Australia housing bubble

[b0son]

Originally Posted by asagaai

Life and things change- fair or not. Why can a healthy human now live to 90 but 200 years ago they could only live to 50 odd- that's not fair.

What's not fair is expecting young people to pay the taxes to pay the pensions for these 90yo's to survive while they own 1mil+ properties, especially when those pensions wont be around by the time those same young people are that age.

Life has never been easy on many levels- wealth acquisition, property acquisition, health, wars- and it never will be- the only constant will be the challenges will always be there and never be the same.

There are challenges, and there are outright roadblocks. As a society, we need to recognise the difference. Plowing $$$$ into property is economically unproductive, it doesn't increase our prosperity (by improving our productivity). What do people do when they pay off a house? They buy stuff, they do stuff, stuff that involves spending money. That benefits the wider economy. If someone is shackled to a mortgage their entire working life, they don't spend, it drags the entire economy down.

[BENT_8]

Originally Posted by asagaai

So what should the young do- rise to the challenge and be adaptable or simply roll over belly up and give up?

Well that is an interesting point, if people decide that the challenge of slaving to service a mortgage debt for 30yrs from age 30 isnt worthwhile have they really rolled over and given up or just decided that theres more important things and the alternative isnt that bad.

People who own look down on those who dont rise to the challenge as weak, wasteful and failures but in many cases they couldnt be further from the truth, to some people it isnt that big of a deal.

Anyhow, im a renter so i'll have to leave it at that now as i've got to get down to the local TAB for a bet, the grog shop for a goon bag, Smokemart for some durries and a $5 coffee and if my Centrelink benefit thats funded by your taxes permits, $300 on 1c pokies before i come home and sleep the day away.
Hey Leesa, wanna tag along?

Originally Posted by BENT_8

Hey Leesa, wanna tag along?

Hell yeah! But first I'm off to get an avocado toast breakfast at my local joint and then swing by the Apple store to pick up the new $1500 iPhone 'cause my current one is 6 months old and outdated already.

Edit: Incase it wasn't clear... that was sarcasm... who even likes avocado?!

[FairmontGS]

Originally Posted by leesa

Yeah and they're all old enough to have missed the market inflation, they all bought when the house/income ratio was still reasonable. The market went bad AFTER you bought. If you thought it was bad when you bought... it's now even worse and out of reach for a great many people. Can you understand that??

You're just being wilfully ignorant.

And you're just looking for continued excuses to do nothing. I have nieces and nephews who are buying houses or flats in their 20s - what are they? Ghosts?

Anyways...

[Charliewool]

Earlier, I did suggest an alternative!
But No, It always degenerates into the “haves and have nots”

Anyhow, I’m off to feed the howler monkeys, and watch the leaf-cutter ants decimate another azalea!.. (And that costs zero)
You guys seriously need some Pura Vida !

[asagaai]

Originally Posted by Charliewool

Earlier, I did suggest an alternative!
But No, It always degenerates into the “haves and have nots”

Anyhow, I’m off to feed the howler monkeys, and watch the leaf-cutter ants decimate another azalea!.. (And that costs zero)
You guys seriously need some Pura Vida !

I looked up Pura Vida to find out what exotic alcohol fuelled magic I could acquire to consume this evening to calm my frayed nerves on a difficult matter I have to run on Monday.

Only to find out that I am clearly in my stressed state addicted to substance abuse to relieve my symptoms.

Anyways- what a wonderful philosophy- and a quick google of Costa Rica looks like it is a paradise. Congrats and how long you been there.

Really makes one wonder where Australia has been going so wrong lately........what happened to that late 70's of "no worries- she'll be right"

[Mercury Bullet]

Originally Posted by Charliewool

Earlier, I did suggest an alternative!
But No, It always degenerates into the “haves and have nots”

Anyhow, I’m off to feed the howler monkeys, and watch the leaf-cutter ants decimate another azalea!.. (And that costs zero)
You guys seriously need some Pura Vida !

Lots of alternatives Charlie.

In wa the housing prices are dropping big time, in all sectors.

My house is down $125k from it's peak.
A relos $2.5m condo has dropped 1.1m.

My azaleas are being decimated by lack of rain.

[Mercury Bullet]

Originally Posted by asagaai

I looked up Pura Vida to find out what exotic alcohol fuelled magic I could acquire to consume this evening to calm my frayed nerves on a difficult matter I have to run on Monday.

Only to find out that I am clearly in my stressed state addicted to substance abuse to relieve my symptoms.

Anyways- what a wonderful philosophy- and a quick google of Costa Rica looks like it is a paradise. Congrats and how long you been there.

Really makes one wonder where Australia has been going so wrong lately........what happened to that late 70's of "no worries- she'll be right"

Your new found wealth should go towards a bottle of Macallan single malt.

No worries at all after that!

