Housing Affordability and Housing Bubble
#1
Forum Regular
Thread Starter
Joined: Jan 2004
Posts: 130
Housing Affordability and Housing Bubble
Just thought I should share this...
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
For those considering buying their first home or investing, I strongly suggest reading this wiki. I don't suggest one should take what this people say at face-value, but just consider them...
Here's an excerpt from the home page :
"It's a crazy idea to buy a house in Australia at the current prices. "
They sure do make some good points. Personally, having done my own indepent research, I'm more inclined to take their side....
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
For those considering buying their first home or investing, I strongly suggest reading this wiki. I don't suggest one should take what this people say at face-value, but just consider them...
Here's an excerpt from the home page :
"It's a crazy idea to buy a house in Australia at the current prices. "
They sure do make some good points. Personally, having done my own indepent research, I'm more inclined to take their side....
#2
Re: Housing Affordability and Housing Bubble
Where do they get their figures? It costs a lot more in many areas of Sydney to rent- we are paying $720 pw for a 3 bed unrenovated house on a busy road and with a train line opposite. If we bought we would be paying similar but for a house that wasn't on a busy road, and we would be allowed to hang pictures on the walls, get heating in, fix the gutters and leaks etc..... All our money is doing is lining the pockets of the landlord and agents.
#3
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Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Housing Affordability and Housing Bubble
Just thought I should share this...
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
....
They sure do make some good points. Personally, having done my own indepent research, I'm more inclined to take their side....
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
....
They sure do make some good points. Personally, having done my own indepent research, I'm more inclined to take their side....
Prices have come down considerably in some parts of Oz, and with interest rates heading towards all time lows, it's only a matter of time before the curve starts going the other way. In our area prices have flattened over the last 2 months.
We're paying a lot less than what we were paying on rent and there's nothing like being in your own home.
#4
Guest
Posts: n/a
Re: Housing Affordability and Housing Bubble
I read the bit about attacking the newspaper who said property prices have dropped 45%.
They have only taken the headline there and ignored the rest of the article. At least one postcode had has a 45% drop, but another has had a 45% increase, and I think it averaged out at about 1.8% movement.
Take everything with a pinch of salt, or even a couple of cups of salt
They have only taken the headline there and ignored the rest of the article. At least one postcode had has a 45% drop, but another has had a 45% increase, and I think it averaged out at about 1.8% movement.
Take everything with a pinch of salt, or even a couple of cups of salt
#5
Forum Regular
Joined: Jan 2008
Posts: 131
Re: Housing Affordability and Housing Bubble
Just thought I should share this...
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
I was considering buying our first home this year (2008) but when the financial crisis materialized and I did some more in-dept research, I backed out and opted to move my plans to 2009. Looks like I'm not the only one who thinks this is not the best time to buy a property:
http://bubblepedia.net.au/tiki-index.php
I am a fan of
[url]http://www.globalhousepricecrash.com[url]
which has a lot more than just house price hearsay, if you fancy some eye-opening discussions on economics/ finance in general.
FWIW I'm not buying until at least 2010 either unless it's evens between paying rent or a mortgage, and WA has a hell of a long way to fall yet ($1million-plus house that you could rent for $600 per week, anyone?)
#6
Forum Regular
Joined: Aug 2007
Posts: 205
Re: Housing Affordability and Housing Bubble
Most overvalued property prices in the world. I read at an emigrate to oz expo that brisbane average house prices are on a par with outer London now. in a country with p1ss poor wages you do the math. SOmething has to give.
#7
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Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Housing Affordability and Housing Bubble
Exactly the type of misinformation that you'll find on the sites mentioned above (which have been around for many years by the way). And as ABCDiamond stated, read them with a HUGE pinch of salt.
The median house price in Brisbane in October 2008 was $473,500. I'd be enlightened if you could point out all the detached 4x2's in greater London selling for a mere $205k.
#8
Re: Housing Affordability and Housing Bubble
I'm in agreement with Angelico in that I won't be buying an Aussie house for a while. BUT I am basing my 'hunch', (and that's all it is ) that prices will fall based on what has happened in the UK not on these websites. I'm not for a minute doubting Angelico's intentions as I know she is a genuine poster, but these house price websites do attract some nutters and some of them have posted here in the past. They have an agenda, (ie they want a cheaper house) and set out to propagate rumour and panic in order to create house price drops.
Personally I would very happy if prices stabilised - no big drops and no big rises. That would allow wages a chance to catch up with prices without creating negative equity problems for people or overheated markets. I'm sure that won't happen though, the market is never stable.
Personally I would very happy if prices stabilised - no big drops and no big rises. That would allow wages a chance to catch up with prices without creating negative equity problems for people or overheated markets. I'm sure that won't happen though, the market is never stable.
#9
Account Closed
Joined: Jul 2005
Posts: 1,693
Re: Housing Affordability and Housing Bubble
:[/QUOTE]
Unless you are rich, you don't get a lot for your new build here do you ??????
hmm
Unless you are rich, you don't get a lot for your new build here do you ??????
hmm
Last edited by mindblower; Dec 12th 2008 at 1:28 am.
#10
Guest
Posts: n/a
Re: Housing Affordability and Housing Bubble
Property Prices:
Greater London
Average Cost for a Detached House : £778,868 ( almost $2 million)
http://news.bbc.co.uk/2/shared/spl/h...l/county37.stm
Brisbane
Average Cost for a Detached House $473,500 (one third the price of greater London)
Wages:
February 2008 Average Weekly Earnings Australia & UK comparison
Australia.
Average Full-time adult total earnings $61,022
Source: http://www.abs.gov.au/ausstats/[email protected]/mf/6302.0
UK
UK Average Wage comparison being £23,700 (= $54,510)
http://news.bbc.co.uk/1/hi/business/7252504.stm
More salt needed...
#11
Bitter and twisted
Joined: Dec 2003
Location: Upmarket
Posts: 17,503
Re: Housing Affordability and Housing Bubble
UK
UK Average Wage comparison being £23,700 (= $54,510)
http://news.bbc.co.uk/1/hi/business/7252504.stm
UK Average Wage comparison being £23,700 (= $54,510)
http://news.bbc.co.uk/1/hi/business/7252504.stm
....and he did say OUTER London...not greater London.
$473000 would not buy you much at all in many parts of Brisbane and certainly not round here.
G
#13
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Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Housing Affordability and Housing Bubble
True, but only a portion of your repayment will go towards the interest while the rest reduces your debt and ultimately increases your equity over a period of time.
100% of your rent on the other hand will disappear into a black hole never to be seen again.
#14
Guest
Posts: n/a
Re: Housing Affordability and Housing Bubble
5 bed detached houses with pool near me, (under 1 hr commute to CBD) for about $460,000, near the water.
What Outer London location gives that for about £200,000 ?
He did say "a country with p1ss poor wages" so I compared the Country.
Now, if you wish to compare London wages, they should be compared to the wages in the Capital city of Australia, shouldn't they ?
#15
Account Closed
Joined: Apr 2007
Posts: 495
Re: Housing Affordability and Housing Bubble
Exactly the type of misinformation that you'll find on the sites mentioned above (which have been around for many years by the way). And as ABCDiamond stated, read them with a HUGE pinch of salt.
The median house price in Brisbane in October 2008 was $473,500. I'd be enlightened if you could point out all the detached 4x2's in greater London selling for a mere $205k.
The median house price in Brisbane in October 2008 was $473,500. I'd be enlightened if you could point out all the detached 4x2's in greater London selling for a mere $205k.