Sunday, Aug 20, 2006

The Great Australian (British?) iIlusion

The Age: The Great Australian illusion

Why house prices are bad news for most people.

Posted by ticktock @ 05:05 PM (489 views)
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1. bidin'matime said...

As you suggest, this could have been written about the UK market.

Sunday, August 20, 2006 06:13PM Report Comment

2. paul said...

The difference being that in the UK for the time being at least, those in power are happy to let the whole topic slide by while shedding crocodile tears.

Sunday, August 20, 2006 06:27PM Report Comment

3. Huh said...

grandpa, check your sunglasses, this article is dated 2003

Sunday, August 20, 2006 10:14PM Report Comment

4. Gerard said...

yes, i'm an australian who has been living and working as a teacher in london for the last 5 years. i'm now 38 years of age and with the house prices in both aus and the uk, it is very disheartening. brisbane house prices doubled within a space of 3 years from 2002. hence, having saved for 14 years, i find that all the time saving was rather pointless and somewhat depressing. i had planned to only stay in the uk for a few years, but because of the house boom in australia, i've found myself staying in london to save british pounds that would buy we more home back in australia. however, house prices are out of range in the uk and now in australia, so i'm looking at moving to eastern europe to settle. they say that australia is the lucky country - but not so lucky if you aren't already on the housing ladder and have multiple properties where you can use as tax deductions. so, i'm now quite happy not to consider myself australian anymore, as the gap has grown between rich and poor just as it is in the uk.

Sunday, August 20, 2006 10:38PM Report Comment

5. harold said...

Humm... makes me think that sooner rather than later a majority of the public are going to say "what we need is a bloody good crash" - well, at least it'll make a change from the minority saying "what we need is a bloody good war".

Monday, August 21, 2006 12:15AM Report Comment

6. Caledonian-emigre said...

"Fair dinkum" report

Monday, August 21, 2006 09:53AM Report Comment

7. The Bald Man said...

As I have previously posted much of the economic miracle has been generatd by house price growth feeding back into consumer demand. Basically we have been mortgaging our future against artifically high asset values to generate economic growth. Once the debt levels have reached an unsustainable level the growth stops and everything goes into reversal incluidng the housing market. IMHO.

Monday, August 21, 2006 10:21AM Report Comment

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9. Geed said...

I currently live downunder and I disagree slightly with Gerard.

Yes prices have risen dramatically but compared to the UK you still get a dam sight more brick for your buck. If you are happy to live in pleasant Australian suburbia (see Neighbours...seriously) you can buy a modern 4 bedroom brick home with a double garage, large front and rear garden and sub 1 hour commute to the city centre for substantially less than the average price of a UK home (somewhere around 200K quid or so I believe, I've stopped checking to protect my sanity), so approx 160K or $400,000AUD. This observation is based on Melbourne, a city of 4 million people.

I doubt the UK would compare, in fact I know it doesnt. True, inner city property is hugely more expensive but you can still buy a 2 yr old 2 bedroom inner city (within 1-2 miles of the Central business district) luxury apartment for between 160-200K sterling.

The Brisbane property market has been fuelled by interstate migration to warmer climes and the natural resources sector of Queensland which continues to be hugely buoyant.

One difference which must be noted when viewing the increasing Aussie articles posted on this site is that land is plenty in Australia, and new builds are commonplace. No doubt inner city housing is subject to similar effects as in blighty.

Looking at the UK from the housing market, 2 things seem instatntly apparent

1) Your housing market is laughably overpriced
2) Your Bank (therefore you Government) clearly has its head in the sand

Interesteing times nevertheless with our interest rate hitting the 6% mark, I fear your bank will remain ultra conservative to the bitter end until they are forced to act to protect the value of your beloved pound.

Monday, August 21, 2006 12:16PM Report Comment

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