acidrob Report post Posted November 29, 2005 Sydney Morning Herald Link Whilst this article is mainly about Australian Prices, it does talk about house prices in general for developed countries The OECD found the estimated over-valuation of Australian homes in 2004 was 51.8 per cent. The next highest over-valuation was in Britain at 32.8 per cent. Quote Share this post Link to post Share on other sites
mad'un Report post Posted November 29, 2005 Sorry to kick this into a different angle, but your post has made me wonder: If Oz HPI can go so high, why shouldn't the UK's aspire to such dizzying heights. I mean, is it possible? I am a confirmed bear btw, and I have my own thoughts as to why we can't go that high. This post just made me wonder is all! Please explain why we can't go as high as Australia. I would be interested to hear other's viewpoints, however brief. Quote Share this post Link to post Share on other sites
Guest wrongmove Report post Posted November 29, 2005 (edited) Please explain why we can't go as high as Australia. I would be interested to hear other's viewpoints, however brief. Australia has a thing called 'negative gearing' which means that property investors can offset their losses against their tax bill. People would rather take a hit on low yielding property than pay the money to the government. It is normal in Oz for BTLs to get negative net yields for many years after purchasing. Edited November 29, 2005 by wrongmove Quote Share this post Link to post Share on other sites
IPOD Report post Posted November 29, 2005 Also Australia has something called a "First-Time Homebuyer's Grant" which is basically a handout to every FTB of about $7000 Ozzie dollars (if I recall correctly) to be put towards a house purchase. This has had the marvellous effect of increasing the price of all FTB property by $7000. Quote Share this post Link to post Share on other sites
The Masked Tulip Report post Posted November 29, 2005 The OECD found the estimated over-valuation of Australian homes in 2004 was 51.8 per cent. The next highest over-valuation was in Britain at 32.8 per cent. Does this mean 51.8% of homes are over-valued or that the average home in Oz is over-valued by just over half? In other words, UK homes are a third over-valued or a third of them are over-valued? Quote Share this post Link to post Share on other sites
Marina Report post Posted November 29, 2005 Does this mean 51.8% of homes are over-valued or that the average home in Oz is over-valued by just over half? In other words, UK homes are a third over-valued or a third of them are over-valued? It means Buckingham Palace is overvalued 1365 times - everything else is fair value. Quote Share this post Link to post Share on other sites
