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Guest gratom

Property Bubble in Australia

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Guest Durathor
Well you can if you're Roman Abramovich.

 

My mate who lives in a scruffy 1-bedroom flat in Balham that cost him 200k rarely has days like that. He's too busy saving up for spuds and stuff.

 

 

A 200k flat in London would translate to just over $300k here in Melbourne, which wouldn't get him much anywhere worth living.

 

Balham with the option of travel around Europe (flights go from 50 quid to Europe rather than needing a small mortgage to travel abroad here) and having London on your doorstep is a viable option.

 

That is my wider point about value.

 

Melbourne and Sydney are chronically over-priced at this rate.

 

At a certain level, it makes sense and it's a great lifestyle (but only one lifestyle from many we could choose), but there is a point that financially it makes no sense to me. That is the point you begin to fear a bubble.

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A 200k flat in London would translate to just over $300k here in Melbourne, which wouldn't get him much anywhere worth living.

 

Balham with the option of travel around Europe (flights go from 50 quid to Europe rather than needing a small mortgage to travel abroad here) and having London on your doorstep is a viable option.

 

That is my wider point about value.

 

Melbourne and Sydney are chronically over-priced at this rate.

 

At a certain level, it makes sense and it's a great lifestyle (but only one lifestyle from many we could choose), but there is a point that financially it makes no sense to me. That is the point you begin to fear a bubble.

 

The cheap European holiday is dead. Long live the Euro.

 

My mate would hit me if I told him that one of the attractions of living in Balham is its proximity to Central Europe.

 

I see what you're saying but its not within the reach of most.

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so are sth africans canadians americans kiwis cubans italians greeks slavs croats and anybody else we wont stop if migration from GB stops:wink:

 

 

The point here is that people are unlikely to want to emigrate from Europe if they will live in penury in Australia. The reason that many European people chose to emigrate was:

 

1) You could get a big house quite for a reasonable price

2) The cost of living was low.

3) The climate is nice.

 

Points 1 and 2 are no longer true. And if you come from Italy or Greece, point 3 is irrelevant.

 

Which means that the only people who will want to move here are the people coming from Asia looking for a better life. These people tend not to have any money behind them.

 

And Australia is VERY expensive. I have just moved out from Reading in the UK which is not exactly a low cost area of the UK. However, in comparison to Reading, Melbourne is staggeringly expensive. I am lucky to have a good job – how anyone could live here on the national average salary beats me.

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Guest Durathor
The point here is that people are unlikely to want to emigrate from Europe if they will live in penury in Australia. The reason that many European people chose to emigrate was:

 

1) You could get a big house quite for a reasonable price

2) The cost of living was low.

3) The climate is nice.

 

Points 1 and 2 are no longer true. And if you come from Italy or Greece, point 3 is irrelevant.

 

Which means that the only people who will want to move here are the people coming from Asia looking for a better life. These people tend not to have any money behind them.

 

And Australia is VERY expensive. I have just moved out from Reading in the UK which is not exactly a low cost area of the UK. However, in comparison to Reading, Melbourne is staggeringly expensive. I am lucky to have a good job – how anyone could live here on the national average salary beats me.

 

 

That is the main problem at the moment. We are actually thinking of heading home because I simply cannot see the value of living here at the moment. I simply cannot equate the cost of living here with the value it offers.

 

Australia is a compromise. You forfeit family, culture, media, diversity, travel and variety of choice.

 

You cannot get away from the fact that it takes 8 hours to leave the country by plane and costs thousands of dollars to do so. It is isolated and in many ways very bland. it is warm and I have enjoyed the country immensely. But I did not dislike the UK, I was looking for a change of lifestyle.

 

If a Bentley costs $100,000 and a Lexus costs $60,000 then I would probably choose the Lexus. If Lexus suddenly want $110,000 and Bentley have reduced their price, then I would choose the reverse option. This is what has happened here. It simply does not offer value for your money. It is staggering really and very sad for those, like me, that it offered a change and an oppotunity.

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Guest Durathor
The cheap European holiday is dead. Long live the Euro.

 

My mate would hit me if I told him that one of the attractions of living in Balham is its proximity to Central Europe.

 

I see what you're saying but its not within the reach of most.

