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As said it's just a relative measure. Adding all these things in is just clutching at straws. Would you include the $2 you pick up on the street every now and then?

devo76 - yes maybe USA is severely undervalued too. The way I look at it is like a sharemarket's P / E ratio, when the resources index fell from a top of 17.0x to a low of around 5.0x during the GFC. Both are extremes. Perhaps Australia is at the extreme high end while USA is at the extreme low...

Yea Tehanu - seriously no biggie... I don't mind at all. Oracle - you're still talking about specific examples. Intrinsic-Value and I just are saying that the Price / Income is simply a ratio to compare countries. Sure you can get cheaper stuff here and therefore not buy at 9.0x. You can...

Oracle - I undrstand what you're saying but it seems you don't understand what I'm saying. I know a median person doesn't have to buy a median house, no duh. They can even choose to buy nothing, or buy a $30m house if the banks would lend to them... All I'm saying is that these figures are...

I have nfi what you're saying...

charlieandkath - yes I do own properties, but that's a mistake on my part and am trying to get out. Not sure how that takes away from the credibility of my arugments. Numbers are numbers. You can throw up all sorts of qualitative arguments against me and make pointless qualitative...

Haha come on that's not even economic analysis any more. When it takes between 75%-90% of an average household's income to service a property (dependong on your gearing), I find it a bit rich to call it a lucky country... Here's some real analysis for Melbourne: Household Income: $63k House...

If you look at that Demographia list, affordability is actually much more severe in Australia than any other English-speaking country / region on this planet (including Hong Kong). In fact I would argue that Hong Kong is one of the MOST affordable cities on that list. Not only is Australia...

Hmmm people just need to take more responsibility. Median household income @ $80k gross, while average adult full time salary @ $66k gross. Either way though, affordabiltiy is non-existent.

Agreed. And on that front HK should not be at the top of the list. Interest rates at 1.3% and capped at 2.5% at most banks for the next 3 years. Gross yield on properties are between 3.0-6.0%. Not to mention cost of living is low. I had a very nice bowl of wonton noodles 2 months ago in...

It stops either this year or next year?

http://en.wikipedia.org/wiki/Median_household_income_in_Australia_and_New_Zealand