Finally, someone telling it as it is....

[buggerlugs]

http://www.news.com.au/finance/real-...-1227034374596
But if you believe Real Estate agents it's a great time to buy...........
Even the parents are chipping in............
http://www.news.com.au/finance/real-...-1227033513993

[mik]

I would not like to be a youngster trying to buy a new home these days, even second hand houses seem to be overvalued, its good for the councils though, they can charge more in houserates.

[Yellow_Festiva]

Originally Posted by mik

I would not like to be a youngster trying to buy a new home these days, even second hand houses seem to be overvalued, its good for the councils though, they can charge more in houserates.

It certainly isn't easy and things may stay the same for a long time to come. It just means people need to work that little bit harder, sacrifice perhaps a bit more than they are comfortable with while expecting a little bit less for their money if they want to enter the market.

I don't see an issue with parents helping out their kids. As long as they are financially able to and expect to pass on their assets to them anyway after death it just means they're getting some of their inheritance early.

[mik]

you mention an interesting point with parents , many the parents of the older generation grew up in tough times and then through more affluent times and had become good savers and amassed wealth,
i wonder if future generations will be able to rely on recent and current parents to have that wealth in the future to help out the youngster,
many many of the younger generation relos, friends and aqaintences seem to have big problems saving money, not only just because it is difficult to make a buck these days but because its difficult to save a buck. .

[Yellow_Festiva]

Originally Posted by mik

you mention an interesting point with parents , many the parents of the older generation grew up in tough times and then through more affluent times and had become good savers and amassed wealth,
i wonder if future generations will be able to rely on recent and current parents to have that wealth in the future to help out the youngster,
many many of the younger generation relos, friends and aqaintences seem to have big problems saving money, not only just because it is difficult to make a buck these days but because its difficult to save a buck. .

I heard on the radio that (Japan????) are doing 40 and 50 year loans that take into account 2 generations of the same family.

Don't know how that works to be honest. Perhaps there is an agreement that debt is inherited or something.

[buggerlugs]

Originally Posted by mik

you mention an interesting point with parents , many the parents of the older generation grew up in tough times and then through more affluent times and had become good savers and amassed wealth,
i wonder if future generations will be able to rely on recent and current parents to have that wealth in the future to help out the youngster,
many many of the younger generation relos, friends and aqaintences seem to have big problems saving money, not only just because it is difficult to make a buck these days but because its difficult to save a buck. .

Spot on. Would it be thou that our parents while owning property have seen the biggest growth in their asset's maybe ?

[mik]

Originally Posted by buggerlugs

Spot on. Would it be thou that our parents while owning property have seen the biggest growth in their asset's maybe ?

probably some truth in that, but at the same time working long hours and weekends just seemed to be the norm from my generation, 12 hours a day 6 or 7 days a week of some of the hardest jobs you can imagine, more than one job, none of this OHS bull**** , probably why im an old cripple now .

[onfire]

To throw a different spin on this topic;

Maybe it's been far too easy to obtain a mortgage over the past 6 or 7 years and now for a lot of young home owners, reality is hitting home. And the days of easy home loans are over.

It felt, for a long time there was a massive push to get potential first home buyers into their own properties regardless of wealth, assets, savings, income or potential income.

Currently there is a push in my local area to get low-income earners (sub $40,000 single income) into new homes. At $40K a year, that's $769 a week. That's below the $700 mark after tax. Most of these homes in development sit around the $275,000 number, even if they knocked off $20k with a deposit, with a 4.74% Aussie Home Loan that's a $306 weekly repayment allowing approx. $375 to cover weekly expenses, fuel, food, bills, etc. Not exactly a lot of room to wiggle, build wealth or savings, if anything strict budgeting will allow the owner to keep his/her families heads above water.

6 years ago I was a single man and despite having a decent deposit in comparison to the property I was buying, I felt like I was ran through the wringer having to justify this and that, etc. to the financial institution I was borrowing from, and more importantly had to prove I had saved the deposit.

