Australia housing bubble

[FTE217]

I do understand the younger ones woe is me and all and at the same time I like to say harden up ! and live with less......
I'm older than a few of you (not by much haha) and 3 kids at varying ages, 30/21/17, I tell my wife when she has a moan about one or all of them I say hey, we brought them up ?!
Compared to what my wife and I grew up with (which was 2/5ths of f all but damn happy) ours are spoilt - I say that very lightly for no way near what you may think.
We've been the last to give in to every single new tech thing that started coming out way back like play station etcetc..the very last.
We always said NO not yet and or earn it do your chores, we're told we're mean back then lol.
Easy hand outs were not in our way of bringing them up thats for sure.
During those times both of us worked our butts off, I've been in my fam business for a long time, never overpaid until we finally reaped the rewards after putting so much into the business, talking cars as Fordo I didn't get my own NEW car till 2016 the Sprint.
I said enough is enough wifey gets a new Mazda in 2018.
Prior all were pre owned good low k someone else copped the hit.
No expensive hols here there but good smart buying hols on deals or those wonderful drive fam hols you cherish more than any over priced gucci type hol.
In the meantime we always put in extra in the mortgage to knock it off - that was the primary goal ! and done. Sacrifice, thats life from the dark ages to today.
Invested wash rinse do it again.
I couldn't retire like you YT early, got mates who have as well, couldn't bare it, I like my 4day week and thats flexi in any case.
Eldest just got married, they have saved their rings off ready to buy, no diff to us way back then.....
No2 is a smart cookie and has played in the share market and picked up some great gains prior the recent drop, enough to start considering buying a apartment investment here in Syd, thats no mean feat at 21, sure he's living at home but whilst a portion of his mates are partying more he's partying smarter.

[roKWiz]

Originally Posted by FTE217

I do understand the younger ones woe is me and all and at the same time I like to say harden up ! and live with less......
I'm older than a few of you (not by much haha) and 3 kids at varying ages, 30/21/17, I tell my wife when she has a moan about one or all of them I say hey, we brought them up ?!
Compared to what my wife and I grew up with (which was 2/5ths of f all but damn happy) ours are spoilt - I say that very lightly for no way near what you may think.
We've been the last to give in to every single new tech thing that started coming out way back like play station etcetc..the very last.
We always said NO not yet and or earn it do your chores, we're told we're mean back then lol.
Easy hand outs were not in our way of bringing them up thats for sure.
During those times both of us worked our butts off, I've been in my fam business for a long time, never overpaid until we finally reaped the rewards after putting so much into the business, talking cars as Fordo I didn't get my own NEW car till 2016 the Sprint.
I said enough is enough wifey gets a new Mazda in 2018.
Prior all were pre owned good low k someone else copped the hit.
No expensive hols here there but good smart buying hols on deals or those wonderful drive fam hols you cherish more than any over priced gucci type hol.
In the meantime we always put in extra in the mortgage to knock it off - that was the primary goal ! and done. Sacrifice, thats life from the dark ages to today.
Invested wash rinse do it again.
I couldn't retire like you YT early, got mates who have as well, couldn't bare it, I like my 4day week and thats flexi in any case.
Eldest just got married, they have saved their rings off ready to buy, no diff to us way back then.....
No2 is a smart cookie and has played in the share market and picked up some great gains prior the recent drop, enough to start considering buying a apartment investment here in Syd, thats no mean feat at 21, sure he's living at home but whilst a portion of his mates are partying more he's partying smarter.

Can understand all the hard work most here did to achieve the house ownership and lifestyle.

I must have been dropped on the head as I went in the opposite direction.
Most had the house, the job and the retirement then wanting to travel Oz and beyond.
Finished the apprenticeship at 20, never wanted to work for anyone else, started contract work and lived in various ways travelling abroad and within Aust but was never interested in buying a house.
This lifestyle worked well for a couple who never wanted children.
After self building/converting 2 boats, 4 motorhomes, couple of campervans often thought as nothing stays the same, it might be time to at least buy land as a base. So in 2004 bought a 1 acre piece of land on the outskirts of a small town with public transport access and built a offgrid little house.
Land was purchased after all the years saving enough and building myself as funds became available without resorting to loans.

Probably could never had afforded to do this in a city, funny thing is we both still don't want to live in a house full time.

[Citroënbender]

Right. We had to get up in the morning at ten o’clock at night, half an hour before I went to bed, drink a cup of sulphuric acid, work twenty-nine hours a day down mill…

[FTE217]

Nice life storey roKWiz....less stress by the sound of it compared to so many sounds like you guys are in a good space.

