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The Most Overpriced Housing Markets In The Developed World
http://www.businessinsider.com/the-m...ld-2012-2?op=1
Most OECD countries have experienced an inflating home price bubble from the first quarter of 2001 through the fourth quarter of 2006. But many have yet to see their bubbles burst.
Torsten Slok, chief international economist at Deutsche Bank Securities, has a new report examining global home prices.
Specifically, he looks at the relative valuation of housing markets as measured by price/rent and price/income and compares those ratios to historical long-run averages.
Slok argues that home prices in many countries in the developed world are still overvalued. Across the Euro area, home prices are still overvalued by 14 percent.
We ranked the countries by the average over- / under-valuation of home prices relative to rent and income.
NZ & Aus are ranked quite highly. of course if you own a house/rental you will probably disagree with this article and if you dont own, you will likely agree.
NZ house prices dont seem to be dropping, Aus houses certainly are.
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Never a bad time to buy property, only sometimes a time is better than others. Never pay rent if you really want to get a head in this life. Think about it how many rich people do you know that dont own property?. All the property that I bought and sold over the years, not one ever made a loss, most in fact more than doubled in price in a short space of time. Beats the volatility of a crumbling monetry system where all you might have left is material assets. The compliance cost escalation will increase the price of potential new properties at much greater rate than inflation so get in fast dont bother timing the market at this stage. Macdunk
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Junior Member
After waiting so long I also decided to buy my first home (three bed rooms). I thought price will come down. As long as value doesn’t fall and interest rate stays in a comfortable level I will be OK.There is a risk in any type of investment.Don’t know what will happen to property market when baby boomers retire.
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Member
Originally Posted by HIDDENGEM
After waiting so long I also decided to buy my first home (three bed rooms). I thought price will come down. As long as value doesn’t fall and interest rate stays in a comfortable level I will be OK.There is a risk in any type of investment.Don’t know what will happen to property market when baby boomers retire.
You have already seen it to some extent, with the fall in holiday homes. The second thing you will see is a trade down of larger homes into easy care smaller homes.
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Originally Posted by lou
You have already seen it to some extent, with the fall in holiday homes. The second thing you will see is a trade down of larger homes into easy care smaller homes.
I'm not so sure the fall in holiday homes, and sections in holiday hot-spots even moreso, down to baby-boomers. Perhaps that's a reflection of the general economy? Logic would say that the increasing number of retirees would increase demand for holiday housing.
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Member
I have decided to wait ...not sure when. It depends on the greeks whether bankruptcy is the only option for them. I don't know what would happen to the financial market and more importantly, the interest rate.
If there is no domino effect after the bankruptcy, or even there is one, I will wait until financial market to settle down before I commit myself to it. Thanks for the feedback.
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Member
Originally Posted by duncan macgregor
Never pay rent if you really want to get a head in this life.
I would have thought a better way to get ahead was to pay rental for your PPOR, and to buy an investment property.
You can't make any tax deductions on the place you live in, unless you have a home office for business.
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In other words -take on heaps of debt,and depend on the share market for your financial survival.
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Originally Posted by skid
In other words -take on heaps of debt,and depend on the share market for your financial survival.
That is the ultimate gamble in a money market that is in turmoil. The only thing you can be sure about is that if you dont own material assets when the money market goes under you will own nothing at all. Govt gets voted in by promising the most people more things at the cost of future generations. Its hardly the answer to continued prosperity. I foresee monetry collapse in the future, where new systems will replace this short sighted crazy system of self interest and borrowing. Property is the only safe long term investment at least you will never end up destitute. Macdunk
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