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House price stupidity

July 30, 2016

Just what is it about the REAL story behind soaring house prices that the Wallies of Waymouth Street don’t understand?

Could it be that they are just a teeny bit too reliant on the property parasites’ advertising dollar to get a grip of reality? Or do they just have no idea of the real world of finance? Or both?

It’s simple, Stupid! Your little hacienda is now worth X dollars more than a few years ago. But the new nest that your eyes have lighted on has seen a similar increase in  value. So, if you sell, in real terms you have actually come out worse off…unless, that is, you are down-sizing, because higher prices mean higher handling revenue for the real estate  moguls…

Unsurprisingly, South Australia’s Real Estate Institute  President Alex Ouwens is wetting himself over the price rises, describing it as “phenomenal”,  and hailing the revelation that the median value has once again  shattered the record and now stands at $450,000… which he lauds as “amazing”.

Which is NOT the description that new home-buyers would favour.

What is a dollar bonanza for the industry is a death knell for newly-weds wanting to enter the market while seeing their  ownership dream  disappearing over the horizon..

Just a financial footnote.

In St Peters the median value  increase this year  stands at almost 31percent, rising to $1.41million  from  $1million., while the State-wide median figure is 5.13percent.

 

 

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