Did you know that the median price of a house in Dallas is now above the pre-gfc peak?
Well it would be considering they did not have a bubble and prices are rising probably with inflation as it should work in a stable market prices are still low and affordable. My point is that there is no reason we couldn't have that here. The bulls are making all these excuses why prices are unaffordable but clearly they are not true. Skamy is worses using growth as an excuse and refusing to acknowledge prices have become further unaffordable. She keeps going on about % of income. Servicing a mortgage is not only way to measure affordability. I mean paying off your mortgage with 30% of your weeky wage now for 30 years is more unaffordable than say 30% for 20 years or so in previous generations. Also often it was previously only one income needed.
Lets get real the only people that benefit from high prices are investors. We would not need many of them if housing was reasonable people would buy themselves. Then they have the cheek to make out that they are doing society a service.
I agree with the sentiment of the OP's initial post, but I think a little more venom should be reserved for State and Local Government supply policy, transportation policy and inner city development policy.
Failures here, combined with relaxation of lending standards and the pandering of Local Government to special interest groups further stifling supply has led to the result Australia has today.
Many of the baby boomers and many X'ers were simply able to take advantage of this set of circumstances whilst it lasted, and can continue to because they have the equity. When property bulls berate others, as expected you get a highly charged emotional response because many people feel stolen from.
A lot of our younger people don't have a leg to stand on unless they have inheritance or parents willing to stump up the money, and there is nay surer a sign of a bubble in property prices than that.
The only thing keeping property humming along at a stable rate at the moment is international investment, resulting in the theft of a basic staple of Australian aspirationalism from the younger generation.
At the end of the day, high property prices do favours for no one, as it drains away capital from more productive businesses that can lead to genuine wealth and employment creation for Australia.
+1 nail on the head sir. Skamy this is why houses are expensive by world standards. Do u refute this?
+1 nail on the head sir. Skamy this is why houses are expensive by world standards. Do u refute this?
Our wages are also high by world standards - possibly the highest in the world - Do you refute this?
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And we're even cheaper by global standards on a house price per square metre basis, because we have the biggest houses in the world...
You get a lot more house for your money in Australia than you do in most of the rest of the world.
But the bears keep on perpetuating this myth that we're the 'most expensive in the world', mainly based on the flawed Demographia study that only compares Australia with five other countries, and that uses false made-up low income figures for Australia, and that doesn't compare like-for-like because it includes units/townhouses etc to calculate dwelling prices in the other countries, while only including freestanding houses for Australia, thus inflating the apparent cost of housing here compared to other countries.
Our median prices are 6-8 times our mediam income, some of the highest in the world? Do you refute this?
I suppose I have to as I have no idea what a mediam income is
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Well it would be considering they did not have a bubble and prices are rising probably with inflation as it should work in a stable market prices are still low and affordable. My point is that there is no reason we couldn't have that here. The bulls are making all these excuses why prices are unaffordable but clearly they are not true. Skamy is worses using growth as an excuse and refusing to acknowledge prices have become further unaffordable. She keeps going on about % of income. Servicing a mortgage is not only way to measure affordability. I mean paying off your mortgage with 30% of your weeky wage now for 30 years is more unaffordable than say 30% for 20 years or so in previous generations. Also often it was previously only one income needed.
Lets get real the only people that benefit from high prices are investors. We would not need many of them if housing was reasonable people would buy themselves. Then they have the cheek to make out that they are doing society a service.
Hi Guest,
You have been sold a fantasy tale about the property market , you have made wild claims about the previous generations having all the opportunities, and about huge debt burdens. I have simply shown you that these claims are wrong full stop.
I have often raised the issue of affordability and possible solutions for low income earners but I have no time at all for greedy gulpin spoilt brats who want a big house in a great location at the expense of the previous generations retirement savings. Young people in this country have great opportunities at the moment, they should be out making the most of them not sitting at home whinging they cannot afford to buy Mum and Dads house. If I had done that I would have missed out on all the growth of Coogee which was a lot daggier when we bought there.
You talk about Dallas as if it was some kind of Utopia for home ownership it is not it is a very very unequal society with mansions and ranches and slums. They have no decent healthcare and a sick child can bankrupt a person. Australia is much more egalitarian and workers like tradies get a decent wage and can afford better homes. I would never swap life here for the American way,never.
The problem is that some of today's young people are refusing to accept their place in the growth of their city, we have all had to move further out and accept less land since the arrival of the first fleet and this generation has to do the same thing and the majority are doing that. But a vocal few are crying like stuck pigs,they are on a hiding to nowhere,their friends will laugh at them behind their backs when they are finding the rent money does not stretch to the home they wanna live in anymore.
All investors do is put a floor under prices, if you guys stopped paying off their mortgages for them they would not be so keen to buy homes to rent to you.
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.
The only thing keeping property humming along at a stable rate at the moment is international investment, resulting in the theft of a basic staple of Australian aspirationalism from the younger generation.
This is an absurd notion which is prevented by the laws of Australia.
International investment in existing houses in Australia is outlawed.
A few percent of new properties are built with international investment funds. The suggestion that this small international investment in Australian property is the "only thing keeping property humming along" and that they are no other factors (like Australian's high incomes) is utter emotive fact free nonsense.
And we're even cheaper by global standards on a house price per square metre basis, because we have the biggest houses in the world...
You get a lot more house for your money in Australia than you do in most of the rest of the world.
But the bears keep on perpetuating this myth that we're the 'most expensive in the world', mainly based on the flawed Demographia study that only compares Australia with five other countries, and that uses false made-up low income figures for Australia, and that doesn't compare like-for-like because it includes units/townhouses etc to calculate dwelling prices in the other countries, while only including freestanding houses for Australia, thus inflating the apparent cost of housing here compared to other countries.
Is that single median income or household income? There is a big difference and by changing it to household income it is shifting measures big time?
As countries like Spain and Greece have high unemployment it will impact their median income.
It means singles are largely priced out? It does not reflect peoples behaviour changes that have had to lead to the extra household income to pay the mortgage such as both parents having to work, less time with family, more hours per week stuck in traffic or travelling. Having to live further from cities and friends? Getting a older worse house? High childcare costs? It would be nice if there were more 3 by 2 options available so people are not forced to by such big houses.
It seems people like Skamy measuring affordability only using % of income per week used to pay mortgage do not take into account all these INCREASED stresses. Does not seem to take into account duration of mortgage either which is kinda important. Looking at actual dollars is only one dide of the coin.
+1 nail on the head sir. Skamy this is why houses are expensive by world standards. Do u refute this?
Of course I dispute it, look at Shadows data, why even on a dollar to dollar basis we are cheaper than most,particularly now our dollar has dropped. Go check it out for yourself. Here is some price to rent data from two of the most used sources of data for international investors
Why do you think Australia is getting so much interest from International investors?
It is amazing how many folk think Australia is more expensive than elsewhere. These bear myths just brainwash people. These people are charlatans and they will cost young people dearly who listen to their bullshit.
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.
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