Gen Ys - 14 or 21k - which way to go... YAWN.

[Saint]

Ok

I'll admit I rarely post and I scroll through the forum to see if anyone actually comes up with something of interest from time to time (some posts seem to repeat and repeat the same questions). and I think this is my first post. I do try to call it like I see it with no bs which tends to get some offside. So I will admit that upfront and you can take what I have to say or leave it.

I think 14k is the way to go. Get it over with. Quick and neat. Move on with life.

Example of a GY

I work in with a nice Gen Y girl who is about to get married.
Their circumstances are that the boyfriend / fiance is self employed tradie - just started out. Shes been in the same job for a few years. Saved up a 15k as a deposit for a house (which I do think is admirable for anyone to do this as I dont have this in the bank).

So - before marriage - gonna buy a house. Seen the bank, gotten finance preapproved. House of their dreams is listed for say $350k, they offer 300 and get knocked back by the owner (as you would).

This is 2-3 months ago. Then rates drop again

Then they decide they dont want an established house, they want a new house. That way they get an extra $7k in the grant

So they go see a house and land builder, new land release is December, sign up for the waiting list.

Then they find an estate where the houses are turn key the next suburb over. So they're keen on that.

Then they tell me yesterday its back to established houses.

Here I'm thinking... these kids need a kick up the a$$... they're getting 14-21k tax free, good money they're earning and they think the world is out to fall over in front of them

My points.
Gen Y's is a 'general' term. older people like 40+ who could never afford a house before K. Rudd increased the grants. Mate I'm sorry but if you cant save a few bucks over 40 years then you can save the sad songs for someone else (outside of medical issues or somethin like that).

Now with Gen Y's, here they are wasting the time of a bank, land agents, real estate agents, house agents.

So some tips
If you go to build, yes you get more but you still have to get stuff done like soil tests, sometimes extra fill on blocks and so on. So your extra $7k gets eaten up pretty quickly - holding costs, soil tests... whatever.

Shocking as it may seem, some builders even take over 6 months to build. So SOME (not all I admit) still have to live with mom and dad and continue to bludge that bit more.

It reminds me of that guns and roses song - rocket queen I think it is -.... I'm a charity case give me something to eat... pay you at another time.... or however it goes.

A source I have in the govt says the boost will definitely cease 30 June. So Gen Y, you're on a limited timeframe.

You've got 6 months to get it together

Rates are going down

Cashed up investors are coming back in (me included) who can smash your offer on your Gen Y dream house every day of the week. I see the posts from the brokers on the forum - mate Im sorry if banks are running a week to 14 days behind then the markets buzzing.

You can quote all the statistics and the university learning you want to me but at the end of the day

You will still end up like your parents, with a mortgage, a house you kind of like, and kids who bludge off you in 20 years time. There is no avoiding it.

Rates wont drop forever, the investors I know are coming back into the market now and forcing the GYs go live in the suburbs an hour or two back from work (each way)

Keep waiting and it will be an extra hour a day on the train

But thats good for character building

Any care to comment I'm welcome to it. But that is just my thoughts.

 

[flowkingrich]

It reminds me of that guns and roses song - rocket queen I think it is -.... I'm a charity case give me something to eat... pay you at another time.... or however it goes.

That'd be "Paradise City" but you got the lyric right...

Cheers
YAWN,scratch,burp

 

[Rolf Latham]

Hiya Saint

Good first post......

FHOG buyers.............the majority of the FHOG people we get TODAY, are people that could never ever get a house under their belt previously. Usually they are well over 40, in some cases in their 50s.

This may seem at odds with logic, but it seems to work. For decades these folk had always psyched themselves out of a home and have used Doo dads to fill a gap they figured they could never fill. I come from Germany where its almost the national psyche that if you cant afford a home ( and 70 % cant) that you buy a new car every year etc .

Older folk buying a first home might be goodfor the future of the country ? Not having to provide subsidised public housing in old age, and some forced savings might be a good thing.

