Australia housing bubble

[b0son]

Originally Posted by BENT_8

My kids both bought using Homestart with lless than 5k deposit after FHOG and builder contribution.

So they used a handout, just that it didnt come from you. And the fact they had almost no deposit kinda shoots down your argument about their work/savings ethic.

[prydey]

Originally Posted by BENT_8

For the best part of 2 decades I've been saying those who have built their wealth through property have just created a rod for the backs of our kids but I was criticised for stating the bloody obvious as no one wanted to admit it was their doing, not whilst they enjoyed the capital growth.
Now all of a sudden its too hard, give me a break.
.

I agree with you about those profiteering from real estate. No one needs more than 1 house. It's just pure greed in my opinion, and selfish.

However no one is saying it's too difficult. Just that it's harder.

[pottery beige]

Originally Posted by BENT_8

No doubt, renting also takes a larger percentage than it did in previous generations.
So is a bottle of Pepsi, couldn't believe it when I saw OTR selling 600ml Pepsi for $5.19, I remember using a bottle of Coke as an example many years ago when I asked if a bottle of Coke would ever really be worth $5, well in many places it is now and the reason they can charge that is the same reason people pay 40k for a 30k SUV, 70k for a 40k ute and $500k for a first home.
Because a fool and their money are easily parted and they need to be on that list.

For the best part of 2 decades I've been saying those who have built their wealth through property have just created a rod for the backs of our kids but I was criticised for stating the bloody obvious as no one wanted to admit it was their doing, not whilst they enjoyed the capital growth.
Now all of a sudden its too hard, give me a break.

I doubt any of the 'Its harder for my kids' people would slash 50% of their property value to solve the problem though.

Your kids can either cry about how hard it is to buy a 500k house in the cool coastal suburbs down south or actually do some buying/building in the hot, busted **** north like mine have.

Choices.

They have taken the risk and put a roof over your head for the last 17 years? How many of those years have been subsidised with tax payer rental assistance?

[Itsme]

Originally Posted by prydey

I agree with you about those profiteering from real estate. No one needs more than 1 house. It's just pure greed in my opinion, and selfish.

However no one is saying it's too difficult. Just that it's harder.

I think the real estate industry is also the problem of driving up house prices, btw if people do not buy more than 1 house then that itself creates problems with the rental market which also drives up prices when there is a shortage.

[BENT_8]

Originally Posted by b0son

So they used a handout, just that it didnt come from you. And the fact they had almost no deposit kinda shoots down your argument about their work/savings ethic.

Yes, like millions of others, why wouldnt they, and it only covers Govco taxes and legals, not for the actual build.
The builder contribution gets tacked on to the price and is repaid eventually.
Both of those make it achievable for many who cant save, both my kids had enough in savings to cover the associated costs but as they plan on using them as rentals you'd be mad to put down more than necessary.

You really are embarrassing yourself now.

[prydey]

Originally Posted by Itsme

I think the real estate industry is also the problem of driving up house prices, btw if people do not buy more than 1 house then that itself creates problems with the rental market which also drives up prices when there is a shortage.

Maybe, but if people didn't own multiple houses then demand wouldn't be pushing house prices so high and many who rent could likely afford to buy.

Those who use the argument that owning multiple houses is providing a service for the renters, so you rent your house for the minimum amount you need to, or do you rent for the maximum you can get?

I wonder if there is a stat for the number of empty properties there are...

[BENT_8]

Originally Posted by pottery beige

They have taken the risk and put a roof over your head for the last 17 years? How many of those years have been subsidised with tax payer rental assistance?

No doubt, thats a choice too, hardly a risk though when you have tenants that care for the property so well they ditched the property manager and only bother inspecting once every year, sounds like a dream relationship to me.

Bugger all rent assistance to be honest as we earn too much, nothing for the last 5 years.
Anyway, Govco offer it to keep renters in private rentals and out of Govco housing which was becoming a v
Greater burden on the tax purse.

I assume you dont negative gear all your investment properties that you mentioned a few months back as thats a handout too.

[T3rminator]

Originally Posted by prydey

It's just pure greed in my opinion, and selfish.

The revenue gov makes on stamp duty, helps pay for all the good things.

[b0son]

Originally Posted by BENT_8

Yes, like millions of others, why wouldnt they, and it only covers Govco taxes and legals, not for the actual build.

Those handouts exist because it's... wait for it... harder :P

[Citroënbender]

Originally Posted by prydey

I wonder if there is a stat for the number of empty properties there are...

Reckon it would be difficult to accurately quantify the number of empty dwellings, so many possible reasons they might be empty from understandable to dishonest. There are people like my stupid neighbour who has filled an empty house with 40 years’ worth of junk (“I’m gunna open a museum”) instead of taking $650+/wk in rent, or the neighbours who seem to use their address for satisfying school enrolment criteria - unoccupied since completion.

