Housing bubble in Australia
#211
Re: Housing bubble in Australia
Getting a little side tracked, but the rebate depends on salary, therefore if you have 2 in full time work, you'll not get as much rebate (probably fair enough I guess).
We are paying about $30/day per child, and that's after the rebate. It would likely cost more with an increase in household income.
Still, I would have thought that the average household income would be 1x full time and 1x part time. With the minority being 2x fulltime and single income.
We are paying about $30/day per child, and that's after the rebate. It would likely cost more with an increase in household income.
Still, I would have thought that the average household income would be 1x full time and 1x part time. With the minority being 2x fulltime and single income.
#212
Guest
Posts: n/a
Re: Housing bubble in Australia
Getting a little side tracked, but the rebate depends on salary, therefore if you have 2 in full time work, you'll not get as much rebate (probably fair enough I guess).
We are paying about $30/day per child, and that's after the rebate. It would likely cost more with an increase in household income.
Still, I would have thought that the average household income would be 1x full time and 1x part time. With the minority being 2x fulltime and single income.
We are paying about $30/day per child, and that's after the rebate. It would likely cost more with an increase in household income.
Still, I would have thought that the average household income would be 1x full time and 1x part time. With the minority being 2x fulltime and single income.
If you are using approved child care for work, training or study related reasons, the government will provide you with 50 per cent of your out-of-pocket child care costs, up to $7778 (indexed) for each child each year.
#213
Re: Housing bubble in Australia
Australia's loan mortgage market is doing so well that the Commonwealth Bank has freezed it's mortgage fund.
http://www.smh.com.au/business/cba-f...0113-m705.html
http://www.smh.com.au/business/cba-f...0113-m705.html
All I can think of when I see numbers touted here to prove that there won't be a crisis in the property sector, mortgage repayments are but just a small fraction of monthly, house prices have/have not increased/ will always rise/never fall...blah...blah is "lies damned lies and statistics".
#214
Re: Housing bubble in Australia
Australia's loan mortgage market is doing so well that the Commonwealth Bank has freezed it's mortgage fund.
http://www.smh.com.au/business/cba-f...0113-m705.html
http://www.smh.com.au/business/cba-f...0113-m705.html
Code:
The freeze was limited to only one of the eight mortgage-style funds offered by Colonial, the spokesman said.
#215
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
How much is a reasonable amount of household income, to pay for a median mortgage.
That chart quotes "Sydney 57.4% share of median household income to pay mortgage on median property prices."
Average Sydney wages are:
Male $1,353.00 pw
Female $1,103.60 pw
Combined income = $127,743 per year
57.4% of that = $6,110 per month in repayments.
That would cover a mortgage of about $1,000,000
However a mortgage for the median priced house would be about $400,000 with repayments of about $2,620 per month, or 24.6% of the income.
Does that look like a reasonable option for housing affordability. A median house with two full time average incomes, with repayments at 24.6% of the income. ?
That chart quotes "Sydney 57.4% share of median household income to pay mortgage on median property prices."
Average Sydney wages are:
Male $1,353.00 pw
Female $1,103.60 pw
Combined income = $127,743 per year
57.4% of that = $6,110 per month in repayments.
That would cover a mortgage of about $1,000,000
However a mortgage for the median priced house would be about $400,000 with repayments of about $2,620 per month, or 24.6% of the income.
Does that look like a reasonable option for housing affordability. A median house with two full time average incomes, with repayments at 24.6% of the income. ?
Using the same figures as ABC.
Combined NET income = $101,400
57.4% of that = $4850 per month in repayments
That would cover a mortgage of about $700,000
However a mortgage for the median SYDNEY house would be about $510,000 with repayments of about $3530 per month, or 41.7% of the income.
A median house with two people earning median wages with repayments at 41.7% of NET income Considering the figure where mortgage repayments are considered at stress levels is 30%
Does this look like an affordable option for housing affordability?
Last edited by swigski; Feb 9th 2010 at 4:43 am. Reason: a
#216
Re: Housing bubble in Australia
I'm amazed this didn't make headline news when it happened a couple of weeks ago.
Shows just how toxic the mortgages it has on its books are. "No sub-prime in Australia" - yeah right!
#217
Re: Housing bubble in Australia
Owned by CBA but not under a Bank guarantee - it does make a difference and by the way it was frozen over a year ago
#218
Re: Housing bubble in Australia
Lets see what affect using NET income has and the actual Sydney median price?
Using the same figures as ABC.
Combined NET income = $101,400
57.4% of that = $4850 per month in repayments
That would cover a mortgage of about $700,000
However a mortgage for the median SYDNEY house would be about $510,000 with repayments of about $3530 per month, or 41.7% of the income.
A median house with two people earning median wages with repayments at 41.7% of NET income Considering the figure where mortgage repayments are considered at stress levels is 30%
Does this look like an affordable option for housing affordability?
Using the same figures as ABC.
