According to the Australian Bureau of Statistics the average male weekly wage was $133 in 1974 meaning that the average yearly income was $6,916. Disposable income for the same period was $2,912 per annum.
This certainly does put things into a different light.
Originally posted by aussiemike:According to the Australian Bureau of Statistics the average male weekly wage was $133 in 1974 meaning that the average yearly income was $6,916. Disposable income for the same period was $2,912 per annum.
This certainly does put things into a different light.
Good stuff mate, so this means the guy in question was doing the O/T a bit to get his 8.5k?
So today its safe to say for me to be in the same situation and get the same home in Mt Druitt NSW which is now 300k my average factory fodder wage would be around 250k per year! Gee, 5k a week aint bad![blink]
We are all made from Stars
I was reading The Age Domain section Sunday
Saturday results melbourne auctions
$61 Million raised
$260 Million Raised same W/E last year
a couple of weeks ago an appartment at docklands
sold at auction for $711k bought off the plans late 2001 for $955kOriginally posted by aussiemike:.
I really see places like Kellyville, etc., and the people who bought in those areas, going through a very tough period.
Kellyville will be the “Cherrybrook” of the future.
In the 80’s it was the aspirational suburb all new big homes on the fringe of Sydneys NW. When the crunch hit of 91 it became known as “the divorce capital of Sydney”
Most Cherrybrook property has gone up less than 100% since then, a lot around only 50%.
Its actually great value, we are looking there ourselves, for a new PPOR, …..except it still carries this strange taint.
Great thread guys (and gals )
I don’t see value in Kellyville to be honest. There are some things going for it and that is particularly the Norwest Business Park which is attracting a number of large businesses and the associated employment opportunities. The M2 has also reduced the travel time to the City which has also bought with it the associated benefits.
I personally think that if you are looking in that area then you will get better value for money in places like Glenhaven and Castle Hill. These markets are already experiencing price declines and so for a PPOR I think you would buy in a better established area.
I don’t disagree that Kellyville will be a nice suburb in the future. It’s a bit bland at the moment. But at an average price of around $500 – $600K i think Castle Hill and Glenhaven are much nicer areas to live.
Kellyville has big new homes but not much around it. Castle Hill and Glenhaven are established areas with good infrastructure and offer the same advantages as the Ville.
Anyway just my thoughts. As a PPOR I am of the view that it doesn’t matter how much you spend as long as you can afford it and like the area.
in all this discussion, it’s worth remembering that home ownership tends to be a peculiarly Aussie obsession, as opposed to countries like Germany where the thought of it doesn’t enter many peoples heads and they are quite happy to secure a lease for many years (this is according to a program I saw once on the BBC). Is the constant support by the government for first home owners really a misallocation of our tax dollars? There must eventually become a disconnect between house prices and wages due to the geared nature of it. A person on $40,000 getting a 3% annual wage increase just cannot keep up with a $300,000 house doubling every 7 years.
Its good to see there is a majority of agreeance on this issue. I remember bringing this topic up a month or two ago and was sliced and diced! IE: Kay
I think you should keep an eye on the orbital motorway link as well as the eastern creek region, lots of factories going in as well as Wally World..opps…I mean Wonderland going under the industrial hammer all sitting right on the link up. Watch the west lad’s. But wait til 2006 when its cheaper!
We are all made from Stars
Originally posted by Salubrious:Its good to see there is a majority of agreeance on this issue. I remember bringing this topic up a month or two ago and was sliced and diced!
Hehehehehe……….A couple of us were talking about this sort of stuff late last year…you should have seen the reaction then!!!!!!!!![fear]
isn’t it the responsibility of an astute investor to prepare for the changes ahead so that when the market falters he should be positioned to take maximum advantage? I’d be surprised if interest rates go over 10% within next couple of years but am working to place myself to capatalise on those that aren’t prepared for it.
Originally posted by wayneL:Originally posted by Salubrious:Its good to see there is a majority of agreeance on this issue. I remember bringing this topic up a month or two ago and was sliced and diced!
Hehehehehe……….A couple of us were talking about this sort of stuff late last year…you should have seen the reaction then!!!!!!!!![fear]
ROFL those same people havent added their thoughts on the unravelling reality that is unfolding before our eyes. [biggrin]
Just my opinion…. in six-twelve months time we will look back and see the whole tone of forum will have changed considerably.
The “real” players are the ones that can consistently perform in all markets…..afterall it is very hard to stuff up a boom in any market. Which then hides serious mistakes people make.
Sorry of on a tangent..
Not sure quite how relevant, but as I don’t know Sydney, and recognised Glenhaven, I thought I would share.
Glenhaven is about to (or may have started already) have a huuuge retirement village type development happening there. We had the chance to provide Mezz funding to the developer, but some of my syndicate were a bit slow in making a decision so we dipped out. From memory it might have been a couple hundred villas in two stages….
Don’t have the plans anymore and it was mid to late last year, so not certain of details….
Cheers
MelOriginally posted by melbear:Not sure quite how relevant, but as I don’t know Sydney, and recognised Glenhaven, I thought I would share.
Glenhaven is about to (or may have started already) have a huuuge retirement village type development happening there. We had the chance to provide Mezz funding to the developer, but some of my syndicate were a bit slow in making a decision so we dipped out. From memory it might have been a couple hundred villas in two stages….
Don’t have the plans anymore and it was mid to late last year, so not certain of details….
Cheers
MelMel they have now outlawed further such developments, in the hills on acreage.
Acreage in Glenhaven has however jumped since mid last year, with many 2M+ sales since Decmember, and others as late as this month. Private puchases by ppl buying land banks.
If they show us 2.5M we will walk too.
A new slant I read on the weekend to this is NEGATIVE EQUITY.
Consider a person/couple purchasing a property in the last few years with a 90% plus loan and now the property has devalued by 15% plus, can this happen, yes!, keep an eye out in the news.[confused2]
I was living in the UK in 1991 when I first heard the term negative equity.
The bottom fell out of the UK market and people were literally handing back the keys to their property to the banks as the debt became far greater than the value of the property.
It certainly can happen.
Benson.
Actually Benson its happening right now, on this topic another responded with an example of a sale made off the plan in 2001 in Docklands of $900k plus and sold recently in the $700k range.
Not happy Jan!!
Originally posted by residentialwealth:A new slant I read on the weekend to this is NEGATIVE EQUITY.
Consider a person/couple purchasing a property in the last few years with a 90% plus loan and now the property has devalued by 15% plus, can this happen, yes!, keep an eye out in the news.[confused2]
Happened back in 1991, and made the ACA type shows with the Aussie battlers bewildered how this could happen.Suburbs like Campelltown in Sydney saw it.
Thought they might regulate against 95% lends after this but never did.
Maybe this time.
Originally posted by residentialwealth:A new slant I read on the weekend to this is NEGATIVE EQUITY.
Consider a person/couple purchasing a property in the last few years with a 90% plus loan and now the property has devalued by 15% plus, can this happen, yes!, keep an eye out in the news.[confused2]
Another term is “upside down equity”.
Why don;t we just call it “nequity”? [biggrin]
kay henry
It really doesn’t matter what LTV you kend people as long as they keep paying.
Think about it…you lease a car for $30,000 …the next day its worth $28,000 and you owe $29,999. What happens ??
Do the wheels fall off,,,do they kill your first born son??
Why are some people so caught up on the LTV???
Agree with Nat, I don’t think it is particularly concerning that someone should have negative equity in their property, apart from the risk to lenders if the defaulted.
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