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UniversalTrader

21,772 Posts.

56

05/07/17

12:36

Post #: 25677216
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Originally posted by danginvestor ↑

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.

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Bottom line is if you only have a 40k income stream you are not getting anywhere near a $1mil loan
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