the troubadour

Other factors to consider living in alleged cheaper outer suburbs though. Transport options if any, often poor in the way of being limited. Life quality in those suburbs may well be challenging for many.

House prices when do correct will likely hit those far out places harder than prime or at least closer locations.
Car dependency will add to costs and time. Work travel likely to be far and travel distance there and back all consuming.

Hardly a lifestyle in many cases I'd expect to move from another land for. There are exceptions but the negatives loom strong in my view.

Easy to get a loan. Harder to pay back. Especially when interest rates rise. Best don't be lulled by present day low interest rates. Go for the average 7% and add a little on top of that to see how you would personally fare.

the troubadour

I have seen the changes as well even longer than that. Prices have never been more unaffordable than now. (taken on an average income) The good news is that Perth house prices are expected to continue their correction in 2015, so I wouldn't be in a rush to buy.

There is a big difference if buying to nest and keeping it as a family home over the generations or wanting to sell in a few years to upgrade or make appreciation gains etc.

I thought I read you had purchased numerous houses, suggesting a speculation intent. I'll go back and re read and apologies if mistaken.

Amazulu

Spot on. The market is what it is and no individual has control over it. Buy at a price that you are happy with, or don't buy if you don't want to. The choice is yours

The problem is that when it comes to predicting house prices the, er, 'experts' are all over it and nearly all (if not all) of them don't know shit

the troubadour

No one predicts house prices that would be daft. The predictions are a further downward movement as far as Perth is concerned. Was can be said is rental yield is poor and the multiple of earnings x house prices is way out of whack. It is equally unproductive.

The market is kept artificially high with easy credit, tax concessions and media bias. You pay your money and take a chance on the speculative market.

Amazulu

Investing in housing is like any other investment. Sometimes you win, sometimes you lose. The market decides what price houses will be

Housing affordability is not a problem anyway as according to you, renting is the way to go

I still don't know why you started this thread given your stated preference on housing

the troubadour

For someone that claims not to comment on housing you sure have a lot to say about nothing.

Housing affordability is a serious issue in Australia, but hardly unique to Australia. If you listen a little and read more you would discover that rental options are hardly the go in Australia due to laws stacked in favour of landlords. Obvious why that is so. Not the situation in other places.

Started the thread for obvious reasons, being real estate is beyond the reach of many First Home Buyers as the stats show. Pretty serious state of affairs I'd have thought.

BadgeIsBack

What he says is that he will not give supposed expert advice on whether it will go up or down and with what percentage, nor will he provide a multitude of metrics like other posters will do.

Amazulu

But I don't try and predict what house prices will be like you do because, like you and everyone else I don't have a clue what will happen

The home owning culture in the English speaking world (UK and ex-colonies) is very different to what happens in Europe - an Englishman and his castle etc. In theses countries, people generally like to own their own homes and the market, conditions, culture is driven by that. In Germany and other European countries it's the opposite. No problem with that but they've got it wrong IMO. Germany does many things well but on this issue they've got it wrong and we've got it right. We'll have to agree to disagree on this

Every country has good and bad landlords - there will be some asshat property owners in Germany that's for sure. I have rented out properties in the UK and Australia and like to think that I was a fair and decent landlord. Australia has strong laws and regs that protect tenants but because of the home owning culture, leases tend to be short term - unlike Europe. Again a cultural thing

Houses have always been expensive, nothing has changed

the troubadour

Relying largely on the housing industry to steer the economic fortunes after the demise of the resource industry is a far greater error in my book.

Nothing free market about the continues propping up of the real estate industry by government, finance and industry. It could be argued quite the opposite and while of course the party could go on longer than otherwise anticipated it is neither good for the economy nor the buyer/investor longer term. It is certainly not good that so much money is tied up in non productive real estate.

I am not trying to predict prices. Mugs game with so much intervention but the over exposure to real estate and the lack of first time buyers is highly indicative of problems in the market.

Germany has it perfectly right with its mix of rental and ownership, apart from coming down a little too hard on owners that rent. Australia is reverse. Tenants often get a poor deal especially through an agency. That's how it is. Whether or not you or I may or may not be a good landlord is hardly the point.
Home ownership is hardly an Anglo thing either. In fact numbers are in decline in Australia and UK. I expect you would observe the same in Canada as well.
There has been some talk about stimulating the housing industry in Germany as well. Still only talk. There were tax incentives in the early 90's though to buy. Population increase was expected to continue after the wall. Wasn't to be in fact the reverse, but with large immigration in recent years this may well change. Berlin has. Still a very affordable country to buy.

the troubadour

Thank heavens for that. Even the experts were/are hardly experts when it comes to housing. Note the mess in USA and Europe. They got it all wrong.