House prices

[byrned]

I think this logic is flawed. The vast majority of people in Australia live in major cities. So, as a better comparison, if most people lived in London, Edinburgh, Manchester, Dublin and Birmingham, what would the average house price be then? My guess is a darn sight more than 165k.

 

Also, if you've been in Oz since 2008, why use a 1.56 exchange rate to reinforce your point. We came in 2008 and got 2.10 to our pounds.

 

I think what they are trying to point to is what your money would buy you today. in both countries, not in 2008

[Peach]

Is also worth noting that house prices have been largely static in the UK for the past 18 months - the affordability is coming from the strength of the dollar not a crash in UK valuations.

[Guest The Ropey HOFF]

Is also worth noting that house prices have been largely static in the UK for the past 18 months - the affordability is coming from the strength of the dollar not a crash in UK valutations.

 

The current cost of houses in each country hasn't ever really changed, but over the last 18 months the pound has plummetted to an all time low against most of the worlds major currencies, but using the current exchange rate as a measuring bar, is simply pointless, unless you are coming back from Australia to live in the uk. You will then get a massive bargain from the sale of your house in Australia and exchanging your dollars into pounds, thanks to Australia doing so well financially and not going into a long recession like the uk has gone through. Its like saying that over the last 18 months, nurses in Australia have received a $20,000 pay rise, because of the current exchange rate measurements................. its nonsense and trying to quote average figures from each country and saying houses are alot cheaper in the uk, can then be countered that wages are 30% higher in Australia, when both are not true.

[byrned]

I sold my house back in 2006 for 160,000 pounds, nice three bed semi, my neighbour who had hers valued last year it was valued at 136,000, she was shocked the esate agent told her they had come to this valuation in relation to other properites which had sold in the area going for this price.

[S92LAME]

we are in Canberra right now. after spending a some time in Sydney and Perth. no idea what the prices here are like, not staying long enough to look at it. but the house next door to the one we stayed in in perth was for sale and when we asked the landlords about it they said it was going for $6.25 million, and its just a house! its a nice house and big, but it sits on a plot of land not much bigger than my hose does. but what shocked me was the landlord saying that the land it sits on is worth $2M alone, along with most of the other houses in the area. we had a shuttle pick us up to take us to the airport and the driver was an old canadian dude who was retired from the mining game after making millions on property and he reckoned you would be looking at $1.5M for anything nearby at an absolute minimum. we were staying in City beach, an nice area i know, but its 30 mins to the city centre and thats far enough for a commute, and would be about an hor or more to where i would be looking to work.

 

for me its not just the houses, its the general expense of the country with just about anything, even taking a $2 to the £ ratio into account. my wife and i would be looking at Earning around $200-$240K a year, a lot more than the average family i know, and we are both still concerned, not worried but just concerned about how much our expenditure would be just to have a decent life, and we have no kids!

 

Just my thoughts everyone is different. I still like the place, but not as enthused about coming as i may have been. depennds on work at home now i think. for both of us. wife would have no problem getting a job here, already people fighting for her, and we applied for visas on my job (on CSL) so there must be jobs out there for me too!

[landv]

I think this logic is flawed. The vast majority of people in Australia live in major cities. So, as a better comparison, if most people lived in London, Edinburgh, Manchester, Dublin and Birmingham, what would the average house price be then? My guess is a darn sight more than 165k.

 

Also, if you've been in Oz since 2008, why use a 1.56 exchange rate to reinforce your point. We came in 2008 and got 2.10 to our pounds.

 

 

 

I said using the current exchange rate in my original post.

Why would the exchange rate in 2008 concern me now two years later?

 

The shifting of property values are not just the result of the strong australian dollar against the pound, but also the combination of decrease in the UK property and an increase in australian property value.

[Peach]

But apart from localised pockets UK house prices don't seem to be falling either : BBC NEWS | In Depth | UK House Prices | Overview

[Guest The Ropey HOFF]

Theres nothing selling here in the uk, so prices going down is probably just about correct but if they arn't selling no one can move, the housing market is stagnent and young couples are having to stay at home with their parents.

[Peach]

Ssshhh don't tell Kirk that house prices are stagnant and likely to fall. He's still patting himself on the back for buying two this week. :happy_face_outlaw_s

[Guest Andy]

Theres nothing selling here in the uk, so prices going down is probably just about correct but if they arn't selling no one can move, the housing market is stagnent and young couples are having to stay at home with their parents.

