Geelong Gent

2007 384000 45,000 9
2042 12288000 248,221 50


Properties increase in value on average every 7 years

So on that basis taking a base of 2007

Property = $384k with a average income of $45k meaning its only 9 times income to price ratio

Property in 2042 would then having doubled 5 times would be worth $12.3 million with your income increasing 5% per year ie $248k, 50 times income to price ratio

Do people feel a better than 5% average increase rate in their pay packet

ABCDiamond

It depends if you are buying or selling.

I'd personally like to see the prices go back to 2003 levels, but we don't always get what we want.

ABCDiamond

The council rates etc do not rise at the same rate as valuations.

eg: My valuation in 2003 was $82,000 with quarterly general rates of $173

In 2009 the valuation is now $180,000, an increase of 120%.

The general rates are now $229 per quarter, a rise of 32%, or 4.8% per year over the last 6 years.

The valuations are only used to 'apportion' the total rates required for the year, not to calculate the total rates required.

fish.01

Go to each quarter on the ABS site (you can look at historical figures) and it will tell you the final adjusted percentage for the "previous" quarter in the text at the bottom. You'll also notice they match the graph on the current figures page.

fish.01

I don't think many home owners feel fast rises house prices are good as they know they just have to buy into the same market and have larger mortgages. I suspect home investors would be a lot happier though.

If house prices are rising though most home owners would like their suburb to rise faster than others

fish.01

A lot of people's wealth comes through the passage of time. Inflation increases income while mortgage drops. One day they wake up to find they have a very small mortgage in todays terms on a valuable property. The small mortgage in comparison to income eases the month end disposable income issue.

balkanghost

Interesting, real estate industry in the media have been basing a lot of mooted house price increase on huge population growth and migration. Think most here are aware that they included temporaries i.e. stay minimum 12/16 months, e.g. WHV backpackers, international students, and temporary 457s, plus there has been suspension of skilled independent migration processing as announced in September (which was missed by the media while focussed upon boat people).

Melbourne (where over 50% of Indian students study), and think lesser extent Sydney, are going to have significant issues in medium term as there has been a huge drop off in student enquiries and enrolments from India (over 50%), plus more difficult visa requirements affecting China also (and related AL3/4 high risk student markets). And more restrictive study to PR conditions in 2010, if allowed at all....

The population growth figures included a massive spike in international students amongst whom word of mouth offshore in 2008, told them that visa changes were anticipated. This translated into many getting into Oz asap with understanding that better chance of outcomes, or at least bridging visas, if already onshore start of 2009...

IN 2009 fees have increased a lot due to increased AUD..... plus negative publicity re. student bashings etc.

Accordingly, should be less demand for rental, and purchase of properties for investment to rent to students etc.., and I imagine more properties coming onto the market....

Also, I would not be surprised in medium term, detached housing will be more expensive due to environmental taxes per sqm, charges to pay for new suburban infrastructure etc., not to mention apartment developers playing funny buggers with their figures..... e.g. claiming complex all sold when half empty.... no independent sales allowed etc.

Alfresco

I voted rise by 0-10% although I hope they drop by 50% by this time next year as that's when we're coming over there.

But that ain't gonna happen.

Vash the Stampede

I know nothing about the market, so I won't be making any predictions.

All I know is that I received a professional valuation of my house this month and learned that its value has increased by $35,000 in the past 3 years.

Broad Shoulders

Mine went up $120k in the last 4 years

iamthecreaturefromuranus

At the peak of the UK housing boom mine was going up a thousand pounds a week !!!!!!

Vicky88

But is that $120k of a starting price of $120k or is on a $2m house as the starting price can reflect a significant difference. What area are you living in and did it come from a low starting point 4 years ago?

Vash the Stampede

So, can we conclude that Australian house prices are rising?

ABCDiamond

I thought I heard someone say they had dropped.....

Vash the Stampede

The direction of Australian house prices is always determined by the answer you received from the last person you asked.