Max Carnage

Charts Thread

12 posts in this topic

Comparing the cost of interest on a median priced home and cost of renting relative to single FTE per city. Updated to June 2009

rentvsinterestvs.gif

rentvsinterestvsearning.gif

Data sources:

  • CPI: ABS (national)

  • Interest rate: RBA (national)

  • Rent ($): APM Rental Report (per city)

  • House Price ($): APM House Price Series (per city)

  • Historical Rental Index: ABS CPI Rents Component (per city)

  • Historical House Price Index: ABS (per city)

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Pre.

So as a percentage of after tax income they have probably stayed even flatter then as our PAYG tax has reduced (over the last 10 years anyway).

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Interesting that Chris Joyce produced a similar graph at a national level but used mortgage interest rate and rental yields. Tells a similar story though. In your case we expect the blue and pink lines to be close, and high blue lines represent periods of speculation.

My thought on CJ are here http://www.talkfinance.net/f32/chris-joye-writes-reasonable-analysis-9180/

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So anyone got any really long term price vs IRs graphs?

Also, anyone got any graphs or articles that clearly show what happened when NG was removed in 85?

I'm stirring on McKnights forum lately (I know it's a bit mean but sentiment is definately ready for it.) I kid you not, McKnight himself started a thread on Buffet and how a crash was likely to happen when investors are least expecting it. I've got a feeling McKnight has cashed in quite a lot already. Anyways, these graphs and articles would help with my bull debating.

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So anyone got any really long term price vs IRs graphs?

Also, anyone got any graphs or articles that clearly show what happened when NG was removed in 85?

I'm stirring on McKnights forum lately (I know it's a bit mean but sentiment is definately ready for it.) I kid you not, McKnight himself started a thread on Buffet and how a crash was likely to happen when investors are least expecting it. I've got a feeling McKnight has cashed in quite a lot already. Anyways, these graphs and articles would help with my bull debating.

I went looking for the Badcock and Browett paper examining the NG removal in 1985. You have to pay $34 bucks for it. Instead I came across this paper from 2005 by Jim O'Donnell from the Journal of Tax research Vol 3 No. 1 June 2005 "Quarantining Interest Deductions for Negatively Geared Rental Property Investments"

You might find it an interesting read. ;)

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Australian Bureau of Statistics issued its latest National Regional Profile on Friday, giving a breakdown of data on economics, population, industry and environment for suburbs across the country.

Interesting figures on the incomes in just about every part of the country. Most including 2010 figures.

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