Steve2009

Prior to the Lehman's problems but post slowdown there was some blame pointed at Michael McDowell, then Minister for Justice and Deputy Prime Minister, for bringing down the market by creating speculation about a change in stamp duty levels. There was also a lot of blame pointed at 'doom mongers' for talking the market down. In a notorious public address the then Prime Minister Bertie Ahern politely asked them all to go top themselves. Essentially what happened was sentiment turned, nothing more spectacular.

lumpommer

I think it is being compounded by Australia's expensive cost of living.

Probably one of the highest in the world when you compare like for like items.

People have to make choices either to eat or service a mortage.

Interest rates are starting to creep up and its only going to get worst.

The dream is over

Amazulu

Works for me champ.

Amazulu

No. Cannae be arsed captain (said in a Star Trek Scotty voice).

Here is my only contribution to the property price debate:
It is what it is.

All the rest is total and utter bollocks.

fish.01

Bit dramatic Average Australian mortgage vs income is similar to UK percentage? Security of employment in australia to service that same mortgage is stronger?

Steve2009

This is incorrect, the two statistics were completely different. They are not comparable.

fish.01

Interested in your figures as would be nice to know the true comparison if you have it?

Steve2009

I'm posting from phone so will be brief. Your comparing two different multiples. One for average FHB mortgage versus average wage, one for average new home mortgage versus average wage. It's a clear case of apples and oranges.

fish.01

ok, would be good if someone apart from me can lookup the real figures as I'm feeling too lazy Can you google them on your phone?

fish.01

Thank you. And the UK please as everything must be compared

Steve2009

That's actually incorrect. Needs to be revised. Sorry.

It turns out the average new mortgage in Australia is currently 4.36 times the average income.
Average Mortgage is $286,392
Average Wage is $65,668

That figure for average mortgage looks startlingly low.

fish.01

It does. Especially given the average mortgage is probably not held by someone, on average, with one income at the average wage - given a lot of people on lower incomes do not have a mortgage and the fact that many families with mortgages have greater than one income.

This is why I think employment rates and interest rates are such important considerations.

Steve2009

It's an unusual statistic, not one I remember seeing before. It does include refinancing which may skew it. Although, Australian mortgages may have a very high average high LVR, even at 75% LVR that figure would reflect an average dwelling value of $381,856 for financed dwellings.

mark wool

I have not been on this website for ages and it seems the same topic keeps cropping up. Australian house prices are overvalued, but i believe this is location specific and ozzies are catching on to this. Why on earth would you buy a house in a 15k radius of any major city when 30k out you get a lot more house in a less congested area with infrastructure beginning to be built. Yes house prices are going to fall but i think the real people going to be effected are the ones who have taken on a huge morgage within the 15k radius. For those that are renting, $400 dollars a week does not exactly get a palace. $400 x 52 = 20800. Then stay the minimum of two years in oz to "really give it a go" you have just wasted 41600 of your hard earned money. If your thinking of selling your house to make a quick buck think hard, you roll the dice and take the chance. If it goes down good, but if it goes up well its the chance you take.

Frazer56754

Great info so far, I have owned a house in the UK for 7 yrs and its been really tough financially. I am in no rush to buy a house in Oz thats for sure. I think as long as Australia continues to let people in the country with $$$ house prices wont fall.