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A Storm is Brewing for the Australian Economy and Housing Bubble; Ignore the thunder, get washed away in the rain. Troubling combination of factors that cannot be ignored.
Topic Started: 23 Jan 2013, 05:47 AM (23,237 Views)
Shadow
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Evil Mouzealot Specufestor

Veritas
29 Jan 2013, 03:06 PM
No, your original point was that housing is affordable for everyone is Australia.

Find me a rental property in the Perth metropolitan area, for example, that is affordable for someone on the minimum wage?

It doesnt exist.
Here you go...

Minimum wage is $606.40 per week.

Rent for $140 per week. Easily achievable... http://flatmates.com.au/6000/perth+cheapest

Or buy for $250K... with 20% deposit, interest repayments of $207 per week. Also easily achievable... http://www.realestate.com.au/buy/in-perth%2c+wa+6000/list-1?activeSort=price-asc

(note... eligible for $7K FHBG and no stamp duty payable)

Now I'll wait for the excuses... 'but but but they would have to share, they would have to save a deposit, they would have to make sacrifices, that's not a desirable suburb, they deserve a freestanding 6-bedroom mansion in Peppermint Grove, oh the humanity!'

Quote:
 
BTW, public housing is full of people who cant work. they pay 25-30% of whatever pension payment they get from the State.
So they get free accommodation then, plus 65-70% extra free income on top, for not working? Seems they are well looked after.
Edited by Shadow, 29 Jan 2013, 03:45 PM.
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Timo
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stinkbug
29 Jan 2013, 08:04 AM
Housing is not a right. If you think it is, then please provide evidence showing this to be the case.
Yes. housing is not a right.......sorry, confusing that crazy assumption with the god given right of property infestors to leach off the tax payers and earn thousands of dollars doing diddly squat. My bad.
Shadow
29 Jan 2013, 03:37 PM
Here you go...

Minimum wage is $606.40 per week.

Rent for $140 per week. Easily achievable... http://flatmates.com.au/6000/perth+cheapest

Or buy for $250K... with 20% deposit, interest repayments of $207 per week. Also easily achievable... http://www.realestate.com.au/buy/in-perth%2c+wa+6000/list-1?activeSort=price-asc

(note... eligible for $7K FHBG and no stamp duty payable)

Now I'll wait for the excuses... 'but but but they would have to share, they would have to save a deposit, they would have to make sacrifices, that's not a desirable suburb, they deserve a freestanding 6-bedroom mansion in Peppermint Grove, oh the humanity!'


So they get free accommodation then, plus 65-70% extra free income on top, for not working? Seems they are well looked after.
Right, because someone on minimum wage struggling to pay rent has a $50,000 sitting in their bank account......

My bet is someone on minimum wage would be flat out having even $10k in their bank account, so lets take your 250k property and reapply a much more likely scenario of 240k mortgage which equates to $408 per week, plus rates, plus insurance, plus any reasonable repairs....

Anything to keep the bubble going, your sick.

A.R.E.P.S - Australian Real Estate Ponzi Scheme
Edited by Timo, 1 Feb 2013, 09:16 AM.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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Shadow
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Evil Mouzealot Specufestor

Timo
1 Feb 2013, 09:09 AM
Right, because someone on minimum wage struggling to pay rent has a $50,000 sitting in their bank account......
They wouldn't need that much. $43K for a 20% deposit, or $18K for a 10% desposit (remember, they are eligible for a $7K grant).

Quote:
 
My bet is someone on minimum wage would be flat out having even $10k in their bank account
I know you would, but you shouldn't project your lack of financial discipline onto everyone else.

Quote:
 
240k mortgage which equates to $408 per week
At 5.39% IO fixed for three years, $240,000 would equate to $249 per week.

Quote:
 
A.R.E.P.S - Australian Real Estate Ponzi Scheme
Yup, AREPS man, AAAAAAREPS to the max!
1. Epic Fail! Steve Keen's Bad Calls and Predictions.
2. Residential property loans regulated by NCCP Act. Banks can't margin call unless borrower defaults.
3. Housing is second highest taxed sector of Australian Economy. Renters subsidised by highly taxed homeowners.
4. Ongoing improvement in housing affordability. Australian household formation faster than population growth since 1960s.
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Catweasel
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Timo
1 Feb 2013, 09:09 AM
Yes. housing is not a right.......sorry, confusing that crazy assumption with the god given right of property infestors to leach off the tax payers and earn thousands of dollars doing diddly squat. My bad.

Right, because someone on minimum wage struggling to pay rent has a $50,000 sitting in their bank account......

Catweasel say it a wonder about average mouse with the mortgage, super size or not, what a cash amount sit in mouse bank account?

50 the K?

So much the data on mouse house and price level, but how much a cash the savings do mouse actually have?

Like a Twilight Zone of mystery.
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Timo
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Shadow
1 Feb 2013, 09:50 AM
They wouldn't need that much. $43K for a 20% deposit, or $18K for a 10% desposit (remember, they are eligible for a $7K grant).


I know you would, but you shouldn't project your lack of financial discipline onto everyone else.


At 5.39% IO fixed for three years, $240,000 would equate to $249 per week.


Yup, AREPS man, AAAAAAREPS to the max!
Keep blowing to keep the bubble going?

43k for a 20% deposit? 7k would be eaten by stamp duty and legals, so in reality you probably need more then even the original 50k. And my calculation of weekly mortgage repayments is not based on "emergency low" interest rates, combined with interest only repyaments, rather a more likely averaged 7.5% fixed at 5-10 years, because the average minimum wager is going to need some kind of longer term stability when planning their finances.

You can try cut it any way you want, a minimum wage earner cannot afford even the "affordable" dumps in the Australian Real Estate Ponzi Scheme market.

After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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Strindberg
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Timo
1 Feb 2013, 10:48 AM
Keep blowing to keep the bubble going?

43k for a 20% deposit? 7k would be eaten by stamp duty ..........
FHBs in WA don't pay stamp duty on properties up to $500k.
Housing costs to Income broadly unchanged since 1994 - re-ratified here
The People of Australia have the highest median wealth in the World
2002-2012 10 year house price growth the SLOWEST since 1952-1962
"There are two kinds of people in this world: ones that fiddle around wondering whether a thing's right or wrong and guys like us." (Hugo to Gagin in Ride the Pink Horse)
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Ex BP Golly
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Whats that funny old saying?

"the biggger the rewards the higher the risk".

I guess housing is different though? :pop:
Edited by Ex BP Golly, 1 Feb 2013, 11:20 AM.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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K-town
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Strindberg
1 Feb 2013, 11:02 AM
Timo
1 Feb 2013, 10:48 AM
Keep blowing to keep the bubble going?

43k for a 20% deposit? 7k would be eaten by stamp duty ..........
FHBs in WA don't pay stamp duty on properties up to $500k.
It's amazing how many people on here who have obviously never bought property lecture those who have regarding the buying & selling process and costs.
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Catweasel
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K-town
1 Feb 2013, 11:23 AM
It's amazing how many people on here who have obviously never bought property lecture those who have regarding the buying & selling process and costs.
Catweasel laugh.

So mouse make assume that if it buy the house, it somehow the "wise" in its process.

Use same mind of mouse, if mouse have no experience of mouse house crash, can it lecture its sparring partner on its non-eventual?
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Simon
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Timo
1 Feb 2013, 10:48 AM
7k would be eaten by stamp duty and legals
You need to wise up, theres no stamp duty for a 250k FHB purchase

Buy a home, get some experience in the housing market before speaking from a position of such ignorance
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