Petals Posted January 24, 2011 Share Posted January 24, 2011 Australian houses among world's most expensive - ABC News (Australian Broadcasting Corporation) Six times income, I think we do not need a survey to tell us that the houses are way over priced. Quote Link to comment Share on other sites More sharing options...
Quinkla Posted January 24, 2011 Share Posted January 24, 2011 Australian houses among world's most expensive - ABC News (Australian Broadcasting Corporation) Six times income, I think we do not need a survey to tell us that the houses are way over priced. I have been saying as much but I keep being shot down by those who live (or would like to live) in La La Land. For most people, the dream of the large house with swimming pool, multiple living areas, beach front and huge garden are totally unattainable. Until a short while ago, this was not necessarily the case. But it is now. Quote Link to comment Share on other sites More sharing options...
fish.01 Posted January 24, 2011 Share Posted January 24, 2011 Strangely our average mortgage is similar to the UK. Must be a lot of equity floating around. Quote Link to comment Share on other sites More sharing options...
Petals Posted January 24, 2011 Author Share Posted January 24, 2011 I have been saying as much but I keep being shot down by those who live (or would like to live) in La La Land. For most people, the dream of the large house with swimming pool, multiple living areas, beach front and huge garden are totally unattainable. Until a short while ago, this was not necessarily the case. But it is now. Yep it was attainable until the first home buyers grant and the GST everything sky rocketed after that when the grant was just added on to the price by the builders and the land developers. Even though the first home buyers got the grant they paid more for the houses and the land. Bit like the coffee crisis went up and stayed up. Also the benefits to investors fuels the market the overseas buyers making it impossible for first home buyers. The young people are saddled with huge mortgages. It was always hard but now its just that much harder. My Mum sold her unit about seven years ago and the resale price from what she got has increased by $100,000.00 Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted January 24, 2011 Share Posted January 24, 2011 He says the high prices are mainly due to a lack of available land. Can't see this myself. There is land or housing available in just about any suburb you fancy in and around Perth. There are houses and land on West Coast Highway that have been for sale for years and will remain so until the owner gets the right price. Usually extortionate. The new houses opposite Hillarys were started years ago and there is still land for sale from right at the front of the development to anywhere else you might fancy. Does it get any cheaper as it's not sold yet? Can't see that it does. The developers can obviously afford to hang on as they made so much from the super high prices they charged for the first release. All this for tiny roads in between the houses, hardly any parking provided and tiny back yards. There are thousands of houses for sale in the numerous new suburbs around Perth. Not many are cheap though. Quote Link to comment Share on other sites More sharing options...
fleabo Posted January 24, 2011 Share Posted January 24, 2011 If you want cheap housing don't move to Sydney, Vancouver, Hong Kong or Bournemouth and Dorset.:wink: Move to Atlanta. They have a Coca-Cola museum there which is great fun. Quote Link to comment Share on other sites More sharing options...
gpo1971 Posted January 25, 2011 Share Posted January 25, 2011 I have been saying as much but I keep being shot down by those who live (or would like to live) in La La Land. For most people, the dream of the large house with swimming pool, multiple living areas, beach front and huge garden are totally unattainable. Until a short while ago, this was not necessarily the case. But it is now. To be fair, for a house as you describe with 'swimming pool, multiple living areas, beach front and huge garden', with demand the way it is, they're hardly going to be giving them away, irrespective of what prices used to be. Its not like buying a terraced house in Manchester. We have a big pool, big garden, a 2nd living room and can walk to the beach in about 10 or 12 minutes and our house cost less than $500k just before Xmas. Our mortgage is 1.3 times what our UK one was but obv our house now is a million times better. Quote Link to comment Share on other sites More sharing options...
Paul1Perth Posted January 25, 2011 Share Posted January 25, 2011 To be fair, for a house as you describe with 'swimming pool, multiple living areas, beach front and huge garden', with demand the way it is, they're hardly going to be giving them away, irrespective of what prices used to be. Its not like buying a terraced house in Manchester. We have a big pool, big garden, a 2nd living room and can walk to the beach in about 10 or 12 minutes and our house cost less than $500k just before Xmas. Our mortgage is 1.3 times what our UK one was but obv our house now is a million times better. I've heard on a few occassions that Perth is supposed to be at least as expensive as Sydney but when you see posts like the one above I just can't see it. Butler is a nice suburb about 35Km North of Perth but only about 10mins from Joondalup. There would be a lot of houses in the Northern corridor (and probably same South, Secret Harbour maybe) around the $500k mark with 4 beds, garage, swimming pool and decent sized garden/back yard, all near the coast and nice beaches and fairly new build. If you compared that with anything in the beachside suburbs of Sydney you wouldn't get close. Just had a quick look at the median house price for Manly and it's $1,700,000. It's great here in La la land. Quote Link to comment Share on other sites More sharing options...
Jibbah24 Posted January 25, 2011 Share Posted January 25, 2011 It used to be those bloggers on the fringes but I'm starting to see more and more of these articles now in both the Australian and international press... There's no smoke without fire and whilst no one can accurately predict how much things will drop by, I think it's becoming a case of when and by how much instead of if....! Aussie House Prices Hit the Tipping Point Aussie House Prices Hit the Tipping Point :huh: Quote Link to comment Share on other sites More sharing options...
