Australian Property is very overvalued according to many different metrics. The price going up doesn't mean its not overvalued. The Japanese stock market was going up for years in the 1980s, despite also already being overvalued for years.
Hi @Corpsecreate can you list some of those "many different metrics" please? Interesting that the Japanese stock market rose for years despite "someone" considering it overvalued. I'd say that someone was obviously wrong then. Until of course it did become overvalued, that's when they would have been right and it went down.
@@suburbdata 1. World record Household Debt to Income Ratio 2. Price to income ratios between 8 and 14 3. Average age of first home buyer increasing 4. Property price growth double of wages growth for 20 years 5. People not having kids because they can't buy a home 6. Bank lending related to property is the highest in the world 7. Property is worth 4x GDP 8. Property is worth 4x the entire local stock market I mean, you already know this stuff - you're just trolling by saying housing is affordable.
1. Household Debt to Income Ratio I spent 10 mins Googling this. I didn't find the one that mentioned Australia had the record. This one ranks Australia 13th... www.comparethemarket.com.au/home-loans/features/countries-with-the-highest-and-lowest-household-debt-2023/#:~:text=For%20reference%2C%20the%20United%20States,a%20debt%20of%20AU%24262%2C713.47. This one ranked Australia 3rd for 2021... www.oecd.org/en/data/indicators/household-debt.html?oecdcontrol-0c34c1bd70-var3=2021 This next one from the RBA had Aus in the top quartile for 2018... www.rba.gov.au/publications/rdp/2020/2020-05/why-is-australian-household-debt-high-relative-to-history-and-other-countries.html This next one puts Aus 3rd and is dated 2023... www.finder.com.au/credit-cards/australias-personal-debt-reported-as-highest-in-the-world But according to live-ability scores (en.wikipedia.org/wiki/Global_Liveability_Ranking) Australia is ranked number 1 or very close to it. How come we don't have the highest DTI? Perhaps RE here is undervalued. Imagine a mansion that sold in 1990 for $50m, sold in 2010 for $100m and is now being offered for $50m. The DTI and Price to Income for the average Australian would be astronomical. But at $50m it is UNDER value. You can't measure value for money using any of those metrics. Would you rather spend 90% of your income to buy a home in Australia, or 10% of your income to buy a home in Gaza? Those metrics do not measure "value-for-money". You cannot quote them to suggest property prices in Australia are over-valued unless you deliberately choose to ignore what VALUE you get for your dollar.
@@suburbdata Hows this for a method of valuation... Basically every property you buy as an investment LOSES money and is a terrible investment if not for generous tax concessions and capital growth of the property.
capital needs to move to where it is needed and one thing for sure, capital is not needed in australia. put your money in property is cheap eg thailand, Vietnam etc Property in australia is extremely expensive eg 13x average wage when it was 4x that.
Hi @zenmachine50. If you check global live-ability scores (en.wikipedia.org/wiki/Global_Liveability_Ranking), you will notice that neither Vietnam nor Thailand appear anywhere in the top 10 for any year in the entire history of the score. But Australian cities feature 26 times. There's a reason why some countries are cheap and others are expensive. You cannot determine if real estate is under/over valued by comparing average wage multiples. Ask yourself what multiple of your wage would you be prepared to put towards living in Gaza vs living in Australia. Low multiple for Gaza, high multiple for Australia. So, the wage multiple is not a valid measure.
![ARGENTINA vs. BOLIVIA [6-0] | RESUMEN | ELIMINATORIAS SUDAMERICANAS | FECHA 10](http://i.ytimg.com/vi/C3wPtKNbAOA/mqdefault.jpg)
Plz make more podcasts like this
Thanks for more insightful data to help your audience make educated decisions.
Australian Property is very overvalued according to many different metrics. The price going up doesn't mean its not overvalued. The Japanese stock market was going up for years in the 1980s, despite also already being overvalued for years.
Hi @Corpsecreate can you list some of those "many different metrics" please?
Interesting that the Japanese stock market rose for years despite "someone" considering it overvalued. I'd say that someone was obviously wrong then. Until of course it did become overvalued, that's when they would have been right and it went down.
it's capital gains tax the alp got their eyes on,
@@suburbdata
1. World record Household Debt to Income Ratio
2. Price to income ratios between 8 and 14
3. Average age of first home buyer increasing
4. Property price growth double of wages growth for 20 years
5. People not having kids because they can't buy a home
6. Bank lending related to property is the highest in the world
7. Property is worth 4x GDP
8. Property is worth 4x the entire local stock market
I mean, you already know this stuff - you're just trolling by saying housing is affordable.
1. Household Debt to Income Ratio
I spent 10 mins Googling this. I didn't find the one that mentioned Australia had the record. This one ranks Australia 13th...
www.comparethemarket.com.au/home-loans/features/countries-with-the-highest-and-lowest-household-debt-2023/#:~:text=For%20reference%2C%20the%20United%20States,a%20debt%20of%20AU%24262%2C713.47.
This one ranked Australia 3rd for 2021...
www.oecd.org/en/data/indicators/household-debt.html?oecdcontrol-0c34c1bd70-var3=2021
This next one from the RBA had Aus in the top quartile for 2018...
www.rba.gov.au/publications/rdp/2020/2020-05/why-is-australian-household-debt-high-relative-to-history-and-other-countries.html
This next one puts Aus 3rd and is dated 2023...
www.finder.com.au/credit-cards/australias-personal-debt-reported-as-highest-in-the-world
But according to live-ability scores (en.wikipedia.org/wiki/Global_Liveability_Ranking) Australia is ranked number 1 or very close to it. How come we don't have the highest DTI? Perhaps RE here is undervalued.
Imagine a mansion that sold in 1990 for $50m, sold in 2010 for $100m and is now being offered for $50m. The DTI and Price to Income for the average Australian would be astronomical. But at $50m it is UNDER value.
You can't measure value for money using any of those metrics.
Would you rather spend 90% of your income to buy a home in Australia, or 10% of your income to buy a home in Gaza? Those metrics do not measure "value-for-money". You cannot quote them to suggest property prices in Australia are over-valued unless you deliberately choose to ignore what VALUE you get for your dollar.
@@suburbdata Hows this for a method of valuation... Basically every property you buy as an investment LOSES money and is a terrible investment if not for generous tax concessions and capital growth of the property.
capital needs to move to where it is needed and one thing for sure, capital is not needed in australia. put your money in property is cheap eg thailand, Vietnam etc Property in australia is extremely expensive eg 13x average wage when it was 4x that.
Hi @zenmachine50. If you check global live-ability scores (en.wikipedia.org/wiki/Global_Liveability_Ranking), you will notice that neither Vietnam nor Thailand appear anywhere in the top 10 for any year in the entire history of the score. But Australian cities feature 26 times.
There's a reason why some countries are cheap and others are expensive. You cannot determine if real estate is under/over valued by comparing average wage multiples.
Ask yourself what multiple of your wage would you be prepared to put towards living in Gaza vs living in Australia. Low multiple for Gaza, high multiple for Australia. So, the wage multiple is not a valid measure.