dear penny, again I am bewildered in what you are trying tell us. I thought you were beleiving that prices across australia will fall by 40%, now you are arguing that they wont increase by 30%.
I think you are missing a number of issues that make australian market totally different to the US. But to explain to you, you take it as being a property bull.
As i have and others have indicated same there have been falls in some places, western sydney in particular, and some of the sea change destinations, and those house were holiday homes were held, have dropped in some instances by 40% or more in some instances.
However, this will not be wholesale across australia as you seem to be extrapolating based on a statistic you , and seemingly professor Keen are fixated with.
there are some who are saying that prices will rise further, however, dont believe the past rises will continue. however, again the dynamics of markets and those that are pretty clue and turned on, will be able to find a bargin where they can make 305. but again that aint wholesale and across the board.
As to the price rise for the construction of similar rising from $100,000 to $400,000, i find this very hard to determine. as construction costs in 1999 were some $700-$900 per metre, so your house built for $100,000 must have been around 120m2 which aint to big. prices today are from $1200 to $1500, so your large house of 120m2 should cost around $140,000 to $180,000. how many square metres is this 'large' house you are referring to so we can better determine your position which i think is a bit exeggerated.
Not sure if you are in sydney, but the current vacany rate is below 1%, and based on the fall in building in sydney will only get worse. So penny be nice to your landlord.
