Quote:
Originally Posted by guzzis3
Housing in the 3 east coast capitals is about 60% overvalued, supported by unsustainable immigration, domestic and overseas investors.
If you can be bothered charting average wage vs average house price in sydney for example it started in the 80's and has been getting worse ever since, apart from a hiatus after the recession in 1990. Cashed up boomers started it and then it became a contagion.
The lack of recessions is also a fallacy. Growth has been due entirely to ridiculous immigration levels. The highest rate in the OECD for almost 20 years now.
At some point the bubble has to burst, but I have been amazed for about 15 years now how it's managed to keep going. The small retraction about a decade ago was not nearly enough. Now finally with the virus maybe enough oxygen will be cut off for Australia's economy to get a forced reset, but who knows. Maybe we will just keep borrowing forever.
Incidentally real estate across Australia is cheap. You can buy a house in NSW or Qld for $80k sometimes less. Land can be had for $10k, but people would rather spend 1 mill in sydney and enslave themselves to a bank for life... bizarre...
|
Within reason you need to live where the work is.
The other way to get around this is to stop investing in the cities are push companies out to regional areas or atleast 2-3 hours form the capitals.
Build some decent highways (up the speed limits) and stop relying on these hubs.