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So who can buy a house in Sydney for $1,076,000
Topic Started: 30 Oct 2016, 06:30 PM (4,804 Views)
Rufus
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Terry
1 Nov 2016, 03:45 PM
Irrelevant. A price tag of $100 is still more expensive than a price tag of $90. Whether or not the margin is 50% or 15%, that doesn't change.
Well if you can't put your thoughts into context and quantify them even in vague terms, then your own point is irrelevant.

The cost of buying a house for the majority of people is the sticker price plus the cost of any finance required.
Now how does that stack up? The RBA says it's reasonable right now, but what would they know, right?

Take risks - if you win you will become wealthy, if you lose you will become wise
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Ex BP Golly
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Sydneyite
1 Nov 2016, 03:25 PM
plus the change from a very discriminatory financial world that ignored a woman's income "because they have babies and stop work".
You are right, I forgot about men indenting their wives labor to the property-banking complex.

How forgetful.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Terry
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Rufus
1 Nov 2016, 03:53 PM
Well if you can't put your thoughts into context and quantify them even in vague terms, then your own point is irrelevant.

The cost of buying a house for the majority of people is the sticker price plus the cost of any finance required.
Now how does that stack up? The RBA says it's reasonable right now, but what would they know, right?
The RBA says the cost of debt is "reasonable"? I very much doubt they use imprecise language and say such meaningless things. They might say interest rates might be the lowest they've been in history. They're not salespeople or politicians. It's their responsibility to be objective and communicate as clearly as possible (without upsetting the suburbanites).

Regardless if debt servicing out of the equation, 10x is a greater burden than 4x. The fact that IRs were higher in the past is irrelevant.

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Sydneyite
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Ex BP Golly
1 Nov 2016, 04:02 PM
You are right, I forgot about men indenting their wives labor to the property-banking complex.

How forgetful.
Why are housing bears always so sexist? Yes of course, no women actually want a career etc, like men get to have..... :re:
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Rufus
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Terry
1 Nov 2016, 04:27 PM
The RBA says the cost of debt is "reasonable"? I very much doubt they use imprecise language and say such meaningless things. They might say interest rates might be the lowest they've been in history. They're not salespeople or politicians. It's their responsibility to be objective and communicate as clearly as possible (without upsetting the suburbanites).

Regardless if debt servicing out of the equation, 10x is a greater burden than 4x. The fact that IRs were higher in the past is irrelevant.
You may not be so cavalier if you had to pay a loan at or near to 20% interest.

Here is a Treasury Chart. Pretty sure the RBA described as "fair dinkum bonzer mate, you lil beaudy"
That's the technical term they used.

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Edited by Rufus, 1 Nov 2016, 04:43 PM.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Terry
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Rufus
1 Nov 2016, 04:42 PM
You may not be so cavalier if you had to pay a loan at or near to 20% interest.

Here is a Treasury Chart. Pretty sure the RBA described as "fair dinkum bonzer mate, you lil beaudy"
That's the technical term they used.

Posted Image
If this graph shows the cost of borrowing, what is its relevance? Mathematically, it doesn't mean that 10x is more affordable than 4x.
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Ex BP Golly
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Sydneyite
1 Nov 2016, 04:28 PM
Why are housing bears always so sexist? Yes of course, no women actually want a career etc, like men get to have..... :re:
You're the one who is sexist- arguing that women entering the workforce justifies massive increases in house prices.

WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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stinkbug
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Ex BP Golly
1 Nov 2016, 08:04 PM
...arguing that women entering the workforce justifies massive increases in house prices.
Women entering the workforce en masse has been a definite contributor to high house prices. House price rises are a symptom, not a justification. In fact, prices of pretty much anything are a symptom of other things.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Sydneyite
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stinkbug
1 Nov 2016, 08:24 PM
Women entering the workforce en masse has been a definite contributor to high house prices. House price rises are a symptom, not a justification. In fact, prices of pretty much anything are a symptom of other things.
Correct. I'm not "justifying" anything - I'm just pointing out factual reasons why things may have changed between "then" and "now". But Golly prefers to ignore these factors, maintain sexist views about the role of women in our society etc, and call it all a "bubble", proven in his mind by a single, simple measure.... :re:
Edited by Sydneyite, 1 Nov 2016, 11:02 PM.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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