[danzvtil]

Just can’t get over the entitlement mentality today, on the radio was some house rental advocate saying rental houses should have solar and insulation as standard to “save the poor tenant money”. It’s soo easy to spend other peoples cash, they don’t realise if the bar is lifted too high, then every $400/wk home will start at $550wk, those things aren’t free and the owner needs a return.

[Citroënbender]

I’ve run a rental unit for family, generally I favoured accommodating the tenants’ reasonable requests as it was a decent sum they were paying. When it eventually came back to owner-occupation after twelve years, the result of this approach meant little more than one leaky shower to fix, a few minor electrical tweaks and a light clean. Better than needing a full refit because I’d cheaped out prior.

As to economic stresses - I noticed at the supermarkets tonight, nobody at the tobacco counter. Chop-chop must be booming again.

[Itsme]

Originally Posted by danzvtil

Just can’t get over the entitlement mentality today, on the radio was some house rental advocate saying rental houses should have solar and insulation as standard to “save the poor tenant money”. It’s soo easy to spend other peoples cash, they don’t realise if the bar is lifted too high, then every $400/wk home will start at $550wk, those things aren’t free and the owner needs a return.

Hence the reason why people find it hard to get rentals, personally I would never rent a dwelling in this day and age.
You going to see more people living on the streets with this type of stupidity.

Cheers.

PS: I know a few people now who are putting their rental investments up for sale.

[danzvtil]

[QUOTE

PS: I know a few people now who are putting their rental investments up for sale.[/QUOTE]

I know a lot of landlords who are selling up. The prices are sky high, and rules governing renting houses out are becoming onerous.

[GXA]

Originally Posted by danzvtil

[QUOTE
I know a lot of landlords who are selling up. The prices are sky high, and rules governing renting houses out are becoming onerous.

Yes they are, but that will push rents up very nicely....

[MITCHAY]

I was joking with my boss the other day, that with my cash and super if I could withdraw it all I could pay off my house. Yeh nah as it turns out, not by a lot but I don't have the cash difference to cover it

2019-2020 was lean in Covid but then in 2020-2021 it really exploded for me but now seems 2021-22 is back in Covid times despite everyone just out and about normal WTF?

[b0son]

Originally Posted by MITCHAY

2019-2020 was lean in Covid but then in 2020-2021 it really exploded for me but now seems 2021-22 is back in Covid times despite everyone just out and about normal WTF?

we were absolutely flat out over 2019-20, but business has been falling off ever since, down to almost half of what it was. I'll be surprised if we're still open after xmas. meanwhile most people I know are doing better than they ever have. not surprisingly, I'm a bit over life right now TBH.

[roKWiz]

Seems 2020's are the years of the B & B investment conversions.

The mid 80's was all about Deer Farms.
Mid 90's, the trend was Ostrich Farming and Angus studs.
00's the 10's were the years to invest in a trendy Boutique vineyard or Olive Groves.

From what I've been learning from clients, housing investors just keep moving their money around and claim the govco incentives. Rentals are becoming a constant money pit so they change tack to do the build/reno a quaint cottage on a country estate and rent it, at premium prices.
Just my observations judging by the amount of entranceways, fireplaces and chimneys on the to do list for the next couple of years.

[FTE217]

Originally Posted by b0son

we were absolutely flat out over 2019-20, but business has been falling off ever since, down to almost half of what it was. I'll be surprised if we're still open after xmas. meanwhile most people I know are doing better than they ever have. not surprisingly, I'm a bit over life right now TBH.

hope your gonna survive mate and don't think of the worst, not a nice post to see from a fellow aff member.
There will always be people in far worse situations.
Covid sure has rocked some industries to the weeds and others doubled.
As a small business owner I sympathise, people remind me about Ukraine or Africans etc - then I re set my head yer it could be worse.

[blueoval]

Originally Posted by b0son

we were absolutely flat out over 2019-20, but business has been falling off ever since, down to almost half of what it was. I'll be surprised if we're still open after xmas. meanwhile most people I know are doing better than they ever have. not surprisingly, I'm a bit over life right now TBH.

+1. My 2020-21 year was the best Ive ever had. Things have dropped since then but in the construction industry we have learnt to ride the waves. That said, I am 100% with you on being over life right now. Things are tough and from what Ive been reading they are gonna get tougher.

Hope you are able to at least have a good week.

[danzvtil]

Doing a western vic road trip, astounded at the property prices, any moderately sized regional town, houses and land are approaching city prices. Halls gap appears to have doubled, there are no old fibro shacks for $200k anymore I guess it’s the bolt hole effect.

[FairmontGS]

Originally Posted by danzvtil

Doing a western vic road trip, astounded at the property prices, any moderately sized regional town, houses and land are approaching city prices. Halls gap appears to have doubled, there are no old fibro shacks for $200k anymore I guess it’s the bolt hole effect.

https://www.realestate.com.au/buy/pr...rce=refinement

[danzvtil]

Originally Posted by FairmontGS

https://www.realestate.com.au/buy/pr...rce=refinement

Yeah, you missed the “moderately sized” bit.

