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well actually its happened in cities like Detroit, sure a extreme example so I am not pretending its common, but I assure you it can and has happened.
Deary me. I'm not talking about prices of land I'm talking about the accounting concept of depreciation. Land has an infinite useable life so it cannot be depreciated. Houses have a finite useable life so are depreciated over that lifespan. Currently the ATO sets it at, I think, 40 years.
The COL is Australia is obscene and a big reason why we live in the USA.
We've got three homes/mortgages here at 2.85%, fixed for the life of the loan (15 years).
Not to mention the price of the houses were ridiculously cheap for the size/quality. The same house in Oz would cost 2-3 times as much. Factor in the higher interest rates and you're paying 5-6 times for an equivalent house.
You also have to realize that it's just not homes that are expensive. Cars/gas/beer etc are all ~ 2-3 times as much, so you have less left over for that mortgage payment.
I don't understand how it happened, but Aussies are getting the short end of the stick. Consumer goods have always been a rip off, but 20 years ago housing was still reasonable, at least in QLD.
The COL is Australia is obscene and a big reason why we live in the USA.
We've got three homes/mortgages here at 2.85%, fixed for the life of the loan (15 years).
Not to mention the price of the houses were ridiculously cheap for the size/quality. The same house in Oz would cost 2-3 times as much. Factor in the higher interest rates and you're paying 5-6 times for an equivalent house.
You also have to realize that it's just not homes that are expensive. Cars/gas/beer etc are all ~ 2-3 times as much, so you have less left over for that mortgage payment.
I don't understand how it happened, but Aussies are getting the short end of the stick. Consumer goods have always been a rip off, but 20 years ago housing was still reasonable, at least in QLD.
Add clothing to that list as well, I was in Hawaii earlier in the year and was astounded at how much cheaper clothing and footwear was over there. You realise how isolated and in a bubble Australia is.
On the real estate, there is virtually nowhere cheap in Oz left.
Even small places that have no chance of meaningful employment are very, very dear.
Even rents, which moves at a different rate to the actual house prices themselves, have increased to the point where your Average Joe can't save a cent paying this rip off cost.
I don't know what you're talking about. Houses depreciate everywhere, not just in Japan. Land, and any other asset with an indefinite lifespan, cannot depreciate (unless you're changing the definition of depreciation!). If houses didn't depreciate the ATO wouldn't provide a depreciation schedule for houses and fixtures.
So you really don't know how to google. Sad dull life for you, then, isn't it?
So you really don't know how to google. Sad dull life for you, then, isn't it?
Google what? I honestly don't know what you're trying to tell me. You said houses depreciate in Japan. I said they depreciate everywhere. Which statement is false?
How would you guys say about the overall COL in UK compared to Australia then? This includes taxes and purchasing power.
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