Australia housing bubble - Page 12

**FTE217** · 31-05-2018, 11:22 AM

There are and will be countless stories as such asagaai but as you know these are people who go out on the limb far too much, they also think they are very smart, greed comes to mind as well.
Its not the fault of the banks, nor the RB regards to interest rates, its about not going over your head and how many are - living off credit, living beyond their means.
I'm sorry for your bro but then again not, more so I hope his family doesn't have to suffer due to being a big shot ( I mean no offense please understand but its a general overall POV on these type of circumstances)

asagaai · 31-05-2018, 11:57 AM

Quote:

Originally Posted by FTE217

There are and will be countless stories as such asagaai but as you know these are people who go out on the limb far too much, they also think they are very smart, greed comes to mind as well.
Its not the fault of the banks, nor the RB regards to interest rates, its about not going over your head and how many are - living off credit, living beyond their means.
I'm sorry for your bro but then again not, more so I hope his family doesn't have to suffer due to being a big shot ( I mean no offense please understand but its a general overall POV on these type of circumstances)

No offense taken-I agree with you. Three things I have learned so far on this earth:

1. Avoid following the innate human frailty of being a sheep. Apply your life experience and use your brain to assess and determine your own course based on what you value in life.

2. Generally people who are self made with no silver spoon and are successful in business/work generally got there by hard work and skills. Not everyone has both the hard work ethic AND the skills in required proportions.

3. That I am unsure- as to what is more stressful in life- financial stresses, or the horror stresses of daughters in that puberty to age 20ish odd....

**Professor Farnsworth** · 31-05-2018, 01:53 PM

Rule #1, borrow what you can afford, on one income, factored on a high theoretical interest rate, then make extra repayments. Never borrow high amounts just because the bank says you can. Just because you can, doesn't mean you should. Words to live by.

.:4:. · 01-06-2018, 12:03 AM

Quote:

Originally Posted by Professor Farnsworth

Rule #1, borrow what you can afford, on one income, factored on a high theoretical interest rate, then make extra repayments. Never borrow high amounts just because the bank says you can. Just because you can, doesn't mean you should. Words to live by.

Those are wise words. I split with the wife and after I pay the mortgage and bills each week I still have a bit left over. Always gear it incase there is a rainy day I guess. Looking back when I bought it was at the limit for a dual lowish income however over a few years the borrowed amount did not change but my income did so it works out I pay much less for a mortgage then to rent even a 2 bedroom unit in my area these days. And I bought in 2012.

01-06-2018, 07:55 AM

https://www.brisbanetimes.com.au/mon...27-p4zhtx.html

nice. young people have no chance of entering the property market and now they're criticised for staying at home longer than previous generations.

**Charliewool** · 01-06-2018, 01:43 PM

Quote:

Originally Posted by leesa

https://www.brisbanetimes.com.au/mon...27-p4zhtx.html

nice. young people have no chance of entering the property market and now they're criticised for staying at home longer than previous generations.

Geesh you is a negative nellie at times leesa.....
Though I agree it is tougher than years ago to buy a house/mortgage... It IS still possible, once they set their sights a little, realistically lower!
This “young people have no chance” , “woe is me” crap really annoys me...
They DO and they CAN with a bit of “get off ya a rse” and smarts!
I have 2 in their late 20s that have.

01-06-2018, 07:32 PM

Quote:

Originally Posted by Charliewool

Geesh you is a negative nellie at times leesa.....
Though I agree it is tougher than years ago to buy a house/mortgage... It IS still possible, once they set their sights a little, realistically lower!

Yeah, the scenario with the housing industry in Australia makes me pretty cranky.
I don't date so buying a house with a partner isn't going to happen and it's impossible to buy on your own unless you earn the income of two people.

When my dad was young he bought a house 5km from the city, on one income. I would just like to be able to do what the previous generations told me as I was growing up.... study hard, work hard and you can buy a house... but that's not necessarily true anymore, is it?
When looking at income/house price/interest rates, I earn more than he did back when he bought, comparatively speaking and even taking the high interest rates into account, so back then I would have easily been able to do what he did but I can't buy somewhere by myself even within 45 minutes of the city. I would just like the same opportunity as the previous generation - work hard and buy a house... but I can't. Lots of people can't, despite working really hard which is apparently all it should take. I also rent by myself which doesn't help.

