Australia housing bubble - Page 7

Trump · 12-06-2017, 10:03 AM

Quote:

Originally Posted by XB GS 351 Coupe

I guess different ideas for different people, I have never rented for a day in my life, moved out into my first home in my early 20's, paid 165K paid it off in 10 years (while living in it) and sold it for 378K, build my next house at a total cost of 465K (land and house) lived in it for a further 10 years and sold it for $550, Now build my final house for around 500K and loving life.

I rather pay into my own property than pay someone else's mortgage off for them..

Is the $500k for your current place inclusive of land?

**Polyal** · 12-06-2017, 10:44 AM

Definately everyone scenario is different. We seem to move every two years so buying for us just doesnt make sense.

So we will continue to save until we know where the heck we will end up.

There are certainly days I am glad I am renting, dont have the time for house maintenance etc. But there is always that niggle in the back of my mind about it being "ours".

**FTE217** · 12-06-2017, 11:19 AM

yep, horse's for course's.
We should respect what everyone decides what works for them......
Everyone will think they have made the right decision compared to the other.
Thats life.

**GO FURTHER** · 12-06-2017, 03:36 PM

Quote:

Originally Posted by Polyal

There are certainly days I am glad I am renting, dont have the time for house maintenance etc. But there is always that niggle in the back of my mind about it being "ours".

The main reason for owning your own home as I see it (apart from having an appreciating asset and something to pass on down to your kids one day) is for your retirement.

Renting is fine while you are still able to work, but if worse comes to worse and you have to survive on the pension (if it still exists a few generations from now) or have little super or money to see you through your retirement... At least you won't need to worry about paying the bulk of it on rent.

If God were to come on down and appear before me, prove he was the almighty, and said; "My son... I have some bad news for you... You will die before you get to retire".

I would respond; "Thank you so much dear lord... Now I don't have to buy a home... I can rent a penthouse, never worry about home maintenance and just enjoy my life since I don't need to provide for decades in retirement!"

However.... Since God did not come down and help his only son Jesus as he was nailed to the cross.... He isn't coming down to help you or I!

So I worked hard, paid off my mortgage and own a roof over my head just in case I live 35 years in retirement till I'm 100 and need to survive on the pension alone.

au350hp · 12-06-2017, 08:26 PM

Quote:

Originally Posted by BENT_8

More BS.
If people need to make a decision between having a family and entering the property market then something is very wrong with Australia.
I have been on the property ladder, got on board in 01 as a 25yo detailer on $450pw as a sole buyer whilst raising 2 kids with a stay at home partner.
I did the hard yards, went without and then one day I said stuff it, I'm going without life's luxuries now in the off chance that I live long enough to enjoy it down the track.
I sold up 12 years ago and am happy as a pig in ****.

I grew up in a house where every dollar went into the bank, we never went on holidays and the only things I got was at birthdays and xmas.
My father died with a unit he owned outright and thousands in the bank , what did going without do for him?

My rent hasn't gone up in 5 years and only went up $10 then because the owners fitted the evaporative ducted A/C I asked for.
I'm lucky if I see the landlord once a year as they manage it themselves to save money on agent fee's and I treat it like it is my own.
Win, win.
Where can you live in an as new 4bdrm, 2 bthrm, double garage for $300pw that you never have to worry about being removed from and is your's to do as you please.
I've got a new boat I just bought, we both have good cars and can afford to travel around Aus watching our Daughter play sport a couple of times a year.

Old mate across the road and his Wife are owners, both work,he's a car salesman, she's a nurse, cant afford to give their Daughter a sibling due to the mortgage, constantly harassed by the bank, had to sell his boat, cant afford to fix the car, never go out etc. etc.
yeah sure, in 15yrs he'll be debt free but he'll have missed out on the best years of his life, not to mention what his kid is going without too.
People should not have to live like this just to own a house.

If its that cheap per week, why don't you buy it as your loan repayments wont be much higher unless you cant qualify for a loan. A couple of things I believe you have overlooked. Children are not for everybody, there are no rules that you must have children to be happy or complete. A mortgage may be high to begin with but that is only for the short term and then it goes down. If you don't borrow too high, it is not that much to begin with where as rent just gets higher and there is not more than 12 months security in the one place. Also, I mentioned in another post, renting or paying a mortgage does not provide a financial future if one does not save each week. In most cases, owning a house simply allows you to buy another one and perhaps make a little to put away. It is not akin to winning the lottery like many seem to imply but the feeling of security I get from owning my house Vs paying for somebody else's can't be explained until your in your own home and I doubt many argue with that.

au350hp · 13-06-2017, 12:11 PM

Quote:

Originally Posted by FTE217

yep, horse's for course's.
We should respect what everyone decides what works for them......
Everyone will think they have made the right decision compared to the other.
Thats life.

That's the operative word here: respect. Its a shame many are incapable of presenting their side of the debate without making personal or aggressive comments. What most don't realise is how telling their comments are and it is not uncommon for people to put others down for behaviour they often engage in themselves. We have all been guilty of that at one point or another so remember, if you don't agree with another's comment, ask yourself why it upsets you so much, before launching into a written diatribe of abuse. You will be surprised at your reasoning.