In the few years that followed, I witnessed friends and colleagues walk into banks, with deposits 1/10th that amount, or money from their parents and sign away on mortgages twice the size (often with interest rates twice as high) that same day to purchase mostly excessive homes then obtain personal finance to furnish these new homes and of course finance on cars.

Fast forward 5 odd years, despite being in similar positions in terms of income, I was personally sitting on approx. $75k in savings in February of this year, while it may not be a huge amount so some, many colleagues were struggling to keep their heads above water due to loan repayments.

In the last 18 months, my now partner and I have spent approx. $25k on overseas travel, while personally I've purchased 3 cars in 5 years with cash. We currently have 3 cars in the drive way, with me breaking up my time between a brand new daily car and my XR8.

While this isn't about comparing choices or priorities, it shows the difference in available cash & wealth than can be amassed with living within your means, a manageable mortgage and making the simply decisions not to over finance or simply try to keep up with the Joneses.

[Adamz Ghia]

Is it harder to buy, or have peoples expectations got more expensive...? There's plenty of cheaper houses around that if you gave them a little TLC would scrub up nicely. You could also build a basic house just to get your foot in the door. But no they have to have the biggest and best right now...

[Ruination]

I worked my guts out in the last 5 years to finally start the build on my first house at 23.

It infuriates me that people like to have a sick brag about buying or building a house all because mummy and daddy handed everything to them on a silver platter.

I don't know if anyone feels the same way, but my Parents taught me the essentials in life to get by on my own.

Self entitled turds.

[blueoval]

Without making sweeping generalizations here I believe you CAN save if you are willing to make some sacrifices. The problem with some of these families is that they feel they NEED to have the latest phones, ipads, gadgets, cigarettes, booze etc.

[onfire]

Here's a reality check: live within their means. It's that simple.

If it looks like it's going to be tough borrowing x amount of money to buy that house in that suburb when your salary is y amount of dollars and the repayments are z amount of dollars; it probably will be.

And it's only going to make it tougher putting on another 45k because the Mrs. wants a new Santa Fe.

[Road_Warrior]

Originally Posted by onfire

Here's a reality check: live within their means. It's that simple.

If it looks like it's going to be tough borrowing x amount of money to buy that house in that suburb when your salary is y amount of dollars and the repayments are z amount of dollars; it probably will be.

And it's only going to make it tougher putting on another 45k because the Mrs. wants a new Santa Fe.

I'll put my hand up and say that I got some financial assistance from the family but I knew full well what I had to do to get my foot in the door in the first place - get rid of expensive credit cards, gym memberships, personal loans, consolidate the vehicle fleet and get rid of 'toy' vehicles, brown-bag it to work every day instead of buying lunch, save save save and of course get used to the idea of buying a house in a location that was not as 'desirable' as I would like and a house that wasnt a friggin 4x2 with a spa ensuite and ducted aircon.

There are opportunities aplenty for first homebuyers still, but some of them don't want to buy a fixer-upper in boganville, they want the bells and whistles straight up.

[Yellow_Festiva]

Originally Posted by onfire

And it's only going to make it tougher putting on another 45k because the Mrs. wants a new Santa Fe.

My parents helped myself, my brother and sister with our first places.

Fast forward 10 years and we have all done well with that kick start.

Mum retired, tells us she wants a Santa Fe so myself and my brother went halfs



Least we could do Would have been a Getz had we not got that head start.

[BENT_8]

Hows the realestate.com add with Arnie.

Blatantly advertising foreign investment in OUR COUNTRY!!!

[Giant Cranium]

I bought my first apartment in abbotsford 2 years ago and are now looking at my second property in drumoyne for cica 1.1 to 1.2 mill. Was all bought from saving for 8 years and doing without whilst my sisters and a lot of mates wasted so much money. But in the Sydney market now I don't blame anyone for needing help from their olds. So hard to save the 150k deposit.

[ford man xf]

Problem is no one wants to work over time, people that I work with are continually complaining about never earning enough and how they will never own a home, yet when they are offered to work a saturday and get some decent money they never wan't too, I worked saturdays for 5 years and was able to buy a home because of it.
And yes I know not everyone is in a job that offers overtime, but it just seems the ones that are don't want to. Overtime is where you make the good money.

[ford man xf]

And if I had of listened to all the so called experts and held off buying property 2 years ago, I would now be paying $20,000 to $40,000 more if I bought the same home today, that's how much they have risen in my area, I have seen other suburbs go up by $50,000 in 2 years. A lot of "experts" said to hold off because the property market is going to crash and that big bubble is going to burst. I think prices are starting to top out now though, the markets not going to crash it just might plateau along a bit, and then rise again, historical data shows this trend in Australian property markets.

[kazawaki]

In real terms Real estate never gets cheaper,i agree half the problem is people expect too much for nothing and are not prepared to do the hard yards.I have been separated twice,lost 1 house moved states and then lost1 acre of land .I still managed to buy another house and have it paid for within 12 years whilst starting my own business.anything is possible if you work hard enough,i say to the ones saying no I cant harden up stop winging and step into reality and work your *** off without all the fancy gadgets and fight for what you want .

[Rowdy Fitment]

Originally Posted by kazawaki

In real terms Real estate never gets cheaper,i agree half the problem is people expect too much for nothing and are not prepared to do the hard yards.I have been separated twice,lost 1 house moved states and then lost1 acre of land .I still managed to buy another house and have it paid for within 12 years whilst starting my own business.anything is possible if you work hard enough,i say to the ones saying no I cant harden up stop winging and step into reality and work your *** off without all the fancy gadgets and fight for what you want .

At the same time working flat out and sacrificing everything else in life just to own some overpriced land isn't for everyone. Only get one life, who wants to work all the time and do nothing else?

[ford man xf]

And I really do feel sorry for first home buyers trying to buy in today's market because I know just how hard it is because you are competing with international buyers and cashed up baby boomers with seemingly endless pockets full of cash, the only chance first home buyers have is buying a run down property or buy right out in the fringe suburbs, they need to have lower expectations it is after all your first home, my house isn't perfect and needs a bit of TLC and that's why you will pay less for it. The unfortunate trend with my friends is they have to have the best of everything now, and this is when they get into massive debt and problems, expectations are just way to high.

[nstg8a]

As a first home buyer we felt building was our only realistic option, to take advantage of the 15k first owners grant it has to be build, or buy a newly built unoccupied home.
We're so far on budget to have house and land paid for, for about $420000.
Anything similar was another 30-40k.

Last thing we want is to borrow too much and end up with huge repayments. We just scraped through avoiding the lmi, which will save us a significant amount over the course of the loan.

[zilo]

I love this current property market...

we have picked up some serious good bargains in the last 8 months

thank goodness all the market distorting 1st home buyers crap is gone.

[nuthin' fancy]

Originally Posted by zilo

I love this current property market...

we have picked up some serious good bargains in the last 8 months

thank goodness all the market distorting 1st home buyers crap is gone.

Now we just need to get rid of the market distorting negative gearing crap.......


First Home Buyers need to mix concrete and milk. Plenty of homes here in Geelong under $250k. Move in, pay off extra, create equity (capital increase a bonus), take the next step in 3-5 years to get into what you want.

Back to the 1950's I say, ignore female wages, Government legislated 110m2 max building size, 1/4 acre blocks. Bliss

[Brendo_GSUte]

Its harder every generation to get your own house.

It would of been twice as easy (or more) for someone who is 40 now to get their first home than it is for someone who is 25 now.

Always seems to be that the rich get richer and usually its wealth off milking the system in the form of tax breaks on properties etc.

I reckon no more than 5 properties per person in Aus and no one should earn over 1 million per year.

And politicians no more than 100k a year, that will get the sponges off the chairs there to earn good money for not much input and hopefully get someone in that is passionate about speaking for the people. But that would never get past the senate...

rant over

[Pinkbits]

Originally Posted by Brendo_GSUte

Its harder every generation to get your own house.

It would of been twice as easy (or more) for someone who is 40 now to get their first home than it is for someone who is 25 now.

Always seems to be that the rich get richer and usually its wealth off milking the system in the form of tax breaks on properties etc.

I reckon no more than 5 properties per person in Aus and no one should earn over 1 million per year.

And politicians no more than 100k a year, that will get the sponges off the chairs there to earn good money for not much input and hopefully get someone in that is passionate about speaking for the people. But that would never get past the senate...

rant over

Are you for real?
When we bought our first home in 1990, we had to have 20% deposit, there was no such thing as the first home owners grant, interest rates were up around 14% in the early 90's & there was no baby bonus or child care rebate.
A 12sq home was what we could afford at the time, cheap curtains & second hand furniture.

Because we worked hard (no holidays for me for 15yrs apart from the main days at Christmas & Easter) we should be limited to only owning 5 houses?
Lucky for us we're not quite there yet!
Should I be limited to how many cars I can own too?, I might have to sell a few to keep the masses happy.

[Nova 8]

Originally Posted by Brendo_GSUte

I reckon no more than 5 properties per person in Aus and no one should earn over 1 million per year.

rant over

I missed this post and wow, just wow.

This arguement always amazes me, people say this crap but then have no solution for the endless amounts of issues it causes.

1) where does all that excess money go, to govco or across the board to everyone in the country, if so why would people at the bottom even work. They'll get both the dole and their ill gotten gains.

2) what do you do to encourage a company to grow, once some guy is earning 1mil why would he continue to employ more people and tighten the noose around his neck if something goes wrong. This will stop growth in its tracks.

3) some guy worked hard and made an profitable business employing 1000s. He earns 1mil a year from said business. He is in his late 50s with about 30yrs left, in said time he WILL earn 30mil. He gets told if he guts his business and fires everyone he can retire now with >30mil. Why continue with the company for less money?


We live in the age of entitlement, it's terrible. I'm for welfare but too many on it expect it, abuse it and expect those better off to support, accept and even suffer for them. Don't like your circumstance, change them, make the first step today and you'll be a step closer tomorrow.

[Trevor 57]

Real estate agents, the new used car salespeople

[Giant Cranium]

Originally Posted by Brendo_GSUte

Its harder every generation to get your own house.

It would of been twice as easy (or more) for someone who is 40 now to get their first home than it is for someone who is 25 now.

Always seems to be that the rich get richer and usually its wealth off milking the system in the form of tax breaks on properties etc.

I reckon no more than 5 properties per person in Aus and no one should earn over 1 million per year.

And politicians no more than 100k a year, that will get the sponges off the chairs there to earn good money for not much input and hopefully get someone in that is passionate about speaking for the people. But that would never get past the senate...

rant over

If I work hard to buy property I don't want to be limited to 5. I'm buying my second now and in two years I plan to by a third. And is your 5 per person idea capped on total value? For the price of my 2 I could buy 5 out west and 7 or more apartments out west. Silly idea. Also if someone can earn over 1 million a year much like multiple bosses at my wife's work good on them. Not their fault they are above average for intelligence and have more drive than the dole bludgers.

[MITCHAY]

One of the best things I ever did was to set up an automatic schedule to transfer money from my transaction account to my savings account on pay day.

With exception to big bills I couldn't otherwise pay, I do not touch that money. I put at least $1k in that account a fortnight.

I used to save up and then transfer it but I wasted a fair bit of it in between. You just say I have X amount in that account and that's all I'm going to spend.