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.

[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.

[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 ?

[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.

[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.

[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

[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.

[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.

[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.

[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.

[BHDOGS]

Getting rid of negative gearing the biggest con of all would be a good start instead of charging old people 7 dollars to visit a doctor.

[Nova 8]

Having issues saving for your first house, spend less and work more. I'm currently working 94hr weeks, I'm really hoping to cash in when holden closes down. May as well make the best of a bad situation.

[nstg8a]

Originally Posted by Nova 8

Having issues saving for your first house, spend less and work more. I'm currently working 94hr weeks, I'm really hoping to cash in when holden closes down. May as well make the best of a bad situation.

Vast majority of workplaces would have a coronary if they knew one of their workers was working that many hours.
Current health and safety laws and chain of responsibility makes it pretty hard for most to actually get away with that for very long at all.

[Nova 8]

It won't be long lasting which is why I am jumping at it while it is there, "standard" week is generally 10hrs mon-fri and 8 on sat and 8 every second sun.

Most the workplace BS can go to hell.

[ronnas07]

Originally Posted by Nova 8

Having issues saving for your first house, spend less and work more. I'm currently working 94hr weeks, I'm really hoping to cash in when holden closes down. May as well make the best of a bad situation.

Exactly... and by working more youll find you spend less anyway. 94hrs a week your a machine... I thought my 60hr weeks were enough lol

[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.

[nstg8a]

Originally Posted by ronnas07

Exactly... and by working more youll find you spend less anyway. 94hrs a week your a machine... I thought my 60hr weeks were enough lol

I did 80 hrs a week for five months (two full time jobs) and it wrecked me lol.

Money was good, and I'd do it again, he'll I probably will if the bulls keep rolling in like they are at the moment. But short term only.

[tut0r]

Its always going to be hard to buy a house, some kids have it drilled into them from the first day they start work, other parents like to let a child do what they want with their money. Both sides will have issues saving at some point, at the end of the day all our lives aren't just work work work, go home, back to work.

There are plenty of people these forums that have financial issues, whether it be from, disabilities, sickness, job loss, overspending etc etc....and some may own a house and some might not.There will be those that will be in the position to buy a house one day and those who aren't, everyone is different.

I'm in no position to buy a house anytime soon(i'm 26). No fault of anyone's, just my choice in my life is different from others, I decided to start my own business which proves to have its own challenges and costs, which also brings work that is up and down. Unfortunately costs of living don't stop and moving out of home early probably didn't help in the saving department, but I learnt some great life skills as opposed to my friends who still live with their parents.

Each to their own.

[danzvtil]

Im lucky to be in a house I bought 13 years ago with my then wife, we saved hard to pay extra off then buy 2 more as investments. The investments are now gone and being single with a 9yo daughter highlights how important the weekly wage is. I also work a second job doing maintenance/gardening for a childcare centre which is very handy when it comes to paying the bills (and the extra to ATO!). The answer here is for many of us that we will have multiple jobs in order to keep the wolves from the door, that is the same for young aussies trying to save for that house, spend less than you earn.
I like to think that in my mid 30's I can now afford my indulgences, mainly the 2 personal cars sitting in my driveway, and bought lunches most days, other than that I live simply.

[BHDOGS]

It's such a simple thing isn't it work more and u can buy one don't have kids and u can afford one never see ur family except at night and ur golden there a lot of people who make it sound easier then it really is to put things into perspective the home I grew up in was worth 50 grand it's now worth 450.000 that's only in 29 years or one mortgage my missus parents are always telling me to buy a house diffence is he earnt what I do now and paid 55000 for his house it's now worth 400.000 if I could buy a house for 50gs I would the fact is wages are dropping houses are going through the roof and there's thousands of less jobs around to work at full time anymore the fact the gov wants to make u wait 6 months for centerlink shows how out of touch they are with reality