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Re: Bank Warning on Australian Property Price Bubble
I guess the issue is that, if you know you are going to be in that home for 10+ years, it is worth the risk but what if you are not sure? It is a huge risk & having been burned in London in the early 90's, I'm not too willing to take that risk just yet. I doubt if I am the only one that feels like that!
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by hollykimalan
(Post 8783753)
I try to explain we had a $570,000 house in the UK and we sold it for the equivalent of $370,000. That would never happen here they say!
I love the Australian optimism- genuinely I do. HIS |
Re: Bank Warning on Australian Property Price Bubble
Originally Posted by littda01
(Post 8787053)
At some point, Australian banks are going to find money a bit tougher to come by, take a hard look at their balance sheets and decide they're overexposed to property. The game will stop at that point.
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by Weebie
(Post 8784627)
The mentality here is so much more intense than Britain. I personally know someone who fasttracked his marriage with soem girl he met just so he could enter the property market.
Prices may drop but there iwll be no buble. ALso the salaries are mich higher than England and the cities are big as it is. |
Re: Bank Warning on Australian Property Price Bubble
Originally Posted by Weebie
(Post 8784623)
I agree,
The slightest fall will push loads of buyers into the market. If you can't afford now you probably never will. |
Re: Bank Warning on Australian Property Price Bubble
Originally Posted by renth
(Post 8787062)
True, however I think the banks know they are overexposed to property and are trying to keep the plates spinning for as long as possible because the alternative is insolvency, or more likely a trip to the govt. for bailout money.
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by ABCDiamond
(Post 8786883)
Can you calculate, using your figures, the following:
20 year old paying rent of $300 pw rising at 2.5% each year, for 50 years compared to 20 year old paying mortgage of $600 pw average for 25 years. The one main advantage I see, is no rent or mortgage payments from age 50 for me :thumbsup: |
Re: Bank Warning on Australian Property Price Bubble
Originally Posted by the troubadour
(Post 8787068)
And who exactly will be buying in the future then??
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by Weebie
(Post 8787107)
There is so much money in this country there will always be buyers.
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by gumtree
(Post 8787105)
To make it simple, loss if no increase in house value (capital gain) and vice versa. As rent is a reflection of house value, you are already assuming there is a capital gain with rent rising at 2.5% each year.
If I was renting then I would have another $1+ million dollars to pay rent over the rest of my life. Now I'm no genius but I think I know which represents best value. Buying 2nd homes as investment is another animal altogether. The only thing I'm considering at the moment is maybe buying one for my children and getting somebody else to pay the mortgage for the next 20 years for me. |
Re: Bank Warning on Australian Property Price Bubble
I wouldn't be surpised if in Perth all the houses are owned by half the population. People here have money and they like to invest. Many families Ithough have 5-10 houses each. That's the difference between the UK and Ireland.
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by Weebie
(Post 8787131)
I wouldn't be surpised if in Perth all the houses are owned by half the population. People here have money and they like to invest. Many families Ithough have 5-10 houses each. That's the difference between the UK and Ireland.
Not healthy for anyone in the end. |
Re: Bank Warning on Australian Property Price Bubble
Originally Posted by the troubadour
(Post 8787025)
Indeed many suggested this line. But do folk really still believe that after such enormous housing inflation of the past several years that this is going to happen.
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Re: Bank Warning on Australian Property Price Bubble
Money funding mortgages is coming from overseas.
Originally Posted by Weebie
(Post 8787107)
There is so much money in this country there will always be buyers.
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Re: Bank Warning on Australian Property Price Bubble
Originally Posted by the troubadour
(Post 8787066)
Compared to London and parts of the South wages are not that high in Australia. Remember house prices in a lot of the regions are lower than Australian cities,which continue ti have some of the most inflated housing prices in the world.
I'd say it's the other way around here that helps support house prices. Wages here on average across the whole of Oz are a lot higher than UK, with less swinging differences between ultra rich and ultra poor, and it's not all concentrated in one place like it is with London. |
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