SASINSEA Posted September 10, 2014 Share Posted September 10, 2014 Hi guys Lots of my UK friends are always amazed at how expensive property is in Australia, especially within 30 kins drive of a city centre or mining towns. The website below is a great resource for finding deals in oz and they have just posted a great guide to why the property prices here are so high. No surprise to Australian is that the major reason is tax, but well worth a read. http://www.lifehacker.com.au/2014/09/why-house-prices-are-so-high-in-australia-infographic/ Link to comment Share on other sites More sharing options...
Lambethlad Posted September 10, 2014 Share Posted September 10, 2014 It doesn't mention foreign investors (mainly Chinese) who are pushing up the prices on premium properties close to the city. I still think property in the outer suburb lower income areas is reasonably priced and even more so in regional and country areas. It depends on where you want to live. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 Yep uncontrolled foreign investors looking to park in many cases corruptly earned income and as such willing and able to out bid locals. A disaster in the making. The holy grail of negative gearing, which in fact is more of a rich tax avoidance scheme and the constant denial and talk up from within the industry and RBA into a bubble, along with Aussies almost blind belief in house flipping will always turn a profit. Words don't express what has been allowed to happen in a short space of time. Link to comment Share on other sites More sharing options...
Keith and Linda Posted September 10, 2014 Share Posted September 10, 2014 Not just the Chinese, http://www.firb.gov.au/content/Publications/AnnualReports/2012-2013/05_Chapter_2.asp Canada is a surprise, but where are all the 'other' from? Link to comment Share on other sites More sharing options...
Fisher1 Posted September 10, 2014 Share Posted September 10, 2014 But surely foreign investors aren't allowed to buy anything but off the plan property and then only with the permission of the appropriate govt. department? Link to comment Share on other sites More sharing options...
SASINSEA Posted September 10, 2014 Author Share Posted September 10, 2014 Ahh, there you go. Ruining a perfectly acceptable discussion in Aus around the table with logic ;-) Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 Ahh, there you go. Ruining a perfectly acceptable discussion in Aus around the table with logic ;-) Well no it may appear to you logic but what is happening on the ground is vastly different. 9% of sales of established dwellings are going to foreigners. That makes around 40, to 50,000 dwellings a year. The FIB (Foreign Investment Board) has failed to prosecute any foreign home buyers. They admitted in the recent inquiry that they are incapable of monitoring/enforcing whether a foreign resident has sold their house on departure as are legally bound to do. (Within 3 months of departure OZ) Better to have the facts than make rush statements. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 But surely foreign investors aren't allowed to buy anything but off the plan property and then only with the permission of the appropriate govt. department? Well no as there are many ways around it. Landed migrants act as fronts for folk back in China is but one ruse. The Australian Bureau of Stats admitted during the recent House of Rep's Inquiry into foreigners buying housing, to which I followed closely, that it relies on trade magazines and newspapers to keep track of foreign activity in OZ real estate. It would be hilarious if it wasn't so serious and a further betrayal of the young of this country. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 10, 2014 Share Posted September 10, 2014 Not just the Chinese, [ATTACH=CONFIG]26321[/ATTACH]http://www.firb.gov.au/content/Publications/AnnualReports/2012-2013/05_Chapter_2.aspCanada is a surprise, but where are all the 'other' from? Figures of accuracy are hard to come by with regards numbers due to the methods in use. It has gone away from the original idea of only new builds somewhat, but even there the value is debatable as many buy and lock up. Not interested in low rent yields but preferred to wait a long time for appreciation. Besides being a means to park money out of China, away from the scrutiny of the regime there. Link to comment Share on other sites More sharing options...
SASINSEA Posted September 10, 2014 Author Share Posted September 10, 2014 Ahh, there you go. Ruining a perfectly acceptable discussion in Aus around the table with logic ;-) Ok, we have different ideas of Irony and perhaps humor but i think we'd get along Link to comment Share on other sites More sharing options...
