Property prices continuing to double every 7 to 10 years is an unrealistic expectation.
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Property prices continuing to double every 7 to 10 years is an unrealistic expectation.
Is your boss going to be paying someone else twice what you are currently paid to do the same job in 7 years?
Is your boss going to be paying someone else twice what you are currently paid to do the same job in 7 years?
How much has the average wage increased in the last 40 years in relation to the median house price over the same period?
Hehe, no... my 'boss' is going to outsource everything to Romania and the Philippines for a fraction of the amount
HI Mattnz
May I please ask: What are you doing investing in property if you beleive it will have as low returns as you suggest? Are you only reading Somersoft Forum because you inherited an IP and you need to know how to manage it.
40 years ago house prices were at the historical norm of 3 times average income, so house prices have clearly outpaced wages by far too much to be 8 times average income and in time must revert to the historical norm for them to be affordable again.
Seems the same rose coloured glasses worn by investors in USA, UK and Europe before their property prices crashed are still being worn in Australia and there is even an expectation that property should become an even great bubble!
Can you provide factual figures for wages, house prices & rents over last 40 years?
Anyone can write 3 times & 8 times etc.
What will happen to rents if what you suggest plays out?
Here you go, this is Melbourne, Sydney is worse.
http://www.simplesustainable.com/topic/2463-melbournes-median-house-prices-vs-wages-1965-2010/
Thanks for that.. What the graph fails to show is that the average wage to house price ratio is not comparing apples to apples in today's society.. For its household income to house price ratio is what should be graphed.
The working demographics 40 years ago is totally different to today. We now have full time employees, part time employees, casual employees, self employed and double income families.
The changes in working demographics are not that significant when compared with the amount of extra debt that people have taken on in the past 30+ years.
I have purchased 3 properties in Australia.
I purchased 2 in Melbourne's West which would have been twice the price in an equivalent location in Sydney and appeared great value. I have since onsold one under a vendor finance deal and will be onselling the other for a significant profit this year.
My other property is in Gladstone, which has huge upside potential due to the massive projects happening there and have a 3 year time horizon before selling this property after developing it with townhouses.
I'm definitely about timing the right market at the right time, rather than time in the market.