[BENT_8]

Originally Posted by b0son

Those handouts exist because it's... wait for it... harder :P

Lol, those handouts have existed since the mid 90's when apparently it was...wait for it...easier.

Explain.

[b0son]

Originally Posted by BENT_8

Lol, those handouts have existed since the mid 90's when apparently it was...wait for it...easier.

Explain.

Not mid-90s, 2000, to offset the effect the introduction of the GST. Stamp duty exemptions came later.

[BENT_8]

Originally Posted by b0son

Not mid-90s, 2000, to offset the effect the introduction of the GST. Stamp duty exemptions came later.

Still nothing to do with the current hardship of entering the property market today that is being suggested so im not sure what your point is.
Even the builder contribution thats more recent i believe is probably a tax dodge by the builder, as they give it in one hand and take it back in the other.

And if those mechanisms we're introduced to help FHO in 2000 when it was supposedly easier, wouldnt they have increased it now that its supposedly harder?
Yet they havent, and my kids still have mortgages in 2023 at age 22/24.

[BENT_8]

So Im sitting here and im wondering, in a thread full of doom and gloom, at a time when its supposedly harder than ever to get a foot on the property ladder, why is it that rather than acknowledge a good news story and use it to encourage the current generation of young adults, you mob would rather pick it apart and dismiss it.

Then I realised, Its all my fault.
Not because Im a proud Father who's happy to share his kids story who have managed to do what many say is harder now.
Not because the direction I took in raising them to look after themselves and their future has come to fruition.
No, It's my fault for raising them in one of the lowest socioeconomic areas in metropolitan Australia because in doing so it showed them that you don't need to live in a fancy suburb in a fancy city to achieve your goals and it allowed them to be satisfied with owning a home on the fringes of that area which they can afford.
So I say sorry guys, sorry my kids aren't entitled Pratts.

[prydey]

Being able to buy or build a house doesn't prove that it isn't harder today than 25+ years ago.

I bought my current house around 2004. According to the council valuations its gone up well over 200%. My income has gone up by 10-15%. I have no problem accepting that buying a house today is considerably harder than even 20years ago.

My first house I bought in 1998 for $92000. I don't need statistics to tell me it's more difficult today.

[BENT_8]

Originally Posted by prydey

Being able to buy or build a house doesn't prove that it isn't harder today than 25+ years ago.

I bought my current house around 2004. According to the council valuations its gone up well over 200%. My income has gone up by 10-15%. I have no problem accepting that buying a house today is considerably harder than even 20years ago.

My first house I bought in 1998 for $92000. I don't need statistics to tell me it's more difficult today.

Have you considered a career change?
My income has gone up 100% since August by simply changing who I drive for and what I drive.
$55/hr today for sitting on my **** in an industry screaming out for people.

[Itsme]

An interesting read.
https://www.aph.gov.au/about_parliam...gaffordability

[GasoLane]

It's seems that Zilo thought he knew better than Mods and repeated his previously deleted post.

He now has some timeout to consider an attitude change

[hackney]

Originally Posted by GasoLane

It's seems that Zilo thought he knew better than Mods and repeated his previously deleted post.

He now has some timeout to consider an attitude change

Good luck with that!

[FTE217]

Originally Posted by BENT_8

So Im sitting here and im wondering, in a thread full of doom and gloom, at a time when its supposedly harder than ever to get a foot on the property ladder, why is it that rather than acknowledge a good news story and use it to encourage the current generation of young adults, you mob would rather pick it apart and dismiss it.

Then I realised, Its all my fault.
Not because Im a proud Father who's happy to share his kids story who have managed to do what many say is harder now.
Not because the direction I took in raising them to look after themselves and their future has come to fruition.
No, It's my fault for raising them in one of the lowest socioeconomic areas in metropolitan Australia because in doing so it showed them that you don't need to live in a fancy suburb in a fancy city to achieve your goals and it allowed them to be satisfied with owning a home on the fringes of that area which they can afford.
So I say sorry guys, sorry my kids aren't entitled Pratts.

Mate, I say good on your family getting where your all today, as long as you are all happy that all that matters so congrats.
It no matter the post code/city nothing comes easy full stop.
Its sacrifice and putting in, if you can make use of whats available Gov wise, so be it its there to use.
Sadly its a human trait to moan/groan and blame, we're all guilty of that.

[kevino]

Originally Posted by FTE217

Mate, I say good on your family getting where your all today, as long as you are all happy that all that matters so congrats.
It no matter the post code/city nothing comes easy full stop.
Its sacrifice and putting in, if you can make use of whats available Gov wise, so be it its there to use.
Sadly its a human trait to moan/groan and blame, we're all guilty of that.

Well said. Exactly what I was thinking but couldn’t word it.
Credit to young people who buy real estate at an early age.
It sets them up for life!

