Australian (ASX) Stock Market Forum

You know OZ is nuts when for or $200K.....

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robots said:
hello,

aus has just caught up with the global economy and you are dreaming if you think it is going to go bust
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"...prices have reached what looks like a permanently high plateau."
-Irving Fisher (october 1929)
 
robots said:
aus has just caught up with the global economy and you are dreaming if you think it is going to go bust
Click to expand...

I just love this chart. Are Japan and the US part of the global economy? hehe
 

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Sydney RE prices are expensive because enough of the world's wealthy and leisurely have discovered they can work and play by the world's most spectacular harbour and still shop in New York. The rest of Oz flows out from there.
 
Smurf1976 said:
According to a recent study by Demographia, even Adelaide and Hobart are more expensive than most US cities after adjusting for wages.

Fair enough for Sydney maybe, but Adelaide and Hobart? Australian property is way overpriced and this will at some point end in my opinion. :2twocents
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So do I get this 'inter-market' analysis right? The US housing market is supposed to be waaay overpriced (see bearish articles elsewhere on ASF) and due for a fall, so a loong way down to go, BUT if they are so much cheaper atm than Australia then we can only imagine how much further our property market has to fall.....but it can't be that bad, what are we missing here? Are we only looking at select properties in the US? Are we comparing apples with oranges? How do we quantify this??
 
RichKid said:
So do I get this 'inter-market' analysis right? The US housing market is supposed to be waaay overpriced (see bearish articles elsewhere on ASF) and due for a fall, so a loong way down to go, BUT if they are so much cheaper atm than Australia then we can only imagine how much further our property market has to fall.....but it can't be that bad, what are we missing here? Are we only looking at select properties in the US? Are we comparing apples with oranges? How do we quantify this??
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http://www.demographia.com

Is where the analysis is done comparing house prices and average household income. Australia has the most severe unaffordability across the board according to this measure (the data is probably 12 months old by now)...

Sydney is more unaffordable than New York and London
Adelaide is more unaffordable than Boston and Toronto

I think US is reacting stronger to their housing market at the moment because;

1) They have just reached the peak and everyone is expecting the crash
2) In general I believe their development policies are much more relaxed than Australia so in the event of a boom, developers build more capacity at a rapid rate while prices are high which then leads to oversupply...
3) Australia's develpment is much more restricted (in a sense artificially restricting supply... state land release policies etc) desptie high prices

The above is only my anecdotal evidence

I think Aus will be feeling the effects of the boom for many many years to come and we are no where near then end.... remember at the top of the boom most people are homeowners and in general happy with their new found wealth - its only over time while these high prices continue and people move into the house market at 90% lend do the negative effects start to get realised.

The average debt to asset ratio across Australia has continued skyward since 2003 despite house prices (except in WA) going nowhere

TJ

Ohh and I found another good one on rea.com.au in Geraldton. This add is bragging about a place renting for $240pw with a long term tennant. How much do they want for it.......wait for it........ 328k :eek: why would someone pay for something that is so negatively geared in a country town..... oh thats right I forgot - because of the capital gain.... :p:

http://www.realestate.com.au/cgi-bi...header=&c=94637782&s=wa&snf=rbs&tm=1161050537
 
Check out what you can get in Houton Texas for 325K

http://search.har.com/engine/doSear...eymap=&keymap2=&keymap3=&newsearch=1&offset=1

eg this waterfront
1649487-1.jpg


WTF?
 
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