Burbage

This makes interesting reading:

http://www.demographia.com/dhi.pdf

Goes to show that the housing market in Australia is completely out of control, and here's me buying a house...

Kooky.

Will reading that just depress me further? I can't believe how quickly I've gone from saying we're not spending more than 500k to thinking, hmmm, let's see what 750k gets us...of course I'd have to rob a bank to afford that.

tictac

This term "household income".

Does this mean before tax, after tax or what exactly?

Anybody know?

Regardless, if you want and can afford to own your own home, what are you going to do? Keep waiting until the multiples come down? How long will you be waiting and who's to say you'll get what you want if and when the multiples *do* come down?

The time is always now IMO...

Kooky.

You're right, tictac. In our case some decisions and arrangements to be made - go for PR here, give up PR elsewhere to be able to withdraw funds, etc. - but one reason we moved here was to put down roots, so when we can go for it, we'll go for it. Rather pay my own mortgage than somebody else's.

Burbage

That's pretty much what I decided, I just hope that the correction, when it comes, isn't too drastic. However, on the other hand, you always sell into the same market you buy in. The problem is the money you spent in the first place.

Kooky.

As an aside, and with apologies to everyone else who has no idea what I'm on about - Burb, I knew we had to pay back CPF if we withdrew it and then returned to Sg, but what I read yesterday suggested we actually have to give up PR. Is this correct? If so, I think we need to get Oz PR before burning that particular bridge.

Geelong Gent

As a percentage of income estate agents use Gross, Banks use Net.

ABCDiamond

But... take into account this quote from page 17:

ABCDiamond

On this report it is gross, before tax.

London, England 6.9 Multiple
£249,900 Median House Price
£36,300 Median Household Income

Sydney, NSW 8.3 Multiple
$529,000 Median House Price
$64,000 Median Household Income

The 10 Lowest Multiple areas listed (UK & Aus) are:
182 United Kingdom Dundee, Scotland 4.6 Multiple
182 United Kingdom Northeast Region, England 4.6 Multiple
182 United Kingdom Northwest Region, England 4.6 Multiple
190 Australia Bendigo, VIC 4.8 Multiple
190 United Kingdom Yorkshire Region, England 4.8 Multiple
195 Australia Wagga Wagga, NSW 4.9 Multiple
199 Australia Ballarat, VIC 5.0 Multiple
199 United Kingdom Falkirk, Scotland 5.0 Multiple
199 United Kingdom Glasgow, Scotland 5.0 Multiple
202 Australia Canberra, ACT-NSW 5.1 Multiple

DrWho

Figures are based on 3rd quarter last year... I'll bet the UK figures are a fair bit lower now...

NKSK version 2

I've just spent an hour looking at house prices in the UK.

I was quite shocked at how high the prices still are - at least the asking prices.

Also, ABC's point about house size is pertinent. I looked at what we could buy for what we could buy in Perth and the house size - and especially block size - was very small.

Given what's happening globally I still think that the rot is well and truly set into Perth prices though.

tictac

I've not yet read this year's report but you know, the point you mention above is very interesting and is in fact the first time I've seen it mentioned.

Comparing the prices of houses in Oz with the prices of houses in the UK is therefore like comparing apples and pears.

Clearly the "household income" multiplier is the 'safest' form of comparison though I'd argue (maybe incorrectly) that the huge expanse of 'regional' Australia and the types of employment commonly found in these areas would help reduce the value of the "median household income" over here.

caliburn

Arrrrrggghhh.... A comparison of median house prices with median household incomes in Australia, Canada, Ireland, New Zealand, Britain and the United States found that Australia had the most cities in the "severely unaffordable" category - where house prices are more than five times the median income. The Sunshine Coast in Queensland was the least affordable. The Gold Coast came third, behind Honolulu, and Sydney was fifth, behind Vancouver. Melbourne and Adelaide were equal 12th and were still less affordable than New York (14th), London (16th) and Dublin (32nd). (Source: Sydney Morning Herald)

If you are interested in reading the full report, I have attached it here.

Anne2Oz

A lot of it makes sense... but I don't think all of this can be right...Adelaide more expensive than London?
When we compare salary plus buying a 4 bed house plus reasonable plot, against buying that near London, there is no doubt London is MUCH more expensive. Won't trust this survey...
Did they take into account house size? Or were they comparing a 4 bedroom (box size) over 3 floors, no garden in London ...with a large 4 bedr and huge plot in Adelaide?
It also states that Perth is more affordable than Adelaide...not true ...maybe about the same.

aasmith1957

just read the report that you downloaded.bloody greedy banks,land developers and councils are all to blame for this fing mess we are in.banks wanting more profits to make targets so the head lads get their exorbitant bonuses. land developers cashing in (make hay while sunshine mentality) hold back affordable land etc, also greedy local goverments so they can make more money on their property portfolios.(so council leaders get big pay outs, joondalup springs to mind in wa,and wasting money on going down to perth from regional areas for confrences for a week all paid for by ---yep you got it us silly buggers.:curse:thinking of living in a friggin caravan in laybys when we head back to the uk this year if house sells!!!!!!