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!
Interesting area The Woodlands, median household income $85K (versus national median of 52K). Not really comparable to a bogan shithole like Carringbah.
------------------------------ " ... 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
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.
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*
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*
Median household income in Miami is half of what it is in Sydney (about $45K vs $90K). Same goes for Texas.
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
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
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.
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.
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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