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It ain't a bubble 'cause it didn't bust; bull 'n bear discuss ...
Topic Started: 5 Oct 2013, 11:28 PM (2,764 Views)
K-town
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GloomBoomDoom
6 Oct 2013, 04:35 AM
It's a bubble because the average person probably earns about $60k and cannot buy an average apartment or average home for $180k.
If the average person earns $60K - and I'd expect people who could build houses deserve that - then for a house to cost about $180K then only three people could spend a year building it. And that's not including the cost of the land, taxes or materials.

Doesn't that strike you as sort of unrealistic?

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dave
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K-town
6 Oct 2013, 02:01 PM
If the average person earns $60K - and I'd expect people who could build houses deserve that - then for a house to cost about $180K then only three people could spend a year building it. And that's not including the cost of the land, taxes or materials.

Doesn't that strike you as sort of unrealistic?

What kind of logic is that? Seriously?
Conversely, do you think houses which cost half a million bucks means that more people are employed for longer?
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K-town
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dave
6 Oct 2013, 03:54 PM
What kind of logic is that? Seriously?
Conversely, do you think houses which cost half a million bucks means that more people are employed for longer?
The logic is that you couldn't build a house for 180K so how could one cost 180K.

Sorry if that was too much of a stretch for you Dave.
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stinkbug
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K-town
6 Oct 2013, 04:47 PM
The logic is that you couldn't build a house for 180K so how could one cost 180K.

Sorry if that was too much of a stretch for you Dave.
If people can't build a house and sell it for a profit then hardly anyone will be building houses (which is what has been happening for some time), and this includes the cost of land and of taxes/fees.

If people aren't building houses then demand will increase the price of the existing stock until it's again profitable.
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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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dave
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K-town
6 Oct 2013, 04:47 PM
The logic is that you couldn't build a house for 180K so how could one cost 180K.

Sorry if that was too much of a stretch for you Dave.
why do you think we can't cost a house for 180K?
what's the difference between 180K here and 180K in texas?
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stinkbug
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dave
6 Oct 2013, 05:19 PM
why do you think we can't cost a house for 180K?
what's the difference between 180K here and 180K in texas?
The price of labour. If you can get you builder, tradies, apprentices and labourers to work for less than 10 bucks an hour then I suspect you'll have no problem.

EDIT: Also, the price of land, and associated taxes, in texas, is far lower.
Edited by stinkbug, 6 Oct 2013, 05:23 PM.
---------------------------------------------------------------

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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K-town
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dave
6 Oct 2013, 05:19 PM
why do you think we can't cost a house for 180K?
what's the difference between 180K here and 180K in texas?
FFS mate. Someone has a post saying most people earn $60K. And then asks why a home doesn't cost 180K.

How would the people who built the 180K home live?



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herbie
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K-town
6 Oct 2013, 05:55 PM
FFS mate. Someone has a post saying most people earn $60K. And then asks why a home doesn't cost 180K.

How would the people who built the 180K home live?



It's not hard to get a home built for significantly less than $180K; Including labour and materials:

http://www.dixonhomes-brisbane.com.au/plans-prices.php (take your pick)

But throw in a bit of dirt to build it on and you're talking quite a different story.
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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dave
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stinkbug
6 Oct 2013, 05:23 PM
The price of labour. If you can get you builder, tradies, apprentices and labourers to work for less than 10 bucks an hour then I suspect you'll have no problem.

EDIT: Also, the price of land, and associated taxes, in texas, is far lower.
Which is why you have to ask, "Why is the land so expensive when you have so much of it?"
Answer that and you're part of the way to explaining why the wages have to be so high
The entire economy here is based on houses and holes... and money is falling out of the holes.
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mango66
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Shadow
6 Oct 2013, 08:23 AM
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade. In the case of Sydney, incomes have grown much faster than house prices over the past decade, and now house prices are starting to catch up, hence the strong growth in Sydney.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.
It's not a bubble because house prices nationally have simply tracked incomes for more than a decade.

Broken record.


I think ive heard that before somewhere.
Its a definite bubble and it wont just burst it will implode. Only a worry for those carrying debt.
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