That's a bit harsh I reckon. Unlike many out there, deadcat has taken the trouble to educate him/herslf on the market and appears to be well aware of the pros and cons of choosing to buy right now. He/she has the resources to service the debt burden, with some room for contigencies, and appears to be in it for the long haul. I say good luck to you deadcat, i hope it makes a great home for you and your family.
+2 Some people on this forum are bit extreme and you learn to ignore them pretty quickly.
stinkbug omosessuale Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments. Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck! See here Property will be 50-70% off by 2016.
I say good luck to you deadcat, i hope it makes a great home for you and your family.
+1 from me. You'll love having your own home to grow into, and in 10 years you'll very likely have made a few bucks to give you options for the next move. Congratulations.
If the market drops by 20% from here, why would I care? I bought a home not an investment.
Well said deadcat.
I too bought a home, not an investment. It's current market value is much greater than I paid for it - a fact which doesn't particularly excite me for the forementioned reason. I don't feel any wealthier because it has increased in value by so much, nor will I feel poorer when the value falls one day (and it would have to fall a very long way for me to end up in negative equity).
I was fortunate enough to have purchased just before the price boom kicked off and I can well understand the anger and frustration of those who want nothing more than a realistically affordable roof over their families head. We would seriously struggle to afford to buy the exact same little hardi-plank shoebox again today at it's current market value, even though our household income has increased significantly over that time. Why should an average-earning household have to sacrifice such a huge portion of it's income to fulfill the simple, basic human need for shelter from the elements? The price of housing really has become disconnected from the purpose of housing.
I feel that house prices will probably slowly drift down over a span of years, punctuated by plateaus and upwellings of activity here and there (though I don't dismiss altogether the possibility of a Steve Keen-style crash), but if you've done your sums and you've calculated that you really can afford it without being overstretched, have room to move if interest rates were to rise significantly in the future etc, then all the best!
Once again it is funny how those that own property automatically think that those that want a house price correction are "angry and frustrated". I can assure you that I am not angry or frustrated. It might come as a surprise that I too have an investment property (making $1600 per month profit) and can easily buy a house in some of the nicer suburbs in Sydney but I choose not to. It makes no sense to buy when I can rent the quality of house for nearly 50% of the purchase costs and I don't carry the risks. I rent high cost houses and quality comes with it but I do not run the risk of owning a 1m + house in this climate of uncertainty.
At some point I will buy and that will be when it makes sense and suits my lifestyle.
Once again it is funny how those that own property automatically think that those that want a house price correction are "angry and frustrated". I can assure you that I am not angry or frustrated. It might come as a surprise that I too have an investment property (making $1600 per month profit) and can easily buy a house in some of the nicer suburbs in Sydney but I choose not to. It makes no sense to buy when I can rent the quality of house for nearly 50% of the purchase costs and I don't carry the risks. I rent high cost houses and quality comes with it but I do not run the risk of owning a 1m + house in this climate of uncertainty.
At some point I will buy and that will be when it makes sense and suits my lifestyle.
I hear you Hoof, and it seems an eminenly sensible view, given the state of the property market here, and the world economy in general. There is absolutely nothing to be lost by sitting on the sidelines right now.
Once again it is funny how those that own property automatically think that those that want a house price correction are "angry and frustrated". I can assure you that I am not angry or frustrated. It might come as a surprise that I too have an investment property (making $1600 per month profit) and can easily buy a house in some of the nicer suburbs in Sydney but I choose not to. It makes no sense to buy when I can rent the quality of house for nearly 50% of the purchase costs and I don't carry the risks. I rent high cost houses and quality comes with it but I do not run the risk of owning a 1m + house in this climate of uncertainty.
At some point I will buy and that will be when it makes sense and suits my lifestyle.
Hoofa, what I said was....
Quote:
I can well understand the anger and frustration of those who want nothing more than a realistically affordable roof over their families head.
I did not name you. And I think a lot of people who want a house price correction certainly are angry and frustrated, and justifiabley so - wouldn't you agree? In fact, to some extent I am one of them. Not because I'm waiting for affordable housing - I have that already, thanks largely to the sheer good luck of the timing - but because the situation offends my sense of social justice.
To be able to easily afford to buy a nice house but choosing not to because one believes that it is overvalued and that a correction of some sort is imminent is one thing - to be locked out of reasonabley affording ownership of the fundamental human need for shelter from the elements is something else again.
While many of us want to see the same thing, I think it's clear that not all of us have the same motivation. No offence.
Although I am a property bear, I finally got in and bought something. I've found myself a brick 4 bedroom, 2 bathroom, 3 living area house within 10kms of Brisbane. The price was around $475k.
I've got 1 son, and another on the way - I was sick of renting, and didn't want to go through finding a bigger place that ticks all the boxes when I can just pay a bit more and buy something.
By my estimates, the place would have gone for $550k+ 1 year ago, so I think it was a good deal.
Now that I've bought, the market can go ahead and crash now.
gratz,
and especially well done for not buying last year..
Regardless of what happens in the market, put it aside and just keep your family happy... the rest of the crash/boom can just happen in the background.
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