With articles like this
http://www.smh.com.au/business/aust...-chinese-property-bubble-20141111-11kkdz.html
and this
http://www.smh.com.au/business/prop...use-price-tops-1-million-20141112-11l0pm.html
I've had a 5 year running friendly discussion/argument with a colleague/ex colleague now of mine who is an arm chair
We both agree Australia will crash and burn property price wise, but we disagree on the amount or percentage. Being a bean counter - he has lived through crashes of the USA and Ireland. He reckons Australia's houses in (especially Sydney/Melbourne) are 80% overpriced.
He reckons taking a simplified approach, the base worth of a house is $X rental per year x 14 then add factors such as proximity to CBD, good schools etc to get a net worth. Very arbitrary numbers, however....e.g. +$50K for being near a good school, +$100K for being within 10km of CBD etc.
I reckon it's within the vicinity of say 20-30% depending on how much Chinese investment there is on that suburb. I recall back in 2010, there was a $100K - $200K or so decrease in certain suburbs.
Just curious on what your personal thoughts are on this?
http://www.smh.com.au/business/aust...-chinese-property-bubble-20141111-11kkdz.html
and this
http://www.smh.com.au/business/prop...use-price-tops-1-million-20141112-11l0pm.html
I've had a 5 year running friendly discussion/argument with a colleague/ex colleague now of mine who is an arm chair
We both agree Australia will crash and burn property price wise, but we disagree on the amount or percentage. Being a bean counter - he has lived through crashes of the USA and Ireland. He reckons Australia's houses in (especially Sydney/Melbourne) are 80% overpriced.
He reckons taking a simplified approach, the base worth of a house is $X rental per year x 14 then add factors such as proximity to CBD, good schools etc to get a net worth. Very arbitrary numbers, however....e.g. +$50K for being near a good school, +$100K for being within 10km of CBD etc.
I reckon it's within the vicinity of say 20-30% depending on how much Chinese investment there is on that suburb. I recall back in 2010, there was a $100K - $200K or so decrease in certain suburbs.
Just curious on what your personal thoughts are on this?