It just annoys me that the housing industry has become an investment industry for people who don't need any more money. They've got a house but they want multiple houses so as to ride the equity wave to make them rich without them having to lift a finger. They're not even working hard to make that money! It's just greed, pure and simple. I'm not a greedy person so I have trouble understanding how people can morally gather more resources than they themselves need, at the expense of others. At a fundamental level it's not a trait that I have so to see that it's an every-man-for-themselves type society is a bit devastating I guess, yeah.

So now I just blow lots of money on hobbies and toys, knowing that the market is probably not likely to correct within my lifetime. And yeah, it does make me bitter, I can't seem to help it.

**FTE217** · 01-06-2018, 04:10 PM

Quote:

Originally Posted by leesa

https://www.brisbanetimes.com.au/mon...27-p4zhtx.html

nice. young people have no chance of entering the property market and now they're criticised for staying at home longer than previous generations.

What a load of bollocks.
I see the journo has a hyphenated surname, say no more.

Wonder what they would have said that my brother stayed home till 30yrs and countless others back in the days, who wrote about that back then ? no one for there are countless reasons why not just because of affording a property.
In saying that, leesa, young people not having a chance.
Another generalised comment.
There will always be those who get themselves in a position who can and those who cannot.
If everyone was the same we'd be in a sorry place I suppose thankfully not.
As Charliewool quotes, his own boys have.
Late last year my late 20's niece and new hubby just bought a run down semi in inner Sydney - from saving their ****'s off for a number of years - funny just as myself and wife not a the time did as well way back then when it was meant to be affordable.
I say that for when we were saving I thought FFS this will take forever....but alas in time it didn't AND I thought signing for that 1st mortgage dump was like signing away for a million bucks back then.
My eldest son @ 25 is nearing his target with his girlfriend/wife sooner or later to putting down a deposit but I suppose they had no chance as well.

BENT_8 · 01-06-2018, 04:36 PM

Quote:

Originally Posted by FTE217

As Charliewool quotes, his own boys have.
Late last year my late 20's niece and new hubby just bought a run down semi in inner Sydney - from saving their ****'s off for a number of years.
My eldest son @ 25 is nearing his target with his girlfriend/wife sooner or later to putting down a deposit but I suppose they had no chance as well.

Where are they living whilst saving their ****s off until late 20's?

Any of these have kids of their own mate?

So would i be right in assuming the key is to spend the first 20 years in nappy's or school, the next 10 years saving every dollar for a run down house, the next 30 years paying off that overpriced rundown house and then what, life begins at 60 if (insert incurable medical condition) doesnt get you first?
Happy days!

b0son · 01-06-2018, 05:02 PM

Quote:

Originally Posted by FTE217

There will always be those who get themselves in a position who can and those who cannot.

Of course, what matters though is the proportion who cannot. And that proportion is most definitely rising.

And that isn't simply because they waste money. Houses as a proportion of income cost 3-5x MORE than 20 years ago, so all things being equal, it would take 3-5x LONGER to raise that deposit. All the while, prices keep rising (often faster than the rate at which people can save).

I'm happy for people to pint out how much money people waste... I agree, there shouldn't be anywhere near the market for silly services like professional dog washing/grooming, or lawnmowing, etc. People outsource an awful lot of stuff they could well do for themselves. But even for those that do everything right, they're still so far behind the curve now, its truly depressing as a parent, and my daughter is nowhere near moving out age yet. I can only imagine how bad it will get in another 10 years....

GASWAGON · 31-05-2018, 11:15 PM

RBA will raise rates in Decemeber because economy is going so well due to all the new infrastructure we ALL 'desperately' need.

Interest rates could'nt stay 0.25 forever????

Bossxr8 · 01-06-2018, 02:53 PM

Quote:

Originally Posted by BFBarraWGN

RBA will raise rates in Decemeber because economy is going so well due to all the new infrastructure we ALL 'desperately' need.

Interest rates could'nt stay 0.25 forever????

Incorrect. The economy is not meeting the governments targets, and it's highly unlikely the interest rates will be moving any time soon.

ebzery · 01-06-2018, 09:52 PM

move bush you can still get a home for 100 to 200 thousand

ebzery · 01-06-2018, 09:56 PM

i would like a house at the gold coast or coffs or any other coastal town but 600plus is just a joke

ebzery · 01-06-2018, 10:17 PM

the housing market in nsw first got inflated in the 80s due to the first home buyers payment from the government dropped then reintroduced in 2000 was house prices go up by 3 fold due to anyone able to buy without saving a cent

GASWAGON · 01-06-2018, 10:40 PM

Average 'Median' house price in Melbourne these days is 'AT LEAST' 600-700K...if not closer to 1 MILL!!!!