[T3rminator]

Originally Posted by BENT_8

So Im sitting here and im wondering, in a thread full of doom and gloom......

Buy in gloom....sell in boom. Don't think we've seen doom and gloom just yet. Lets see what the RBA does rest of the year.

[hackney]

Originally Posted by prydey

I agree with you about those profiteering from real estate. No one needs more than 1 house. It's just pure greed in my opinion, and selfish.

However no one is saying it's too difficult. Just that it's harder.

Love to your reasoning behind your statement as to why it is ‘greedy & selfish’?

[prydey]

Originally Posted by hackney

Love to your reasoning behind your statement as to why it is ‘greedy & selfish’?

What were your thoughts regarding those who pillaged the toilet paper stocks during the height of the pandemic?

Yes, I'm answering a question with a question but the principle is similar.

My brother recently bought a house in Brisbane and my eldest daughter recently bought a house here in Adelaide. Both first home buyers. In both situations every house was going well above the listed price. Those they were competing with were nearly all investors. Plenty of coin or equity just driving up the prices.

It is selfish and just plain greedy from a humanitarian point of view. When you prevent someone else from having what was once a basic right.

But these days it's all about looking out for number 1 and stuff anyone else.

[kevino]

On the other hand…,
There’s a shortage of rentals
Investor buys house rents it those renters are happy
Without investors making rental houses available where do the renters go?

People live in their cars up here in S E Qld and Northern Rivers cause of rental shortage and the fact air bnb short term accomodation just makes it harder.

[hackney]

Originally Posted by prydey

What were your thoughts regarding those who pillaged the toilet paper stocks during the height of the pandemic?

Yes, I'm answering a question with a question but the principle is similar.

My brother recently bought a house in Brisbane and my eldest daughter recently bought a house here in Adelaide. Both first home buyers. In both situations every house was going well above the listed price. Those they were competing with were nearly all investors. Plenty of coin or equity just driving up the prices.

It is selfish and just plain greedy from a humanitarian point of view. When you prevent someone else from having what was once a basic right.

But these days it's all about looking out for number 1 and stuff anyone else.

If you actually owned an investment property/s you perhaps you might have an understanding of it.(yes I have had two).You have to also realise by having a property you are actually giving someone a roof over their head(fact).It is not ‘greed nor being selfish’.It is providing a service, but also looking after one’s future down the track when you retire.Don’t forget also Landlords also have mortgages on these properties, it is not cheap to maintain them & there is a lot of money & expenses going out monthly.Don’t be so quick to judge.Perhaps your attitude needs to change in regards to this.Don’t be so quick to blame people who own investment properties.It’s not all a bed of roses.

[hackney]

Originally Posted by kevino

On the other hand…,
There’s a shortage of rentals
Investor buys house rents it those renters are happy
Without investors making rental houses available where do the renters go?

People live in their cars up here in S E Qld and Northern Rivers cause of rental shortage and the fact air bnb short term accomodation just makes it harder.

Yup, I ‘rest’ my case your honor.

[kevino]

Had an investment property once and once only. It lost money and cost me money.
It’s not a sure get rich scheme.
It has risks
This society here needs property investors
People who take a risk do it a bit smarter than me and help out the renters who make up an increasing per centage versus property owners

People who rent get caught in the cycle
Brother in law got absolutely whacked in divorce settlement by ex wife at sixty
He is now a renter for ever
He is on his third rental in three years / it’s scary

[hayseed]

Originally Posted by hackney

If you actually owned an investment property/s you perhaps you might have an understanding of it.(yes I have had two).You have to also realise by having a property you are actually giving someone a roof over their head(fact).It is not ‘greed nor being selfish’.It is providing a service, but also looking after one’s future down the track when you retire.Don’t forget also Landlords also have mortgages on these properties, it is not cheap to maintain them & there is a lot of money & expenses going out monthly.Don’t be so quick to judge.Perhaps your attitude needs to change in regards to this.Don’t be so quick to blame people who own investment properties.It’s not all a bed of roses.

Very True, One of Ours (which is Mortgage Free) has cost us Money over the Last 2 Financial Years.

[hackney]

Originally Posted by kevino

Had an investment property once and once only. It lost money and cost me money.
It’s not a sure get rich scheme.
It has risks
This society here needs property investors
People who take a risk do it a bit smarter than me and help out the renters who make up an increasing per centage versus property owners

People who rent get caught in the cycle
Brother in law got absolutely whacked in divorce settlement by ex wife at sixty
He is now a renter for ever
He is on his third rental in three years / it’s scary

It’s bloody hard work owning investment properties.Anyone who tells you that landlords are rich is having you on.We did ok out of it, & we did for our retirement, nothing else.Would I do it again? Hell no! Crappy tenants(not all) it can be a very risky business.Sure you get tax concessions etc…but for me not again.