MartinLuther

I think there are strict rules protecting renters in Germany. It was like that in the UK at one time (as briefly mentioned in a prior post) and definitely removes one of the biggest risks of renting.

Steve2009

Your example is flawed. The macro figures are as follows (seem to hold for places people would want to live, possibly even worse yields).

Mortgage Interest: 7%
Demand Deposit Interest: 6.01% before tax
Average rental yield: 3.5%

Without capital appreciation property investors who have bought recently are losing money hand over fist or their properties are in areas with transient populations.

Steve2009

I'm surprised you haven't heard of the major ones. The GFC and 9/11.

papilon

Its a good solution to what is going to become a big problem, is not commision housing which should only be built in small numbers and be available for the most needy or vulnerable.

ABCDiamond

August 2010
For the month, the median price for all homes and apartments sold in Manhattan was $915,000

Split:
Houses: $3,200,000
CO-OPs: $ 722,500
Condos: $1,135,170

http://www.deptofnumbers.com/nyc/home-sales/manhattan/

So, that $915,00 median is lower than the condos and houses, but what exactly is a CO-OP, that is being effectively compared against the normal Sydney property ?

Steve2009

The key I guess would be to manage the situation so that yields make it attractive enough to maintain a healthy level of capital investment in the housing infrastructure. The system probably has to adapt to the conditions on the ground and it would be depend on whose interests the government is acting.

ABCDiamond

I've heard of them, but how have they affected prices in Manhattan ?

People can't just throw statements in, without backing it up, AND expect others to back up, with direct source spreadsheet links, anything they say

Steve2009

I reckon neither would have been particularly good for the market.
There's a difference between misrepresenting statistics and not providing them. If you're going to try and replace the ABS then you might as well make an effort.

lapin_windstar

1) You didn't say that average income in Manhattan was in excess of $100,000, you said that average wages in New York City were "pushing" $100,000.

2) Income is not the same as wages. The difference is particularly important in Manhattan where you have a superwealthy elite who derive a large chunk of their income from interest, dividends, rent etc, a large poor population who work for minimum wage and not much in the middle - the NYC middle class predominantly lives in the outer boroughs.

3) Average wages in NYC are not pushing $100,000; they are just under $54,000.

4) Average wages in Manhattan (which you did not refer to in your original post) are not pushing $100,000; they are just under $80,000.

lapin_windstar

http://en.wikipedia.org/wiki/Housing...rk_Cooperative

For our purposes, we can probably lump co-ops and condos together and compare them to units. (Although some co-ops seem cheaper than they are at sale time because the service charge is astronomical - I've seen apts go for $350,000ish but the monthly charges were more than $2000 - its "real" value was probably around a million, at the peak).

As far as residential house pricing goes, 9/11 was a blip, and it probably staved off a cratering in office space pricing for some years because it reduced inventory substantially. I don't have the stats for that, though, so feel free to ignore...

ABCDiamond

WHERE do you get your figures from ?

RPData: Gross rental yields in Sydney are outperforming the national average with houses returning 4.5 percent (national 4.4 percent) and units returning 5.6 percent (national 5.2 percent). http://www.rpdata.com/press_releases...s_in_july.html

And rents are now rising again...

ABCDiamond

hmmm, and you first said I wasn't providing them, so you must be the one misrepresenting them ???

You actually provided the full link confirming my figures, which were from the ABS, so you are obviously not saying that I was misrepresenting statistics

Steve2009

In all fairness, I do not operate a website for Australian statistics attempting to replace the ABS. Incidentally I think your article lifted from the thread about mortgage repayments did not spell out clearly enough the reasons why the mortgage term is shorter.
My rental yields are taken from this article which I believe references the ABS.
Plenty of places where rents are static. They'd need to rise considerably to yield a net profit.

Steve2009

You represented monthly statistics as quarterly as well as mixing up median and mean and different populations if I recall correctly.

ABCDiamond

Manhattan Home Affordability

In 2007, the median household income in Manhattan was $62,2682.

Home affordability guidelines suggest that no more than 30% of household income be spent servicing a home loan.

For the median Manhattan household, this would have meant that a monthly mortgage payment should not have exceeded $1,556 using the 2007 average mortgage rate of 6.34%.

Combining this with 2007 property sales records, we can calculate that the median income household could have potentially afforded approximately 4.46% of the homes and apartments sold in Manhattan in all of 2007.

http://www.deptofnumbers.com/nyc/hom...#affordability