Thats not far off 3/4 of a 1 Million Dollars for your very first house???

Its just not possible........At least without a 30 years mortagage instead of the old 25 year???

And we all have to work until we're 70 now not 65 like all you older retiree's???

In Focus · 02-06-2018, 07:31 PM

If you can't invest in real estate, invest in something else. My understanding is that in many countries, the people accept owning their own house is out of reach, and put their money into other investments. Don't just **** away all your money in the here and now.

Syndrome · 02-06-2018, 08:06 PM

The banking royal commission and end of interest only loans means housing will be soft for the immediate future.

naddis01 · 02-06-2018, 08:52 PM

Move out here to Broken Hill and get a job in the mines. There are plenty of guys I work with that came with no experience (including myself) and now earn a 6 figure pay cheque. Houses start in the 5 figure bracket. Mildura is just down the road or you can be in Adelaide before lunch.

If you can't get into the property market, look outside the box.

pottery beige · 02-06-2018, 08:59 PM

Quote:

Originally Posted by naddis01

Move out here to Broken Hill and get a job in the mines. There are plenty of guys I work with that came with no experience (including myself) and now earn a 6 figure pay cheque. Houses start in the 5 figure bracket. Mildura is just down the road or you can be in Adelaide before lunch.

If you can't get into the property market, look outside the box.

that would mean a sacrifice of comfort zones...

naddis01 · 02-06-2018, 09:28 PM

An equal time roster allows you to get pretty comfortable.

For those looking for a high rental return, Broken Hill is worth checking out. There are a number of new projects coming online in the area soon including the Hawsons iron ore project. That is meant to bring 1200 construction jobs and 500 ongoing jobs alone.

**FairmontGS** · 02-06-2018, 10:29 PM

Quote:

Originally Posted by naddis01

An equal time roster allows you to get pretty comfortable.

For those looking for a high rental return, Broken Hill is worth checking out. There are a number of new projects coming online in the area soon including the Hawsons iron ore project. That is meant to bring 1200 construction jobs and 500 ongoing jobs alone.

You're talking common sense and showing unwarranted initiative to lift yourself up by the bootstraps. You'll get run out of town with that sort of crazy talk

chrisandsharon · 02-06-2018, 11:12 PM

Quote:

Originally Posted by naddis01

An equal time roster allows you to get pretty comfortable.

For those looking for a high rental return, Broken Hill is worth checking out. There are a number of new projects coming online in the area soon including the Hawsons iron ore project. That is meant to bring 1200 construction jobs and 500 ongoing jobs alone.

Will be good if it takes off but I’d be wary. China is chasing high grade ore - it’s not what it used to be. There’s iron ore companies (smaller ops) that are closing up shop at the end of the year in the West due to the current climate.
Look at Hedland a few years ago - asbestos dumps going for over a million, rooms being rented for $800 a week, houses at over $4000 a week. It was like that for quite a few years. Place is a ghost town now. You can buy an older place for under 100g and there’s plenty of empty rentals. A lot of people made huge money and a lot of people lost a lot of money also. Will be good for Broken Hill if it can get off the ground.

.

Adamz Ghia · 02-06-2018, 11:57 PM

So the way into the housing market is to leave your friends and family and move to the desert? There’s over three million people aged 20 to 29 as of 2016, I trust there’s enough mining jobs for all of them? Broken Hill is going to get pretty crowded.

Anyone who thinks it’s as easy today to buy a house as it was before is deluded. That’s not to say it’s as impossible as it’s made out to be, but if you compare house price growth to wages growth from 1986 (my birth year) to now the difference is astronomical. You could live off one wage, raise the kids with Mum staying at home before, today depending on where you live probably not.

