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hehehe....glad to see you have a successful domestic enterprise happening there Bill... they reckon it is hard to diversify successfully. requires a very heavy investment of capital and time, and difficult to measure and manage the risk. better to stick to core business, at least until...

I'll need to think about this one after a few wines. Need to put the right spin on it :) And think of all the permutations and combinations that crossover from enterprise to personal investment. Which reminds me, the older I get the more I see the advantages of running a household like a...

Peter, I hear it almost every day, in small business. And we threw it around in a recent thread. The other one we don't tend to touch here is "equity is the most expensive form of capital", as it is heresy in the church of the private individual leveraging into ever more property.

Excellent post Mark.

Pat re project home price being cheaper, only guessing but it may be because they are in the outer suburbs where land is cheaper. You might also find this article interesing: HOUSE PRICES IN AUSTRALIA: 1970 TO 2003 FACTS AND EXPLANATIONS...

This article raises some pertinent points re affordability - long term trend in debt serviceability - new debt instruments such as LOC - higher real incomes - new homes are larger and better quality than 15 years ago. - and low inflation equaling low interest rates :)...

Yes, household saving is an ambiguous term. To simplify, saving to me is an outdated concept. I like to clarify things by thinking of every dollar spent as invested. If you have the opportunity to invest a dollar in: perfume pizza porsche property new manufacturing process to create...

Here's a plot of the indices data for the time being.

Mark, plotting both CPI and median wage rate increase would be interesting and pertinent to demand and supply side. SC, I emailed 'Foundation' at propertyinvesting.com re getting median house figures for other capital cities. He graciously provided a link to a free source if anyone is...

Pitt St, I acknowledge the supply side of things. And I have been intending to grasp the mechanics of Aust. mortgage origination more deeply. My vague understanding is that overseas wholesale lenders consider Australia a great country to lend to at the moment- our nominal rate is higher than...

Further, it would obviously be a fairer analysis to compare median FT income or household income of each city to that city's median house price, considering wages vary significantly between capitals.

Tim and SC, yes the graphs are a plot of SC's data. I have tried to find raw data via ABS for Brisbane and other caps, but can't access anything going back more than a few years. If anyone knows how to get it, I am all ears. Peter, excellent points re median wage and household income. I think...

This graph more fairly illustrates the relative rate of increase in house prices and wages. It is standardized to 1 in 1974. In interpreting this data, I think there may be many hidden influences confounding median wage growth. Such things as more female participation in the workforce...

These graphics clarify the alarming magnitude of the Sydney boom since 1998.