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Re: Australia's Property Bubble...
Something is worth what someone else will play for it when you want to sell it. No more and no less.
It has nothing to do with what you paid for it, or what someone tells you it is worth. A true property bubble burst is when people are left holding negative equity. Just getting less than you thought it was worth isn't a bursting bubble, just burst expectations. |
Re: Australia's Property Bubble...
Originally Posted by verystormy
(Post 10015714)
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It's a logical thing. Average wage is only about $70k so average house price needs to be $210k otherwise you can ask what ever you want for it but nobody can afford to buy it. |
Re: Australia's Property Bubble...
Originally Posted by fish.01
(Post 10016713)
Not sure I agree with this logic. Average houses are bought by peope with equity behind them, starter houses are for those with no equity and simply relying on one average wage.
If a house is 3 hours drive away from an employment hub how do you calculate the reduced value? Simple 6 hours at average salary plus cost of fuel and contribution to car ownership? What if the house is in a fantastic rural area? Do you then increase the value to take it into account? |
Re: Australia's Property Bubble...
Originally Posted by slapphead_otool
(Post 10017496)
If it was possible to create a formula for house prices it would be far more complex.
If a house is 3 hours drive away from an employment hub how do you calculate the reduced value? Simple 6 hours at average salary plus cost of fuel and contribution to car ownership? What if the house is in a fantastic rural area? Do you then increase the value to take it into account? |
Re: Australia's Property Bubble...
Originally Posted by cresta57
(Post 10017566)
Then you have to factor in the possible mineral content of the surrounding countryside. Take some of those sleepy little towns in remote QLD, 5 years ago they were selling homes for less than 50k Suddenly a mine opens & the homes are now 500k+.
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Re: Australia's Property Bubble...
Originally Posted by slapphead_otool
(Post 10017496)
If it was possible to create a formula for house prices it would be far more complex.
If a house is 3 hours drive away from an employment hub how do you calculate the reduced value? Simple 6 hours at average salary plus cost of fuel and contribution to car ownership? What if the house is in a fantastic rural area? Do you then increase the value to take it into account? |
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