Australia House Prices Bubble 'flashing Red', Debt To Income At Record Level

[The Masked Tulip]

Australian household debt has hit a record 177 per cent of annual disposable income while housing valuations are "flashing red", according to Barclay's chief economist, Kieran Davies.

"House prices now equate to 4.3 times annual income and 28 times annual rent, both within a fraction of their historic highs," Mr Davies said.

Only 4.3 times average income? To quote that Aussie singer, we should be so lucky

http://www.watoday.com.au/business/the-economy/australias-house-prices-flashing-red-debt-to-income-ratio-at-record-levels-20140404-362bz.html

[TheCountOfNowhere]

Only 4.3 times average income? To quote that Aussie singer, we should be so lucky

http://www.watoday.c...0404-362bz.html

Or....careful with that rope, you might hang yourself.

[The Masked Tulip]

Or....careful with that rope, you might hang yourself.

?

[tomandlu]

?

I'm assuming a Michael Hutchence reference.

[The Masked Tulip]

I'm assuming a Michael Hutchence reference.

Ah....

Thanks.

[Guest spp]

Only 4.3 times average income? To quote that Aussie singer, we should be so lucky

http://www.watoday.com.au/business/the-economy/australias-house-prices-flashing-red-debt-to-income-ratio-at-record-levels-20140404-362bz.html

Isn't their minimum wage £10+ hr?

Having spent a few months there I have experienced the high cost of food and drink. Not such a problem if you go to the supermarkets, or just avoid the more expensive places.

So...plenty of cash to go into property with that kind of minimum wage.

Sick to death of the cr*p weather and the obsession of property prices must go up over here...time to get out! Even if it's some sort of commuting abroad. Time to get creative!

Edited April 7, 2014 by spp

[mmt]

Isn't their minimum wage £10+ hr?

Having spent a few months there I have experienced the high cost of food and drink. Not such a problem if you go to the supermarkets, or just avoid the more expensive places.

So...plenty of cash to go into property with that kind of minimum wage.

Sick to death of the cr*p weather and the obsession of property prices must go up over here...time to get out! Even if it's some sort of commuting abroad. Time to get creative!

Don't they also have a first time buyers grant or something? Pumping money directly into the Ponzi from the bottom.

[steve99]

4.3x wage for a house??? What W*an*kers! They then tell us that it was 3.5 times back in the mid 90's but back then it was 3.5times one gross wage. today its a load of w*nk.

How they work out this fictitious figure

Wage is based on household wage ie usually 2x wage earners

Then we add the amount of superannuation (pension fund contribution) that is compulsory added to your wage by your employer (really its your money going in dressed up as your employers money) this tops your apparent wage up by around 9%

Then to really take the urine, they determine that the imputed rent on the house you bought is part of your household income, ie house would rent for $500 per week therefore logic states that your household income is now circa $26K per year more!!??

And this is how the government and central bank see's it, really! total f wits.

The median wage, that's slap bang in the middle for a full time worker is around $60k pa. The median house price in Sydney is around $700k Melbourne $580k. In any area of the country I have worked out that the house prices are around 8 -10x the local gross wage.

The other bit that is interesting about Australia is that fact that many workers are not full time but employed on a piece of string, part time and casual with little or no legal contract hours, though usually there is some sort of contracted hours. This is around 30%+ of the workforce and many of these people want full time work.

Also plagued with far too many immigrants, all bought over to fill the false claims of employers crying poor, hence mega IT workers imported, often from India and have pushed wages down for many. Good jobs paying same as 10++ years ago, low level IT jobs paying far less. In fact I as one of these outed people am now driving a bus and earn more than if I was 25year old and doing a low- mid level IT job right now. Dito many engineering jobs, In fact most of my work colleagues are from similar mid level technical backgrounds, IT, Telecoms, engineering etc. What I am leading to here is that none of these workers understands how anyone can afford to buy any property now, and most are stuck with their kids at home, possibly till they get to 40 years old

The min wage is higher than UK, but that wont put you in line for buying anything in the city. And out of the cities you wont get a job, there are none and what little there is, is for the locals.

If you think UK bullsh*t is bad re house prices, Australia is on steroids. Has far worse estate agents, Auctions for half the property and thats a massive scam, so bad in fact that they have 'Star' auctioneers who get people to part with far more money than they should using what they call 'Vendor' bids, that is the seller can bid against you??? you have to witness how completely redicoulous this is to believe it.

Check out this

http://www.idiottax.net/2014/04/important-things.html?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+TheIdiotTax+%28The+Idiot+Tax%29#.U0NMfWp-9Ms

An asbestos house selling for $900K in a so so run down suburb of Sydney,