world heading for bust 'unlike any other', page-16

hey guys its been a while!

Furniture, haven't seen you around the traps since the slr days...

Anywhoooo...

Thought Id weigh in...

Bust, I do not believe so...
Flatline, I believe will be the case.
I think it will continue to go up, possibly another 10-20% over the next 12-18 months. However I also believe we will see a long flatline until wages catch up.

Here is some food for thought, both sides of the story of course...

-Pro's-
Sydney's population is growing at ~1.6% = 0.3-0.4% above the average.
Go to any new development in Sydney and they will almost, if not, sell out on the weekend of release - off the plan prior to construction.
Demand is currently far outstripping supply.

-Con's-
Average unit price in Syd ~ 530,000
Average wage ~ 70,000
= 7.5x the average wage
Not maintainable (IMO), one will have to give; either wages need to catch up or prices need to drop. Personally I think the housing market will stagnate for a bit.
First home buyers have been ( / are getting) pushed out of the Sydney market.

-Neut-
A lot of overseas investment coming in, but not only private single dwelling investments, huge developers from overseas are becoming prominent in the aus property market (greenland, bridgehill etc just to name a few).




Again, just my thoughts....