It's just too hard to use a brain I suppose, I need to go flutter the eyelids now ...
The best things in life is sometimes free.
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.
Would a further leg up be sustainable? The average house in Sydney is pushing $700K now, and if Chris's report is accurate then it could hit $800K by the end of next year.
Forget median salaries for a minute, to be in the top 1% in Australia you need an income of about $210K. (That's the most recent figure I found, I think it's from 2011, so should be slightly higher now.) Assuming you're not running a tax avoidance scheme, and most One Percenters are salaried, that equates to $140K after tax.
Assuming a 20% deposit, 7% interest rate (about average for most of the last twenty years), and a thirty year term on an $800K house, and you'd be looking at $52K per year (35% of net income) as repayments. Or to put it another way, an average Sydney house would be edging into mortgage stress territory for its highest earners.
The second issue is limits on bank lending. Euro73 has a post over at Somersoft in which he argues that lending limits and funding will constrain credit growth.
If there are going to be big rises then they'll probably be driven by foreign investors, and that's what's happening in London at present. That's because money is coming into the system from outside, which circumvents the limits set out above.
I don't know if we'll see prices fall, but if they do it will be when the economy turns. However, I remain to be convinced that Shadow's $1 million median by 2015 prediction is achievable.
"Would a further leg up be sustainable?" You wouldn't think it would be sustainable to keep negative gearing at a cost of $30 billion each year, and growing but that's what's happening because the government will do whatever it takes.
It's now getting to the stage, or we're probably already there, that if you want to live in Sydney, unless you are on a very high salary, you can forget about buying a property. If you happen to already have one or if you come from a wealthy family, then the gods are smiling on you, but if you are trying to get onto that property ladder, you'll be selling your soul for the privilege. There will be no restrictions on rich foreigners buying up properties. There will be no changes to negative gearing. The government and RBA have made it clear that they wanted to inflate the housing bubble even more than what it already was, and they're certainly achieving their aim.
On the other hand, the bubble will have to pop at some time. If it doesn't, we'll probably be the only place in the world with an unburstable bubble. As for the average price getting to $1 million, it seems crazy, but anything's possible with our crazy policies designed exclusively to inflate housing bubbles.
The obsession with housing is already causing a lot of misery, dividing the haves and have-nots ever wider. It has never been so hard to buy a home. What some people will go through just to have a home of their own is quite depressing to think about. For those who have already missed the boat and have to rent their whole lives, it's not so great for them either. But either way, it doesn't matter. Their cries will be drowned out by the champagne corks popping everywhere among the haves, as their property portfolios grow to stupidly high figures.
Yes and you can expect to live a middle class lifestyle at best if you have a champagne income.
There will probably be more white flight from Sydney, with SQM's predictions this city just went from being a slut, although sort of classy, to being a skanky crack whore.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
Would a further leg up be sustainable? The average house in Sydney is pushing $700K now, and if Chris's report is accurate then it could hit $800K by the end of next year.
Forget median salaries for a minute, to be in the top 1% in Australia you need an income of about $210K. (That's the most recent figure I found, I think it's from 2011, so should be slightly higher now.) Assuming you're not running a tax avoidance scheme, and most One Percenters are salaried, that equates to $140K after tax.
Assuming a 20% deposit, 7% interest rate (about average for most of the last twenty years), and a thirty year term on an $800K house, and you'd be looking at $52K per year (35% of net income) as repayments. Or to put it another way, an average Sydney house would be edging into mortgage stress territory for its highest earners.
The second issue is limits on bank lending. Euro73 has a post over at Somersoft in which he argues that lending limits and funding will constrain credit growth.
If there are going to be big rises then they'll probably be driven by foreign investors, and that's what's happening in London at present. That's because money is coming into the system from outside, which circumvents the limits set out above.
I don't know if we'll see prices fall, but if they do it will be when the economy turns. However, I remain to be convinced that Shadow's $1 million median by 2015 prediction is achievable.
If you have $88k per year in cash to spend AFTER paying your rent/mortgage, that is hardly mortgage stress.
Spending 35% of your net income when on a low/meium income might be considered mortgage stress, but that level - no way.
You wouldn't think it would be sustainable to keep negative gearing at a cost of $30 billion each year, and growing but that's what's happening because the government will do whatever it takes.
Which internet bear porn site sucked you into believing that made up nonsense?
"What some people will go through just to have a home of their own is quite depressing to think about"
Indeed!
A friendly-sounding asshole has just approved my little family for a 650k loan. Our deposit is pissy- 70k or so - so this next two decades are going to be all about second jobs and 2-minute noodles. What could compel this behaviour, explain this lapse in judgement?... Could I have possibly had a minor stroke?... *drools, twitching*
Here is the paragraph: "According to Treasury, the cost of this concession is around $30 billion each year. This makes negative gearing the single biggest concession in the budget (superannuation is a close second). The size of this concession, or ‘tax expenditure’ is equivalent to the entire forecast budget deficit for 2013-14. In simple terms, if we removed negative gearing, our ‘budget emergency’ would rapidly disappear."
Shadow
21 Sep 2013, 09:21 AM
So a median close to $1M by 2015 is sustainable, at least until interest rates rise significantly.
Who decided that everybody suddenly becomes 'stressed' when mortgage repayments exceed 30% of income?
For people on decent incomes, this still leaves a huge amount of discretionary income left over after mortgage repayments.
As stinkbug pointed out, someone with $80k+ left over after mortgage repayments is not going to be under much stress.
I don't think we're talking about people here on salaries of at least $300k. The average person can't aspire to earn anything near that. Does that mean they don't deserve to buy a house anywhere except at least 50 km out?
Would a further leg up be sustainable? The average house in Sydney is pushing $700K now, and if Chris's report is accurate then it could hit $800K by the end of next year.
Forget median salaries for a minute, to be in the top 1% in Australia you need an income of about $210K. (That's the most recent figure I found, I think it's from 2011, so should be slightly higher now.) Assuming you're not running a tax avoidance scheme, and most One Percenters are salaried, that equates to $140K after tax.
Assuming a 20% deposit, 7% interest rate (about average for most of the last twenty years), and a thirty year term on an $800K house, and you'd be looking at $52K per year (35% of net income) as repayments. Or to put it another way, an average Sydney house would be edging into mortgage stress territory for its highest earners.
Only if you make the mistake of assuming people buy a median priced home as their first home. And assume the household has only 1 income earner. A couple earning $105k each is nowhere near the top 1% of income earners (and the total amount of tax paid would be lower than a single person earning $210k)
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