House Prices Fall by up to 15%
Dec 12th 2003, 9:36 pm
#2
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Re: House Prices Fall by up to 15%
Originally posted by bondipom
House Price Fall by up to 15%
House Price Fall by up to 15%
i think the UK might be in for a repeat of the late '80's early '90's rise and crash.
Dec 12th 2003, 11:16 pm
#3
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Hi ,It does`nt seem to be happening in adelaide yet,although I`m convinced it will,The platinum,new apartment complex not yet started,not even got final approval yet,sold 95% of the place in 2 days this week.Hundreds of flats some above the 2 million dollar mark.The only thing saving a crash here is negative gearing(tax payers funding bad property investments by dishing out tax help,god I sounded like tony benn there)which if we have a change of gov here may be phased out.I took the plunge last sat and bought at auction,I watched to many people in london staying out the market waiting on a price crash only to price themselves out of the market.I think if you buy a bit of land in oz you will have a better chance of riding the storm if things go tits up,apartments have no land!
Dec 12th 2003, 11:25 pm
#4
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Re: House Prices Fall by up to 15%
Originally posted by steve0
looks like they got the right idea over there, slight increase in the % rate before the prices go through the roof like over here.
i think the UK might be in for a repeat of the late '80's early '90's rise and crash.
looks like they got the right idea over there, slight increase in the % rate before the prices go through the roof like over here.
i think the UK might be in for a repeat of the late '80's early '90's rise and crash.
Dec 12th 2003, 11:33 pm
#5
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Re: House Prices Fall by up to 15%
Originally posted by Goodpubmisser
I don't think that it is that expensive in the UK to buy a house. In the SE you can pick up a three bedroom house for 240,000+ pounds which isn't that bad. In Sydney houses cost more than that in a semi decent area.
I don't think that it is that expensive in the UK to buy a house. In the SE you can pick up a three bedroom house for 240,000+ pounds which isn't that bad. In Sydney houses cost more than that in a semi decent area.
Dec 13th 2003, 3:15 am
#6
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Re: House Prices Fall by up to 15%
Originally posted by CHnJ
That's two and a half times a joint salary of £100,000 which is what, in my world, a bank/building society would need us to earn to get a place like that. I sometimes wonder if my perceptions are way out of the norm. Does anyone else think £240000 is an unreasonable amount to pay for an "average" house?
That's two and a half times a joint salary of £100,000 which is what, in my world, a bank/building society would need us to earn to get a place like that. I sometimes wonder if my perceptions are way out of the norm. Does anyone else think £240000 is an unreasonable amount to pay for an "average" house?
Anyway, prices over here in OZ do depend a lot on location.
I have a 5 bedroom place in Sydney Western Suburbs that is currently worth about $460,000. 1 hour from water.
A 5 bed house (much better quality) in Brisbane South Bayside, 3 minute to water, is worth about $480,000 or more.
A 3 bed house in similar location is worth about $280,000 on a 800sm block, but a 4 bed new house on a 500sm block is $275,000
Now, £240000 is currently worth about $550,000. I agree it would not go far in Sydney central or Sydney beach front, but it would do more than OK for further inland Sydney suburbs, or Brisbane water front suburbs.
Dec 13th 2003, 3:26 am
#7
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I just read this piece of info in the Sydney Morning Herald
"The average Sydney property, worth $465,000, incurs stamp duty of $16,415. A decade ago the median price was $183,300, with stamp duty about $4900."
It gives an idea of current average property values, and the way they have moved in 10 years.
"The average Sydney property, worth $465,000, incurs stamp duty of $16,415. A decade ago the median price was $183,300, with stamp duty about $4900."
It gives an idea of current average property values, and the way they have moved in 10 years.
Dec 13th 2003, 3:30 am
#8
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Re: House Prices Fall by up to 15%
Originally posted by ABCDiamond
I've been thinking that £240000 is a high price, but they have moved a lot in the last few years. I sold a 3 bed detached house for £128,000 in Kent about 2.5 years ago, and thought I got a good price then
Anyway, prices over here in OZ do depend a lot on location.
I have a 5 bedroom place in Sydney Western Suburbs that is currently worth about $460,000. 1 hour from water.
A 5 bed house (much better quality) in Brisbane South Bayside, 3 minute to water, is worth about $480,000 or more.
A 3 bed house in similar location is worth about $280,000 on a 800sm block, but a 4 bed new house on a 500sm block is $275,000
Now, £240000 is currently worth about $550,000. I agree it would not go far in Sydney central or Sydney beach front, but it would do more than OK for further inland Sydney suburbs, or Brisbane water front suburbs.
I've been thinking that £240000 is a high price, but they have moved a lot in the last few years. I sold a 3 bed detached house for £128,000 in Kent about 2.5 years ago, and thought I got a good price then
Anyway, prices over here in OZ do depend a lot on location.
I have a 5 bedroom place in Sydney Western Suburbs that is currently worth about $460,000. 1 hour from water.
A 5 bed house (much better quality) in Brisbane South Bayside, 3 minute to water, is worth about $480,000 or more.
A 3 bed house in similar location is worth about $280,000 on a 800sm block, but a 4 bed new house on a 500sm block is $275,000
Now, £240000 is currently worth about $550,000. I agree it would not go far in Sydney central or Sydney beach front, but it would do more than OK for further inland Sydney suburbs, or Brisbane water front suburbs.
Dec 13th 2003, 8:04 am
#9
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Re: House Prices Fall by up to 15%
Originally posted by CHnJ
I understand that people will pay what the market will bear, but what I'm trying to work out is if I'm an exception in thinking that none of my circle of friends or colleagues earn enough to service a mortgage on these kinds of house. I think that a couple earning £100,000 a year between them are "rich" or at least "very comfortably well off." Or am I missing the point and actually it's UK capital appreciation that lets posters talk about buying houses that cost more than twice what we consider "normal" here. I'm not trolling, I'm just curious about other migrants financial expectations. I think we'll do very well in lifestyle terms on much less than the sums discussed here, but I'm more than willing to listen to cautionary tales.
I understand that people will pay what the market will bear, but what I'm trying to work out is if I'm an exception in thinking that none of my circle of friends or colleagues earn enough to service a mortgage on these kinds of house. I think that a couple earning £100,000 a year between them are "rich" or at least "very comfortably well off." Or am I missing the point and actually it's UK capital appreciation that lets posters talk about buying houses that cost more than twice what we consider "normal" here. I'm not trolling, I'm just curious about other migrants financial expectations. I think we'll do very well in lifestyle terms on much less than the sums discussed here, but I'm more than willing to listen to cautionary tales.
Agreed. A recent check shows that 240K buys a 2 bed terrace or an ex council 3 bed a mile or so from Twickenham. And nowhere near a station. Proper semi-detached houses are 300K - 350K with the detached ones 500K plus. A detached high end one is 800K. Aussie prices are high, but as most of us can increase our pounds we are in with a chance. Me and the Missis can now buy 2/3rds of a FAMILY home, whereas in the Uk , we can only buy 1/3 of a terrace.
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Dec 13th 2003, 8:10 am
#10
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Re: House Prices Fall by up to 15%
Interesting that a typical Aussie rate is quite a bit higher than the base rate. eg 7pc on a 5.25 base.
Good if it stops idiots from spending too much.
Maybe if you waited 3 years for current lock-ins to expire there could be repossessions around??? (!)
Also I noted that a 40pc fail in auctions signals a 'crash' - and realistically Sydney is close to that.
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Good if it stops idiots from spending too much.
Maybe if you waited 3 years for current lock-ins to expire there could be repossessions around??? (!)
Also I noted that a 40pc fail in auctions signals a 'crash' - and realistically Sydney is close to that.