Originally Posted by Charliewool

Earlier, I did suggest an alternative!
But No, It always degenerates into the “haves and have nots”

I have no idea what you're talking about with pura vida, is that a place? I thought it was a joke.

As I'm not having kids, moving 14'000km away from the only family that I have (and will ever have) seems... extreme and very lonely. Maybe later in life, who knows but for now my parents are still alive and being around for my parents, sisters' and nieces' birthdays and christmas is more important to me than owning my own place 14'000km away. **** on me all you like. It doesn't change the fact that housing in this country is ****ed and has affected the lives of many people.

[In Focus]

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]

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

[pottery beige]

Originally Posted by leesa

I have no idea what you're talking about with pura vida, is that a place? I thought it was a joke.

As I'm not having kids, moving 14'000km away from the only family that I have (and will ever have) seems... extreme and very lonely. Maybe later in life, who knows but for now my parents are still alive and being around for my parents, sisters' and nieces' birthdays and christmas is more important to me than owning my own place 14'000km away. **** on me all you like. It doesn't change the fact that housing in this country is ****ed and has affected the lives of many people.

angry is angry

you wont get anywhere in this life being angry and playing the victim

[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.

[pottery beige]

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]

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]

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]

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]

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]

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]

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.

[Charliewool]

Originally Posted by leesa

I have no idea what you're talking about with pura vida, is that a place? I thought it was a joke.

Brief explanation of Pura Vida...
https://www.vacationscostarica.com/t...ide/pura-vida/

[jmack]

wow could have saved all that money on shrinks and just come here to realize where i went wrong ,i have only been existing not living.im to old to know whats going on.having grown up in braybrook with a single mother(which if you are from melb will know it is far from a privy area)and was trying to save for a house though the recession we had to have,working frequently without pay just to help keep everyone surviving.

[asagaai]

They said never discuss politics and religion.

Now add housing to that- its the new "religion," you have believers and non believers

[chich]

Originally Posted by asagaai

But they need to be adaptable and think outside the square.

Agree 1000% with this but forward planning also doesn’t seem to be a strong suit of my fellow Gen Yers..

10yrs ago when our friends were buying inner city shoe boxes for ‘the lifestyle’ I bought a decent house on a decent sized block 20kms out of the city purely for the fact that it was relatively affordable and that it gave us a positive first step into the market. It offered options and adaptability. We were essentially called idiots.

Fast forward 10yrs and we’ve developed the property, added value to the original home on the site and have multiple income streams as a result. Our friends on the other hand have now outgrown their inner city shoe boxes, still owe a packet on their mortgages and are essentially trapped in their own homes. Extending or relocating involves expending at least $150K on agents fees & stamp duty (I.e. p!ssing away their capital gains) or digging an even deeper hole with their mortgage.

Now with a young family our priorities have changed and we’ll be selling the lot to fund the construction of our dream home. Something that would have definitely not been possible if we hadn’t thought outside the box and applied ourselves to our goals.

The moral of the story here is use your brain, not your head.

[FTE217]

Originally Posted by jmack

wow could have saved all that money on shrinks and just come here to realize where i went wrong ,i have only been existing not living.im to old to know whats going on.having grown up in braybrook with a single mother(which if you are from melb will know it is far from a privy area)and was trying to save for a house though the recession we had to have,working frequently without pay just to help keep everyone surviving.

yes mate, you have achieved nothing but to exist
I'll have to tell the Mrs's this one that all we've done is exist and our kids are worse off for it.
Also, I'll have to go visit those other existing living previous tax payers on their pensions/retirement homes etc that they are a purge on todays society.
I make some comment and its belittled for it didn't suit a fellow poster.
All power to you mate.
Seemed like, nothing stays the same but you get on with it, you always have to make a choice, getting married or not, having kids or not AND you don't have to have a mortgage.

[BENT_8]

Originally Posted by FTE217

I make some comment and its belittled for it didn't suit a fellow poster.

Whats this, the guy who did it so tough belittled by someone with a difference of opinion, toughen up princess.

[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.

[BENT_8]

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.

[FTE217]

you've been waiting for me...
Mate, so because I avoided the boom/s in that case must have been even easier for those before my times eh, you really sure what your saying.
People in the 40'/50's buying homes @ 7500lbs for eg, were paying off those loans all their lives as well and making trying to make ends meet ! (oh when living expense's were low and everything else FFS) those days they were paying off buying tv's from David Jones/Grace Bros whereas today most people buy them outright.
Different figures but same hurdles, hard bloody hard for some some get on with it some make it harder for themselves.
You quoted $450p/w @ 25yrs labouring, I have a concreting owner brother inlaw, those labourers now @ that age are getting near on $1500p/w net fyi.......
Anyway lets agree to disagree for I know what you may think of me at this stage and the feeling is mutual lets move on.....

[Mercury Bullet]

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.