I find even young folk quite decisive, but the FHOG options dont make it easier for them.........I mean when I was a young fella you had 2 choices of bread, white buttercup or white tip top....................


ta
rolf

 

[Property Meister]

Then they tell me yesterday its back to established houses.

Here I'm thinking... these kids need a kick up the a$$... they're getting 14-21k tax free, good money they're earning and they think the world is out to fall over in front of them
Any care to comment I'm welcome to it. But that is just my thoughts.

unless you haven't told us the full story, I think you might be jumping to conculsions by criticising them for changing their mind, from what you have told us they have gone from established, to new back to established because of the change in the market conditions. it sounds like they are doing 100% better then most of the Gen Ys, it sounds like they haven't gone out and purchase/financed a $60k BMW because they think they deserve it in their 20s, or looking to buy a $800k property in a Blue chip suburb.

so to me it sounds like they are on the right track

 

[Property Meister]

Here I'm thinking... these kids need a kick up the a$$... they're getting 14-21k tax free, good money they're earning and they think the world is out to fall over in front of them

Now with Gen Y's, here they are wasting the time of a bank, land agents, real estate agents, house agents.


You've got 6 months to get it together

Cashed up investors are coming back in (me included) who can smash your offer on your Gen Y dream house every day of the week. I see the posts from the brokers on the forum - mate Im sorry if banks are running a week to 14 days behind then the markets buzzing.

You can quote all the statistics and the university learning you want to me but at the end of the day

You will still end up like your parents, with a mortgage, a house you kind of like, and kids who bludge off you in 20 years time. There is no avoiding it.

Keep waiting and it will be an extra hour a day on the train

Any care to comment I'm welcome to it. But that is just my thoughts.

^^^^^^
the above comments to me seem like you are quite bitter or you seem to really dissapprove of young or Gen Ys. or have personally had a bad experience with them. What happened??

 

[warmed_cockles]

Ok

I'll admit I rarely post and I scroll through the forum to see if anyone actually comes up with something of interest from time to time (some posts seem to repeat and repeat the same questions). and I think this is my first post. I do try to call it like I see it with no bs which tends to get some offside. So I will admit that upfront and you can take what I have to say or leave it.

I think 14k is the way to go. Get it over with. Quick and neat. Move on with life.

Example of a GY

I work in with a nice Gen Y girl who is about to get married.
Their circumstances are that the boyfriend / fiance is self employed tradie - just started out. Shes been in the same job for a few years. Saved up a 15k as a deposit for a house (which I do think is admirable for anyone to do this as I dont have this in the bank).

So - before marriage - gonna buy a house. Seen the bank, gotten finance preapproved. House of their dreams is listed for say $350k, they offer 300 and get knocked back by the owner (as you would).

This is 2-3 months ago. Then rates drop again

Then they decide they dont want an established house, they want a new house. That way they get an extra $7k in the grant

So they go see a house and land builder, new land release is December, sign up for the waiting list.

Then they find an estate where the houses are turn key the next suburb over. So they're keen on that.

Then they tell me yesterday its back to established houses.

Here I'm thinking... these kids need a kick up the a$$... they're getting 14-21k tax free, good money they're earning and they think the world is out to fall over in front of them

My points.
Gen Y's is a 'general' term. older people like 40+ who could never afford a house before K. Rudd increased the grants. Mate I'm sorry but if you cant save a few bucks over 40 years then you can save the sad songs for someone else (outside of medical issues or somethin like that).

Now with Gen Y's, here they are wasting the time of a bank, land agents, real estate agents, house agents.

So some tips
If you go to build, yes you get more but you still have to get stuff done like soil tests, sometimes extra fill on blocks and so on. So your extra $7k gets eaten up pretty quickly - holding costs, soil tests... whatever.

Shocking as it may seem, some builders even take over 6 months to build. So SOME (not all I admit) still have to live with mom and dad and continue to bludge that bit more.