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Dec 13th 2003, 9:25 am
#11
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Re: House Prices Fall by up to 15%
Originally posted by CHnJ
That's two and a half times a joint salary of £100,000 which is what, in my world, a bank/building society would need us to earn to get a place like that. I sometimes wonder if my perceptions are way out of the norm. Does anyone else think £240000 is an unreasonable amount to pay for an "average" house?
That's two and a half times a joint salary of £100,000 which is what, in my world, a bank/building society would need us to earn to get a place like that. I sometimes wonder if my perceptions are way out of the norm. Does anyone else think £240000 is an unreasonable amount to pay for an "average" house?
I agree. £240k isn't going to buy you a house in a 'good' area. And it is a ridiculous amount of money! We couldn't have afforded the house we just sold if we'd tried to buy it now!
Jane
Dec 13th 2003, 9:28 am
#12
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Re: House Prices Fall by up to 15%
Originally posted by JaneandJim
Hi,
I agree. £240k isn't going to buy you a house in a 'good' area. And it is a ridiculous amount of money! We couldn't have afforded the house we just sold if we'd tried to buy it now!
Jane
Hi,
I agree. £240k isn't going to buy you a house in a 'good' area. And it is a ridiculous amount of money! We couldn't have afforded the house we just sold if we'd tried to buy it now!
Jane
a sentiment you hear a fair bit these days!
Dec 13th 2003, 9:42 am
#13
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Re: House Prices Fall by up to 15%
Originally posted by badgersmount
a sentiment you hear a fair bit these days!
a sentiment you hear a fair bit these days!
I guess because we're choosing not to sell our properties that in some ways we're in the same boat as first-time-buyers in Oz and I can now see and feel the divide between those on the ladder and those who aren't.
I have no idea how regular human beings can afford a £500k house. I really feel for those who have to lay out everything they hve to get a shoebox.
Dec 13th 2003, 10:40 am
#14
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Re: House Prices Fall by up to 15%
I think it has come down to 4 things. London is my example.
1) Dual incomes are the way to go - single people are probably not buying at all now in some parts apart from the city boys.
2) Low interest rates
3) 'City' bonuses and 'salaries' - I suppose all the expensive parts of London are being colonised by those earning 100k + in the City of London, or those earning similar salaries in IT plus bonuses. They now say though, that even the smallest one bed flats in the poorest boroughs still need 2 good incomes of say 20k each. A year or two ago, you needed 25k minimum (1 person)
I think people earn more than you realise: I could command 30-35k but was surprised to find out 2 years ago that I was amongst the lowest paid (as I had come from the public sector I didn't know) and that people in the same jobs in my company were on say, 40-50k. My company forbid people to discuss their salaries - I found out by sneaking on to the HR PC. I got redundancy on 30k eventually in 2001 but should have had a long promised pay rise (which never materialised) to 40k the year before. My view though, is whats the point in being a high wage earner - you pay through stress. The more you earn, the higher the risk.
4) Parents are remotgaging their homes and are starting to hand out 100k deposits to offspring. 3 years ago a friend of mine got 60k from her parents and then had the cheek to laugh at me when I said I could only afford to live in a poor area, and how 'in tune' she was with property and was going to make a fortune..
put it oneway: I think inheritances have become bigger recently.
BM
1) Dual incomes are the way to go - single people are probably not buying at all now in some parts apart from the city boys.
2) Low interest rates
3) 'City' bonuses and 'salaries' - I suppose all the expensive parts of London are being colonised by those earning 100k + in the City of London, or those earning similar salaries in IT plus bonuses. They now say though, that even the smallest one bed flats in the poorest boroughs still need 2 good incomes of say 20k each. A year or two ago, you needed 25k minimum (1 person)
I think people earn more than you realise: I could command 30-35k but was surprised to find out 2 years ago that I was amongst the lowest paid (as I had come from the public sector I didn't know) and that people in the same jobs in my company were on say, 40-50k. My company forbid people to discuss their salaries - I found out by sneaking on to the HR PC. I got redundancy on 30k eventually in 2001 but should have had a long promised pay rise (which never materialised) to 40k the year before. My view though, is whats the point in being a high wage earner - you pay through stress. The more you earn, the higher the risk.
