Housing bubble in Australia
#826
_
Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Housing bubble in Australia
You must of bought a way above average
I know many, many couples who cannot afford to have kids today because they need full time double incomes to pay for their homes. Having kids is now a luxury for many and staying at home bringing them up is impossible - full time day care is the only option. All because of higher housing costs - as you said, most stayed at home looking after their kids back in your day.
I know many, many couples who cannot afford to have kids today because they need full time double incomes to pay for their homes. Having kids is now a luxury for many and staying at home bringing them up is impossible - full time day care is the only option. All because of higher housing costs - as you said, most stayed at home looking after their kids back in your day.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
#827
BE Forum Addict
Joined: Jun 2004
Location: Hills District
Posts: 1,399
Re: Housing bubble in Australia
People need to set their expectations sensibly, but many people entering the market seem to have expectations of having it all from the word go ... 4x2, pool, games rooms, theatre room, mod kitchens, en-suites, close to the beach.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
That is so true and they want the fancy furniture and car to go with it.
#828
Forum Regular
Joined: Oct 2005
Posts: 72
Re: Housing bubble in Australia
People need to set their expectations sensibly, but many people entering the market seem to have expectations of having it all from the word go ... 4x2, pool, games rooms, theatre room, mod kitchens, en-suites, close to the beach.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
#829
BE Enthusiast
Joined: Nov 2009
Location: Dullsville
Posts: 672
Re: Housing bubble in Australia
People need to set their expectations sensibly, but many people entering the market seem to have expectations of having it all from the word go ... 4x2, pool, games rooms, theatre room, mod kitchens, en-suites, close to the beach.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
Prices aren't coming down in the long run, and especially so here in Perth where there is shortage with respect to the immigration flow and availability of land near the city. Getting a foot on the bottom of the property ladder at least gets a person into the housing market and provides the opportunity to upgrade later on.
The "I want it all" crowd who don't have the means to support their desires will always be left wanting.
Rental vacancies are at a 10 year high of 4% in Perth, a shortage is when it dips below 1%. Rents are WAY below cost of purchasing a house, how is this a shortage? If you watch the RE market in Perth you will notice that inventory is now picking up NOT shrinking.
#830
Re: Housing bubble in Australia
Even if something is in short supply the price doesn't always rise, a market sets a price where both demand and supply exist.
In the UK housing has been in short supply due to underbuilding for many years, exacerbated by the almost complete halt in homebuilding during the GFC, prices still fell, the falls where started by tightening in lending, now supply seems to be returning to the market and prices have started to decline again.
In the UK housing has been in short supply due to underbuilding for many years, exacerbated by the almost complete halt in homebuilding during the GFC, prices still fell, the falls where started by tightening in lending, now supply seems to be returning to the market and prices have started to decline again.
#831
BE Enthusiast
Joined: Nov 2009
Location: Dullsville
Posts: 672
Re: Housing bubble in Australia
Anyone read the 'What's you Suburb Worth' pullout in the Sunday Times in Perth today.
Most average suburbs are barely unchanged over the year, take into consideration a massive migrant intake, 50 year low interest rates, grants and the Gorgon hoopla. I would of thought rises across the board. My favourite, Mindarie, has dropped 7% in 2009, land -36% but that might be due to smaller block size sold, I'll check with a few agents next week on the land score.
Ho hum, all these people on here telling me prices only ever go up.
Most average suburbs are barely unchanged over the year, take into consideration a massive migrant intake, 50 year low interest rates, grants and the Gorgon hoopla. I would of thought rises across the board. My favourite, Mindarie, has dropped 7% in 2009, land -36% but that might be due to smaller block size sold, I'll check with a few agents next week on the land score.
Ho hum, all these people on here telling me prices only ever go up.
#833
_
Joined: Aug 2005
Location: Perth (ex Oxford)
Posts: 411
Re: Housing bubble in Australia
THERE IS NO SHORTAGE IN PERTH!! Alan Bourke president of REIWA has said this on many occassions.
Rental vacancies are at a 10 year high of 4% in Perth, a shortage is when it dips below 1%. Rents are WAY below cost of purchasing a house, how is this a shortage? If you watch the RE market in Perth you will notice that inventory is now picking up NOT shrinking.
Rental vacancies are at a 10 year high of 4% in Perth, a shortage is when it dips below 1%. Rents are WAY below cost of purchasing a house, how is this a shortage? If you watch the RE market in Perth you will notice that inventory is now picking up NOT shrinking.
Don’t misquote me – I said housing prices go up in the long run. Of course you’ll find periodic dips from time to time and especially in outer suburbs like Mindarie. It’s easy to pull out the exceptions to prove a certain angle on things. What’s the average?
