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The real BIS confirm overvalued housing; Australia's house prices second-highest in world
Topic Started: 15 Sep 2014, 11:12 AM (5,092 Views)
ThePauk
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The international body that represents central banks has released data that puts Australia near the top of all measures of overvalued housing.

http://www.abc.net.au/news/2014-09-14/bis-figures-confirm-australian-housing-overvalued-emerging-mark/5740808
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ThePauk
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Shads?
Where are you to make a claim the the BIS are wrong and you are right?
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Ex BP Golly
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BIS have confirmed my own observations.

As I have consistantly said, my rent takes some 35 years to payback the capital cost of the property.

Well may you ask: "would I buy"?

Bwahahahaha!



WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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A Lurker
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Ex BP Golly
15 Sep 2014, 12:57 PM
BIS have confirmed my own observations.

As I have consistantly said, my rent takes some 35 years to payback the capital cost of the property.

Well may you ask: "would I buy"?

Bwahahahaha!



Do you have a lease where the rent is fixed at the current amount for the next 35 years?
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Ex BP Golly
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A Lurker
15 Sep 2014, 01:17 PM
Do you have a lease where the rent is fixed at the current amount for the next 35 years?
Can anyone expect past performance to predict future outcomes?

Im really happy where Im at at the moment and already own a property.
4.5 years rent would make a 10% deposit on the place I rent.

My maths says it is better to rent.



WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Admin
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Quote:
 
Australia's house prices second-highest in world: BIS

September 15, 2014
Mark Mulligan

Australian house prices are among the world's most expensive when measured against incomes and rents, according to the Bank for International Settlements, but it also finds real price growth in the country has been flat once adjusted for long-term trends.

According to the BIS's latest quarterly review of global housing, Australia was the second most expensive market on a seasonally and inflation-adjusted index of advanced economies, behind Norway and ahead of Great Britain and Sweden. Australia scored 200 points, where the base, representing the average of the full sample of countries, is 100.

On a price-to-rent ratio, which assesses the theoretical ability of rental yield to cover mortgage costs, Australia is also among the world's highest-cost housing markets. The Basel-based BIS, which acts as a central bank to the world's central banks, puts Australia's ratio at around 150, which is 50 points above the historical average of the sample group, behind only Sweden, Canada and Norway.

The same goes for the price-to-income ratio, which reflects affordability. Australia comes in at 140 points, just behind highest-rated Belgium but on the same line as Canada and New Zealand.

These metrics, according to BIS, could point to a reversal or moderation of recent growth, or a further sliding in prices. Highly-placed markets on the price-to-income index also looked vulnerable, the BIS said.

Read more: http://www.smh.com.au/business/the-economy/australias-house-prices-secondhighest-in-world-bis-20140915-10gybt.html
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Dexter
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Yep. Those who have been invested in residential real estate for a while will generally have done alright. Beats working for a living.
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ThePauk
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Dexter
15 Sep 2014, 04:14 PM
Yep. Those who have been invested in residential real estate for a while will generally have done alright. Beats working for a living.
Yep. Those who have been invested in residential real estate recently will generally have their arse handed to them on a plate.
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peter fraser
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ThePauk
15 Sep 2014, 04:23 PM
Yep. Those who have been invested in residential real estate recently will generally have their arse handed to them on a plate.
I think they will be fine.

I'm buying now, but not in Sydney or Melbourne. I would be reluctant in those cities.

You would be crazy not to buy in your area now Paul, it won't get much better than it's been for the last two years.



Any expressed market opinion is my own and is not to be taken as financial advice
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Ex BP Golly
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Dexter
15 Sep 2014, 04:14 PM
Yep. Those who have been invested in residential real estate for a while will generally have done alright. Beats working for a living.
I won't disagree with that. But if they are like most monkeys they find re enforcing their behaviour very pleasurable.

"I did well once with one house, I will do better with two or three more."

But then a new monkey handler turns up who doesn't like his monkeys masterbating.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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