4) Parents are remotgaging their homes and are starting to hand out 100k deposits to offspring. 3 years ago a friend of mine got 60k from her parents and then had the cheek to laugh at me when I said I could only afford to live in a poor area, and how 'in tune' she was with property and was going to make a fortune..
put it oneway: I think inheritances have become bigger recently.
BM
Dec 13th 2003, 1:07 pm
#15
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Re: House Prices Fall by up to 15%
Originally posted by badgersmount
I think it has come down to 4 things. London is my example.
1) Dual incomes are the way to go - single people are probably not buying at all now in some parts apart from the city boys.
2) Low interest rates
3) 'City' bonuses and 'salaries' - I suppose all the expensive parts of London are being colonised by those earning 100k + in the City of London, or those earning similar salaries in IT plus bonuses. They now say though, that even the smallest one bed flats in the poorest boroughs still need 2 good incomes of say 20k each. A year or two ago, you needed 25k minimum (1 person)
I think people earn more than you realise: I could command 30-35k but was surprised to find out 2 years ago that I was amongst the lowest paid (as I had come from the public sector I didn't know) and that people in the same jobs in my company were on say, 40-50k. My company forbid people to discuss their salaries - I found out by sneaking on to the HR PC. I got redundancy on 30k eventually in 2001 but should have had a long promised pay rise (which never materialised) to 40k the year before. My view though, is whats the point in being a high wage earner - you pay through stress. The more you earn, the higher the risk.
4) Parents are remotgaging their homes and are starting to hand out 100k deposits to offspring. 3 years ago a friend of mine got 60k from her parents and then had the cheek to laugh at me when I said I could only afford to live in a poor area, and how 'in tune' she was with property and was going to make a fortune..
put it oneway: I think inheritances have become bigger recently.
BM
I think it has come down to 4 things. London is my example.
1) Dual incomes are the way to go - single people are probably not buying at all now in some parts apart from the city boys.
2) Low interest rates
3) 'City' bonuses and 'salaries' - I suppose all the expensive parts of London are being colonised by those earning 100k + in the City of London, or those earning similar salaries in IT plus bonuses. They now say though, that even the smallest one bed flats in the poorest boroughs still need 2 good incomes of say 20k each. A year or two ago, you needed 25k minimum (1 person)
I think people earn more than you realise: I could command 30-35k but was surprised to find out 2 years ago that I was amongst the lowest paid (as I had come from the public sector I didn't know) and that people in the same jobs in my company were on say, 40-50k. My company forbid people to discuss their salaries - I found out by sneaking on to the HR PC. I got redundancy on 30k eventually in 2001 but should have had a long promised pay rise (which never materialised) to 40k the year before. My view though, is whats the point in being a high wage earner - you pay through stress. The more you earn, the higher the risk.
4) Parents are remotgaging their homes and are starting to hand out 100k deposits to offspring. 3 years ago a friend of mine got 60k from her parents and then had the cheek to laugh at me when I said I could only afford to live in a poor area, and how 'in tune' she was with property and was going to make a fortune..
put it oneway: I think inheritances have become bigger recently.
BM
Being a single income chap i wouldn't have a chance of getting anything near as good as i have now. I look back and think i was lucky to buy the house when i did, if it wasn't for the stupid house price increases i wouldn't be going to auz now. But will this come back to bite me later? It probably will. if prices don't fall, or my wages seriously increase, then what chance have i got of owning another house of this size again? zip!
...unless i find miss right (with money) or win the lottery one day. still it could be a lot worse for me, i feel sorry for people who are in this position now, with one income and looking to buy for the first time.