Housing bubble in Australia
#544
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
In 2009, they sell their house for $650,000 meaning they have $200,000 in their pocket.
They now look to buy a house in Sydney's North shore for $1,000,000 and the bank requires a deposit of 12.5% or $125,000.
Still Confused??
They have gone from a $500,000 house to a $1,000,000 house in 4 years by doing nothing. The only problem here is that they now have to furnish a mortgage of $875,000 instead of $450,000. NEARLY DOUBLE.!
You can bet that unless they are very lucky, their wages haven't doubled in that 4 years. So that is where I get my "up to their eyeballs in debt from"
Last edited by swigski; Feb 22nd 2010 at 9:33 am. Reason: a
#545
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
You believe what you see.
Would you believe what someone else sees ?
Would you believe government records of sales ?
Are you prepared to say that you may not see the entire picture ?
I prefer to believe in the ABS data, and not RP Data, and, from what I have seen myself in Sydney, house prices have stayed pretty constant since 2003.
However... that is not to say that some areas haven't changed.
I do actually tend to agree with RP Data, and others, on the point that recent house price to income ratio hasnt really changed much, on average.
Would you believe what someone else sees ?
Would you believe government records of sales ?
Are you prepared to say that you may not see the entire picture ?
I prefer to believe in the ABS data, and not RP Data, and, from what I have seen myself in Sydney, house prices have stayed pretty constant since 2003.
However... that is not to say that some areas haven't changed.
I do actually tend to agree with RP Data, and others, on the point that recent house price to income ratio hasnt really changed much, on average.
I would believe the government record of sales if they appeared to be in line with what I see property selling for!
I would be prepared to say that I MAY not see the entire picture. The big question is WOULD YOU??
You believe in whatever you like if it makes you happy.
#546
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
From the RBA figures, Dec 2004 to Dec 2009:
Owner occupied Housing lending rose by 77.9%
Investor owned housing lending rose by 49.1%
These increases are a combination of higher prices, and higher numbers of property sales ?.
Without having the actual numbers we cannot see what it actually means.
ABS figures show that average housing prices, have risen by 25% in those 5 years.
Does this mean that more people have switched from renting to buying ?
Or what does it mean ?
Owner occupied Housing lending rose by 77.9%
Investor owned housing lending rose by 49.1%
These increases are a combination of higher prices, and higher numbers of property sales ?.
Without having the actual numbers we cannot see what it actually means.
ABS figures show that average housing prices, have risen by 25% in those 5 years.
Does this mean that more people have switched from renting to buying ?
Or what does it mean ?
Last edited by swigski; Feb 22nd 2010 at 9:27 am. Reason: r
#550
Guest
Posts: n/a
Re: Housing bubble in Australia
OUTER Melbourne's surging house prices are at risk of a correction, mirroring the boom-and-bust scenario that hit Sydney's outlying suburbs between 2003 and 2005.
#551
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
That's the one that says this isn't it:
and this is a graph of the boom-and-bust scenario that hit Sydney's outlying suburbs... Note the drop in 2003-2005...
http://images.smh.com.au/2010/02/20/...1%5D-420x0.jpg
and this is a graph of the boom-and-bust scenario that hit Sydney's outlying suburbs... Note the drop in 2003-2005...
http://images.smh.com.au/2010/02/20/...1%5D-420x0.jpg
A 20% drop for apartments. AGAIN, quite significant when your apartment is only worth $250k.
Last edited by swigski; Feb 22nd 2010 at 11:41 am. Reason: a
#552
Re: Housing bubble in Australia
ABC news tonight showed a young girl who has been saving for 5 months! but still finds it hard to get into the house market. Wow. Life in AUS is really tough, unbelievable
#553
Re: Housing bubble in Australia
I've no doubt that affordability and property prices make it tough now, but would it kill some of the younger generation to wake the heck up and realise you do not move into a 3/4 bedroom home with a plasma, aircon and all nicely furnished. Buying your first property is economically a tough thing to do. Its not changed.
But the expectations have. Some people need a reality check and wake up to the fact the media representation of modern life is an advertisement, not a birth right.
#554
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
Some info on RP Data.
Established in 1991 in Australia and New Zealand, RP Data has grown to become the largest property and analytics information business in the southern hemisphere today.
Used by thousands of corporations and consumers seeking property information, RP Data is proud to boast the Reserve Bank of Australia as one of our key customers along with many multi-national corporations, financial institutions, real estate professionals, developers, investors and more recently, the broader consumer market through our user-friendly consumer brand – myrpdata.com
Our key value to our clients lies in the delivery of vast and accurate property information and analytics.
Our Data Team continuously collects and manages property based data and imagery from over 25 disparate sources including government agencies, industry professionals, proprietary relationships as well as RP generated data. The Data Team transforms this inconsistent and complex data into relevant and actionable information and analytics to assist people make the most confident property related decisions.
RP Data spends more money collecting and converting data than any other provider in Australia. Data collection methods are increasingly more advanced and RP Data is at the forefront of these methodologies. All information from RP Data is subject to rigorous quality assurance procedures, resulting in the most reliable and comprehensive residential and commercial property data available.
Our innovative analysis and reporting tools are used by numerous industry bodies while government authorities use our very own indices in forecasting and policy making.
I really can't see any reason why ABC would not want to believe the figures provided by RP DATA after reading the above. The RBA use their statistics and also the government in their policy making but obviously this is not good enough!!
Established in 1991 in Australia and New Zealand, RP Data has grown to become the largest property and analytics information business in the southern hemisphere today.
Used by thousands of corporations and consumers seeking property information, RP Data is proud to boast the Reserve Bank of Australia as one of our key customers along with many multi-national corporations, financial institutions, real estate professionals, developers, investors and more recently, the broader consumer market through our user-friendly consumer brand – myrpdata.com
Our key value to our clients lies in the delivery of vast and accurate property information and analytics.
Our Data Team continuously collects and manages property based data and imagery from over 25 disparate sources including government agencies, industry professionals, proprietary relationships as well as RP generated data. The Data Team transforms this inconsistent and complex data into relevant and actionable information and analytics to assist people make the most confident property related decisions.
RP Data spends more money collecting and converting data than any other provider in Australia. Data collection methods are increasingly more advanced and RP Data is at the forefront of these methodologies. All information from RP Data is subject to rigorous quality assurance procedures, resulting in the most reliable and comprehensive residential and commercial property data available.
Our innovative analysis and reporting tools are used by numerous industry bodies while government authorities use our very own indices in forecasting and policy making.
I really can't see any reason why ABC would not want to believe the figures provided by RP DATA after reading the above. The RBA use their statistics and also the government in their policy making but obviously this is not good enough!!
#555
Re: Housing bubble in Australia
"INQUIRIES for 100 per cent home loans have surged 250 per cent since the Federal Government's more generous first home owners grant ceased at the end of last year."
"Unfortunately, a lot of people have lost the knack of saving money, which makes it difficult if you want to find the finance to get into the residential property market at the moment"