I certainly don't mean to rain on anyone's parade but the figures for much of Perth do not add up. Buying the average Perth house now is akin to investing in emu eggs, internet stocks or tree plantations a decade ago. I do not say this lightly.
Take a look at median wages in WA and contrast them to the current median house price for Perth. Make a cutesy graph of the same going back 40 years. Even if you account for higher median wages in the future, there's no avoiding the fact that your graph will show that much of Perth is a hopelessly overpriced bubble.
For those who would happily behead me for being the messenger of bad news, I'm not saying prices will crash soon. Certainly, some areas will do better than others. That said, I do believe that prices will be going sideways for many years - this will be a lost decade for Perth. 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 set in.
My heart goes out for those who are paying $600 000+ for beautiful but overpriced houses in outer suburbs like Currambine or Baldivis. In a decade's time, the prices of these magnificent homes will be exactly the same, if not less than what they are today.
To the disbelievers who say "this time it is different" or "China is why Perth prices will rise exponentially" or (back in 2000) "everyone needs the internet, this is not a bubble market".......ask any resident of Tokyo or Dubai or Louisiana if the trees in their investment forest ever grew into the sky.
Take the time to crunch the numbers as I suggested above and you will be able to see past the hype. Graphs are honest and unemotional; they will tell you more than what you will read in the parochial Perth newspapers.
(And yes, I know about Gorgon etc. Reminds me of Bass Strait in the 70s - great news for the oil industry, with negligible trickle-down for most ordinary battlers).
Take a look at median wages in WA and contrast them to the current median house price for Perth. Make a cutesy graph of the same going back 40 years. Even if you account for higher median wages in the future, there's no avoiding the fact that your graph will show that much of Perth is a hopelessly overpriced bubble.
For those who would happily behead me for being the messenger of bad news, I'm not saying prices will crash soon. Certainly, some areas will do better than others. That said, I do believe that prices will be going sideways for many years - this will be a lost decade for Perth. 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 set in.
My heart goes out for those who are paying $600 000+ for beautiful but overpriced houses in outer suburbs like Currambine or Baldivis. In a decade's time, the prices of these magnificent homes will be exactly the same, if not less than what they are today.
To the disbelievers who say "this time it is different" or "China is why Perth prices will rise exponentially" or (back in 2000) "everyone needs the internet, this is not a bubble market".......ask any resident of Tokyo or Dubai or Louisiana if the trees in their investment forest ever grew into the sky.
Take the time to crunch the numbers as I suggested above and you will be able to see past the hype. Graphs are honest and unemotional; they will tell you more than what you will read in the parochial Perth newspapers.
(And yes, I know about Gorgon etc. Reminds me of Bass Strait in the 70s - great news for the oil industry, with negligible trickle-down for most ordinary battlers).