re: best places to buy propert Ohhhhhh, for crying out loud!
Don't people get it?
Yes, property is a good long term investment. Very rarely you will lose if you hold for the long term.
This is not the issue at the moment.
The issue is that people who buy now or have done so in the last couple of years will not be able to make a quick profit like we saw in the late 1990's and early 2000's.......Why?.... It is overvalued based on prices, mortgages, rents and average weekly earnings.
It is so rediculous for people to make comments without knowing the statistics or doing their own analysis. People who have a vested interest in property talk it up and those without talk it down.
I, along with a few others base the current state of play on number crunching analysis because it eliminates any emotional bias.
Try it, you may be surprised with the results.
Here is an extract of one of my earlier posts detailing the scenario.
The following analysis is based on net average weekly earnings and interest rates which were current at the time the data was used.
Average Home Loan:
1989 - $45000
1996 - $100000
2000 - $132000
2005 - $210000
Net Average Weekly Earnings:
1989 - $387
1996 - $512
2000 - $610
2005 - $729
Major Bank Interest Rates:
1989 - 18%
1996 - 8%
2000 - 8%
2005 - 7.32%
Loan Term: 25 years
Weekly Repayments:
1989 - $157
1996 - $178
2000 - $235
2005 - $353
Debt Servicing Ratio (ratio of repayments to NAWE):
1989 - 41%
1996 - 35%
2000 - 39%
2005 - 48%
This to me does not look like housing is affardable right now. Notice how in 2000 the debt servicing ratio was closely approaching what it was in 1989. It would have achieved this target by 2001.
It should also be noted that for every 0.25% increase in interest rates the debt servicing ratio increases by 1%.
Sooner or later these figures will filter through to the average Joe.
Once again, I repeat.....property is a good long term investment.
There will be better buying in the years to come.
Cheers all.
- Forums
- ASX - General
- best places to buy property in melbourne
re: best places to buy propert Ohhhhhh, for crying out...
-
- There are more pages in this discussion • 3 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add ASX (ASX) to my watchlist
(20min delay)
|
|||||
Last
$63.18 |
Change
-0.040(0.06%) |
Mkt cap ! $12.24B |
Open | High | Low | Value | Volume |
$63.00 | $63.55 | $61.72 | $16.34M | 259.2K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 2 | $63.13 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$63.18 | 634 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 2 | 63.130 |
1 | 1228 | 62.990 |
2 | 1571 | 62.940 |
1 | 10 | 62.920 |
1 | 1228 | 62.900 |
Price($) | Vol. | No. |
---|---|---|
63.180 | 634 | 1 |
63.190 | 1279 | 1 |
63.200 | 1190 | 1 |
63.220 | 14 | 1 |
63.240 | 1648 | 2 |
Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
Featured News
ASX (ASX) Chart |