It really sounds like you’re desperately pinning all your hopes on some crash in house prices so that your dream home will finally come within your grasp. You constantly reassure yourself that this is a very distinct possibility and eagerly grab at any rhetoric in the media that supports this, and cast a blind eye to anything that suggests the converse. The “bubble burst” is talked up so much, that it’s almost as if there’s a 50% chance every day, but despite the odds it doesn’t happen.
While others make a start by getting in at a level of the market that they can afford, in a couple years they’ll be better positioned to make the next step, you may find that the gap has just gotten wider. One step at a time.
#834
Re: Housing bubble in Australia
Anyone read the 'What's you Suburb Worth' pullout in the Sunday Times in Perth today.
Most average suburbs are barely unchanged over the year, take into consideration a massive migrant intake, 50 year low interest rates, grants and the Gorgon hoopla. I would of thought rises across the board. My favourite, Mindarie, has dropped 7% in 2009, land -36% but that might be due to smaller block size sold, I'll check with a few agents next week on the land score.
Ho hum, all these people on here telling me prices only ever go up.
Most average suburbs are barely unchanged over the year, take into consideration a massive migrant intake, 50 year low interest rates, grants and the Gorgon hoopla. I would of thought rises across the board. My favourite, Mindarie, has dropped 7% in 2009, land -36% but that might be due to smaller block size sold, I'll check with a few agents next week on the land score.
Ho hum, all these people on here telling me prices only ever go up.
Whats unusual this time around about Perth, is the fact that it still has a higher Median than Melbourne.... up until recently that was unchartered territory for that City. Melbourne is coming back strongly though... and Perth Seems to be going the other way. So when the Medians go back to their traditional normal then I would personally assume the Status Quo is back in place. Could be wrong though.... Melbourne seems to have caught up to Londons Median.... Exchange rate is helping that anomaly though.
#835
Re: Housing bubble in Australia
Perth booms and busts more than any City in Aus.... In fact it would be interesting to see how it compares to other Cities around the world with a similar reputation.
Whats unusual this time around about Perth, is the fact that it still has a higher Median than Melbourne.... up until recently that was unchartered territory for that City. Melbourne is coming back strongly though... and Perth Seems to be going the other way. So when the Medians go back to their traditional normal then I would personally assume the Status Quo is back in place. Could be wrong though.... Melbourne seems to have caught up to Londons Median.... Exchange rate is helping that anomaly though.
Whats unusual this time around about Perth, is the fact that it still has a higher Median than Melbourne.... up until recently that was unchartered territory for that City. Melbourne is coming back strongly though... and Perth Seems to be going the other way. So when the Medians go back to their traditional normal then I would personally assume the Status Quo is back in place. Could be wrong though.... Melbourne seems to have caught up to Londons Median.... Exchange rate is helping that anomaly though.
#836
BE Forum Addict
Joined: Mar 2009
Posts: 1,412
Re: Housing bubble in Australia
I checked out these links after hearing on the radio last week about a severe housing shortage by 2015 if the government doesnt fast track the release of more land ,they say there is 40% less this year than last year probably due to the fact of all the first time buyers snapping up the land with the fact of the first home buyers grant of 21k, they also said there was already a land shortage in wa.
The RBA seems to have a vested interest in pushing property. This is quite odd and will no doubt come back to bite them in the butt in the future. Perhaps it's a case that they're fully committed to a bubble now and can't do anything about it except hold onto their pants and hope for the best.
The US and Ireland regulators have been criticised for the lack of regulation that contributed to their bubbles. The Australian Reserve Bank is positively spruiking the boom.
All those units, houses and land that were bought up by FTBs during the boost were only demand brought forward. If you understand supply chain management and the impact of discounting you'll realise that this is going to cause severe problems when there is no new demand in it's place.
Last edited by Steve2009; Mar 14th 2010 at 11:04 pm.
#837
BE Forum Addict
Joined: Mar 2009
Posts: 1,412
Re: Housing bubble in Australia
See the Amsterdam study. 0.2% price inflation per annum over 400 years.
#839
Banned
Joined: May 2007
Location: Sydney
Posts: 564
Re: Housing bubble in Australia
The RBA are casting doubt over the accuracy of the ABS quarterly CPI figures. Could the same be said of their house price figures?
http://www.smh.com.au/business/rba-c...0317-qfrg.html
http://www.smh.com.au/business/rba-c...0317-qfrg.html
#840
Account Closed
Joined: Apr 2006
Posts: 10,784
Re: Housing bubble in Australia
We are just putting our house on the market and it has been valued at around 20% more than we paid 2 years ago. Still have to sell it of course, will see how that goes!