Go Back  British Expats > Living & Moving Abroad > Australia
Reload this Page >

Beware the imminent housing bubble

Beware the imminent housing bubble

Old Feb 15th 2011, 11:33 pm
  #61  
Lost in BE Cyberspace
 
fish.01's Avatar
 
Joined: Dec 2008
Posts: 6,039
fish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond reputefish.01 has a reputation beyond repute
Default Re: Beware the imminent housing bubble

Originally Posted by bcworld
That's a bit different though, historically that's just provided a ratio that allows markets & periods in time to be compared...it definitely tells us something.
I agree as one base statistic used with others (like average mortgage), but it is often used in examples in an inappropriate way. As if it is normal in a housing market for Joe Bloggs on an average wage with no equity to be able to afford an average house.

Last edited by fish.01; Feb 15th 2011 at 11:35 pm.
fish.01 is offline  
Old Feb 15th 2011, 11:41 pm
  #62  
BE Forum Addict
 
Joined: Mar 2009
Posts: 1,412
Steve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to behold
Default Re: Beware the imminent housing bubble

Originally Posted by fish.01
I agree as one base statistic used with others (like average mortgage), but it is often used in examples in an inappropriate way. As if it is normal in a housing market for Joe Bloggs on an average wage with no equity to be able to afford an average house.
Yes, to extrapolate and suggest that this multiple should be 3 or 4 based on prudent lending criteria would be false. It is a mistake that is sometimes made. There was a discussion on this point here recently.
Steve2009 is offline  
Old Feb 15th 2011, 11:57 pm
  #63  
Fighting my corner
 
Vash the Stampede's Avatar
 
Joined: Aug 2005
Location: Adelaide, South Australia
Posts: 11,948
Vash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond reputeVash the Stampede has a reputation beyond repute
Smile Re: Beware the imminent housing bubble

Originally Posted by Steve2009
Interest only is not the only circumstance under which you pay interest.
Sure, but in those other circumstances you're also paying principle. So why did you only mention interest?

They're completely different situations. That is more akin to saving and is certainly preferable to carrying massive debt. Whether it beats renting is subjective.
Of course they're completely different situations. That's my point. Hell, even paying off a mortgage in 25 years is akin to saving and preferable to carrying massive debt, because at a certain point your debt is no longer massive, and when it's paid off you have something to show for it.

When I die, I want my will to include a house, not a phone number for my landlord.

Who pours vitriol on who?
Certain renters pour vitriol on people with mortgages. Oh, they do it in a subtle way (e.g. threads like this one), but the animosity is there. I never thought I'd meet anyone who was envious of my modest lifestyle, yet it seems they do exist.

Who has not revealed their own situation?
There's a few here who have been coy about their current position. I don't even know what yours situation. Do you have a house? Do you have a mortgage? Do you own any property at all? Have you ever owned property?

I think you may be missing a few dots. These straw men arguments based on false assumptions are poor debate.
No they're not. If you look at the massive "property bubble" thread, you'll see plenty of evidence to support my view. It's replete with people who are currently renting because they can't afford a house, and openly praying for a property market meltdown in the hope that they'll eventually be able to get on the ladder.

Meanwhile, they talk up the benefits of renting (and yes, there are plenty of benefits to renting), while insinuating that they can't wait to see people losing their homes when the bubble bursts.
Vash the Stampede is offline  
Old Feb 16th 2011, 12:03 am
  #64  
BE Forum Addict
 
Joined: Mar 2009
Posts: 1,412
Steve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to beholdSteve2009 is a splendid one to behold
Default Re: Beware the imminent housing bubble

Originally Posted by Vash the Stampede
Sure, but in those other circumstances you're also paying principle. So why did you only mention interest?
Because the capital repayment is separate to the interest.
Originally Posted by Vash the Stampede
When I die, I want my will to include a house, not a phone number for my landlord.
There are other investments.
Originally Posted by Vash the Stampede
Certain renters pour vitriol on people with mortgages. Oh, they do it in a subtle way (e.g. threads like this one), but the animosity is there. I never thought I'd meet anyone who was envious of my lifestyle, yet it seems they do exist.
You're very sensitive. Why do you assume that people are envious? Could there be other motivations for threads like these?
Originally Posted by Vash the Stampede
There's a few here who have been coy about their current position. I don't even know what yours situation. Do you have a house? Do you have a mortgage? Do you own any property at all? Have you ever owned property?
I've never owned residential property, I do have an interest in blue chip commercial property but that's about all I have to say on that.
Steve2009 is offline  
Old Feb 16th 2011, 1:25 am
  #65  
Proudly Deplorable
 
Amazulu's Avatar
 
Joined: May 2003
Location: Alloha snack bar
Posts: 24,246
Amazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond reputeAmazulu has a reputation beyond repute
Default Re: Beware the imminent housing bubble

Originally Posted by Steve2009
I've never owned residential property, I do have an interest in blue chip commercial property but that's about all I have to say on that.
I nearly bought a chip shop, only that the chips were golden brown and not blue - does that count?
Amazulu is offline  

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Contact Us - Archive - Advertising - Cookie Policy - Privacy Statement - Terms of Service -

Copyright © 2024 MH Sub I, LLC dba Internet Brands. All rights reserved. Use of this site indicates your consent to the Terms of Use.