Quantcast
Welcome Guest [Log In] [Register]
RSS
Welcome to Australian Property Forum. Please register here or log in below.

Username:   Password:
Reply
  • Pages:
  • 1
  • 12
Will your children be able to afford to buy a home in Australia?
Topic Started: 14 Jan 2011, 01:42 PM (5,554 Views)
nuff_ced
Member Avatar


In the other topic of a similar name there are lots of posts about how people started out on a small single wage and worked their way up the property ladder and how many can afford to buy now but refuse to.

This got me thinking and the next logical question for me then is will our kids have the same opportunities our grandparents, parents and we did. Or will our kids require

FHO grants
FHO boosts
Dual Incomes
Cash gifts as deposts
Parents as Guarantors
Gifted deceased estates

Basically everything we and generations before us managed to do without.

Is it possible?
Profile "REPLY WITH QUOTE" Go to top
 
catnap
Default APF Avatar


nuff_ced
14 Jan 2011, 01:42 PM
In the other topic of a similar name there are lots of posts about how people started out on a small single wage and worked their way up the property ladder and how many can afford to buy now but refuse to.

This got me thinking and the next logical question for me then is will our kids have the same opportunities our grandparents, parents and we did. Or will our kids require

FHO grants
FHO boosts
Dual Incomes
Cash gifts as deposts
Parents as Guarantors
Gifted deceased estates

Basically everything we and generations before us managed to do without.

Is it possible?
Good question. A question that is part of my personal reason for being on the sidelines regarding buying property. We've got about 500k in savings to put towards a house, so even in Sydney we're not totally priced out. We're probably in the same boat as many up-graders. However, without a good deposit we'd have no hope in hell of buying a house even with a good salary. I don't know how people manage now. Either things will have to change - a crash or slow deflation - something that brings houses back in line with wages or there is no way my children will be home owners in this country. Personally, I hate to think I'd be encouraging my 20 year old to knuckle down to save money for their first crappy house, just to get onto the property ladder. I want them to have the opportunity to study, travel, enjoy life. But even that wouldn't be the way into property ownership if house prices run further from incomes.

Interested to hear other opinions on this.
Profile "REPLY WITH QUOTE" Go to top
 
Deleted User
Deleted User

YES. Without going into too much detail, it is very likely that they will be true home owners, not a mortgage holder as most are today. Our outright ownership rates have dropped dramatically over the last 30 years and that will be reversed.

Please stop calling mortgage holders as home owners. They are not. Home owners are the outright owners only.

Mortgage holders do not hold the title unencumbered, simple as that!

There will be a day when you look around an average suburb and the houses will be full of the young again. Just not soon as it will take the great death of 2030 to 2050 transpires, as the BB all die. It is likely that 6 million will die or twice our current deaths per year in 2010.

Please do not buy until 2020.

Rent, save, invest and get a 100% deposit together.
The investing will help build a real country, not a house full of straw.
"REPLY WITH QUOTE" Go to top
 
Frank Castle
Member Avatar
Business As Usual

pauk
14 Jan 2011, 02:28 PM

Please do not buy until 2020.

I do hope you offer up your head on a plate to those who may be fucked over by your advise.
The forum is a better place with the forum fuckwits and their spank socks on ignore
Profile "REPLY WITH QUOTE" Go to top
 
Black Panther
Member Avatar


Frank Castle
14 Jan 2011, 02:33 PM
I do hope you offer up your head on a plate to those who may be fucked over by your advise.
Agreed, the next up cycle in prices is ratcheting up. NOW is the time to buy.

THERE IS NO CRASH IN SIGHT!
BLACK PANTHER
Preying on the Stupidity of the Bears
Profile "REPLY WITH QUOTE" Go to top
 
Ray White
Default APF Avatar
Gold Member
Posted Image
Profile "REPLY WITH QUOTE" Go to top
 
Mc_Gusto
Default APF Avatar
mcgusto

yes they will. who will own the houses if our children do not? a constant influx of cashed up overseas investors? i doubt it. It is logical that housing will be freed up when the bb's move on and likewise when we move on. prices cannot and will not continue to rise for ever and a day.
Silence of the BULLS

HA HA
Profile "REPLY WITH QUOTE" Go to top
 
davel
Default APF Avatar


Black Panther
14 Jan 2011, 02:44 PM
Frank Castle
14 Jan 2011, 02:33 PM
I do hope you offer up your head on a plate to those who may be fucked over by your advise.
Agreed, the next up cycle in prices is ratcheting up. NOW is the time to buy.