Fisher1 Posted September 10, 2014 Share Posted September 10, 2014 Actually I thought Sasinsea's comment was quite witty! My enquiry was genuine. I have a daughter in oz and we struggle with accommodation when we make a long visit. One way out for us would be to buy our own place, be it nary so 'umble, etc etc but can't afford to buy new build. (Yes I know there are exceptions but you get my drift I'm sure.) Also, we don't want to buy a shoe box because we hope to pay for a contributory parent visa and move over there in a year or two and would love to have a place already up and running. It makes me so angry to think people are being allowed to cheat the system that we are abiding by so carefully ... that's why I asked the question I did. ah well, there are people who couldn't afford to buy anything at all so we are incredibly lucky I know. Just b.t.w. why are caravans so hideously expensive in Australia (expensively hideous even?) At one point we thought this might be the answer for us, till we did some research into the type of thing on offer... Link to comment Share on other sites More sharing options...
flag of convenience Posted September 11, 2014 Share Posted September 11, 2014 I have no idea about caravans except just another item of many over priced. I could say in your specific case, if not pushed to come over, wait awhile and keep a through check on what is happening, with the exchange rate and housing prices. The problem being of course than none of us have the knowledge as to when it will happen but it is expected the dollar will make its long awaited drift southwards over the coming year to eighteen months. A lot is riding on US interest rates and other external factors but the fall could be substantial. This of course will make wages less attractive on conversion to pounds and make us here poorer in that sense, but great for those not yet arrived. All a question of timing. Houses are generally considered 30% over priced so a correction is due and has occurred in some parts of the country. I fly to Derby WA, again in two weeks and know for a fact a lot of new builds there have lost 50% + in rents and prices have collapsed. Some have been empty for months with little likelihood of finding tenants. Of course cities are not yet impacted the same way for different reasons, but the house next to mine has been unoccupied now for almost three weeks. Great location, but a little pricey. Still want to be renters were flocking there eighteen months ago during home openings. I know they got above the asking rental price at the time. Places were very hard to find. So I'd say time in that sense is on your side. Depends on eagerness to move and the patience and ability to read through a lot of the nonsense being peddled by vested interests Link to comment Share on other sites More sharing options...
Ausborn Posted September 11, 2014 Share Posted September 11, 2014 House prices continue to rise Solid to strong market conditions prevail in most capitals over June quarter Australian house prices continued to rise over the June quarter with most capitals reporting higher or similar growth levels than the previous March quarter. The national median house price increased by 1.9 percent compared to the 1.7 percent rise of the previous quarter. The national median unit price also recorded a sturdy rise of 2.7 percent – also higher than the 2.0 percent result of the previous quarter. Advertisement The Sydney housing market remains clearly the standout capital city performer with another strong result reported over the June quarter. The Sydney median house price increased by 3 percent, smashing through the $800,000 barrier for a new record high of $807,880. The Sydney median house price increased by 16.4 percent or just under $114,000 over the 2014 financial year. Both the quarterly and annual Sydney results were the best of all the capitals. Sydney house price growth over the June quarter exceeded the March quarter result of 2.6 percent although remained well below the 5.6 percent recorded over the December quarter last year – clearly the high water mark of the current growth cycle. Similar to houses, Sydney unit prices increased strongly by 3.5 percent over the quarter to be up by 12.2 percent over the year. The Melbourne housing market reported another solid quarter of growth over June with the median house price increasing by 1.8 percent – again higher than the March result. Melbourne house prices increased by 10.3 percent over the year ending June with unit prices up by 2.7 percent over the quarter to be up by 8.8 percent over the year. The Brisbane housing market continues to gather momentum now recording eight consecutive quarters of house price growth. The Brisbane median house price increased by 1.4 percent over the June quarter a similar result to the 1.7 percent recorded over the March quarter. The Brisbane median house price is now at a new record level at $47,612 having finally recovered from its previous price peak recorded over June 2010. Brisbane house prices increased by 6.8 percent over the year ending June which was the highest annual result in 4 years. Housing market activity in Adelaide continues to report solid results with the median house price increasing for the third consecutive quarter over June - up by 1.2 percent and remaining the mainlands most affordable capital at $463,124. Adelaide unit prices increased strongly over the quarter rising by 4.4 percent. Prices growth in Perth remains subdued with the median house price increasing by just 0.4 percent over the June quarter following a modest rise of 10.9 percent over the March quarter. Perth house prices have increased by 5.2 percent over the year ending June which is the worst performance of all the major capitals. Positive signs at last from the recently subdued Canberra housing market with the median house price increasing by 2.2 percent over the quarter to $576,367. The solid increase in prices however follows a sharp fall over March