Bubble? House Prices Increases from Debt and Investors
#1
Lifestyle Development
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Joined: May 2007
Location: Budapest, Melbourne, Yarrawonga & Antalya
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Bubble? House Prices Increases from Debt and Investors
House Prices Increases from Debt and Investors.... Average buyers can't compete with rich, tax-subsidised investors. SYDNEY'S Sunday Telegraph was breathless with joy. ''IT'LL BE WORTH DOUBLE'', its headline screamed..... But it won't happen. Melbourne house prices have trebled since 1997, not because our incomes trebled, but because we paid those prices by a massive increase in debt. In the 20 years to January 2010, household debt to the banks grew 10 times over........
#3
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Re: Bubble? House Prices Increases from Debt and Investors
The average mortgage hasn't increased by 10 times.
eg:
NSW
Jan-Dec 1992 there were 20,709 mortgages issued at an average of $91,755 each
Jan-Dec 2009 there were 60,618 mortgages issued at an average of $292,734 each.
Source: Australia Bureau of Statistics 5609.0 Housing Finance Table 9b. Original.
Jan-Dec 1992 there were 20,709 mortgages issued at an average of $91,755 each
Jan-Dec 2009 there were 60,618 mortgages issued at an average of $292,734 each.
Source: Australia Bureau of Statistics 5609.0 Housing Finance Table 9b. Original.
1990 Average House Price $110,600
2010 Average House Price $481,310 up 335.2%
1990 Average Monthly Mortgage Repayment $1,234
2010 Average Monthly Mortgage Repayment $2,124 up 72.1%
1990 Average Household Monthly income $3,587
2010 Average Household Monthly income $7,324 up 104.1%
Source: Suncorp (the source of this was asked, and supplied, on an earlier thread)