There is nothing well trodden about it at all you fool.
house price to income ratios widened a bit in many countries after financial deregulation in the 1990s, but there is precisely no reason to believe that they are going to widen again.
Even Shadow loves pointing out that house prices are merely tracking income after the structural shift in the 1990s.
Those clowns at City of Perth, by the looks of it, have extrapolated out the rate of change in the ratio between 2000 and today to come up with the absurd notion that house prices will be 16x income.
That is fucking ridiculous.
You just don't read huge sections at all. What they are saying that if the density is not increased then only the super wealthy will be able to afford the big block inner city housing and price to income could rise to 16.
Historically, for thousands of years, house prices have grown relative to income as cities grow. Try to prove me wrong rather than hurling insults.
It happens because there is limited land supply and you cannot stop it by moaning and whining. If that city plan gets up you will be weeping in a decade over lost opportunity.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Go take a very good look at what's being built & where @ present.. North, West East Perth, Highgate etc.
Oh But don't forget what's also in the woodwork being planned in the local councils, open those eyes. High density is happenning ..& those who have understood the worth of land value on what's owned & what can be zoned for exactly , will not be worried at all.
Yippee.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
You clearly don't ready many of my posts. I have often talked out market declines, most recently in 2011. I have mentioned countless times that I will be bearish in the future and have been in the past, that is when I do most of my buying.
Yes the rental market has eased but from a very low tight base. It was only 18 months ago we have people complaining about paying $350 a week for a caravan due to no rentals at affordable levels. Having more rentals in the market is good for the long term health of the market.
The difference is bears always see the sky is falling, I don't. I have stated many times and long held predictions I see growth until middle 2015 then a flat market for a few years and yes it may decline.
Why is it some bears always claim bulls state the market only ever rises, yet I have never seen one Bull ever say this. Please I'm still waiting for the collapse you called in 2011 and 2012. Yet hear we are. Still waiting. Not a relative of Steve keen are you?
RP data and other indices account for this in stratification. Land gate does not. Nice try though.
One Bull who states market only ever rises - Black Panther. Ever hear anything from him stating backwards, negative, reducing, falling - NEVER.
You just don't read huge sections at all. What they are saying that if the density is not increased then only the super wealthy will be able to afford the big block inner city housing and price to income could rise to 16.
Historically, for thousands of years, house prices have grown relative to income as cities grow. Try to prove me wrong rather than hurling insults.
It happens because there is limited land supply and you cannot stop it by moaning and whining. If that city plan gets up you will be weeping in a decade over lost opportunity.
Here is London Vancouver
Um Houston., Dallas, Atlanta cities can grow without becoming unaffordable or change in house to income ratio. Its the model that is broken. We have plenty of land. Infilling does nothing to halp people into their own homes. We have plenty of land. By the way fhe average commute in these cities are mostly less than Australian cities.
Can anyone show how infilling housing density creates more affordable housing therefore preventing house price to income ratios increasing especially if demand is increasing at same time?
Funny that they have no problem saying sales are up7% yoy in the headline . But left out the FACT there is now 25% more property for sale.
So this really implies that sales on average are falling when compared to the amount on offer.
Let have a closer look at what the vested interests would have us believe, and, what is the TRUTH.
This shows that a year ago , for example, we were selling 70 properties per 100 .
Now a 7% increase yoy for which they claim, would mean they are now selling 75 per 100, and that is what they would have us believe, but they did not tell us about the extra 25% more property on the market, and left the most important bit out.
So the facts are these.
A year ago we were selling 70/100. Now we are selling 75/125. Last year shows a clearance rate of 70%. This year shows a clearance rate of 60%.
So they are the facts,not the bullshit these vested interest morons would have idiot sheep believe as they leverage into the next overpriced piece of shit, for which rents are being slammed and eventually prices once these sheep wake up to the FACTS, not the constant bullish being dribbled in their ear by vested interest morons.
So them the FACTS Mike.
They were clearing 70% of property a year ago, but are now only clearing 60%.
Yes, certainly going strong at present, probably enough to temporarily mitigate the ending of the mining boom.
Though I think this might be like the mining investment boom itself - financial decisions and committments made when times were still good and widely expected to keep improving forever.
Yes, certainly going strong at present, probably enough to temporarily mitigate the ending of the mining boom.
Though I think this might be like the mining investment boom itself - financial decisions and committments made when times were still good and widely expected to keep improving forever.
Yep, buyer sentiment reminds me of a rubber band. It will stretch way past where it should and then it flicks back at high speed.
But we're getting ahead of ourselves. WA could face a recession or maybe it won't.
Any expressed market opinion is my own and is not to be taken as financial advice
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