One of the reasons houses are not selling imo hoff is because some people who are trying to sell still seem to think that there property is worth more than it actually is and think they should be getting what they were 3-4 years ago when in reality they have probably dropped by quite a bit.Only when they have a reality check and see that they should take what someone is prepared to pay will the market maybe start to move, and they could be doing themselves a favour in the long run as the only way house prices over the next few years are going to go is down.

[Guest Andy]

Ssshhh don't tell Kirk that house prices are stagnant and likely to fall. He's still patting himself on the back for buying two this week. :happy_face_outlaw_s

He will be in it for the long haul then as i do not reckon he will see a return on his money for a long time:shocked:

[Peach]

You were posting in his thread ) He plans to cash out in four years time (and move to Oz on the proceeds), by which time the exchange rate will have swung the other way and house price inflation in the UK has made him a wealthy man.

 

Sincerely, I hope it works out for him. Although I'm not convinced.

[KIRK AND CO]

Ssshhh don't tell Kirk that house prices are stagnant and likely to fall. He's still patting himself on the back for buying two this week. :happy_face_outlaw_s

Do you realy think i did not factor that in. The place was last sold 2007 £190,000 back on the market 2010 £169,00. My offer £150,000 refused & finaly £152,000 accepted so not that worried if they drop more so another patt on the back lol.:hug:

[Guest Andy]

Do you realy think i did not factor that in. The place was last sold 2007 £190,000 back on the market 2010 £169,00. My offer £150,000 refused & finaly £152,000 accepted so not that worried if they drop more so another patt on the back lol.:hug:

I think that that 2007 price was probably totally inflated as most were at that time and it will be a long time before it will be worth that much again, my guess is that the price is still to high now at what you paid but i may well be wrong.

[Guest The Ropey HOFF]

Its hard to predict what house prices will be like in the future, hopefully the massive cuts today will be the start of a long slow recovery and in 4 years time houses might be selling and be worth alot more, who knows, but best of luck.

[KIRK AND CO]

I think that that 2007 price was probably totally inflated as most were at that time and it will be a long time before it will be worth that much again, my guess is that the price is still to high now at what you paid but i may well be wrong.

If you look at the newbury position on the map it is central for most major routes. There are major construction going on ie massive new shopping complex, new schools, new house construction & new estate agents opening. Newbury will be the next boom town within the next 5 years but i am hoping 4.

[Peach]

In fact it is such good news all round that sellers have to drop their prices by almost 25% to get a sale.. As I say, I sincerely hope it works out for you.

[KIRK AND CO]

In fact it is such good news all round that sellers have to drop their prices by almost 25% to get a sale.. As I say, I sincerely hope it works out for you.

It is just like buying shares you buy at what you think is low then wait till they rise. Newbury at this moment is a buyers market & there are those unfortunatly who have no choise but to sell but the potental is there already for future growth for those with the means to take the oppertunite

.

[Peach]

Absolutely, when buying shares or property you take as educated a gamble as possible on the direction that prices are going to go. And it takes balls of steel to bet on short term rises in house prices, when the government has just announced around 500,000 redundancies, coupled with tax increases, cancellations of school/hospital buildings, massive budget and benefit cuts over the next five years. Full respect to you.

[KIRK AND CO]

Absolutely, when buying shares or property you take as educated a gamble as possible on the direction that prices are going to go. And it takes balls of steel to bet on short term rises in house prices, when the government has just announced around 500,000 redundancies, coupled with tax increases, cancellations of school/hospital buildings, massive budget and benefit cuts over the next five years. Full respect to you.

The rent that can be acheived covers 85% of my repayments on both houses.

[Peach]

I'm not sure you think that helps? You have £200k of cash/equity tied up in an asset that might devalue, or prove difficult to rent (you never know, all the renters might want houses from the new estate that is going up) and harder to sell for a price you want (for as long as the banks aren't prepared to relax their lending rules and also the buyers may have more choice, with all the new estates). House prices in your area need to be going up by 5% a year to match inflation, or you're losing money year on year. The recorded value of your properties has gone down 25% over three years rather than match inflation.

[Guest Aldo]

nothing like looking on the bright side eh??:wideeyed:

 

half full or half empty:eek:

[Peach]

realist or dreamer?

[Guest Aldo]

realist or dreamer?

 

never taken a leap of faith?

[Peach]

never taken a leap of faith?

 

Yep, just wouldn't be doing it on UK property in the present climate.:biggrin: