Catch

" slavebox " i like that

the plumber

You won't need super .........if you become unemployed , swan has just struck a deal with the 4 major banks to defer mortgage payments.... at the moment for the first 12mths....but if things do deteriorate then yes theres always super. .

so most people covered what ever.......unlike the uk.

plumb.....

sj oldfield

Yeah but negative equity will only effect you if you intend selling within a couple of years..............for those that are looking at getting their first place to settle down its the best time.
Trouble is nowadays everyone wants to buy a house then make big bucks on it within a short period of time.
I can quite clearly remember when hous prices crashed in the UK in 1991/1992.

Didnt bother me in the slightest..............I had a 40,000 (GBP) loan and the property was suddenly valued at 28,000(GBP)
I just stayed where I was!!

Tooterelli

The difference this time is that house prices are completely out of control now. They have never been so expensive in comparison to wages; that is what the problem is.

Tooterelli

Say $250,000 very slowly and just think about it. That is a lot of money....and YES I DO EXPECT THAT TO DROP MUCH FURTHER. Infact I expect it to drop to 3 x average salary level (which we no doubt will be quoted soon)

You told us recently (in between all the reams of quoting statistics and figures etc etc) that you have property in Sydney...but sorry ABCwhatever the only way is DOWN.

brendarover

Thats just it; $250,000, what can you get for that, Nowt? Yet $50,000 i bet i the average wage in say Queensland, so 5 times $50,000 and guess what you get?

Lets not forget 5 times is well above the long term trend, Five f0000king times, hang on i nead a lie down, and guess what you will get for that?

Keep repeating it after me?

5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?
5 times equals $250,000, and guess what you will get for that, nowt?

Sooner or later it will click for you so you will have caught on, this bubble, is the biggest bubble in the history of bubbles, it bubbletastic?

lastere

nice pic. is that you?

brendarover

The missus, she don't know!

I have some of myself in that pose if you want one?

lastere

no thanks, you can keep it.

brendarover

No probs but if you change your mind, i'm here, booty and all!

ABCDiamond

Correct, and it did hit about $450,000 at one stage, but is now about $360,000 for a 5 bed house, within one hour of Sydney CBD.

So it has gone down.

You seem to be saying that I am saying that prices won't drop, yet they have, and I have said that they have

I don't see the problem, especially as this thread was not about prices, but about the number of properties being sold...

ABCDiamond

An example of your NOWT...

3 bedrooms, 1 bathroom, 1 garage

Asking price $259,000. 55 minutes by train to Sydney CBD.
Probable sale price will be just under $250,000, based on other sales in the area.


But it hasn't got a pool, and it only has ONE garage. I agree, it isn't really a proper house...

Average Male Full time Adult wage in NSW at Nov 2008 was $68,541.20.
Probably a bit higher in the Sydney area itself.

abner

That works if one is reasonably assured of not needing to move around, e.g. to chase employment, cope with family growth, etc. But first time home buyers are the least likely to have that assurance.

It's also worth having at least a glance at the longterm historical record. For Australia, see Nigel Stapledon's Real Home Price Index (found here, among other places, 1/2 way down the page).

It can be observed that after the price peaks in 1951-52, 1974, and 1990
- the subsequent price declines went on for 2-5 years;
- there were substantial trough periods (of 18, 14, and 9 years respectively) before prices again exceeded the previous peak.

This suggests that there is little risk for the potential first time home buyer in sitting out of the market for a year or two, and seeing how bad the shakeout gets.

Catch

looks a good house for the price ,In perth add another $150,000

ozzieeagle

Isn't household income the relevant issue here, rather than one fulltime adult wage ?

Any idea of the average household income in Australia.

I was off the understanding its circa 88,000 dollars.