Those price to income ratios are ridiculous, in California the ratio hit 11 before the GFC hit, and house prices suffered a major adjustment.
Market summary: > First home owners have no choice but to rent > People moving need to sell at inflated prices to buy at similar levels > Only foreign investment can keep the ponzi going > When the jobs disappear the cards fall
I think in the 2010 period in Sydney was a good time for buy vs rent as there was not much difference in mortgage repayments vs rent, but now that prices have increased a lot and rents not following, it is probably better to rent unless if you think interest rates are going lower then buy.
He means many aspirant FTBs are being priced out of the market in many parts of the country.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
I think in the 2010 period in Sydney was a good time for buy vs rent as there was not much difference in mortgage repayments vs rent, but now that prices have increased a lot and rents not following, it is probably better to rent unless if you think interest rates are going lower then buy.
When the doomsters were telling ppl not to buy in 2008, it was the best time to buy. After the large rises in Sydney, quite a few bulls (including myself) have posted on this forum saying we have stopped buying in this cycle and will wait till next cycle before buying again.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
When the doomsters were telling ppl not to buy in 2008, it was the best time to buy. After the large rises in Sydney, quite a few bulls (including myself) have posted on this forum saying we have stopped buying in this cycle and will wait till next cycle before buying again.
Ah yes the cycle, the bullshit cycle.
Does that cycle involve our jobs dissapearing for another decade or more.
Wages dissapearing altogether or those that are left just keep declining.
Vacancy rates soaring with rents dropping and no jobs to pay for it all.
Average increase in Sydney were 15% in the last year with certain suburbs rising 30%
How do you suddenly come up with an extra 30k of deposit? How do you even get the mortgage with the average 80k income or even with double that salary?
While renting it is difficult to save the 10% deposit + stamp duty + mortgage insurance especially when the goal posts move so fast and most people are happy to keep their jobs, never mind get increases...
If someone has not bought by around 45 years old they will have to prove that, they can pay off the huge mortgage in 20 or less years.
First-home buyer activity improved slightly in NSW in October, lifting to 7.4 per cent for the month from an all-time low of 6.8 per cent in September.
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