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Chimerica

US beach pads cheaper than Balga. The West

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The headline on the front page of the The West is "US beach pads cheaper than Balga" which is something I'd expect to see on SS or Bubblepedia.

Again, nothing new but highlighting unsustainable house prices here regardless of exchange rates.

BTW, Balga is a completely undesirable area in Perth, perhaps one of the worst suburbs IMO but I'm sure many people like living there.

http://au.news.yahoo...omes-a-bargain/

US beachfront homes a bargain

KIM MACDONALD, The West Australian October 23, 2010, 2:35 am

Australians can buy beachfront properties in attractive US cities for less than the cost of houses in Balga or Tuart Hill.

The strong Australian dollar and a depressed US property market have led to relatively cheap deals in ritzy areas such as Venice Beach, Long Beach and Pacific Palisades.

Even tri-level, waterfront homes on Malibu Beach sell for one-third the cost of properties of a similar quality in Scarborough and by Leighton beach. The trend highlights the extent to which Australian homes are relatively overpriced.

The median-priced house in Perth, at $480,000, is 6.2 times the average annual male income and 8.4 times the female wage.

In the US, homes are about three times the average household income.

Real estate websites show US deals include a two-bedroom beachfront unit on Venice Beach, with ocean views from every room, for $US130, 000 ($132,000).

Even some smaller homes in California's Beverly Hills are relatively affordable compared with Perth's western suburbs.

A two-storey, four-bedroom Spanish-style home in Beverly Hills was less than $US1 million. A nearby two-bedroom Tudor-style cottage with double garage was $US1.1 million.

Apartments in the Trump Tower on Park Avenue in New York start at $US1.25 million. The penthouse costs $US30 million.

Las Vegas, the foreclosure capital of the US, has some of the cheapest homes, with a two-storey, four-bedroom home listed at $US80,000.

Melbourne-based property adviser Monique Sasson Wakelin said some Australians were buying in the US, but warned it was risky.

Ms Sasson Wakelin said US property should be considered only as a lifestyle choice, not an investment, because the market was not rebounding in the same way as Australia's.

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Monique's ability to comment on the relative value and risk differences between Beverley Hills and All of Residential Australia is astounding. Nothing like selling Risk when Australian property is clearly risk-free.

- Will be interesting to see how foreign buyers who we're told account for 80% of Meriton's apartment releases view this relative difference. Even with modest capital gains you could liquidate here and live mortgage-free in a much better house in a similar climate with improved infrastructure. Could the rise of the $AUD spell doom for Australian property? Wouldn't have thought that was the case but combining Harry T's comments with Monique's scaremongering on the Biggest Auction Day Ever makes me wonder.

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Ms Wakelin sounds a bit worried me thinks. Worried that investors might notice better value elsewhere, and decide that maybe, they shouldn't buy in expensive Australia.

I like the line about American houses are not an investment, only Aussie ones are an investment.

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I remember reading an article inThe West about 3 years ago saying how Mandurah (South West WA) properties were more expensive than The Hamptons, New York per sq metre. Mandurah slowly declined from there on. Perhaps it takes articles like these to wake people up and actually get them to think what they are buying.

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Ms Sasson Wakelin said US property should be considered only as a lifestyle choice, not an investment, because the market was not rebounding in the same way as Australia's.

What the hell has our property market got to rebound from? Its a bit early to be calling the bottom when we have had about 4 weeks of gloom stories in Perth and prices at this point have hardly moved and nor have our quite significant stock of homes on the market...

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Really needs to expand on the fact that house prices are 100% overvalued (50% fall to norm for the mathematicaly challenged).

Flirts with the idea...

The median-priced house in Perth, at $480,000, is 6.2 times the average annual male income and 8.4 times the female wage.

In the US, homes are about three times the average household income.

...but then runs with Wakelin's dung without addressing the underlying issue (the overpricing).

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Oooh look your fossiled news reader is hitting the bricks as he senses a little 'popping'?

CHANNEL 7 presenter Rick Ardon has reported the news from around the world - now he wants more than $6 million for the beachfront mansion that appears to be inspired by his travels.

The palatial property's back yard comes with decadent Balinese gardens and outdoor areas. Inside, the rooms feature Egyptian styling and the facade takes its colour from the villas of Tuscany or the south of France.

The sale could be a handy earner for the Perth news presenter and journalist, who is hoping for about $6.5 million after buying the land in 1989 for just $240,000. Ardon yesterday told Confidential he had put his house up for sale to "test the market".

http://www.perthnow.com.au/entertainment/perth-confidential/channel-seven-newsreader-rick-ardons-6m-tuscan-digs-for-sale/story-e6frg30l-1225942702491

Listing:

http://www.realestate.com.au/property-house-wa-scarborough-106805592

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I think he's selling it to cash in on the rezoning that will allow 8 story development, but even then $6+ million for 800 sq meters seems a bit steep. I mean going by the satellite pictures, perth aint exactly short of beachfront property that could be re-developed.

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