Australian Housing Affordability Discussion

[moa999]

And 10-yr term deposits hit 13+℅

 

[Pushka]

And 10-yr term deposits hit 13+℅

For those with money. The self funded retirees would love that now.

 

[kamchatsky]

Is $1.1 million a compromise (compared to $1.8 million)?

i shudder to think what a loan repayment looks like on even that price....so I looked it. Up. around $6,000 per month for 300 months..... (stamp duty, LMI)
bad luck for you if one of your income earners bust a gasket. Esp with flatline wage growth
(this would involve a family income topping over $250,000 (taking into account rates & taxes, super, children, partner, living expenses, two cars, holidays, oops forgot the private school fees) 30% of income marker is $216,000
seems to me we have quite a few average earners getting into this racket - mind you no mortgage, no kids two $80,000 salaries you could save $500k for that yacht in the marina within 7-8 years so I suppose it is doable

still I suppose housing has just become another commodified stock market product.

I bought a free standing 3 bedroom small house at Preston for 600K last year. Preston is only 10Kms from Melbourne CBD and I think Melbourne still have a lot of room to grow compare to Sydney. For me Melbourne is great value with great potential especially with all the interstate and international migrants coming to Melbourne to live.

 

[amaroo]

And 10-yr term deposits hit 13+℅

The next best thing..

http://www.economist.com/blogs/economist-explains/2017/02/economist-explains-19

 

[pauly7]

I was a little surprised at the price, especially as the post seemed to indicate that it was quite cheap. I would think that's not in the ball park for a first home buyer. It is a bit dear for me as well, though as retirees we are now cash buyers.

I probably didn't give enough info. I wasn't suggesting this certain property was for first home buyers (indeed my friends had an apartment they disposed of to help fund). I never suggested it was cheap, just relatively more affordable.
I was trying to illustrate the price differential by simply looking at underdeveloped suburbs versus developed suburbs but both exactly same distance from CBD.

My other friends picked up theirs for 650k - small 2 bedroom needing a Reno, but again that same property in the south east would easily have cleared 1.1.

 

[whatmeworry]

Yeah we had it easy. 25 years debt was expected when we started our mortgage.



But you quoted me and the graph.

Stamp duty is what our state Government based their budget on and subsequently spent heavily. When housing prices fell in SA then their budget got screwed.

Stamp duty is one thing that has to be abolished.

We might become like Hong Kong, where 3 generations have to contribute to buying a place.

 

[cove]

Having a Swiss grandfather made me interested in real estate housing around Zurich. That was quickly snuffed out when I realized that about a million US dollars bought you buggerall 30 to 40 years ago.
Now we have a pretty stupid housing real estate surge in both Sydney and Melbourne at a time when earnings are fairly static and rental returns are close to non existent but we have low interest rates. Interest rates change so allow an extra say 2% to your current mortgage payment to see you won't get caught out. Then have 9 to 12 months of reserve funds for that just in case situation where one of you loses your job.
For overseas properties I used zoopla for London and zillow for Los Angeles and New York. It can be interesting to see what you can get for your dollars elsewhere.

 

[love_the_life]

I probably didn't give enough info. I wasn't suggesting this certain property was for first home buyers (indeed my friends had an apartment they disposed of to help fund). I never suggested it was cheap, just relatively more affordable.
I was trying to illustrate the price differential by simply looking at underdeveloped suburbs versus developed suburbs but both exactly same distance from CBD.

My other friends picked up theirs for 650k - small 2 bedroom needing a Reno, but again that same property in the south east would easily have cleared 1.1.

My mistake then, apologies.

 

[pauly7]

My mistake then, apologies.

No need and please don't, no one else on AFF ever does

 

[love_the_life]

..... no one else on AFF ever does

But if I make an error, I do. Call me weird if you wish.

 

[Pushka]

But if I make an error, I do. Call me weird if you wish.

You're weird.

 

[love_the_life]

You're weird.

You'll keep

 

[whatmeworry]

A bit of satire.

Prime Minister Malcolm Turnbull has reacted with horror after it was revealed that it took Michaelia Cash 109 days to declare a mortgage on a $1.4m house to Federal parliament. Mr Turnbull was aghast that Cash would be so irresponsible to forego 109 days worth of negative gearing tax deductions on the property.
“Sure, she should have declared it to the parliament within 35 days, but the real crime here is missing out on all those tax deductions,” he told reporters.

Read more at Minister who forgot about buying house luckily still remembered to negatively gear it | The Chaser

However, Cash has defended herself against allegations of sloppiness. Luckily, Cash managed to remember to negatively gear the property immediately, even while forgetting that she’d even bought the property.
“It’s the strangest thing,” she told the ABC Insiders program. “I couldn’t figure out why I was hardly paying any tax at all on my huge parliamentary salary, and then I remembered it was because I own so many investment properties. So I looked it up, and that’s when I realised that I’d bought the house next door a few months ago. You know how these things happen.”

Read more at Minister who forgot about buying house luckily still remembered to negatively gear it | The Chaser

 

[cove]

Could happen to any of us when all we are thinking about is traveling on a free Australian Government chartered private jet.

 

[CaptJCool]

A bit of satire.

All Cashed up she was - sounds like a bit of a slow leaner.

 

[CaptJCool]

I bought a free standing 3 bedroom small house at Preston for 600K last year. Preston is only 10Kms from Melbourne CBD and I think Melbourne still have a lot of room to grow compare to Sydney. For me Melbourne is great value with great potential especially with all the interstate and international migrants coming to Melbourne to live.

Took a tram out to Preston the other Saturday. Leavin the inner suburbs, it felt like a war zone until you got out towards the terminus Stop 47 - then I enjoyed coffee at the Cheshire (cat). Yea it was late in the day no pastries left. And a jaunt to the Audacious Monk. (HAD WONDERED if the famous Abbottt Tony had set up the cellars with that other famous forgetter Feeney? (Jokes satire) Lots of sticky for sale ...

 

[whatmeworry]

I had to work in the '80's with a child to supplement income for the mortgage. We started with a second hand bed, newspapers for curtains and only floor coverings in our bedroom and the lounge. One TV. Second hand. Second hand +++ cars.

Yeah the 80's were a different time.

 

[travelislife]

Quite poignant being international women's day! Quite funny reading it now!

 

[whatmeworry]

Reports Chinese apartment buyers are losing 30% on their investments and ~80% can't settle on their property.

According to a report in The Australian, citing an industry expert, almost 80% of Chinese buyers can’t settle on the Australian apartments they have bought off the plan and wish they could walk away from the contracts.

https://www.businessinsider.com.au/...ng-to-settle-on-their-aussie-apartment-2017-3

Buyers of some capital city apartments bought off the plan and sold within 18 months are losing up to 30 per cent of their investment, confidential analysis by the nation's largest valuation company reveals. The potential loss of more than $150,000 in the value of average-priced apartments not only highlights the need for buyer caution, it's causing lenders and regulators to turn the screws on developers and borrowers by toughening the scrutiny of building projects before final lending commitments are made.

 

[whatmeworry]

Lotto now suggesting we need to win the lottery to buy a home in Australia.

Sydney property in 1991.