ABCDiamond

From that article:

coolshadows

yet I'm sure I heard that people that invested in Australia's property market were financially astute.

ABCDiamond

Do times really change much ?

ABCDiamond

Far from it for a number it would seem. I can't fathom how some people thought that interest rates would stay so low !
There was plenty in the news about how they had to rise again.

coolshadows

No, the only remarkable thing about the Australian property market is the bubble has been going since 2003.

Can you find a similar article prior to 2003? (genuine question)

ozzieeagle

Totally different rental market now, to this time last year, a lot easier to get one, no more people in recent months that I've heard about, offering estate agents more money than the asking rate, which was almost the norm last year.

Also I can confirm that things have definitely gone of the boil in the Inner North in Melbourne. Properties passed in that definitely wouldnt have been 3 months ago.

People have suddenly turned cautious, and I beleive the Chinese have stopped buying at all costs.

Friends place got passed in yesterday, they were hoping for 900k didnt get above 800k... Missed out by 3 months once more. They will probably manage 840k this week I would say.

http://www.realestate.com.au/propert...west-106503722

coolshadows

To be fair, I think 'they' expected rate rises, just that they got 'caught out' by the speed and number of rises.

Steve2009

I arrived in June 08 to Sydney and it had already gone off the boil. Some agents tried to spin a rental crisis. Others admitted it was pure spin.

Officer Dibble

I would say there is a rental crisis.

Steve2009

Where do you think there is one? How does it manifest itself?

I'm talking in terms of availability, not price. I don't consider rentals expensive compared to supposed capital values.

Officer Dibble

Thats the thing with Australia, whats happening in one state might not be the case in the other but how do you explain the house I once rented for $180 per week now being $270 in 4 years if demand isnt outstripping supply?

I also havent seen houses/units lying empty either.

Officer Dibble

Influx of new arrivals buying/renting and not enough houses being built to compensate. Puts prices at a premium wouldnt you think?

Steve2009

The funny thing with rents is that as crazy as capital values get, rents are to a much greater extent attached to reality. There's a lot more rationality in how much of a persons salary they will devote to housing when they are not chasing capital gain or rather competing with others who are chasing capital gain. I don't know how much median wages have gone up by in that particular area or whether there have been other changes such as development of amenities or transport links. The only thing for sure is that in this irrational market the rents will not have increased in line with capital values. Negative gearing has caused investors to ignore yields. If Henry/Rudd had any balls they would have stopped the shift to people using this safety net as a cushion.
I see no evidence of a shortage. I always assumed there was vast swathes of empty stock knocking around, they're now beginning to come out of the woodwork in the mainstream media. Call them 'holiday homes' or rental voids if you want, but to me they're empties.

ABCDiamond

Best I can do so far is this recent one that quotes 1996
Which, if all three rates are accurate, show the following trend
1996 17.9% of income for mortgage payment
2003 40.0%
2009 31.7%

Alfresco

Don't hold your breath and wait. The same in the thing was said in the UK. House prices aren't much lower, if anything, than a few years ago.

Maybe remote areas had a mini crash, but prices here are still fairly strong, well certainly where we are.