and continues the recent volatile pattern of house price growth with a sustained trend yet to emerge. Canberra house prices remain 0.5 percent below the level of a year ago – the only capital to record a fall in house prices over the past year. In contrast to houses Canberra unit prices fell by 0.8 percent over the quarter. Although Hobart house prices increased modestly by 0.8 percent over the June quarter that market has nonetheless now recorded four quarters of house price growth following a subdued period of housing market activity. Hobart house prices increased by 6 percent over the year ending June which was the best annual result for that city since June 2010. Despite recent growth the Hobart median house price remains 3.3 percent below its previous price peak also recorded over the June quarter 2010 - the only capital not have recovered to the previous cyclical peak level. The volatile Darwin housing market produced another subdued result over the June quarter with house prices falling by 1 percent following a fall of 1.6 percent over the March quarter. Despite these falls the Darwin median house price increased by 2.2 percent over the year which is nonetheless the lowest annual growth result for that city since June 2012 Australia’s capital city housing markets show no signs of a significant slowdown in prices growth through the mid-year period with most capitals maintaining or exceeding the solid to strong price growth levels recorded over the previous quarter. Other leading indicators of housing market activity such as home loans and auction clearance rates point to continued solid buyer activity through 2014 fuelled by low interest rates, restored and rising confidence, a reasonable general economic foundation and, particularly for the Sydney market, record levels of investor activity. Sydney, Melbourne and Perth have led the capitals in market activity over the past year however rising affordability barriers due to modest incomes growth constraining prices growth will act to moderate growth in those markets through 2014 with annual outcomes likely around half the strong 2013 results. Brisbane, Adelaide and Hobart however are all set to record stronger years for house price growth over 2014 compared to the 2013 results as confidence returns to those markets following subdued periods of buyer activity largely reflecting underperforming local economies. Darwin and Canberra currently remain the capital city underperformers although Darwin’s strong economy and underlying shortage of housing will act to re-ignite house prices sooner rather than later. Early signs are emerging of an improvement in the Canberra market although much will as usual depend on a better performance from the local economy for a sustained revival in buyer activity and prices growth. Link to comment Share on other sites More sharing options...
flag of convenience Posted September 11, 2014 Share Posted September 11, 2014 It should be noted First Time House Buyers are at all time lows. Investors of various descriptions tend to be running the show. With poor yields on rents, these folk must be relying on appreciation. It looks like becoming increasingly messy further down the road. There is little chance of further interest rate cuts, more a matter of when they will rise. Link to comment Share on other sites More sharing options...
fish.01 Posted September 11, 2014 Share Posted September 11, 2014 Throw this into the mix as well. Of course some of this is just explained by current circumstances (exchange rates, house prices) but it is still a significant factor regardless. Wealth per adult across countries As already noted, global household wealth equatesto USD 51,600 per adult, a new all-time high for average net worth. This average global value masks considerable variation across countries and regions,as is evident in Figure 3. The richest nations, with wealth per adult over USD 100,000, are found in North America, Western Europe, and among the rich Asia-Pacific and Middle Eastern countries.They are headed by Switzerland, which in 2011became the first country in which average wealth exceeded USD 500,000. It dropped below this mark in 2012, but this year equity price rises resulted in a new peak value of USD 513,000 per adult. Australia (USD 403,000), Norway (USD380,000) and Luxembourg (USD 315,000) all experienced an increase in wealth per adult and retain their respective second, third and fourth places from 2012. The United States, Sweden, France, Singapore, Belgium and Denmark are close behind, with average wealth per adult in the USD 250,000 to USD 300,000 range. A year ago, Japan moved up to fourth place in the table, but it has now been demoted and no longer ranks among the top ten countries. Interestingly, the ranking by median wealth per adult is slightly different, favoring countries with lower levels of wealth inequality. Australia (USD220,000) tops the list again this year, with only Luxembourg (USD 183,000) in close contention. Median wealth in Belgium, France, Italy, the UK,and Japan lies in the USD 110,000 to 150,000range. Switzerland, Finland and Norway have slightly lower values of around USD 95,000, butthe United States is much further back with median wealth of just USD 45,000. The rich country group with wealth per adult above USD 100,000 has very stable membership over time. Greece dropped out of the group a year ago, but has now returned. Cyprus and Spain have also seemed vulnerable to demotion in recent years, but no longer appear to be at immediate risk, with mean wealth per adult of USD 120,000 and USD 124,000 respectively. Source: http://www.smh.com.au/business/the-economy/aussies-the-worlds-richest-people-credit-suisse-20131009-2v7qy.html Source: http://images.smh.com.au/file/2013/10/09/4815797/cs_global_wealth_report_2013_WEB_low%2520pdf.pdf?rand=1381288140715 Link to comment Share on other sites More sharing options...
Recommended Posts
Archived
This topic is now archived and is closed to further replies.