Australia housing bubble

[FTE217]

anyone can do a general google search eh bOson.....
http://www.telegraph.co.uk/business/...us-conditions/

Japan has been a unique case for quite sometime.
Heres some more
https://resources.realestate.co.jp/b...ousing-market/

Hey settle XB GS, please were all not tarred with the same brush here in Syd, I'm sure you don't mean that
I agree, its becoming a messy metropolis, some parts are woeful but as we know thats typical Cap cities.
Like you I agree, its no luck what you end up having - its bloody hard work !
Same for myself and the wife, its work work work, were living good now due to that.
I could re locate just as yourself on acreage, have my monster shed, increase my fleet of loved ones etcetc but were happy here still, in a good quiet pocket. Living my dream,yep, kids are healthy, doing ok, were healthy doing ok, got some toys, its is a great city but next is back to northern beachs living, we still like being close to what suits US thanks very much.

[ronwest]

Originally Posted by XB GS 351 Coupe

I constantly get people saying I am 'lucky'

Yep.

Been working for myself for 45 years (doing different things).

Often been told how "lucky" I am to have this that or the other.

As my old man said "You'll find in life that the harder you work the luckier you get..."

[au350hp]

Originally Posted by b0son

well this is awkward....

image

Nothing awkward here, its a general comment. The us market crash didn't affect those who owned their home or a good proportion of it. Like WA mining boom, reckless bank lenders and ignorant investors are the ones that lose. Cant beat bricks and mortar.

[XB GS 351 Coupe]

Originally Posted by ronwest

"You'll find in life that the harder you work the luckier you get..."

It's one of my favourite quotes

I have never been 'given' anything nor have I been lucky. It's all been planning and hard work.

[XB GS 351 Coupe]

Originally Posted by FTE217

Hey settle XB GS, please were all not tarred with the same brush here in Syd, I'm sure you don't mean that
I agree, its becoming a messy metropolis, some parts are woeful but as we know thats typical Cap cities.
Like you I agree, its no luck what you end up having - its bloody hard work !
Same for myself and the wife, its work work work, were living good now due to that.
I could re locate just as yourself on acreage, have my monster shed, increase my fleet of loved ones etcetc but were happy here still, in a good quiet pocket. Living my dream,yep, kids are healthy, doing ok, were healthy doing ok, got some toys, its is a great city but next is back to northern beachs living, we still like being close to what suits US thanks very much.

The funny thing is most people don't realise how miserable they are living in capital cities till they move away.

A mate of mine calls it the 'boiling a live frog effect' put the frog in a pot of cool water and sit it on the fire, poor frog does not realise he is getting cooked till it's too late.

At the end of the day everyone likes different things, even going to Sydney for a day trip makes me sad for our country, the stench of raw sewerage and exhaust fumes makes me feel sick to my stomach, If they were giving away free houses in Sydney they seriously could not give me one if you had to live in it

[b0son]

Originally Posted by XB GS 351 Coupe

This thread is funny, I love how the people that have never taken the a risk or have been willing to step out of their safe zone are calling people who have greedy

Property has been anything but risky. The beneficiaries have ridden a 20 year boom that in combination with favourable taxation, has required very little capital to build wealth. I can only therefore assume by risk, you mean the card game.

[b0son]

Originally Posted by Roostercam

Cant beat bricks and mortar.

Hard to invest if you can't even get in the game. What will you tell your kids when they have to spend 10x their annual wage on a house, that only cost you 3x?

"you just have to work harder and be less lazy"

[au350hp]

Originally Posted by b0son

Hard to invest if you can't even get in the game. What will you tell your kids when they have to spend 10x their annual wage on a house, that only cost you 3x?

"you just have to work harder and be less lazy"

Its all relevant. Every generation has barriers to deal with, I don't subscribe to the theory ''its harder today than in the past''. That's for whingers who don't know how to say no and insist on having everything now. Everything worthwhile takes time, and the pleasure from earning something through hard work cannot be measured I believe. My wife and I decided not to have children which has made things a lot easier. I don't know why so many people have kids when so many complain how hard it is. Not many people these days think before they leap it seems. Mortgages, cars, kids, pets, then all the technology. People need to slow down, simplify their lives and concentrate on the things that really matter.

