And...the good times like this will come again...maybe sooner than one thinks.
Just in time for the last hurrah...before I retire....
Just in time for the last hurrah...before I retire....
Anyone remember the days before the property boom?
- Thread starter willister
- Start date
Yes, many times.
I am not sure what the purpose of the thread is, but for anyone thinking things never go down or you can't have problems, well you can, I had loans at +17%, .
You have to roll with the punches, this forum has some great positive attitudes, it also has some inexperienced people who may get burnt badly.
Everything is constantly in flux.
I am not sure what the purpose of the thread is, but for anyone thinking things never go down or you can't have problems, well you can, I had loans at +17%, .
You have to roll with the punches, this forum has some great positive attitudes, it also has some inexperienced people who may get burnt badly.
Everything is constantly in flux.
10% will be a 240% increase...will not happen.
Imagine this lots of people have borrowed 800k in Sydney..they are currently paying 40k pa PI....at 10% they will be payment close to 90k!
Not going to happen.....however 7-7.5% is not out of the question.
Imagine this lots of people have borrowed 800k in Sydney..they are currently paying 40k pa PI....at 10% they will be payment close to 90k!
Not going to happen.....however 7-7.5% is not out of the question.
Yep, our economy is booming along, hot as, that interest rates have to hit 10% next year.
10% will be a 240% increase...will not happen.
Imagine this lots of people have borrowed 800k in Sydney..they are currently paying 40k pa PI....at 10% they will be payment close to 90k!
Not going to happen.....however 7-7.5% is not out of the question.
it wasn't fun in the late 80's either, but what had to happen happened. there is no benevolence for hocked up property speculators
Yes, it was the year we bought our first PPOR, similar how you describe it, with having the problem with the banks, being short $5K for the serviceability...
Ah, and then at settlement took a whole day off work to clean and paint the house, only to find out some curtains went missing....those were the times...
Near blocks of land were available for many years, and then just took off in price, but what did we know then about investing, nothing, zilch!
Yes, different times, different knowledge, different lots of things
Yes, I agree, life itself is full of changes.... All asset classes become undervalued, on par an overvalued over time, and picking the right time is a quest for all.
I think that's what the thread is about how things and times change, there's nothing wrong with change as it is part of life, so we just need to learn to embrace it and deal with it. The sooner I realised it for the better my life improved.
We are all inexperienced so we constantly need to learn and grow.
I suspect BB was one of those areas frequented by the hippies and campers for a long time, then got discovered by folks.
The same thing has happened down our way. For many years the Peninsula was unknown and noone came down here.
I used to drive down in the early '80's to play golf, and you could fire a cannon most times...a couple of weeks over summer it got a bit busier.
In 1992, I was seriously looking at a house for sale in Flinders - $55k. The commute to work put me off doing it (around 1.5hrs to Box Hill).
Now, houses down there are astronomical in the right places...over $1mill for vacant land, etc - and it's really just a sleepy village that has become trendy.
But lots of areas have done this around Aus, and it is often the areas which started off with a few higher-earning/professional/high public profile celebrities/sportstars etc folks buying holiday homes, and then all their mates follow them.
It's quite funny to watch it; often the areas are very ordinary at best for amenities, yet they become high demand for no reason other than to follow the herd.
Birds of a feather.
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It was like a small county town in the mid 70's,and when you scale it back till then 150k was a lot of money,the same if you drove a Mercedes back then,it was always one of those places that never stops in value and redevelopment..
Sounds as though desirable real estate has always been expensive for all of your lifetime.
Boom tishhhh.
This isn't Byron, but as recently as the mid 1990's $150k would have bought you the land that the original Ramada hotel in Ballina was built on - about 1/2 acre (or so) by the Richmond River. It used to be a boat dealer (tinnies, etc)
The development is now called Riverside Holiday apartments (a new Ramada has been built nearby on the site of an old slipway).
Yes but my point was it used to be achievable, now not. Other examples would be a single 28 year old used to be able to buy a flat next to an Eastern suburbs beach in Sydney without too much trouble (I did this). Now not so easy.
How long ago?
Plus, we need to qualify your statement.
What was your income, where were you living prior to this purchase while saving the deposit, was there a FHOG involved, and so on.
For all we know; you may have been living at home with Mum and Dad, no car or CC, earning $100+k per year in IT, saving every cent.
These sorts of things are very important in this debate.
My best friend bought his first property in Hawthorn....he was about that age. It was a two-storey townhouse, he was working as a consultant as a computer analyst.
And, guess what; he was exactly the above - except he had a car and a CC and a phone.
Now; I seriously doubt that 90% of the FHB's of that era would have been able to afford that property.
There are plenty of FHB's like him out there who can do this even now; but they are not the normal FHB by a long margin, so we can't use those types of FHB's as an example of an average.
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