If ya want'a know the 'true' value of something, just knock out the ability for all the all little must-have-it-now and speculator types to buy it using borrowed money perhaps?
A Professional Demographer to an amateur demographer:"negative natural increase will never outweigh the positive net migration"
I'd say anything is overpriced if an equivalent 'thing' is available at a lower price.
So simple and yet 100% correct.
I'd have to disagree.
Something is overpriced if it costs more than it's worth. Ie. I wouldn't have paid $100 for this coffee I'm drinking because it's really not worth that much to me.
If all cafe's got together tonight and decided to charge $100 per coffee as of tomorrow morning it wouldn't change the fact that it's overpriced.
Similarly, rising house prices doesn't change the value of a house to an owner occupier or investor struggling to get increased rental returns etc.
Human beings go mad in crowds.. and come to their senses slowly and individually..
If ya want'a know the 'true' value of something, just knock out the ability for all the all little must-have-it-now and speculator types to buy it using borrowed money perhaps?
Plus two Herbie. If you see a fridge advertised as 24 months interest free, good guess it is overpriced to start with. If people had to actually but houses with complete savings, then you are 110% correct. The houses would seem very overpriced.
I tend to be a late adopter of technology so I waited til I could get my 40" flat screen TV for $400. Had a quiet chuckle at the guy from work who paid $6000 a few years earlier for a rear projection TV. It was out on his front lawn a few months ago.
Skamy will probably tell me off for waiting around for TV prices to crash.
Yeah you waited like a vulture to snap up a TV at a bargain basement price , I recognise your type Elastic
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.
Something is overpriced if it costs more than it's worth. Ie. I wouldn't have paid $100 for this coffee I'm drinking because it's really not worth that much to me.
If all cafe's got together tonight and decided to charge $100 per coffee as of tomorrow morning it wouldn't change the fact that it's overpriced.
But just because you think its not worth $100 to you, does it make it overpriced? Kopi Luwak is pretty expensive but some people are willing to pay the price for it.
Personally I'm not willing to pay $17mil for a Lear jet but it doesn't necessarily mean its overpriced.
That might be true for investments but what about other items bought for consumption like a home or a car or a TV?
Yep, there was a guy on GHPC... 'gazman' or something like that... he was always working out the P/E ratio of houses to 'prove' houses were overpriced relative to rents and therefore prices must crash. This was back in 2007, and prices are up another 30% since then. No matter how many times it was explained to him that the majority of homebuyers are not investors, he just didn't get it. He thought houses should be priced purely as investments, like shares. He was going to wait until house prices crashed to meet his P/E criteria before buying. Problem was, using his criteria, it has never been a good time to buy a house. He will be waiting forever.
Subpryme
30 Aug 2013, 01:55 PM
Something is overpriced if it costs more than it's worth. Ie. I wouldn't have paid $100 for this coffee I'm drinking because it's really not worth that much to me.
A $100 coffee is only overpriced if an equivalent drink is available for a lower cost, in which case nobody will buy the $100 coffee - they'll buy the cheaper equivalent.
However if that's the only coffee in the world and it costs $100, then somebody will pay $100 for it. Look how much some people are willing to pay for a bottle of Grange.
It costs about ten cents to make a coffee. The markup on coffee is massive. You're already paying more than the coffee is 'worth' to most people in the world.
The amount of money you spend on one coffee could feed a family for a day in some parts of the world.
Yeah you waited like a vulture to snap up a TV at a bargain basement price
Vultures serve a useful purpose in a balanced ecology - They are there to clean up the mess left by the dead 'n decaying things. Sort of the antithesis of the predatory Sharks - What are there to devour the old 'n the malformed 'n the weak ...
Overpriced = When a modest property on the outskirts of a non capital city is greater than 3.5 years x average salary.
Circular argument
Australian property is over priced because its more than 3.5 times average salary Overpriced = Australian property prices more than 3.5 times average salary
Neither are definitions of what "overpriced" means btw, how does this apply to cars, TV, coffee?
I tend to be a late adopter of technology so I waited til I could get my 40" flat screen TV for $400. Had a quiet chuckle at the guy from work who paid $6000 a few years earlier for a rear projection TV. It was out on his front lawn a few months ago.
Skamy will probably tell me off for waiting around for TV prices to crash.
Yeah Well my brother, still had my old Panasonic analogue Tv until Wa finally converted to digital last April...the Tv still worked, bought it in 1993... So old it didn't have the connections for the top box... TV did cost a lot some yrs ago..
Finally bought A new Tv, a few months ago..Scrooge ...I call him sometimes
Come to think of it he bought just about all my furniture after I got married ...for half price..(I never bothered buying furniture in the formal areas while I was paying off the mortgages..)
Nothing wrong with shopping around to get the best deal...
You usually find with new technology it's always top $ when it's introduced ..then the fanfare dies down with the prices....
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.
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy
