Toronto's housing bubble finally pops

Discussion in 'Property Market Economics' started by hpresident, 7th Jun, 2017.

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  1. Barny

    Barny Well-Known Member

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    I'm not sure. But I'm hoping lots otherwise $hitstorm.
     
  2. jins13

    jins13 Well-Known Member

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    Watching the nextflix of "First home" it really does hit home on the home prices in Sydney in comparison to the home prices in America. Yes, we can argue that the min Fed award wages are half or less in America but I think that even with an average income, it's not 7 times or more of the annual income. Still, I think some areas of Sydney are alot more "at risk" than in some of the other areas. I can't see house prices going down in the Northern Beaches, Eastern suburbs or any of those blue chip areas which are very desirable. I just hope that once the storm comes around, I have an opportunity to upgrade my PPOR to a forever home.
     
  3. Trainee

    Trainee Well-Known Member

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    Might look better if you compare Sydney to San Francisco or Manhattan, or compare Australia to America? Might as well compare Vaucluse to Logan.
     
  4. magyar

    magyar Well-Known Member

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    Does anybody have any stats on what the average mortgage is for Sydneysiders. are people putting down huge deposits 50%+ or just the bare minimum?
     
  5. sash

    sash Well-Known Member

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    To put it in perspective Sydney house prices are 15 times average income (about 70k).....Melbourne is 10 times.....

    So that means most people need at least 150k in income just to service something 20% under the media house price...assuming they have a 10--20% deposit. That in itself is telling
     
  6. hash_investor

    hash_investor Well-Known Member

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    No, serviceability is not a problem for most FHB who have a deposit saved and entering lower end of the market. Many buyers are on good salaries but they don't have savings because they are new in the country
     
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  7. turk

    turk Well-Known Member

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    Most people buying a house are in a relationship so that 150k is 75k each.
    That in itself is just as telling.
     
  8. hpresident

    hpresident Well-Known Member

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    Did you just say compare Sydney to San Fran or Manhanttan, are you out of your mind, Sydney is big in Australian scale but nothing in the international scale. Last I check San Fran has Facebook, Google, Apple and hundreds if not thousand of world class companies providing thousands of high paying jobs. New York's GDP along is greater than Australia as a whole. Mean while Sydney doesn't even have an amazon warehouse.
     
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  9. Trainee

    Trainee Well-Known Member

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    Which is why Sydney is cheaper than SF or Manhattan. On the other hand, how does comparing Sydney to some small US city mean anything?
     
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  10. rjw180

    rjw180 Well-Known Member

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    Yeah that actually makes a big difference as it would most likely be (you'd hope) that ppl buying in the mid-high range are all upgrading their PPOR, drawing down on equity or just really cashed up.

    Would be interesting working in analytics at one of the big 4 banks.