I don't mean to rain on anyone's parade but the figures for much of Perth do not add up. I suspect that this party may well end up in tears, particularly for those with mortgages. Buying the average Perth house now is akin to investing in emu eggs or tree plantations a decade ago.
Take a look at median Perth wages and contrast them to the current median house price for Perth. Make a cutesy graph going back 40 years. Your graph will show that Perth is an overpriced bubble.
I'm not saying prices will crash. But I do believe that prices will be going sideways for many years. If you are borrowing money to buy your Perth IP, you will not be making any real gains unless you bought in very early, before the irrational exuberance.
The lower end of the Perth housing market will not suffer as much as the higher end. A house in Armadale that sells for $290 000 today is not as likely to crash compared to a $800 000 house in Currambine.
Crunch the numbers as I suggested above and you will be able to see past the hype. Graphs will tell you more than what you will read in the parochial Perth newspapers.
Take a look at median Perth wages and contrast them to the current median house price for Perth. Make a cutesy graph going back 40 years. Your graph will show that Perth is an overpriced bubble.
I'm not saying prices will crash. But I do believe that prices will be going sideways for many years. If you are borrowing money to buy your Perth IP, you will not be making any real gains unless you bought in very early, before the irrational exuberance.
The lower end of the Perth housing market will not suffer as much as the higher end. A house in Armadale that sells for $290 000 today is not as likely to crash compared to a $800 000 house in Currambine.
Crunch the numbers as I suggested above and you will be able to see past the hype. Graphs will tell you more than what you will read in the parochial Perth newspapers.