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Old 11-03-2014, 02:31 AM
 
1,008 posts, read 2,001,701 times
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Quote:
Originally Posted by Derek41 View Post
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.
Do you think this phenomenon will still keep going in Australia? No chance of deflation?
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Old 11-03-2014, 04:48 AM
 
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Australian house prices is much more than the USA, one of the reasons we applied for a Diversity Lotto Green Card and we are moving to the USA next year. It's incredible how much more house and land you can buy in Australia compared to the USA.
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Old 11-03-2014, 05:22 AM
 
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Originally Posted by Aussiegemma View Post
Australian house prices is much more than the USA, one of the reasons we applied for a Diversity Lotto Green Card and we are moving to the USA next year. It's incredible how much more house and land you can buy in Australia compared to the USA.
I think your bolded words have to be swapped.
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Old 11-03-2014, 12:01 PM
 
30,852 posts, read 36,738,377 times
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Originally Posted by newenglandgirl View Post
I'm shocked to see the prices on homes in Australia, esp Brisbane ($500-$800K seems the "norm"). Sydney has NOTHING on realtor.com under 200 grand, not even a shack. Are Australians super wealthy, and if so how and why? What does a "middle class" person earn there?
I suspect it's for the same reason real estate is sky high in coastal California and the Northeastearn US. Restrictive zoning and building policies mean not enough housing gets built, which drives up prices. It's certainly not due to a lack of land.
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Old 11-03-2014, 01:10 PM
 
2,441 posts, read 2,588,381 times
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Originally Posted by BCC_1 View Post
OK. Whatever you say. You obviously live in your own version of reality. Enjoy.
I will, because in my reality we have the internet, and a vertiable plethora of facts from which to learn.
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Old 11-03-2014, 01:22 PM
 
9,327 posts, read 21,932,389 times
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Originally Posted by BCC_1 View Post
Yes I know that. We're talking about the accounting concept (or at least I thought we were) and I can assure you land does not depreciate.
Its been a few years since Business school, so from an Accounting concept I agree with you. All assets depreciate. Though can't you depreciate cost to purchase land (can't remember what we were taught.. hated Accounting)
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Old 11-03-2014, 05:29 PM
 
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Originally Posted by minibrings View Post
Its been a few years since Business school, so from an Accounting concept I agree with you. All assets depreciate. Though can't you depreciate cost to purchase land (can't remember what we were taught.. hated Accounting)
Land can't be depreciated because it has an indefinite life span. A house depreciates because things like plumbing, wiring, floorboards, carpets, roofs etc all eventually have to be replaced. Plus things like bathrooms, kitchens etc become obsolete. Even the house itself becomes obsolete because of changing taste.

If houses didn't depreciate then two houses of the same size next to each other but one brand new and the other forty years old and still with everything original would be worth the same. Of course they're not because the first thing a prospective buyer would look at is what needs to be replaced, either because of wear or because orange shag pile carpet isn't popular anymore.
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Old 11-03-2014, 06:21 PM
 
3,105 posts, read 3,806,027 times
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Quote:
Originally Posted by Aussiegemma View Post
Australian house prices is much more than the USA, one of the reasons we applied for a Diversity Lotto Green Card and we are moving to the USA next year. It's incredible how much more house and land you can buy in Australia compared to the USA.
Good for you guys. There a few things that cost more over here (US) like health care, but overall the middle class and up have a much better financial situation over here.

Going shopping in the US is awesome. If you're used to Aussies prices, it's like everything is 70% off. Then you find deals on the net for 50% off and it's like it's free compared to Aussie prices.

Good luck with your move!
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Old 11-03-2014, 06:29 PM
 
3,105 posts, read 3,806,027 times
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Quote:
Originally Posted by BCC_1 View Post
Land can't be depreciated because it has an indefinite life span.
You're both right, it all just depends on how you define things.

Land can devalue due to erosion, wells going dry, drought and fire etc. Or it can be as simple as being built out and loosing your view. Change in zoning rules can also make a block of land more or less apealing. Then there's things like earthquakes and rising sea level etc. Then there's a case of supply and demand devaluing the land.

So call it what you will, but there is no guarantee that your land will always keep up with inflation or better.
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Old 11-03-2014, 06:32 PM
 
9,327 posts, read 21,932,389 times
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Quote:
Originally Posted by BCC_1 View Post
Land can't be depreciated because it has an indefinite life span. A house depreciates because things like plumbing, wiring, floorboards, carpets, roofs etc all eventually have to be replaced. Plus things like bathrooms, kitchens etc become obsolete. Even the house itself becomes obsolete because of changing taste.

If houses didn't depreciate then two houses of the same size next to each other but one brand new and the other forty years old and still with everything original would be worth the same. Of course they're not because the first thing a prospective buyer would look at is what needs to be replaced, either because of wear or because orange shag pile carpet isn't popular anymore.
Thanks for the business school refresher... you can't estimate how long land will last, so you won't have a number to use to calculate depreciation. Makes perfects sense.
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