Petals Posted January 25, 2011 Author Share Posted January 25, 2011 Expensive areas like Manly in Sydney, have always been expensive in comparison to wages. So the medium now is no different from the medium thirty years ago, just a very desirable place to live. Same in all the major cities. Unless people make wads of money they usually stay in the same affordable areas. The problem is not the inner city but the outer city where prices have also risen astronomically and this has caused problems with first home buyers and people who usually live on the fringes of the city because its less expensive. The fringes are the first place to lose when prices take a downturn. Of course to take a downturn we need to curb immigration and what Gov is going to take that risk? I have noticed around my area that the more expensive houses are taking a while to shift, although Christmas and holidays are not the best time to sell. It will be interesting to see how the property market pans out this year. I personally think that the gov would be very worried about a lot of houses being repossessed as so many people are up to their ears in debt. Never mind what the gov owes what does the private sector owe. We have to live somewhere and presently we have more people wanting housing. Quote Link to comment Share on other sites More sharing options...
Guest Bobby Posted January 25, 2011 Share Posted January 25, 2011 I have always said that houses are very expensive in Oz, thanks for the link. Quote Link to comment Share on other sites More sharing options...
fleabo Posted January 25, 2011 Share Posted January 25, 2011 The report makes interesting reading but, by its own admission, is flawed particularly where Australia is concerned. The reality is that you need to look at the suburb(s) you are interested in living in. We bought last year in a modest Sydney suburb whose house price growth since 2003 had been flat. We bought a house that per square metre of dwelling was cheaper than the house we sold near Edinburgh in a flat market with an exchange rate of $1.64. So for us, the price we paid for our house in Sydney was not much more expensive than some place close to Edinburgh - in fact it was better value. That is our experience. Cheers and good luck. Quote Link to comment Share on other sites More sharing options...
Guest Toorak Trev Posted January 26, 2011 Share Posted January 26, 2011 I have been saying as much but I keep being shot down by those who live (or would like to live) in La La Land. For most people, the dream of the large house with swimming pool, multiple living areas, beach front and huge garden are totally unattainable. Until a short while ago, this was not necessarily the case. But it is now. There is also a reality that many are not willing to take on. That is you dont automatically get an instant entitlement to enjoy expensive assets before doing the hard graft. I constantly grown when I come across individuals who think 12 to 18 months of saving (instead of 3 nights out a week they cut down to 1 night but spend the equivalent of another night on dvd's and junk food) is hard graft. Property across the world was undervalued in the mid 90's it has now crept over and either will drop slightly or await incomes to rise. I dont believe figures of 6 times income multiples - my reason is that is allowing individuals to determine house price to their income rather than their income to a suitable priced home. Missing the point? a tradesmen on $60k per year expecting to live in Glen Waverley compared to them seeking a home in Seaford/frankston. Then take a $4m per year self employed IT consultant living in Apollo Bay versus staying in Elwood. Quote Link to comment Share on other sites More sharing options...
Petals Posted January 26, 2011 Author Share Posted January 26, 2011 221 Bungower Road, Somerville, Vic 3912 - House for Sale #107123702 - realestate.com.au This house is across the road from us and will be interested to see how much they get. Quote Link to comment Share on other sites More sharing options...
Joebloggs Posted January 26, 2011 Share Posted January 26, 2011 Australia has what the report describes as the most intense housing stress, with homes costing six times the average household income. Property 6 times income or even 10 times income doesn't make a difference, its your homeloan v your income is what matters. There are plenty of old Aussie money out there who maybe can easily buy a house 6 times their income but they only require a mortgage 2.5 their income. Its all about who will be prepared to pay and who cant. Quote Link to comment Share on other sites More sharing options...
lyndalelodge Posted January 26, 2011 Share Posted January 26, 2011 Property 6 times income or even 10 times income doesn't make a difference, its your homeloan v your income is what matters. There are plenty of old Aussie money out there who maybe can easily buy a house 6 times their income but they only require a mortgage 2.5 their income. Its all about who will be prepared to pay and who cant. I think the jist is that it is based on averages. Average value of a house versus average income There are always a great many folk with considerable savings who will not require a huge or any loan at all, but whos income is 1/6 or less the value of their property. BUT, does this not equally apply to all other countries? Therefore applying an assumption that it does, the average in Australia is still the worst in the world and the average person, particularly younger folks with little savings can forget about getting on the 'ladder' for a long time (not so different in the uk mind!). Quote Link to comment Share on other sites More sharing options...
rockola57 Posted January 26, 2011 Share Posted January 26, 2011 Yep,dead true!Seriously daft prices now,that are actually attainable to me and her,BUT! As Mr Stipe would say"It's the end of the world as we know it"We refuse to enter in to that none sense and prefer to rent at present,and save,and have a good social life.Less pressure,less stress.We would love to buy But!right now :nah:!!!! Quote Link to comment Share on other sites More sharing options...