Smoke Pursuit · 13-06-2017, 01:46 PM

Remember the old thread about this... from about 2009 where the world was going to fall apart and all us investors were going to be on the streets......

Makes me think of Elton Johns I'm Still Standing.

Trump · 13-06-2017, 03:54 PM

Quote:

Originally Posted by Smoke Pursuit

Remember the old thread about this... from about 2009 where the world was going to fall apart and all us investors were going to be on the streets......

Makes me think of Elton Johns I'm Still Standing.

The housing market should have had a correction back in 2009, the fact that it didn't means that when it does happen, it will be a lot worse.

And it will correct, for one simple reason:

“Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.”

- Kenneth Boulding.

GASWAGON · 13-06-2017, 04:52 PM

Clearence rate for Sydney over Queens B'day weekend saturday dropped down to 67%.

Melbourne was still high at 80%.

Only time will tell?

au350hp · 13-06-2017, 08:05 PM

Quote:

Originally Posted by Trump

The housing market should have had a correction back in 2009, the fact that it didn't means that when it does happen, it will be a lot worse.

And it will correct, for one simple reason:

“Anyone who believes in indefinite growth in anything physical, on a physically finite planet, is either mad or an economist.”

- Kenneth Boulding.

Out of curiosity, do you rent or own?

BENT_8 · 14-06-2017, 11:45 AM

Quote:

Originally Posted by Roostercam

That's the operative word here: respect. Its a shame many are incapable of presenting their side of the debate without making personal or aggressive comments. What most don't realise is how telling their comments are and it is not uncommon for people to put others down for behaviour they often engage in themselves. We have all been guilty of that at one point or another so remember, if you don't agree with another's comment, ask yourself why it upsets you so much, before launching into a written diatribe of abuse. You will be surprised at your reasoning.

Hang on a minute, it was a good debate until you questioned why people have children if its so hard, raising children should have its difficulties but at no time should it be a deciding factor in wether you buy a home or rent or if not having them makes that easier.
I didn't mean to offend you with my comment earlier, I was just pointing out that whilst you're happy with your circumstances, so too are those who chose an alternative.
In 2001 I did both on a single wage, there's no way a young couple who want kids and want to raise them in their home and not a day care centre, can get onto the property ladder on a single labourers income in 2017.
So yes, it is much harder to get on the ladder than it was 20yrs ago.
If it comes down to a decision between owning property or having kids, Australia is stuffed.

Trump · 14-06-2017, 11:47 AM

Quote:

Originally Posted by Roostercam

Out of curiosity, do you rent or own?

We own our PPOR.

BENT_8 · 14-06-2017, 12:08 PM

Quote:

Originally Posted by Roostercam

If its that cheap per week, why don't you buy it as your loan repayments wont be much higher unless you cant qualify for a loan. A couple of things I believe you have overlooked. Children are not for everybody, there are no rules that you must have children to be happy or complete. A mortgage may be high to begin with but that is only for the short term and then it goes down. If you don't borrow too high, it is not that much to begin with where as rent just gets higher and there is not more than 12 months security in the one place. Also, I mentioned in another post, renting or paying a mortgage does not provide a financial future if one does not save each week. In most cases, owning a house simply allows you to buy another one and perhaps make a little to put away. It is not akin to winning the lottery like many seem to imply but the feeling of security I get from owning my house Vs paying for somebody else's can't be explained until your in your own home and I doubt many argue with that.

Do you read the whole thread before you post or just quote any random post before you get all the facts, perhaps if you read on you'll see that I addressed the difference in out of pocket expenses of buying v's renting a place of equal spec and after factoring in land rates, water supply, emergency services levy, building insurance and general maintenance I would be a further $250pw out of pocket.
Yes we could afford the loan if we wanted it and the banks regular calls to see if we've made a decision yet would suggest they are happy with what was presented.
Yes we save, anther myth spruiked by the property investor, that unless you are tied to property as a means of saving for the future, that you blow money on smokes, booze, gambling or drugs as fast as it comes in...lol

au350hp · 14-06-2017, 10:03 PM

Quote:

Originally Posted by BENT_8

Do you read the whole thread before you post or just quote any random post before you get all the facts, perhaps if you read on you'll see that I addressed the difference in out of pocket expenses of buying v's renting a place of equal spec and after factoring in land rates, water supply, emergency services levy, building insurance and general maintenance I would be a further $250pw out of pocket.
Yes we could afford the loan if we wanted it and the banks regular calls to see if we've made a decision yet would suggest they are happy with what was presented.
Yes we save, anther myth spruiked by the property investor, that unless you are tied to property as a means of saving for the future, that you blow money on smokes, booze, gambling or drugs as fast as it comes in...lol

As I see it, in 10 years, my house has doubled or tripled in value and I have my savings where you just have your savings. I simply cannot see how you think you are at an advantage. Anyway, I am respectfully withdrawing from this debate. Good luck to you and yours.