It reminds me of that guns and roses song - rocket queen I think it is -.... I'm a charity case give me something to eat... pay you at another time.... or however it goes.

A source I have in the govt says the boost will definitely cease 30 June. So Gen Y, you're on a limited timeframe.

You've got 6 months to get it together

Rates are going down

Cashed up investors are coming back in (me included) who can smash your offer on your Gen Y dream house every day of the week. I see the posts from the brokers on the forum - mate Im sorry if banks are running a week to 14 days behind then the markets buzzing.

You can quote all the statistics and the university learning you want to me but at the end of the day

You will still end up like your parents, with a mortgage, a house you kind of like, and kids who bludge off you in 20 years time. There is no avoiding it.

Rates wont drop forever, the investors I know are coming back into the market now and forcing the GYs go live in the suburbs an hour or two back from work (each way)

Keep waiting and it will be an extra hour a day on the train

But thats good for character building

Any care to comment I'm welcome to it. But that is just my thoughts.

Question: How can you be a 'cashed up investor' if you don't even have $15K in the bank?

You are not cashed up.

 

[urchin]

Why is it a bad thing for them to consider all of their options carefully and to take the time to ensure that they are making a decision that is right for them? why do you think they should just make up their mind and get it over with? doesn't that seem like a bit of an irresponsible attitude when someone is making such a major purchase?

As far as them "wasting" the time of REAs, builders and bankers, from all that I have seen in terms of sales volume, these people should have plenty of time on their hands these days.

its funny that people accused me of being arrogant in another thread... your notion that they should just shut up and buy because you could "smash their offer any day of the week" makes anything i may have said pale by comparison.

Why does it matter to you that they are not rushing out to buy? Perhaps you are a bit frustrated with the limited impact the increased FHOG has had?

The hostility in this forums toward FHBs is really pretty remarkable. How dare they not buy a house when the gov't is shoving all that money at them! Outrageous! What more do they want!

Perhaps they aren't buying because its still not a good deal, perhaps because the economy is in a precarious state, perhaps because the looming economic crisis is not simply a matter of a "self fulfilling prophecy" but has a real basis in reality. Perhaps because property prices have started dropping for the first time in ages and we haven't reached the end of the slide?

If you are so anxious for them to buy, if you think it is such a great time to buy, if you are "cashed up", why don't you just go out there and smash their offer on their dream home? If you are waiting, why shouldn't they? if they are in danger of missing the boat (that's right, property prices to the moon!), aren't you in equal danger?

regarding the "limited time offer" (how many times have we heard that before) on the grant, if they drop it next june doesn't that just mean that demand for FHB-type houses will drop commensurately? 7k is only 2% of a 350k house. it wouldn't take much of a drop to erase that 7k and then some.

 

[LynnH]

I'll admit I rarely post .....

.....and I think this is my first post.

Perhaps you've forgotten some of your past posts, Saint? The post count at the top right corner of your post reads: "Posts: 30".

Cheers
LynnH

 

[ARF]

Ok

I'll admit I rarely post and I scroll through the forum to see if anyone actually comes up with something of interest from time to time (some posts seem to repeat and repeat the same questions). and I think this is my first post. I do try to call it like I see it with no bs which tends to get some offside. So I will admit that upfront and you can take what I have to say or leave it.

I think 14k is the way to go. Get it over with. Quick and neat. Move on with life.

Example of a GY

I work in with a nice Gen Y girl who is about to get married.
Their circumstances are that the boyfriend / fiance is self employed tradie - just started out. Shes been in the same job for a few years. Saved up a 15k as a deposit for a house (which I do think is admirable for anyone to do this as I dont have this in the bank).

So - before marriage - gonna buy a house. Seen the bank, gotten finance preapproved. House of their dreams is listed for say $350k, they offer 300 and get knocked back by the owner (as you would).

