With Sydney and Melbourne topping world's rankings, how far prices can go up?…
http://www.zerohedge.com/news/2017-01-23/here-are-worlds-10-…
Least affordable cities in the world
LUser102430 on 24/01/2017 - 18:24
Comments
I'm not sure I understand the purpose of this post?
free-flow conversation, no hidden agenda
I remember in 2006 reading a post on a US site (it might have been zero hedge!) where the poster suggested real estate would keep appreciating in that country, and that if you didn't own property your children and descendants would end up a serf-like under class as the landlords became more and more wealthy, like a feudal state.
I think they were serious.
In any case, that would have been a disastrous time to buy, and many who did ended up in substantial financial pain/foreclosure/bankruptcy.The structural changes that have supported Australian real estate over the last couple of decades (increased female workforce participation, dramatically lower interest rates, a remarkably generous tax position) are largely played out. Interest rates can't fall another 6%. There is no under-employed adult in most homes, the talk in the tax system is about winding back concessions to property, not raising them.
For these reasons, I think property will have much slower, or negative growth (in real terms) over the next decade. That isn't a massive issue if you are an owner occupier who can afford their mortgage, but it will be very upsetting for any new investors.
I read somewhere that in Japan a lot of people buy their property with a loan that gets passed down to their children to pay off as prices are so expensive
most people rent in Japan. sure in Tokyo it is mega expensive. but in smaller cities i.e. 1-2 million people, you can get an affordable house. plus interest rates are so low. half a percent.
Who are the landlords? Are they individual owners like in Au, corporations like in some places in the US, or public owned housing like in SG?
Trend is your friend til the end when it bends