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"We had to get a home" - desperate homebuyers camp out for three days to buy in Sydney; The only way to secure a property as Sydney house prices continue their inexorable rise
Topic Started: 4 Sep 2014, 08:26 AM (9,943 Views)
Dr Watson
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noopsy05
8 Sep 2014, 04:06 PM
I'm the same as you but minus the savings on my loan and i still own around $150,000. That means im paying about $650 in interest, and thats the only money I count as dead money. Who rents for around $650 a month? not even people in public housing thats who.

Bank deposits are at their highest ever, the only people suffering from this is people who have their money in term deposits with their low interest rates. The people loving it are home buyers with offset accounts...
We could have this argument about the financials all day. There's a case for renting and investing in the sharemarket if one has the discipline. But the analysis is very sensitive to the variables — sharemarket returns, interest rates and so on. Tinker with one variable and the outcome can change. What we can say is this: the renter has no security after his lease expires. For the property can then be sold at the landlord's pleasure. The tenant can be moved on at the landlord's pleasure. Non-urgent repairs are only carried out at the landlord's pleasure. The problem with renting is that one lives in constant fear. He never really feels truly secure.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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noopsy05
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Dr Watson
8 Sep 2014, 04:25 PM
We could have this argument about the financials all day. There's a case for renting and investing in the sharemarket if one has the discipline. But the analysis is very sensitive to the variables — sharemarket returns, interest rates and so on. Tinker with one variable and the outcome can change. What we can say is this: the renter has no security after his lease expires. For the property can then be sold at the landlord's pleasure. The tenant can be moved on at the landlord's pleasure. Non-urgent repairs are only carried out at the landlord's pleasure. The problem with renting is that one lives in constant fear. He never really feels truly secure.
Might can't really comment on shares because I don't know enough about them. Sounds like most of the bears on here don't even invest in the share market anyway.

Is it true with shares you have to pay tax every year on your profits even if you haven't cashed them in?
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Barista
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The way I see it from here it has to be about the funding side. Sure the supply side is a disgrace, but...

1 - it is the investors going parabolic driving the market
2 - the banks funding those investors
3 - the banks borrowing offshore to fund those investors
4 - the government needing more austerity to get the budget back to balance to back those borrowings

And from there the government austerity is coupled with...

5 - the mining capex slide
6 - the coughing up of the tradables side
7 - the private debt side meaning there is little scope for consumer to buttress demand

So give it a year or so we may have...

8 - bloody expensive housing (and no way to make them cheaper)
9 - an economy gulping air ever more slowly
10 - happy banks with increasingly less gruntled punters

I can hardly wait.
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Stan
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After these guys build a home their total will be over 800k.

I don't live in Sydney but surely they could have found something a little closer to town for that sum of money?

This fiasco demonstrates the behaviour of a small bunch of fools who might well kick themselves down the track and nothing more.
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John Frum
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Barista
8 Sep 2014, 06:05 PM

1 - it is the investors going parabolic driving the market
Yup, and they all think they're going to make a motza from capital gains, so much so that most of them don't even bother paying off any principal:

http://www.propertyobserver.com.au/forward-planning/investment-strategy/property-news-and-insights/35397-interest-only-property-bunnies-at-greatest-risk-marcus-padley.html
noopsy05
8 Sep 2014, 05:26 PM
Might can't really comment on shares because I don't know enough about them. Sounds like most of the bears on here don't even invest in the share market anyway.

Nope, don't need to. Make enough money working for a bank and enjoying the stellar contract rates thanks to all you mortgage holders.

Quote:
 
Is it true with shares you have to pay tax every year on your profits even if you haven't cashed them in?


Christ you really are dumb - can't even pull off a Google search.
Dr Watson
8 Sep 2014, 04:25 PM
We could have this argument about the financials all day. There's a case for renting and investing in the sharemarket if one has the discipline. But the analysis is very sensitive to the variables — sharemarket returns, interest rates and so on. Tinker with one variable and the outcome can change. What we can say is this: the renter has no security after his lease expires. For the property can then be sold at the landlord's pleasure. The tenant can be moved on at the landlord's pleasure. Non-urgent repairs are only carried out at the landlord's pleasure. The problem with renting is that one lives in constant fear. He never really feels truly secure.
So would you be in favour of German style leasing arrangements (longer terms, prices indexed to CPI) as a possible solution to the current affordability problem?
Edited by John Frum, 8 Sep 2014, 07:26 PM.
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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LOL
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7 Sep 2014, 04:59 PM
Property investment, for idiots who don't know how to really invest their money.
LOL… I’ve heard it so many times, good thing I bought a few properties in 2001 when everyone saying it was stupid. I remember it so well, it was so daunting at the time, all that debt, we were scared. Looking back at it now, it was one of the best decisions we ever made, this is coming from someone who rarely makes good decisions. My friend who was looking to buy in the same neighborhood with me in 2001 decided to wait it out, he’s still renting in 2014. Had he bought together in 2001, he would of paid $250k. Houses in the same neighborhood are now around $900k. He is still renting and waiting for the crash. Of course, with limited housing trades people, restricted land supply, record levels of immigration and lax visa policies he could be waiting awhile. When the crash happens, the government will prop up the market in someway. It’s all rigged for big business. Just join the party.
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Stan
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LOL
8 Sep 2014, 07:57 PM
LOL… I’ve heard it so many times, good thing I bought a few properties in 2001 when everyone saying it was stupid. I remember it so well, it was so daunting at the time, all that debt, we were scared. Looking back at it now, it was one of the best decisions we ever made, this is coming from someone who rarely makes good decisions. My friend who was looking to buy in the same neighborhood with me in 2001 decided to wait it out, he’s still renting in 2014. Had he bought together in 2001, he would of paid $250k. Houses in the same neighborhood are now around $900k. He is still renting and waiting for the crash. Of course, with limited housing trades people, restricted land supply, record levels of immigration and lax visa policies he could be waiting awhile. When the crash happens, the government will prop up the market in someway. It’s all rigged for big business. Just join the party.
I'm betting the properties you bought weren't 40kms from the cbd

My point was that they may have been able to buy a better positioned property for that sort of money

Or do you disagree?
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Trojan
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Pfffttt. Only 3 days? Where is the comittment?
These iphone buyers are much more desperate. When people start paying others over twice of price of the plot they are purchasing, just to line up for them, I'll start taking notice.
http://www.smh.com.au/digital-life/mobiles/sydney-students-first-in-line-for-new-apple-iphone-6-20140909-10eosx.html
Edited by Trojan, 10 Sep 2014, 12:16 PM.
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
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Dr Watson
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John Frum
8 Sep 2014, 07:10 PM
So would you be in favour of German style leasing arrangements (longer terms, prices indexed to CPI) as a possible solution to the current affordability problem?
I'm not a landlord but keep in mind that the arrangements in Germany place additional burdens on the tenant such as a requirement to leave the property in the same condition that he found it. The tenant may need to conduct painting, renovations or similar tasks to fulfil his obligations there.
The trouble with the world is that the stupid are cocksure and the intelligent are full of doubt — Bertrand Russell
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