declining over the last year.
Lets lower the IR's and be like America - rightly srewed.
While it seems unfair that the miners will be tax, thats what happens when you have reckless spending by govnuts.
IR's to the roof. Play the game, feel the pain. Nothing is free in life except the air we breath and that to might not be free soon.
Starting to see the bulls getting a little fearful. Welcome to GFC 11 coming to a town near you.
Cheers
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Watch it come crashing back to earth
cheers
cheers
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Nicely done:jump:
cheers
cheers
Bill M
Self Funded Retiree
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In the paper today, some snippets.
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SOARING Sydney property prices are killing off the great Australian dream. Latest real estate figures show the median house price in Australia's largest city has hit a record $600,000 and could reach $700,00o this year.
And there are predictions that house prices could rise another 20 per cent this year alone, which would push the median figure past $700,000.
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Full Story Here at This Link
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SOARING Sydney property prices are killing off the great Australian dream. Latest real estate figures show the median house price in Australia's largest city has hit a record $600,000 and could reach $700,00o this year.
And there are predictions that house prices could rise another 20 per cent this year alone, which would push the median figure past $700,000.
---------------------------
Full Story Here at This Link
