From: Les .
G'day all,
Overheard someone today talking of an auction where the property sold for $350k MORE than THIS buyer was prepared to pay. Yes, it was Sydney - and the final price was $1.6 million (reached in about 2 minutes from the outset, according to the source).
I inwardly gasped - but I'm used to Brisbane prices - then I thought about Jan's first book and her predictions re values if the long-term growth average of 10% is projected into the future. (page 48).
Now the example given was for a Brisbane block of land - but project things forward to suit the market you're in. Let's take Sydney - the median figure I last heard was $310k (maybe 6 months ago). In that 6 months, it's probably gone up another $15k already to $325k. And that's MEDIAN .... which simply means "the price of the house that had an equal number of sales at a LOWER value and at a HIGHER value".
And, in another 10 years, the Sydney MEDIAN is likely to hit the $1m mark (or, at least give it a damned good fright!!!) - assuming that the 10% is sort of even in its progression (and we all know it's NOT).
Is that hard to take? Certainly is for me!!! I'd better stick to Brisbane (median around $145k 6 months ago - so maybe $152k by now???) and in 10 years we may still be able to afford property there - unless all of the NSW'ers go and buy up the place beforehand.
Now, if house prices continue to double every 7 years (average 10% growth) then even little old Brisbane will be at a median of $1m in 2018 - us "baby boomers" better have bought ourselves a retirement pad well before then, eh??
I guess the real question behind the ramblings is this - when house values are at a median of $1m, will haggling to get the price down an extra $5k be worth the effort?? Probably - it will at least pay for a celebratory dinner that night .....
;^)
Les
G'day all,
Overheard someone today talking of an auction where the property sold for $350k MORE than THIS buyer was prepared to pay. Yes, it was Sydney - and the final price was $1.6 million (reached in about 2 minutes from the outset, according to the source).
I inwardly gasped - but I'm used to Brisbane prices - then I thought about Jan's first book and her predictions re values if the long-term growth average of 10% is projected into the future. (page 48).
Now the example given was for a Brisbane block of land - but project things forward to suit the market you're in. Let's take Sydney - the median figure I last heard was $310k (maybe 6 months ago). In that 6 months, it's probably gone up another $15k already to $325k. And that's MEDIAN .... which simply means "the price of the house that had an equal number of sales at a LOWER value and at a HIGHER value".
And, in another 10 years, the Sydney MEDIAN is likely to hit the $1m mark (or, at least give it a damned good fright!!!) - assuming that the 10% is sort of even in its progression (and we all know it's NOT).
Is that hard to take? Certainly is for me!!! I'd better stick to Brisbane (median around $145k 6 months ago - so maybe $152k by now???) and in 10 years we may still be able to afford property there - unless all of the NSW'ers go and buy up the place beforehand.
Now, if house prices continue to double every 7 years (average 10% growth) then even little old Brisbane will be at a median of $1m in 2018 - us "baby boomers" better have bought ourselves a retirement pad well before then, eh??
I guess the real question behind the ramblings is this - when house values are at a median of $1m, will haggling to get the price down an extra $5k be worth the effort?? Probably - it will at least pay for a celebratory dinner that night .....
;^)
Les
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