[au350hp]

Anybody who is waiting for the Government to ''fix'' the housing situation is delusional.

[au350hp]

Originally Posted by XB GS 351 Coupe

This thread is funny, I love how the people that have never taken the a risk or have been willing to step out of their safe zone are calling people who have greedy and then express joy when those trying to better themselves fail.

The same people will then complain about their inability to buy into the housing market, and if those doing the hard yards and taking risks have a win they will complain how 'lucky' and 'greedy' they are.

I constantly get people saying I am 'lucky' to own the house and land I do, I am 'lucky' to have 200K worth of classic cars sitting in my garage.

I can promise anyone that there is no 'luck' involved, it's all about hard work and doing what it takes to reach the goals I wanted to reach, There is plenty of stuff I have done without over the decades to be able to do what I want to do. To this day I get up at 04:20am to go to work and I generally get home between 6 and 7 pm, so yes I am 'lucky', has nothing to do with hard work

I don't get the whole people wanting to live in Sydney thing, unfortunately I have lived there for a large part of my life and for the last ten years I was there I worked towards getting out of that cess pool of human garbage.

No mention of the thousands of dollars you no doubt made on the sale of your Sydney property or did you give it to charity because you didn't like the ''stench'' of the money made form it?

[fordomatic]

Man I love all these threads.

I've managed to buy three properties by just working hard. Everyone whines about not being able to afford a house but my generation will not compromise on things to be able to afford it. I started from nothing, had a job when I was 15 and started saving, got my first house at 22. I don't have a 100k job, i simply have a rule, for every $ I spend, I save a $. In my early 20's I worked away from home more than I was home, but it was worth it.

I have lived, I like to think I have a good work/life balance. I have travelled the world, and I have done some amazing things over the years.

I'm not trying to blow my trumpet i'm just saying I am over people saying it's too hard, it's not. I'm a simple bloke with a simple job, if i can do it anyone can, seriously. If you want something bad enough you will get it.

[b0son]

Originally Posted by Roostercam

Its all relevant. Every generation has barriers to deal with, I don't subscribe to the theory ''its harder today than in the past''.

But it's not a theory. The numbers dont lie, only people.

We are at record low interest rates, and affordability is about as bad as it was when we had record high interest rates (which went back down fairly soon after). Back then, we would have advised the young not to get in over their heads, today we criticise them for not doing it.

Cherry picking the hipsters that throw their money around doesnt change the fact that someone entering the property market now is at a profound disadvantage economically compared to someone 20 years ago.

[b0son]

Originally Posted by fordomatic

I'm not trying to blow my trumpet i'm just saying I am over people saying it's too hard, it's not. I'm a simple bloke with a simple job

So lets create a simple analogy.

Lets say cars cost 1 year of pay, and have done for years and years. You buy one. Lets say for whatever reason, something happened to start to push up the price of cars and now they cost 3 years of pay.

Lets say it takes you 5 years to pay off your car. The guy who decides to buy a car now that they cost 3x more, will be repaying his for around 20 years. Now lets compare you with him.

Over a 20 year period, you have 15 years of not having to make payments, that you can now save/invest/etc. The guy that paid 3x more is still just paying his off.

When you both retire, you will do so with the advantage of 15 years extra $$$ saved on those repayments you didnt have to make. Are you going to say you both lived under the same economic conditions, and that you simply worked harder to account for your greater prosperity?

[fordomatic]

Originally Posted by b0son

So lets create a simple analogy.

Lets say cars cost 1 year of pay, and have done for years and years. You buy one. Lets say for whatever reason, something happened to start to push up the price of cars and now they cost 3 years of pay.

Lets say it takes you 5 years to pay off your car. The guy who decides to buy a car now that they cost 3x more, will be repaying his for around 20 years. Now lets compare you with him.

Over a 20 year period, you have 15 years of not having to make payments, that you can now save/invest/etc. The guy that paid 3x more is still just paying his off.

When you both retire, you will do so with the advantage of 15 years extra $$$ saved on those repayments you didnt have to make. Are you going to say you both lived under the same economic conditions, and that you simply worked harder to account for your greater prosperity?

Simple, i'd buy a cheaper car I can afford.

