Julia
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Ah, as I imagined. Thank you, McLovin. The Esplanade at Balmoral was just gorgeous - pretty, convenient, and the sound of lapping water at night.
The future of Australian property prices
- Thread starter Joe Blow
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Agree with your first points. Now lets see....new professional family on median income in Epping. Gets a 1.1M house with 100K deposit. The P&I repayments on that is 1,237.96 a week at 5% for a 30 yr loan. Affordable?
Say you go with a median house with 100K deposit. The repayments on that is 990.37 a week.
This is with a 40 min commute to the CBD (thats at the best of times).
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You'll probably find that number quoted is median equivalised household income, not gross.
Something like this...
http://www.censusdata.abs.gov.au/ce...11/quickstat/SSC10829?opendocument&navpos=220
I did realise that but I don't see a problem since we are using medians everywhere else. Are the numbers you quoted net or gross?
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The problem seems to be using that median to determine housing affordability.
Equivalised income is weighted toward how many people are in the household. If there are 10 people in a household and only one works earning $1,400/week then equivalised household income for the household will be $140/week. That's why I'm not sure how you can reach an housing affordability conclusion based on the equivalised median income. I would have thought the gross number is far more useful. Maybe I'm missing something?
The problem seems to be using that median to determine housing affordability.
Equivalised income is weighted toward how many people are in the household. If there are 10 people in a household and only one works earning $1,400/week then equivalised household income for the household will be $140/week. That's why I'm not sure how you can reach an housing affordability conclusion based on the equivalised median income. I would have thought the gross number is far more useful. Maybe I'm missing something?
Sorry McLovin, I replied too soon without understanding your previous post. However my statement still stands. Even if you assume a gross income of $2,428-$3,049 a week, the repayments on the 1.1M property are still 50-40% of income. This is classified as mortgage stress if I am not mistaken.
I am happy to use gross income as well but with the understanding that it is gross income and that you have account for the disposable aspect of it (namely remove the tax component etc).
I agree with your point about stats but unfortunately that's the way the dice rolls
. These are the universally used stats and while each has their own biases atleast everyone has the same understanding of them. Ideally you should look at distributions.Edit: Corrected net to gross in second sentence.
Julia
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I understand the principle of considering incomes etc to determine affordability, but perhaps there's another factor not being considered. (Here, I'm again only going from what my cousin has told me, but she is usually pretty thorough in her research.)
She says there is much purchasing of property in Epping by affluent Chinese investors and that they have bought up a lot of residential property there.
She says there is much purchasing of property in Epping by affluent Chinese investors and that they have bought up a lot of residential property there.
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The foreign investment boom can be chalked up as another Rudd failure..
Let's just hope the dollar stuffs em.
MW
Let's just hope the dollar stuffs em.
MW
How so?
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Post GFC, Rudd relaxed foreign ownership rules and they have been further relaxed recently.
In the area I live, prices are booming, most of the buyers are of Indian or Asian descent.
Fair enough.
In the area I live, prices are booming, most of the buyers are of Indian or Asian descent.
Does not make them foreigners
. While I believe that foreign ownership is a contributing factor, I find it hard to believe that it is having such a large impact as people have mentioned.
However if it is true then I hope the rest of the country does not follow the Gold Coast......
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Fair enough.
Does not make them foreigners
While I believe that foreign ownership is a contributing factor, I find it hard to believe that it is having such a large impact as people have mentioned.
However if it is true then I hope the rest of the country does not follow the Gold Coast......
No it doesn't worry me at all, it may worry my kids, but it doesn't worry me.
I hope it all works out for complacent Aussies, because I see agressive buying by overseas buyers in my area.lol
I will take great interest, in where all the current pollies, end up living lol
And by overseas buyers do you mean non-Australian residents or non-caucasians? This is a very important differentiation that people fail to make. In a lot of cases it might be parents who live overseas just helping kids out with deposits etc.
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Julia im curious how is this property that different then your cousins one?
http://www.realestateview.com.au/Real-Estate/hillside-crescent-epping/Property-Details-sold-residential-4773215.html
If this one is a 4bedroom on a 1200sqm block in epping and sold for 930k how does your cousin calculate 1.6m for hers?
http://www.realestateview.com.au/Real-Estate/hillside-crescent-epping/Property-Details-sold-residential-4773215.html
If this one is a 4bedroom on a 1200sqm block in epping and sold for 930k how does your cousin calculate 1.6m for hers?
Julia
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I have no idea. I'm in Qld and have only been to her home once, about five years ago. I had only a cursory impression of the area which I thought was very pleasant - big trees, lovely old homes (if you like that style) and very close to the station.
I don't know the relative location of the property you quote above so perhaps that's a factor. eg I live in a particular suburb but there are two very different parts of that suburb, one attractive and more expensive and the other, pretty awful.
Just having a look at the actual house you put up, it doesn't have that Federation style character which I know many people like and which is exemplified in my cousin's place. It's just a house, without imo much style or character.
Personally I wouldn't go for either - much prefer something more modern and less labour intensive.
Btw I'm not at all suggesting her $1.6M is realistic. I have no idea. That's why I asked for views from others, as it struck me just from what I can see on realestate.com that her expectations might be on the high side.
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I see, thats a very good point about bad side of tracks and good one, I know exactly what you mean. Very curious to see how far off or over she will get from her expectation.
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Someone buying that house is probably thinking of spending 200-300k rennovating it. Julia's cousin's house looks like you could move straight in.
$1.6m is pretty unrealistic as has already been discussed but that house you linked to looks like it needs a fair bit of work. Even the kitchen looks like the set of Kingswood Country, with a couple of new appliances. And I'll go out on a limb and say that the fact there is no photo of the bathrooms is quite telling
Julia
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I actually had a similar thought re my cousin's advertising not showing other than the main bedroom and bathroom.And I'll go out on a limb and say that the fact there is no photo of the bathrooms is quite telling
I recall when she showed us through, we weren't taken to see the other three bedrooms or bathroom.
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Now that interest rates are at all time lows, the alarm bells must be ringing.
House prices are moving up again, from an unsustainable level before.lol
The RBA must feel their gonads are in a vice.lol
I hear Paul Keating in the background saying " this is the recession we have to have"
House prices are moving up again, from an unsustainable level before.lol
The RBA must feel their gonads are in a vice.lol
I hear Paul Keating in the background saying " this is the recession we have to have"
Hi everyone I am very interested in buying real estate in the near future .
I am 19 years old with no debt or liabilities(besides a gym membership )
i currently have 3k saved and a small amount in stocks ( just bought DYL at 58 should of waited i know) I have been looking at land at various suburbs for around 20k-30k .
My question is at my age would you continue to save for an investment and incur passive income
or take out a personal loan for a block of land and wait for capital , i do realise i will have to pay rates and etc but atm i belive this will be good debt .
I appreciate everyones advice on the subject as i know alot of people on this forum have been around the block a few times
. my long term goal is to have a positive geared investment by 21
thank you all kingpin
I am 19 years old with no debt or liabilities(besides a gym membership )
i currently have 3k saved and a small amount in stocks ( just bought DYL at 58 should of waited i know) I have been looking at land at various suburbs for around 20k-30k .
My question is at my age would you continue to save for an investment and incur passive income
or take out a personal loan for a block of land and wait for capital , i do realise i will have to pay rates and etc but atm i belive this will be good debt .
I appreciate everyones advice on the subject as i know alot of people on this forum have been around the block a few times
. my long term goal is to have a positive geared investment by 21
thank you all kingpin