This is 2-3 months ago. Then rates drop again

Then they decide they dont want an established house, they want a new house. That way they get an extra $7k in the grant

So they go see a house and land builder, new land release is December, sign up for the waiting list.

Then they find an estate where the houses are turn key the next suburb over. So they're keen on that.

Then they tell me yesterday its back to established houses.

Here I'm thinking... these kids need a kick up the a$$... they're getting 14-21k tax free, good money they're earning and they think the world is out to fall over in front of them

So they're doing their DD and carefully deciding what to buy? How dare they!

Ok
My points.
Gen Y's is a 'general' term. older people like 40+ who could never afford a house before K. Rudd increased the grants. Mate I'm sorry but if you cant save a few bucks over 40 years then you can save the sad songs for someone else (outside of medical issues or somethin like that).

Agree, if an extra $7k is make-or-break for buying a house, you still cannot afford it.

Ok
Now with Gen Y's, here they are wasting the time of a bank, land agents, real estate agents, house agents.

Agents are the biggest waste of time on the planet.

Ok
A source I have in the govt says the boost will definitely cease 30 June. So Gen Y, you're on a limited timeframe.

You've got 6 months to get it together

Property prices are going nowhere fast for the near term. What happens in 6 months? The FHOG decreases, and so does demand. Somehow FHB-style properties sky rocket??

Ok
You can quote all the statistics and the university learning you want to me but at the end of the day

You will still end up like your parents, with a mortgage, a house you kind of like, and kids who bludge off you in 20 years time. There is no avoiding it.

So... they shouldn't buy a property, and NOT have a mortgage or kids?????

Ok
Rates wont drop forever, the investors I know are coming back into the market now and forcing the GYs go live in the suburbs an hour or two back from work (each way)

Keep waiting and it will be an extra hour a day on the train

Bitter much?

 

[gman65]

You seem to have an axe to grind with younger people, and don't even really seem to gather what is happening in the marketplace at the moment, and jumping to lots of conclusions.

Yes, all these hordes of investors are going to flood into the market and drive out all these FHB's and the market will all be fine in 6 months time. How dare they not buy right now

 

[The Red Baron]

^^^^^^
the above comments to me seem like you are quite bitter or you seem to really dissapprove of young or Gen Ys. or have personally had a bad experience with them. What happened??

Hmm agree.

If they are earning decent money, saved a deposit, rates in a downward trend and not looking outside their budget. They should be encouraged.

In a few more months they might have researched a bit more, know what they want and have a larger deposit.

Not sure what state they are looking in, but in Perth you'd have to be pretty cashed up to buy all the properties on the market at the moment.

 

[Tash_85]

YAWN... the point to that was? That rant could have taken up 3 sentances

 

[Spectre]

Here I am trying to stay off ss too as its taking too much of my time.

God thats a big rant. Quoting the whole thing and a minor blurb just makes it worse in going from top to bottom. Sorry pet peeve coming out there guys.

I think saint is getting posts confused with threads - first thread not post maybe?

Dont see where saint said he said he only had 15k in the bank - my read is different and its the gen y'er driving him batty that has the $.

so maybe thats where the aggro towards the fhbs comes from - but as rolf mentioned there used to be two choices of bread, now theres dozens - at least.

(I wont get into how a FHB picks out a choice of bread )

I was talking to a REA who we do some stuff with about this just tonight - FHBs start off wanting to buy a house, then evaluate everything and at the end they buy a house.

The tricky part sometimes as a broker or financier is that the decision to build or not build might influence the choice of lender as the deposit is greater. It also influences stuff like LMI premiums, products etc.

It'd be easier if the govt just said - stuff it 21k for everyone - I've seen a few builders putting 'rebates' into building right now anyway for FHBs to take the total fhog up to say 33k

now goodbye for a while hopefully - I'm off for more self imposed ss restrictions in posting

 

[Nathan]

http://au.youtube.com/watch?v=LT-fuvH8ww4&feature=related

maybe this is saint.... listen to it all...