Graemsay Posted January 26, 2011 Share Posted January 26, 2011 The best figures that I've been able to find are that the median Sydney income is around $82K, and the median house price is $634K. (Different indices have different values.) At current interest rates, a 90% mortgage for an average house would cost about $50K a year. This would be 61% of a typical household's income, and the median wage is actually somewhat lower than this again. Or to put it another way, mortgage stress is defined as the point where houses become unaffordable. Prices would have to half to get down to this level. Whilst I agree that there will be Aussies with a decent stash of cash or investments, I doubt that they are in the majority. I heard that workers typically have $70K to $100K in their superannuation fund as they approach retirement, which isn't consistent with the odd half million dollars hidden under their mattress. :biglaugh: Personally, I'd advise renting rather than buying. If you get caught on the wrong side of a downturn in the housing market then it could take ten or twenty years to dig yourself out of the hole. Quote Link to comment Share on other sites More sharing options...
fish.01 Posted January 26, 2011 Share Posted January 26, 2011 I think the jist is that it is based on averages. Average value of a house versus average income There are always a great many folk with considerable savings who will not require a huge or any loan at all, but whos income is 1/6 or less the value of their property. BUT, does this not equally apply to all other countries? Therefore applying an assumption that it does, the average in Australia is still the worst in the world and the average person, particularly younger folks with little savings can forget about getting on the 'ladder' for a long time (not so different in the uk mind!). For those on average income with little savings it makes sense that they couldn't afford the average house. Quote Link to comment Share on other sites More sharing options...
Joebloggs Posted January 26, 2011 Share Posted January 26, 2011 Have a look at this place 11 Boughtman Street, Broken Hill, NSW 2880 - House for Sale #106874357 - realestate.com.au $265k for a 4x2 easily affordable for the average wage earner. Quote Link to comment Share on other sites More sharing options...
Jibbah24 Posted January 26, 2011 Share Posted January 26, 2011 I can't help thinking that there are a lot of people out there desperately trying to convince themselves that this is 'normal' and Australia is a 'different' market to those others that have already seen a drop in values. In my opinion though this is just wishful thinking. The prices of Australian property is staggering in comparison to the average wage whilst China is banging along at a good rate of knots and keep the Australian exports healthy all way stay as they are. The worry comes when things slow down with China and/or they start to look at moving more of their business to the likes of Brazil which is already starting to happen.......things would start to slide quite fast with the economy and having a massive mortgage, with high interest rates and the threat of unemployment becomes all too real! I am another one who refuse to be sucked into this madness and renting is definitely the best bet! We are using this logic with our properties in the UK and refuse to sell whilst things are so slow and have opted to let them out. :rolleyes: Quote Link to comment Share on other sites More sharing options...
lyndalelodge Posted January 26, 2011 Share Posted January 26, 2011 Have a look at this place 11 Boughtman Street, Broken Hill, NSW 2880 - House for Sale #106874357 - realestate.com.au $265k for a 4x2 easily affordable for the average wage earner. BUT, if the average house price is $634k, then the house next door to to the $265k house must cost £1,003k (on average) and this is certainly out of reach of the average earner.:eek: The problem isn't that there are affordable houses out there, it's that there aren't enough of them to go around.:sad: Have just noticed where this house is!! Not wanting to detract from anyone who lives there as I'm sure it's very nice, but it's probably not too high up on the average persons list of places to live, which probably explains the price and makes me think your post was maybe a bit tongue in cheek! :rolleyes: Quote Link to comment Share on other sites More sharing options...
Guest Andie33 Posted January 26, 2011 Share Posted January 26, 2011 We are not emigrating at this time anymore cos of these reasons. We are just at the point where can can envisage buying in the UK (FTBs) and we have a good deposit behind us, and are currently renting.... Now to navigate the world of no mortgages! ;-).... but im pleased others see what we have just seen. The cost of housing added to the exchange rate and cost of living for us (equiv. £2.70 for a loaf of bread!!) is a no brainer. We're staying here in the rain and cold for now ;-(. Unfortunate but ya know, thats life :frown: Quote Link to comment Share on other sites More sharing options...
Quinkla Posted January 26, 2011 Share Posted January 26, 2011 Have a look at this place 11 Boughtman Street, Broken Hill, NSW 2880 - House for Sale #106874357 - realestate.com.au $265k for a 4x2 easily affordable for the average wage earner. It's in Broken Hill for pity's sake. What is the average wage in Broken Hill? Do they even have jobs in Broken Hill? Quote Link to comment Share on other sites More sharing options...
Guest siamsusie Posted January 26, 2011 Share Posted January 26, 2011 Whilst I agree that there will be Aussies with a decent stash of cash or investments, I doubt that they are in the majority. I heard that workers typically have $70K to $100K in their superannuation fund as they approach retirement, which isn't consistent with the odd half million dollars hidden under their mattress. :biglaugh: . After more than 25 years my husband who is a tradie has in excess of $800,000 in super which is slightly more than the $70 - $100K... I havent checked the mattress yet though, I appear to sleep well:wink: Quote Link to comment Share on other sites More sharing options...
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