Why would I say I lived under the same economic conditions? I'm only 30 mate. My brother is 24, had a 65k job for 6 years and almost owns his first house, through hard work and dedication and choosing somewhere to live that isn't 1million just to buy in. His house is only 2 bedroom, who actually "needs" a 4 bedroom house, no one.

[fordomatic]

I also appreciate those who like a bigger property as well, i'm just saying you buy what you can afford at the time, and you make sacrifices to be able to afford that, whatever it is.

[b0son]

Originally Posted by fordomatic

Simple, i'd buy a cheaper car I can afford.

Reductio ad absurdum....

At some point, the only way for someone to buy is somewhere out in the sticks, possibly hours away from work, because there's no work in the sticks. Hell, just a couple weeks ago when I received a delivery, the driver commutes from Newcastle to Sydney because he cant find work there. How is that in any way reasonable?

[fordomatic]

Double post

[fordomatic]

Originally Posted by b0son

Reductio ad absurdum....

At some point, the only way for someone to buy is somewhere out in the sticks, possibly hours away from work, because there's no work in the sticks. Hell, just a couple weeks ago when I received a delivery, the driver commutes from Newcastle to Sydney because he cant find work there. How is that in any way reasonable?

I'm not going to bother going backwards and forwards.

YOU choose your own path in life, what you choose to do with it is up to you. I'm a simple country kid who chose the path I now lead and I did it my way because I chose too. Everything in life has a trade off for the solution, you choose what that is.

You can't keep blaming society and the government for what is happening, you will never win.

[Polyal]

So when you say you own three houses, is that outright?

[fordomatic]

Originally Posted by Polyal

So when you say you own three houses, is that outright?

I wont go into details on here but almost, if all was said and done and i sold all three which are very close to the same worth I would get to keep the cash from 2 of them. Retire at 45 is my plan and i'm well on the way to achieve that. I also have a wife and son so i'm not a single guy with zero outgoings.

Further to this, I actually think the house market will pop in the future, but it will recover like it always does. I'm in it for the long haul so it doesn't phase me. I also don't have all my eggs in the one basket.

[au350hp]

Always amazed how many become righteous when they see a error or a quote. For ''Non automotive chat'' it quickly degenerates into attacks on who has/hasn't and how they came to be in that position or not.

[BENT_8]

Originally Posted by Roostercam

Its all relevant. Every generation has barriers to deal with, I don't subscribe to the theory ''its harder today than in the past''. That's for whingers who don't know how to say no and insist on having everything now. Everything worthwhile takes time, and the pleasure from earning something through hard work cannot be measured I believe. My wife and I decided not to have children which has made things a lot easier. I don't know why so many people have kids when so many complain how hard it is. Not many people these days think before they leap it seems. Mortgages, cars, kids, pets, then all the technology. People need to slow down, simplify their lives and concentrate on the things that really matter.

Lol, what a lot of bull****!

It doesn't matter how many times you unlock the front door of your new purchase, it will never come close to holding your own child for the first time.

I rent by choice and have 4 kids, none of which i'd give up to have my name on a property title.

Life is short and no matter how much you invest, save and go without, in less than 70yrs we'll both be dead, only i'll have a family to grieve for me and you'll have a fancy coffin and a big fat bank balance you can no longer spend.
Who's missing out on the things that really matter?

[FTE217]

Great to see some Good news stories coming from knuckling down, focus, goals.
b0son just as fordomatic quotes, not wishing to go back and forth BUT all I'll say is this short snap shot of my ride.
Started later than many re 1st house.
Partied, travelled,surfed but worked hard, cars galore up to 5 owned at once regoed insuranced.
@ 28yrs met "that girl".....
My bank was empty but I was ready to marry.
Cried to Dad, well not that but asked can we live with you for a year so as to savesavesave.
When I think about what it costed back then to get into our 1st place I shuddered the thought of THAT much debt, I recall sitting in the bank to sign the mortgage papers like it was a sentence !
The old man said you got 2 choices, miles away from our areas or be prepared to buy the worst house on a good street.
We bought a s-hitter !
Within the 1st year of marriage @ 30 no 1 son coming, I/we had a mortgage out of our a rse's......
Worked on this place with our bare hands, lived tight !
Spent $20k on it over 5yrs - doubled our money on the sale.
Next purchase - much better area but again the worst house in a good street.
Same again, by then no2 arrived and before we knew it no 3.
I never thought we would make it !
Life has so many Sky is Falling scenarios, be it the economy, personal hurdles, job, you got keep your head UP, be positive and strive what you Want.
We felt no different to what you harp on about, you hate hearing this but thats life !
I bitched to my old man, why do I have to buy a house, why do I have to be in debt because you did it and most others.
Well, thats your choice eh.
Stop crying us a river !
My eldest near on mid 20's now, he knows what he needs to do and is getting on with it.
Great saver, expect marriage soon with girlfriend of last 3yrs, great couple, grounded and have their goals set.
We will gladly dip in to help them but TBH I know my son will likely say no thanks Dad we have it covered !
Whining gets you no where.

[b0son]

Originally Posted by FTE217

Within the 1st year of marriage @ 30 no 1 son coming, I/we had a mortgage out of our a rse's...... My eldest near on mid 20's now

You've been in the property market for 25 years .... you've ridden a nearly constant boom for that entire period, and benefitted from a shedload of equity to help with subsequent purchases.

You simply cant compare that with someone trying to enter now at the top of a market thats the worst its ever been in terms of price versus income (and thats before we bring up the possibility of a rate rise).

The lack of empathy in this thread depresses me frankly. You'd never know any of you were parents.

[FTE217]

FFS, in one ear out the other !
Ever had 15+% interest rates on cards for starters ? nope.
Our mortgage interest rates also were higher through those early times.
The point is not comparing the past to the present by facts and figures alone otherwise yes shoot yourself BUT to just get ON with it - someone else is right now at your age thats the point........
There will always be those who get on with it no matter the hurdles ahead and those who are beaten even before making effort to the start line.
I don't think most good natured parents is happy of the current climate ahead but I sure wouldn't be saying to mine its hopeless case !

[b0son]

Originally Posted by FTE217

FFS, in one ear out the other !
Ever had 15+% interest rates on cards for starters ? nope.

And houses were 3x income, not 10x. Swings and roundabouts. Your rates went down. We're at record low rates now, which way are they likely to head, further down??

I sure wouldn't be saying to mine its hopeless case !

I'm not about to tell mine that just because I did they could too. It's obvious to me its an apples and oranges comparison.

[FTE217]

yep ok......
What type of post would suit you ?
What do you wish to read.

[nuthin' fancy]

I'm in property finance in Geelong and the key is to focus on what you can do.

Subject to adequate income and I can get you into a 2 bedroom unit (not in an ex-housing commission area) at a purchase price of $250,000 with a $19,000 all up contribution. The $19,000 doesn't need to be savings, it can be a gift. If you can afford it, you can even put the deposit on a credit card.

Get in, spend 3 years paying the debt down as quickly as you can.

At the end of that time, if you have paid everything off except your mortgage and you have seen a 10% increase in the value of your property, you can buy another one and rent the existing one out.

You are off and running then.

For sure you won't start with a great house in the perfect street, but you'll get a start.

My first house was on a busy street next to a car yard and down wind from a stink pipe.

Focus on what you can do, not on how hard it is to get everything you want right now.

[b0son]

Originally Posted by FTE217

What do you wish to read.

Got any recipes for smashed avo? That seems to be about the only thing missing.

[fordomatic]

Originally Posted by b0son

You simply cant compare that with someone trying to enter now at the top of a market thats the worst its ever been in terms of price versus income (and thats before we bring up the possibility of a rate rise).

Mate, I told you, I entered it now, and I didn't use equity from my first house to buy the second and third, I just saved hard. It can be done. I'm so sick of my generation whinging and whining that they can't afford a property but they will go out on a Friday night and spend $300, they will go to Europe and spend 30k in two months, they will buy a 40k car.

I live in a very "posh" area, I rent, the amount of mid to late 20's that are in the cafes every day of the week astounds me. The wife and I go for coffee on the weekends and eat at home when we go out with friends, it's all compromises. When i'm 50 and retired doing whatever i want to do i will not regret not going for smashed avo on a Saturday and i won't regret doing our overseas travel on a budget.