**TEZG** · 17-06-2017, 08:58 AM

**FTE217** · 17-06-2017, 02:32 PM

yep, Sydney prices are falling lol....all depends where in the metro.
Summer Hill, 5mins from cbd...these would have street parking only I expect.

**ebxr8240** · 17-06-2017, 08:38 PM

In 14 years bought rental for 300k sold the other day for 670k ..

**TEZG** · 20-06-2017, 08:09 PM

Quote:

Originally Posted by FTE217

yep, Sydney prices are falling lol....all depends where in the metro.
Summer Hill, 5mins from cbd...these would have street parking only I expect.

Yep, "the hill" is a real hotchpotch of different houses built quite a while ago, tiny workers cottages to mansions, my joint is similar to the one in Wellesley st, bought for high 7's in 05, I hated paying that much then.

**FairmontGS** · 21-06-2017, 10:04 AM

Quote:

Originally Posted by TEZG

Yep, "the hill" is a real hotchpotch of different houses built quite a while ago, tiny workers cottages to mansions, my joint is similar to the one in Wellesley st, bought for high 7's in 05, I hated paying that much then.

Summer Hill was our initial choice but I never found a house with garage and off-street parking that I could afford. Ended up on the other side of Old Canterbury Road in Dulwich Hill where the houses were bigger and cheaper at the time.

**FTE217** · 21-06-2017, 01:18 PM

ol Dully.
and once upon a time all these areas were cheap as !

GT0132 · 21-06-2017, 01:38 PM

Quote:

Originally Posted by FTE217

ol Dully.
and once upon a time all these areas were cheap as !

Everywhere was cheap. Came across the Real Estate liftout from a 1972 edition of a Saturday Sydney Morning Herald found while going through our company's archives recently - 4 Br house in Cremorne Pt with harbour views, $34,000

**FTE217** · 21-06-2017, 02:11 PM

yep this is life....

Trevor 57 · 21-06-2017, 03:51 PM

Quote:

Originally Posted by xax2

I've never heard so much BS in a long time! but I'm going to give you the benefit of the doubt and assume you have confused 'Real estate agents' with 'Developers' ...they are 2 very separate people......less than 2% of properties that are sold would actually be owned by the agent selling it. (i've been working in the property industry for over 30 years, so I know a bit about the topic)

so you are saying no real estate agent ever has bought vacant land in a new housing estate? Or worked with builders to put houses on said land? Think carefully before you answer

MITCHAY · 24-06-2017, 02:54 AM

Update. It is looking like I will get unconditional finance approval next week and so I can exchange.

Nearly there but I'm doubting the vendor's ability to meet their own 30 day close with the tenant still there. I will only settle on vacant possession.

I have to laugh that you get charged $106 to go through the body corp books. You pay to do the work yourself

DoreSlamR · 29-06-2017, 11:52 PM

Quote:

Originally Posted by Smoke Pursuit

Remember the old thread about this... from about 2009 where the world was going to fall apart and all us investors were going to be on the streets......

Makes me think of Elton Johns I'm Still Standing.

Ask those who bought in places like port hedland how they're doing

Smoke Pursuit · 30-06-2017, 12:04 AM

Quote:

Originally Posted by DoreSlamR

Ask those who bought in places like port hedland how they're doing

If something sounds too good to be true it probably is.

DoreSlamR · 30-06-2017, 12:09 AM

Quote:

Originally Posted by Smoke Pursuit

If something sounds too good to be true it probably is.

More the massive drop in prices.

Some people got burned hard...but then prices were massively inflated anyway

https://reiwa.com.au/wa/port-hedland/6721/

$1.25 million down to $355k in 4 years 😲

Mercury Bullet · 08-07-2017, 02:53 PM

Quote:

Originally Posted by DoreSlamR

More the massive drop in prices.

Some people got burned hard...but then prices were massively inflated anyway

https://reiwa.com.au/wa/port-hedland/6721/

$1.25 million down to $355k in 4 years 😲

A mate of mine has just bought the house that his employer had been renting for him at Pretty Pool.

Paid $190k.

A couple of years ago that very same house was on the market for $2.5 million.

GREGL · 13-07-2017, 09:57 PM

People complaining about capital city prices are one thing but have a look a what people are paying for northern N.S.W around Mullum and up to the border. It has me scratching my head how they can justify the prices. Unless you are a tradie your only employment would be service industry. Stuff all else to rely on and if it is majority Sydney retirees on super driving that economy they best hope a sharemarket crash doesn't happen along with a housing downturn.

My rellies bought into Mullum 40 years ago, the last of them has a land holding of 100 acres or so. When he thought about selling a few years ago his appraisal was $750-800 grand. That now is an average price for a town block with an house or alternatively you can spend $750,000 and buy ONE acre a short drive out ! Then you can build your dream home.
One word , CRAZY.

GASWAGON · 14-07-2017, 08:49 AM

Hopefully a bit of a slowdown coming soon?

It cant go on forever!

http://www.afr.com/real-estate/nab-c...0170713-gxaa5m