Aussie home prices world's most-overpriced

[pietillidie]

Aussie home prices world's most-overpriced: survey
Simon Johanson
March 4, 2011 - 4:09PM

"Australian house prices remain the most overvalued in the world, according to the latest quarterly ranking of global house prices by The Economist magazine.

Based on a historical gauge of home prices to rents between 1975-2010, the magazine estimates that Australian residences are 56 per cent over-valued, exceeding the 54 per cent over-priced rate in Hong Kong and 48 per cent in France.

"There may be good reasons for Australian prices to have risen so far, but people made similar, and ultimately incorrect, arguments for the run-up in prices in the West," The Economist said in a statement accompanying the survey's release."

http://www.theage.com.au/business/aussie-home-prices-worlds-mostoverpriced-survey-20110304-1bhhy.html

[Tannin]

This is not news. It is, of course, absolutely correct, but it's been obvious for many years.

There are several causes: relentless population increase through unrestricted migration; further population increase through massive subsidies for bogans having babies, coupled with unfair higher tax rates for those that do not; huge taxation anomalies for both home owners and investors; and lack of appropriate control on foreigners buying residential property.

No government has the courage to do anything about it, though. Most of our our children will never own a home.

[boofa]

If you want to buy in the northern or western suburbs, there is plenty of cheap affordable housing. I am told land is about a dollar an acre......

[stui magpie]

[Tannin]

North-west Venus or southern Jupiter. Nowhere in this country. Nowhere on this planet, in fact.

[boofa]

Northern or Western suburb of Melbourne.

I.E. Doreen, Craigieburn, Hoppers Crossing,Melton, Etc,Etc.....

[Tannin]

Yeah, right. In your dreams. Let's take Melton - which is about as unpleasant an outer suburb as you could hope to find anywhere in Victoria. I mean, we are talking serious Boganville now.

The cheapest block in Melton advertised for sale on Domain today is $120,000 land only - and that is for an anemic little postage-stamp measuring 0.07 acres. Your absurd $1 per acre figure is a little out. The correct price is 1.7 million dollars per acre - and this is for a block 50 kilometres out in Bogan City.

[woftam]

I don't know why anyone would be surprised that we are the most ripped off country in the world. I would have thought that would be obvious by now.

[Nick - Pie Man]

There's plenty of land up for grabs up north if you don't mind being 500km away from the nearest town

[Peter Griffin]

It's a joke, what are they going to do when the next generation can barely afford to rent let alone buy?? Ugh.. It just makes me so mad and sad for the young ones.

[Culprit]

It's not rocket science, To many people not enough houses. What we will have is generational debt where a Couple buy a house and when they die their children inherit the debt and so on. Gone will be the days of 30 year loans, it will be 100 years.

[Nick - Pie Man]

So what you're saying is .. good news for those of us that already own property?

[Culprit]

If you own yes, if you have a mortgage and you still owe are fair chunk on that mortgage no. Reason for that is your house may have increased by 50% in value and if you sell it you still have to buy in the same market where the house prices have increased. Unless you buy a shack out the back of Bourke.

[annewilo]

[Pied Piper]