"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
Tweet Topic Started: 4 Sep 2014, 08:26 AM (9,951 Views)
One day you will not be able to afford the rent on your place, whereas if you spent a few years in a cheaper place and put some elbow grease into it you might one day afford to buy in a good area and your holding costs will then decrease every year.
Rent money is dead money once it is out of your wallet you will never see sight nor sound of it again, that is a fact. The truth is that most renters retire and are unable to afford to continue to live in their homes and end up out in the sticks in bogan areas. That is the reality of the cost that you pay for throwing away money on a rental that you cannot afford.
Renters do extremely poorly at building wealth at every stage of their lives
It is totally irresponsible to tell young people it is better to rent, all of the evidence show this to be a complete fabrication.
Sure you get charged to the hilt and people like banks etc get a big % of your gains and sure there is plenty wrong with the property market, but we only get two choices buy or rent. There is no contest in the debate as to which is better in the real world.
Rents rarely drop in Australian cities it is a pipe dream to build your hopes of future wealth on negotiating huge rent decreases.
Looks like you have to go back to 1998 to see a price drop and that was only in Brisbane.
Skamy your rentals returns graph shows a few things and it is not up to date.
Its shows that the good times for returns are over, and that wages cannot grow like in previous history when competing on a modern global level.
If your graph was up to date , it would show that perth decline headed to the floor would be much lower, showing 10% declines, and Canberra rents down 18% over the last three years. You need to update your graph.
In another ten years they will have fully paid off their homes and have virtually free accommodation for rest of their lives, while you will still be paying rent and falsely believing you've got a great deal because your rent is less than the first year's interest charges on an equivalent home. And you will continue to ignore the fact that your interest cost on an equivalent home would actually be zero by now if you had bought it 10-15 years previously.
So people are paying off their mortgages in 15 years are they?
Got any data to back that up?
Why aren't you buying more investment properties? A man of your skill should really take full advantage of this virtually risk free cash farting investment.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
Many people upgrade after several years and take out a new mortgage, but those who stay in the same house can easily pay it off in 10-15 years.
I know people who have paid off their home in five years.
I'm not greedy - I have enough IPs for now.
So the answer is no.
You have no data to back up your claim that people are paying off their mortgages in 15 years.
It sounds like bullshit anyway considering most FTBs these days are taking on mortgages with 30 year terms that require two full time incomes to service.
And then there is the alarming rise in the number of people who are paying nothing off the mortgage at all because they have an interest only mortgage.
But thats all part of the cycle eh Shadow? Cant afford the payments? No worries cheif, just pay the interest. Providing other people join the Ponzi you will be covered by rapid capital gain in no time.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
So if 9% of 35-44 year olds and 24% of 45-54 years olds have fully paid off their mortgages (as per the ABS data I posted) then some people must be doing it within 15 years.
Just because you wouldn't be able to do it doesn't mean everyone else is as financially challenged as you.
So if 9% of 35-44 year olds and 24% of 45-54 years olds have fully paid off their mortgages (as per the ABS data I posted) then some people must be doing it within 15 years.
Just because you wouldn't be able to do it doesn't mean everyone else is as financially challenged as you.
Typical bear hysterics.
Hang on, a few posts ago you were wanking on about people who bought in 2009 living mortgage free in 15 years as if this was a typical scenario.
The ABS data you posted shows nothing of the sort.
Your claim is bull shit.
Bear hysteria? And interest only mortgages in the housing market are what exactly? You're deluded pal. Actually, your job seems to be to delude others, you probably know well that you are telling fibs.
Property acquisition as a topic was almost a national obsession. You couldn't even call it speculation as the buyers all presumed the price of property could only go up. That’s why we use the word obsession. Ordinary people were buying properties for their young children who had not even left school assuming they would not be able to afford property of their own when they left college- Klaus Regling on Ireland. Sound familiar?
The evidence of nearly 40 cycles in house prices for 17 OECD economies since 1970 shows that real house prices typically give up about 70 per cent of their rise in the subsequent fall, and that these falls occur slowly. Morgan Kelly:On the Likely Extent of Falls in Irish House Prices, 2007
So they are now paying less in interest than it would cost to rent. Plus the value of their homes has increased by 50%.
In another ten years they will have fully paid off their homes and have virtually free accommodation for rest of their lives
You really do stretch the truth shadow "virtually free accommodation for rest of their lives" Do you own a brand new property? After a time maintenance rears it head. New roofs, new kitchens, replacing concrete driveways, it all costs quite a bit. And there are the ever increasing council rates and insurance bills. Owning is better than renting but there are periods when buying is not always better than renting.
