Yet somehow at 30km from Sydney CBD, in the Western suburbs, an averaged run-down house on a small 550m2 block goes for about $800 to $900k now. In Campbelltown, some 60km away, it's about the same price.
If they want one of those brand new McMansion-lite, the going price is about $1.2M on a 450 to 550m2 block.
These are working class suburbs. That's not an insult or anything, just a fact that these are suburbs where people work very hard for very little pay. To think that they can afford to buy properties at these prices; or to hope that an investor could buy at these, do the negative gearing then later flipped for $1.5 or $2M a couple of years down the track. That's insane.
Maybe in 20 or 30 years where the urban sprawl and more population, greater public transport etc.
I mean, $1M owed to the bank today isn't going to be $1M in the future. It'll be some $1.8 or $2M in 25 years. To buy a small 3B brick home that's run down for 60 years... even if you can sell it for $2M because land then will be more valuable.
House prices now are more psychological than mathematics.