 

 

Your friend must be on the breadline if he cannot afford 50 quid to drive on a ferry, or fly to anywhere in Europe for the same price. If he doesn't consider his proximity to Europe (and the rest of the world) as a bonus of living in London then he is also a little dim.

 

If his 200k flat is crippling him so much with rates working off a 0.5% base rate I would advise him to get a new job.

 

Many in the UK have never been so wealthy, the problem the UK has is that people are recapitalising and paying off their loans rather than buying flat screen televisions and the banks won't lend for housing as the banking system is crippled.

 

Housing is cheaper in the UK at the moment by the way, with Australia earnings to house price ratio vastly outstripping the UK (and everywhere else).

 

So I would tell your friend that he is extremely lucky to living in a decent part of a remarkable city within minutes of the best art galleries, theatres, shops, parks and architecture in the world. Paying a historically low mortgage rate with Heathrow (and the world) within 40 minutes and, again, at historically low prices.

 

I am not denigrating Australia in any way. It's a fantastic place and I love being here. But that does not mean the UK has many wonderful features. A flat in Balham is no bad thing. He would struggle to match the lifestyle currently on offer to him there with his $300,000 here (if he can find a job that matches his pay that is).

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Your friend must be on the breadline if he cannot afford 50 quid to drive on a ferry, or fly to anywhere in Europe for the same price. If he doesn't consider his proximity to Europe (and the rest of the world) as a bonus of living in London then he is also a little dim.

 

If his 200k flat is crippling him so much with rates working off a 0.5% base rate I would advise him to get a new job.

 

Many in the UK have never been so wealthy, the problem the UK has is that people are recapitalising and paying off their loans rather than buying flat screen televisions and the banks won't lend for housing as the banking system is crippled.

 

Housing is cheaper in the UK at the moment by the way, with Australia earnings to house price ratio vastly outstripping the UK (and everywhere else).

 

So I would tell your friend that he is extremely lucky to living in a decent part of a remarkable city within minutes of the best art galleries, theatres, shops, parks and architecture in the world. Paying a historically low mortgage rate with Heathrow (and the world) within 40 minutes and, again, at historically low prices.

 

I am not denigrating Australia in any way. It's a fantastic place and I love being here. But that does not mean the UK has many wonderful features. A flat in Balham is no bad thing. He would struggle to match the lifestyle currently on offer to him there with his $300,000 here (if he can find a job that matches his pay that is).

its not the getting there its the cost of staying there accomodation,you could always backpack of course.as for house prices check whats happening in canada,its also on the rise av 350000c,first home buyers good area 500000c

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Guest Durathor
its not the getting there its the cost of staying there accomodation,you could always backpack of course.as for house prices check whats happening in canada,its also on the rise av 350000c,first home buyers good area 500000c

 

More expensive than $250 dollars a night for a Big 4 campsite cabin?

 

Sorry, being a little facetious.

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Yeah, but Canada is in a huge bubble as well. Or is there a shortage of land there......?

 

is everyware that things seem to be on the rise in a bubble:wink:

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Guest byron

I dont have a house yet so am kind of waiting for the crash....:cool:

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this article might be of interest to some.

 

bubblepedia.net.au : HomePage

article like this was on here a few weeks ago. if and when it does a lot of people will be happy, and a lot of people sad>:sad:


"640K ought to be enough for anybody." Bill Gates 1981

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In most states in Australia the demand for housing is greater than the homes available which obviously increases the price. I believe when the demand out strips the available homes for sale the price goes up. In my suburb the demand is greater by 500+. While this continues there will be no "crash". Great for me when I want to down size.

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Guest chris955

In an article I read today in our local paper they were saying how Brisbane and the surrounding areas were now classed as unaffordable. The affordability ratio rating is 3, anything higher makes housing unaffordable, Brisbane was 7 if I recall and where we are is 5.something. That isn't to say people aren't buying houses it's just that they are getting in way over their heads to do it.

These both make interesting reading.

Australia faces housing affordability 'time bomb': developer

Housing affordability hits the wall

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cabin style family hols - liken to Haven?? or was it a rhetorical question


Job offer accepted September 2008, 457 visa approved 7th January 2009, Arrival in Melbourne 27th January 2009, PR (856 visa) granted 27th July 2010

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