Personally I believe if you’re lucky enough to have a partner that you’re planning a future with, it’s not overly hard to live off one wage and save the other. In a few years you’ll have enough to buy a house in cash, no mortgage required.

naddis01 · 02-06-2018, 11:57 PM

We are getting a fair way off topic and I'm not giving anyone any advice but If you have 10 minutes spare, have a look their website if you want more info.

https://www.carpentariares.com.au/hawsons-iron-project/

mcflux · 03-06-2018, 03:52 AM

Quote:

Originally Posted by leesa

So now I just blow lots of money on hobbies and toys, knowing that the market is probably not likely to correct within my lifetime.

leesa,

Perhaps you need to assess what Future leesa from 2023, 2028 etc wants. Do you want to continue to "blow lots of money" and rent unhappily, or do you think you can cut back on the spending and own a house? Do you want to stay in the inner-city, or could you see yourself moving away from there, work-life & social-life permitting?

You could reduce the money-blowing aspect and park $$$ aside in at the very least a high-interest (3% = "high" haha) account. Watch the $$$ grow as you add to it each pay, plus the compound interest. At some point in the future this $$$ will be your way into the property market, somewhere. Sooner = regional, later = city. Or at the very least you'll look at your healthy balance a couple of years down the track & realise it's too big a pile of money to just blow on hobbies and toys. It could also be your "oh sh*t!" fund if say you lost your job or had some other financial hardship to deal with. It could be your "I'm leaving the city and starting fresh regionally" fund, where you studied for a different career path or had some other medium-term cashflow reduction (a regional "pay the bills" job whilst deciding where to next?).

You could kick-start such an account by selling some of your toys / unwanted stuff. Sure, you may have bought item A at $1k and be selling it months later for $200, but whilst said item is in your possession it's a $1k sunk cost versus a $200 cash injection. Multiply this across several toys & you could have several grand to begin with.

There are other ways to build up a deposit but they come with their own risks, complexities, pitfalls. A "high"-interest savings account is the most basic way to go about it, just note the compound-interest is thwarted compared to other ways.

Where do you work, and (non-stalkery) where do you rent? Could you move somewhere cheaper which won't overdo the transport to-from work aspect to allow you to accelerate your savings? What aspect of your profession tethers you to (presumably) the inner-city?

24/7 shops and having every conceivable service literally at your fingertips via an app can force people to live a much poorer life than they would otherwise have if they moved to an area where these things don't exist.

**FTE217** · 04-06-2018, 02:09 PM

lol...hey big man, I have no problem with difference of opinions thats everday life just depends how its expressed and yours was just arrogance more than anything else and you don't like my earlier post, harden up yourself.

BENT_8 · 04-06-2018, 02:30 PM

Quote:

Originally Posted by FTE217

lol...hey big man, I have no problem with difference of opinions thats everday life just depends how its expressed and yours was just arrogance more than anything else and you don't like my earlier post, harden up yourself.

Arrogant, lol, im admitting its harder for todays kids to make a start and that some choices shouldnt need to be made in order to own your own home and some 50yr old who got in before prices went through the roof suggests he had to make the same sacrifices and im arrogant.
Calling a spade a spade is not arrogance champ, its a reality which you've clearly avoided due to your timing, thats it.

Mercury Bullet · 04-06-2018, 03:41 PM

I love how us over 50 get accused of buying in cheap, beating the boom yada, yada.

Cheaper housing is readily available. What has changed is people refusing to start at the bottom. Plenty of 3-400k housing if you want it.

Someone hit the nail on the head earlier with their friends buying lifestyle homes and now being trapped.

How many are happy to bring up their families in 3 bedroom 1 bathroom houses these days?
Must have the inner city mcmansion...now!

The one advantage we had I will concede is cities were much smaller places back then and the outskirts weren't so far away.

BENT_8 · 04-06-2018, 05:03 PM

Quote:

Originally Posted by Mercury Bullet

The one advantage we had I will concede is cities were much smaller places back then and the outskirts weren't so far away.

1 advantage which is the most critical for many to overcome regardless of how it is downplayed by those who avoided it.

Take leesa, she has admitted that due to her situation her work prevents her from moving out to the fringes which means she either forgoes the opportunity or reskills and looks for work and a future away from family in regional settings.
This is my point, whereas people in their 50's could just buy 3 suburbs over from family where it was affordable for a starter when they started out, todays kids need to look 300kms away, that right there is not equal never mind the mathematics of the equation.

Now im not saying its impossible or that no one makes it happen, it is what it is and unavoidable if thats your lot, but nothing annoys me more than when people who got in before the boom downplay the situation and pretend that every kid who wants to make a go of it cant because they want to live within spitting distance of kirribilli house.