THERE IS NO CRASH IN SIGHT!
BP, you love the phrase "up-cycle" :D

Just to be clear, what constitutes an up-cycle to you? Nominal growth of 4%, 5%, 7%, 10%, 10%+??


I cannot for the life of me see how "now is the time to buy". If from that, I take it you are assuming say 7% plus growth, then a good few of these things needs to happen:

1) Credit to continue growing yet further despite Aus having amonst the highest private debt levels on the planet.
2) To achieve 1, lending standards to sink to new lows, when they are already lax compared to just about anywhere (pls show me different if you can). And this to work i.e. enough people to be lured into mortgages they should not take
3) A favourable economic outlook, which BTW would then lead to IR rises
4) Decent pop growth, which at the mo is not happening
5) Existing stock on the market to get cleared (prob depends on location)
6) Banks to solve their funding problems esp rolling over current overseas funding at low rates (which are not available anymore)

My view is now is "not the time to buy" because I dont think many of these will come to pass.
Edited by davel, 14 Jan 2011, 04:15 PM.
Profile "REPLY WITH QUOTE" Go to top
 
davel
Default APF Avatar


Ray, can you link to the story behind that graph so we can understand the analysis?
Profile "REPLY WITH QUOTE" Go to top
 
Deleted User
Deleted User

http://www.rba.gov.au/speeches/2009/sp-dg-251109.html

He calls mortgage holders, home owners. Dimwit. Had he shown out OO outright ownership rates then there would have been a real graph. Also he does not know why the under 35 s have declined. Dimwit2.
"REPLY WITH QUOTE" Go to top
 
1 user reading this topic (1 Guest and 0 Anonymous)
Go to Next Page
« Previous Topic · Australian Property Forum · Next Topic »
Reply
  • Pages:
  • 1
  • 12




Find us on Google+

Follow OzPropertyForum on Twitter


Australian Property Forum Housing Market Snapshot


Australian Property Forum focuses on Australian and global real estate markets, economics, and finance, including house prices, housing affordability, macroeconomics, and the likelihood of an Australian property crash. Does Australia have a housing bubble? Will house prices crash, boom or stagnate? Is it a good time to buy property using a home loan, or better to rent and save the difference? Is rent money dead money? Is the Australian property market a pyramid scheme or Ponzi scheme? Can property values rise keep rising forever? These are the types of question we address on Australia's premier real estate chat site for property bears, bulls, investors and speculators. Whether you're a property investor, first home buyer (FHB) or a happily renting tenant, this site has content for everyone. Additional topics debated on APF include politics, modern monetary theory (MMT), debt deflation, precious metals, generational divides, climate change, sustainability, alternative energy, environmental, human rights and social justice issues, whether or not Australia has a critical housing shortage, versus a glut (oversupply) of dwellings, negative gearing, capital gains tax, land tax, macro prudential regulation, reverse mortgages, debt consolidation, debt management, home insurance, landlord insurance, auction results, auction clearance rates, and all the latest house price news. Forum members also regularly review and and analyse the latest blogs and trending topics from sites like Business Spectator, Property Observer, Macrobusiness, Somersoft, Demographia, Steve Keen's Debtwatch, as well as MSM (mainstream media) articles from well known economists, reporters and commentators such as Ross Gittins, Neil Jenman, Michael Pascoe, Alan Kohler, Shane Oliver, Catherine Cashmore, Philip Soos, Louis Christopher (SQM Research), Mike (Mish) Shedlock, Leith van Onselen, Chris Becker, David Llewellyn-Smith, Chris Vedelago and more. APF is the first forum to report and debate the latest auction results and house price data releases from APM (Australian Property Monitors), Residex, RP Data Rismark, REIV (Real Estate Institute of Victoria), REINSW (Real Estate Institute of NSW), REIA (Real Estate Institute of Australia), HIA (Housing Industry Association), RBA (Reserve Bank of Australia), API (Australian Property Institute), and the ABS (Australian Bureau of Statistics).

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. Posts on Australian Property Forum may contain links to other websites operated by third parties. These websites are not under the control of Australian Property Forum and APF management is not responsible for their content.

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. Australian Property Forum members are solely responsible for the accuracy and authenticity of their posts, including any alterations made to posts. 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 the use of which has not always been specifically authorized by the copyright owner (generally, snippets from online news stories). 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 without profit 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.

For more information go to Limitations on Exclusive Rights: Fair Use

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