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Sydney Property Buyers Have Lost Touch With Reality; Median property prices across Sydney out of control
Topic Started: 13 Aug 2014, 10:50 AM (5,888 Views)
Ned Flanders
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Sydneyite
13 Aug 2014, 04:25 PM
The Houston/Woodlands house also comes with annual property taxes, that will rise over time, of between $5k and $10k/year. Factor that into an NPV cashflow analysis, and the "cost" of the Houston home is up to double what it seems when coparing to a Sydney house with property taxes of only about $1.5k/year.

Also, Houston is one of the most affordabible cities in the US, for a range of reasons. But you have to live in Texas, USA to get a house there - not much good if you happen to live in Australia! :re:
Still seems a pretty good deal. For example, this place right next to the George Mitchell Nature Preserve:
http://www.trulia.com/property/3163810782-THE-WOODLANDS-PANTHER-CREEK-32-W-Torch-Pine-Cir-The-Woodlands-TX-77381#photo-10

Which looks pretty good value for 4 beds, 3 bath, on 800sqm @ $265K

Currently has property taxes of $3,380.21
https://actweb.acttax.com/act_webdev/montgomery/showdetail2.jsp?can=0097260500500&ownerno=0

Over 30 years, $3,380.21 in today's dollars is $101,406, which brings the total outlay in today's dollars to about $366K.

Still seems a much better deal than the $895K house in Carringbah even with property taxes. No?

How about a more expensive house?
http://www.trulia.com/property/3034996860-THE-WOODLANDS-GROGANS-44-75-Watertree-Dr-The-Woodlands-TX-77380

6 bedrooms, 5 bathrooms on 1.2 acres,
Asking price: $795K

Current property taxes: $11,637
https://actweb.acttax.com/act_webdev/montgomery/showdetail2.jsp?can=0097284401600&ownerno=0

30 years @ $11,637 per year = $349K

Total outlay in today's dollars $1.1M

Interesting area The Woodlands, median household income $85K (versus national median of 52K). Not really comparable to a bogan shithole like Carringbah.
Edited by Ned Flanders, 13 Aug 2014, 08:45 PM.
------------------------------
" ... which is that all-too-familiar dynamic in Irish life where people tell lies, cover them up and create all sorts of collateral damage, sometimes spread out over decades, and never take responsibility."
- Alan Glynn
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Sweetdish
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Not sure if Texas is comparable to Sydney but I get the point and totally agree. Sydney prices have gone way past of what should be considered acceptable. Its one of those things, when you are in it it seems normal until one day it doesn't.

At this stage I see a lot of people buying due to fear of missing out more than anything. Its not a healthy place for a property market to be in.
Edited by Sweetdish, 14 Aug 2014, 10:51 AM.
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cokatoo56
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I saw one chart (can't remember where) that compares home prices in aus with several other cities. They compare sydney with Miami as they say the 2 are comparable. A home in Miami is 2.5x cheaper than in sydney.
... I should be in Miami now *sigh* :tu:
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Shadow
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Evil Mouzealot Specufestor

cokatoo56
14 Aug 2014, 10:57 AM
I saw one chart (can't remember where) that compares home prices in aus with several other cities. They compare sydney with Miami as they say the 2 are comparable. A home in Miami is 2.5x cheaper than in sydney.
... I should be in Miami now *sigh* :tu:
Median household income in Miami is half of what it is in Sydney (about $45K vs $90K). Same goes for Texas.
Edited by Shadow, 14 Aug 2014, 11:06 AM.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Admin
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Quote:
 
11 reasons why Sydney property is among the world’s priciest

August 21, 2014

Any Sydneysider who has been house hunting recently would know that our house prices are high — and getting higher.

According to real estate statistics firm, RP Data, Sydney’s median house sale price sat at the $700,000 mark for the 12 consecutive months to May this year. The highest it has been for a year-long stint.

In some corners of the Harbour City, $700,000 might sound like a lot, but for the most part seven grand will not buy much in the way of bricks and mortar.

Go to the far west and $700,000 could snag a nice big family home with a pool, but in the east the tidy sum might only barely pay for a unit by the beach.

But let your mouse to the walking and start a global cyber search and it is clear that almost anywhere in the world that same figure could fetch a much more glamorous home than a typical Sydney suburban weatherboard.

From a mini chateau in rural France, to a Polynesian island, or even a hotel in New York State, $700,000 goes a lot further than us Sydney folk are used to.

All prices are in Australian dollars.

1. Where: Old Forge, New York State, USA

What: A 12-room hotel built in 1891

How much: $701,653

Posted Image

Plenty of room at the Inn: Van Auken's Inn in Old Forge, New York has 12 rooms, staff quarters, an owner’s apartment, bar and mountainviews all for $701,653. Picture: Sotheby’s International Realty. Source: Supplied

2. Where: Bodden Town, Cayman Islands

Read more: http://www.news.com.au/finance/real-estate/reasons-why-sydney-property-is-among-the-worlds-priciest/story-fnd91nhy-1227031832827
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Admin
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Quote:
 
Median property prices across Sydney out of control

24th August, 2014

No Logic.. And Nowhere to Hide

Median house and apartment prices in Sydney are completely out of control. As I state in ‘Australia: Boom to Bust‘, if the Sydney property bubble pops, it will take the rest of Australia down with it. A property market with such outrageous multiples can only be achieved through the banks lending an incredible sum of toxic debt to homebuyers. Arguably, no city in modern Western history has ever achieved such price multiples relative to income. These numbers are simply off the charts. Look at the table below to see how out of touch Sydney real estate prices have become.

Posted Image

Read more: http://blog.australiaboomtobust.com/2014/08/median-property-prices-across-sydney-control/
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John Frum
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All in for the all out bull assault on Sydney - the final hubristic blowoff before the painful correction begins.

The canary in the coalmine is due west.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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van
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Median sales for Sydney last week was $955k up from last week of $900, so over a 5% rise in one week.

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Ex BP Golly
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van
25 Aug 2014, 07:18 PM
Median sales for Sydney last week was $955k up from last week of $900, so over a 5% rise in one week.

Hehehe he.
Posted Image

Help, Im trapped in this house bubble, how do I get out of here".
Edited by Ex BP Golly, 26 Aug 2014, 01:44 PM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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szokolay
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The gold coast has some pretty cheap property now with easy access to beaches better than sydney's. It's why the southeners came up there in the 70's and kicked off the appartment boom.
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