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LOL @ people thinking they're financial wizards for investing in property.
LOL @ people thinking they're financial wizards for investing in property.
LOL @ people thinking they're financial wizards for investing in property.
The 'real' financial wizards took down their employers in one fell swoop. It must be something magical to play with money you don't even own and bankrupt shareholders and almost take down the entire financial system.
This is the line of thinking that got Australian housing into this mess where an average family can't afford a decent home. Most people don't have dividends and capital gains. How is an average family supposed to buy a home if they're competing against others using unfair means to leverage up? This is just a vicious circle with capital gains feeding into more capital gains as the property ponzi bubble inflates and pushes house prices out of reach. You can easily see from these charts... Property Bubble Chart Gallery ...just how overpriced Australian housing is compared to the rest of the world. A family on average wage should be able to afford an average home without relying on bonuses and phoney dividend streams and false equity that can vanish in a puff of smoke when deflation sets in! What is so "star performing" about excessive house prices. You say this like it's a good thing. Will you not be happy until every normal family in Australia is priced out?
Of course the average family can afford to buy a house in Australia.
Instead of using comparable income/price percentiles (ie traditional measures such as average person/average house) you are stating everything is ok because someone on average income can buy the worst house.
This is changing the goalposts by removing the 50% of the population who are below median. If people of average income live in the worst houses, where do the people with below average income live? If you say "they should rent" then you tacitly accepting a rent/price bubble, and a change from the norm in other countries and Australia's history outside of the current housing bubble.
If anything, I suspect Australia is headed more toward the European model of having more renters, less owners. Of course, this would take several generations to occur, but I would not be surprised to see it happen.
Realistically, do we expect median priced Australian homes to return to price levels where a family on a single, average income can buy, and still maintain the kind of lifestyle most Aussies expect?
Prices will soften over the next few years, but I doubt we'll see a return to the price levels of say, the mid 90's, any time soon.
This is the line of thinking that got Australian housing into this mess where an average family can't afford a decent home. Most people don't have dividends and capital gains. How is an average family supposed to buy a home if they're competing against others using unfair means to leverage up? This is just a vicious circle with capital gains feeding into more capital gains as the property ponzi bubble inflates and pushes house prices out of reach. You can easily see from these charts... Property Bubble Chart Gallery ...just how overpriced Australian housing is compared to the rest of the world. A family on average wage should be able to afford an average home without relying on bonuses and phoney dividend streams and false equity that can vanish in a puff of smoke when deflation sets in! What is so "star performing" about excessive house prices. You say this like it's a good thing. Will you not be happy until every normal family in Australia is priced out?