As for paying less interest than the cost of rent, well that's fine, but what about the 3/4 of a million dollars of principle? You have to pay that that off as well remember. I think young people are wise to keep renting at the moment, let the landlords take the property price risk for them, because the way the global economy is heading we are going to see some big declines in property values across all Australian markets in the decade ahead.
I think young people are wise to keep renting at the moment, let the landlords take the property price risk for them, because the way the global economy is heading we are going to see some big declines in property values across all Australian markets in the decade ahead.
Hahahaha. People have been saying that since 2001 (and probably earlier).
I put trolls and time wasters on my ignore list so if I don't respond to you, you are probably on it ....
Shadow might be right, I got no data to back it up but I'm 28 and me and all my mates ( nearly all have mortgages ) all have offset accounts and we all reakon our loans will last around 10 years. The money you save with an offset acc is more than any term deposit and it's tax free...
Australian Property Forum is an economics and finance forum dedicated to discussion of Australian and global real estate markets and macroeconomics, including house prices, housing affordability, and the likelihood of a property crash. Is there an Australian housing bubble? Will house prices crash, boom or stagnate? Is the Australian property market a pyramid scheme or Ponzi scheme? Can house prices really rise forever? These are the questions we address on Australian Property Forum, the premier real estate site for property bears, bulls, investors, and speculators. Members may also discuss matters related to finance, modern monetary theory (MMT), debt deflation, cryptocurrencies like Bitcoin Ethereum and Ripple, property investing, landlords, tenants, debt consolidation, reverse home equity loans, the housing shortage, negative gearing, capital gains tax, land tax and macro prudential regulation.
Forum Rules:
The main forum may be used to discuss property, politics, economics and finance, precious metals, crypto currency, debt management, generational divides, climate change, sustainability, alternative energy, environmental topics, human rights or social justice issues, and other topics on a case by case basis. Topics unsuitable for the main forum may be discussed in the lounge. You agree you won't use this forum to post material that is illegal, private, defamatory, pornographic, excessively abusive or profane, threatening, or invasive of another forum member's privacy. Don't post NSFW content. Racist or ethnic slurs and homophobic comments aren't tolerated. Accusing forum members of serious crimes is not permitted. Accusations, attacks, abuse or threats, litigious or otherwise, directed against the forum or forum administrators aren't tolerated and will result in immediate suspension of your account for a number of days depending on the severity of the attack. No spamming or advertising in the main forum. Spamming includes repeating the same message over and over again within a short period of time. Don't post ALL CAPS thread titles. The Advertising and Promotion Subforum may be used to promote your Australian property related business or service. Active members of the forum who contribute regularly to main forum discussions may also include a link to their product or service in their signature block. Members are limited to one actively posting account each. A secondary account may be used solely for the purpose of maintaining a blog as long as that account no longer posts in threads. Any member who believes another member has violated these rules may report the offending post using the report button.
Australian Property Forum complies with ASIC Regulatory Guide 162 regarding Internet Discussion Sites. Australian Property Forum is not a provider of financial advice. Australian Property Forum does not in any way endorse the views and opinions of its members, nor does it vouch for for the accuracy or authenticity of their posts. It is not permitted for any Australian Property Forum member to post in the role of a licensed financial advisor or to post as the representative of a financial advisor. It is not permitted for Australian Property Forum members to ask for or offer specific buy, sell or hold recommendations on particular stocks, as a response to a request of this nature may be considered the provision of financial advice.
Views expressed on this forum are not representative of the forum owners. The forum owners are not liable or responsible for comments posted. Information posted does not constitute financial or legal advice. The forum owners accept no liability for information posted, nor for consequences of actions taken on the basis of that information. By visiting or using this forum, members and guests agree to be bound by the Zetaboards Terms of Use.
This site may contain copyright material (i.e. attributed snippets from online news reports), the use of which has not always been specifically authorized by the copyright owner. Such content is posted to advance understanding of environmental, political, human rights, economic, democratic, scientific, and social justice issues. This constitutes 'fair use' of such copyright material as provided for in section 107 of US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed for research and educational purposes only. If you wish to use this material for purposes that go beyond 'fair use', you must obtain permission from the copyright owner. Such material is credited to the true owner or licensee. We will remove from the forum any such material upon the request of the owners of the copyright of said material, as we claim no credit for such material.
Privacy Policy: Australian Property Forum uses third party advertising companies to serve ads when you visit our site. These third party advertising companies may collect and use information about your visits to Australian Property Forum as well as other web sites in order to provide advertisements about goods and services of interest to you. If you would like more information about this practice and to know your choices about not having this information used by these companies, click here: Google Advertising Privacy FAQ
Australian Property Forum is hosted by Zetaboards. Please refer also to the Zetaboards Privacy Policy