[FairmontGS]

Originally Posted by danzvtil

Yeah, you missed the “moderately sized” bit.

Meh… they are all near your moderately sized towns…

[roKWiz]

Originally Posted by FairmontGS

https://www.realestate.com.au/buy/pr...rce=refinement

$39 000. I reckon you could easily make your money back renting that out for Horror movies.



https://www.realestate.com.au/proper...imur-139299551

[mad2]

Originally Posted by roKWiz

$39 000. I reckon you could easily make your money back renting that out for Horror movies.

image

https://www.realestate.com.au/proper...imur-139299551

believe i drove past that place ... maybe 15 odd years ago?. wonder if i still have the pics??.

[roKWiz]

Originally Posted by mad2

believe i drove past that place ... maybe 15 odd years ago?. wonder if i still have the pics??.

Might have turned to dust since the RE pics were taken, does mention a slight white ant problem.

[b0son]

Originally Posted by danzvtil

Doing a western vic road trip, astounded at the property prices, any moderately sized regional town, houses and land are approaching city prices. Halls gap appears to have doubled, there are no old fibro shacks for $200k anymore I guess it’s the bolt hole effect.

I was gobsmacked when I saw house prices in Yass ... $1m! YASS!!

I mean, this place is probably best known to us Sydney-siders as the place that has that McD sign that says 'Myass opens at 6am'. Somewhere you pass through on the way down the Hume, but not somewhere you go to.

[Citroënbender]

I’d be happy there. If you’ve got dam/gorge views and a decent block it’s not too bad. Dry heat in summer, nicer than Sydney humidity. Would prefer it to Gunning, for example. But likely choose Binalong over either.

[roKWiz]

Originally Posted by Citroënbender

I’d be happy there. If you’ve got dam/gorge views and a decent block it’s not too bad. Dry heat in summer, nicer than Sydney humidity. Would prefer it to Gunning, for example. But likely choose Binalong over either.

Love Gunning, so close to buying a base there in 2000. Ex Masons lodge was 50G at the time.
Fantastic old Hume to ride, so many dirt bicycle circuits to the north and south. 2 good little cafes, servo/supermarket, super friendly people, Breadalbane plain, Craig the local mechanic, bio diesel community.

XPT on demand to Syd/Melb. Firefly to Syd/Melb.

Binalong was great until they lost their rail station.

[hackney]

Originally Posted by roKWiz

Love Gunning, so close to buying a base there in 2000. Ex Masons lodge was 50G at the time.
Fantastic old Hume to ride, so many dirt bicycle circuits to the north and south. 2 good little cafes, servo/supermarket, super friendly people, Breadalbane plain, Craig the local mechanic, bio diesel community.

XPT on demand to Syd/Melb. Firefly to Syd/Melb.

Binalong was great until they lost their rail station.

Gunning is a nice little town!Australian actor Max Cullen lives there,& has a art gallery there.He was in the movie ‘Sunday to far away’ with Jack Thompson.Lovely man.

[hackney]

Originally Posted by b0son

I was gobsmacked when I saw house prices in Yass ... $1m! YASS!!

I mean, this place is probably best known to us Sydney-siders as the place that has that McD sign that says 'Myass opens at 6am'. Somewhere you pass through on the way down the Hume, but not somewhere you go to.

We are in Yass! Ours is now around the 1.1k!

[b0son]

Originally Posted by hackney

We are in Yass! Ours is now around the 1.1k!

haha... what a time to be alive

what's driving it? treechangers?

[hackney]

Originally Posted by b0son

haha... what a time to be alive

I can tell you,I am very much alive!!

[Yellow_Festiva]

I'm seeing a 10% correction in some markets already.

I've bookmarked a whole bunch of properties just to monitor their price movements.

Only a few are going to auction and selling. A whole bunch are being removed.

Another bunch are dropping their prices. The Domain app lets you see price changes on your saved properties and sends you a notification when it happens.

Lots of 'Motivated vendor' email notifications from agents that only several months ago didn't bother to return calls or emails...

I think I will hold off on buying till at least the 2nd or 3rd quarter of next year now rather than the first quarter.

[b0son]

Originally Posted by Yellow_Festiva

I think I will hold off on buying till at least the 2nd or 3rd quarter of next year now rather than the first quarter.

And this will put a floor on how far the market can ever drop here - investors. With rents soaring, that floor is probably higher than ever, with the consequence being that if rates really do go up 2.5-3%, FHBs will remain priced out. Next year will be a great time for those with lots of cash in the bank.