Combined NET income = $101,400
57.4% of that = $4850 per month in repayments
That would cover a mortgage of about $700,000
However a mortgage for the median SYDNEY house would be about $510,000 with repayments of about $3530 per month, or 41.7% of the income.
A median house with two people earning median wages with repayments at 41.7% of NET income Considering the figure where mortgage repayments are considered at stress levels is 30%
Does this look like an affordable option for housing affordability?
Last edited by IndieG; Feb 9th 2010 at 5:29 am.
#219
Guest
Posts: n/a
Re: Housing bubble in Australia
I think that is stretching it...
However, on the more relevant topic, where is your "three or four times more expensive" figure coming from, and does that take account of increasing wages also?
1979 average wages $ 238 pw (Australia)
2009 average wages $1,353 pw (NSW) showing a 569% increase
ABS figures
Property Price Index for Sydney
1979 $ 50,700
2009 $447,000 showing a 881% increase.
Real increase = a 55% rise
#220
Guest
Posts: n/a
Re: Housing bubble in Australia
Lets see what affect using NET income has and the actual Sydney median price?
Using the same figures as ABC.
Combined NET income = $101,400
57.4% of that = $4850 per month in repayments
That would cover a mortgage of about $700,000
However a mortgage for the median SYDNEY house would be about $510,000 with repayments of about $3530 per month, or 41.7% of the income.
A median house with two people earning median wages with repayments at 41.7% of NET income Considering the figure where mortgage repayments are considered at stress levels is 30%
Does this look like an affordable option for housing affordability?
Using the same figures as ABC.
Combined NET income = $101,400
57.4% of that = $4850 per month in repayments
That would cover a mortgage of about $700,000
However a mortgage for the median SYDNEY house would be about $510,000 with repayments of about $3530 per month, or 41.7% of the income.
A median house with two people earning median wages with repayments at 41.7% of NET income Considering the figure where mortgage repayments are considered at stress levels is 30%
Does this look like an affordable option for housing affordability?
The normal calculation is done on Gross incomes, but of course doing it on a net income does make it look much worse than everywhere else....
Check out this: http://www.insolvency.gov.uk/insolve...cialStress.pdf
Where do you get your median mortgage of $510,000 from ?
These are figures that I have seen being quoted.
Average New Mortgages in Australia - January 2010
$397,888 NSW
$320,579 QLD
$286,101 SA
$328,323 VIC
$388,463 WA
$349,604 Australia
$397,888 NSW
$320,579 QLD
$286,101 SA
$328,323 VIC
$388,463 WA
$349,604 Australia
#221
Guest
Posts: n/a
Re: Housing bubble in Australia
oopsa daisy and this at a time when the economy is "on a roll" and has managed to "evade a recession".
All I can think of when I see numbers touted here to prove that there won't be a crisis in the property sector, mortgage repayments are but just a small fraction of monthly, house prices have/have not increased/ will always rise/never fall...blah...blah is "lies damned lies and statistics".
All I can think of when I see numbers touted here to prove that there won't be a crisis in the property sector, mortgage repayments are but just a small fraction of monthly, house prices have/have not increased/ will always rise/never fall...blah...blah is "lies damned lies and statistics".
There could be a crisis, but also there may not be. Only a few people are certain of what will happen. And I doubt anyone that is certain of the future.
#222
Guest
Posts: n/a
Re: Housing bubble in Australia
Colonial reopened the fund to withdrawals about a month ago after a year-long freeze that was aimed at protecting the fund as jittery investors poured savings into safer bank deposits.
Up to $30 billion of mortgage funds were frozen last year - affecting 150,000 investors - after the Rudd Government introduced a guarantee on bank deposits that prompted a switch to the lower-risk investment.
Up to $30 billion of mortgage funds were frozen last year - affecting 150,000 investors - after the Rudd Government introduced a guarantee on bank deposits that prompted a switch to the lower-risk investment.
#223
Re: Housing bubble in Australia
At least with the guaranteed continual increase in house prices, we'll all be better off.
the graph shows perfectly sustainable trends {cough}.
the graph shows perfectly sustainable trends {cough}.
Last edited by coolshadows; Feb 9th 2010 at 5:57 am.
#224
Guest
Posts: n/a
Re: Housing bubble in Australia
At least with the guaranteed continual increase in house prices, we'll all be better off.
http://i46.tinypic.com/2ex7cqd.jpg
the graph shows perfectly sustainable trends {cough}.
http://i46.tinypic.com/2ex7cqd.jpg
the graph shows perfectly sustainable trends {cough}.
They will of course rise again one day, and go down again, and then rise again etc.
#225
Guest
Posts: n/a
Re: Housing bubble in Australia
At least with the guaranteed continual increase in house prices, we'll all be better off.
http://i46.tinypic.com/2ex7cqd.jpg
the graph shows perfectly sustainable trends {cough}.
http://i46.tinypic.com/2ex7cqd.jpg
the graph shows perfectly sustainable trends {cough}.
It probably also resulted in this change.
Household Debt to Household Assets ratio
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