Arcticle - House Prices to Rise by 40%
Mar 28th 2008, 6:15 am
#16
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Re: Arcticle - House Prices to Rise by 40%
I think there are various arguments around affordability which are generally oversimplified i.e. its easy to look at the average cost of housing and compare that to average wage levels and call it an affordability crisis. Thats not to say that it isn't a problem but more that is doesn't take account of all the factors.
It ignores for example that there is a significant proportion of the population who have minimal or zero mortgages who actually benefit from interest rate rises. It also ignores the dynamics of Austrlaian population growth which has a high proportion of skilled, better off workers.
Of course it isn't as simple as that but what is?
It ignores for example that there is a significant proportion of the population who have minimal or zero mortgages who actually benefit from interest rate rises. It also ignores the dynamics of Austrlaian population growth which has a high proportion of skilled, better off workers.
Of course it isn't as simple as that but what is?
Only 1/3 of the workforce has a mortgage. I do not have one and IR rises are good news to me.
Mar 28th 2008, 6:20 am
#17
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Re: Arcticle - House Prices to Rise by 40%
Anyone care to comment/prove/disprove/tell Buzzy to stop talking crap.
Buzzy
Mar 28th 2008, 6:24 am
#18
Lost in BE Cyberspace
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Re: Arcticle - House Prices to Rise by 40%
But it's also, in *real* terms, a depreciating asset: deterioration, maintenance etc which, in anything else would bring the value down year on year, are not factored in.
Food, energy water and housing are all necessities and it's only the relative shortfall of housing and land that makes it an asset, if you think about it a bit more deeply.
That's not to say that you are wrong given the mindset and facts of shortage, but I reckon Renth is correct in his comment all the same.
Mar 28th 2008, 6:26 am
#19
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Re: Arcticle - House Prices to Rise by 40%
*ankers used to be thought of as responsible!
Mar 28th 2008, 7:32 am
#20
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Re: Arcticle - House Prices to Rise by 40%
Bit of a circular argument. Property is an asset partly because we believe it's an asset.
But it's also, in *real* terms, a depreciating asset: deterioration, maintenance etc which, in anything else would bring the value down year on year, are not factored in.
Food, energy water and housing are all necessities and it's only the relative shortfall of housing and land that makes it an asset, if you think about it a bit more deeply.
That's not to say that you are wrong given the mindset and facts of shortage, but I reckon Renth is correct in his comment all the same.
But it's also, in *real* terms, a depreciating asset: deterioration, maintenance etc which, in anything else would bring the value down year on year, are not factored in.
Food, energy water and housing are all necessities and it's only the relative shortfall of housing and land that makes it an asset, if you think about it a bit more deeply.
That's not to say that you are wrong given the mindset and facts of shortage, but I reckon Renth is correct in his comment all the same.
Mar 28th 2008, 7:36 am
#21
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Re: Arcticle - House Prices to Rise by 40%
So, you could get 2 people with identical incomes looking to buy an identical house with an identical deposit. One can be approved and one can be turned down due to their liabilities.
Mar 28th 2008, 10:03 am
#22
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Re: Arcticle - House Prices to Rise by 40%
Bit of a circular argument. Property is an asset partly because we believe it's an asset.
But it's also, in *real* terms, a depreciating asset: deterioration, maintenance etc which, in anything else would bring the value down year on year, are not factored in.
Food, energy water and housing are all necessities and it's only the relative shortfall of housing and land that makes it an asset, if you think about it a bit more deeply.
That's not to say that you are wrong given the mindset and facts of shortage, but I reckon Renth is correct in his comment all the same.
But it's also, in *real* terms, a depreciating asset: deterioration, maintenance etc which, in anything else would bring the value down year on year, are not factored in.
Food, energy water and housing are all necessities and it's only the relative shortfall of housing and land that makes it an asset, if you think about it a bit more deeply.
That's not to say that you are wrong given the mindset and facts of shortage, but I reckon Renth is correct in his comment all the same.
A depreciating asset is - by definition - one which loses value over time. Not sure if that applies to property.
Mar 28th 2008, 10:08 am
#23
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Re: Arcticle - House Prices to Rise by 40%
Mar 28th 2008, 10:13 am
#24
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Re: Arcticle - House Prices to Rise by 40%
Unless of course you are utilising the thing to generate income
Mar 28th 2008, 10:43 am
#25
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Re: Arcticle - House Prices to Rise by 40%
Mar 28th 2008, 12:12 pm
#27
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Re: Arcticle - House Prices to Rise by 40%
The house depreciates in value however the land in theory appreciates in value that's why its always better to buy a house than a unit.
Mar 28th 2008, 1:44 pm
#28
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Posts: 178
Re: Arcticle - House Prices to Rise by 40%
I just spotted this article, so thought I'd post it. Any thoughts?
http://news.ninemsn.com.au/article.aspx?id=59380
Something to think about anyway.
We're probably looking at selling our house in 2 years time so I keep wondering whether the price is likely to rise or fall. We only bought it last August so the a price fall would actually mean we lose money.
http://news.ninemsn.com.au/article.aspx?id=59380
Something to think about anyway.
We're probably looking at selling our house in 2 years time so I keep wondering whether the price is likely to rise or fall. We only bought it last August so the a price fall would actually mean we lose money.
Mar 28th 2008, 2:01 pm
#29
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Re: Arcticle - House Prices to Rise by 40%
Wasn't it Winston Churchill who proposed a land tax in place of income tax because of the idea that appreciating land values are a disproportionate source of wealth/latent income.
Mar 28th 2008, 7:45 pm
#30
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Re: Arcticle - House Prices to Rise by 40%
I'd keep it simple and say that over the long run/even possibly a cycle, any property would generally be an asset.