The readers comments section at the end of the article is interesting. Lots are whinging people
Soaring house prices 'not helping us'
Soaring house prices 'not helping us'
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Lower-income households are less likely to own housing, either their own home or an investment property, than higher-income ones.
Comment 70 of 71
FHB Maybe of melbourne: 80K? Forget it! You will need at least 200K combined to even think about buying a decent place around the 350-450 mark comfortably. On 80K you could probably comfortably borrow about 200K.. maybe 250 max. I know, I checked it all out a couple of years ago, went to bank interviews, got pre-appoved loans, the lot, but never bought. That was before emergency interest rates, but also before inflation went nuts. There's just no way to borrow more without eating 2 minute noodles and catfood for 10 years unless wage inflation comes back before then.. O where art thou wage inflation? I've been on a bit over 80K for almost 2 years now! Before that, 10% increase per year without fail. What gives?
Posted by: renter of sydney 4:58pm today
Comment 69 of 71
I get sick to death of people complaining about the price of property! Guess what, we all had to do it at some stage. And when I did it, I didn't have a huge income. 30 years ago, I was earning $10,000 per year! That's right, that's less than $1k per month. Most people today spend that on their car loan.
I did it the hard way by saving, and then buying something I could afford ($40k). I still live in this house today. What amazes me today is how much people are earning these days. I was only on $10k, when I bought my place. Now people are earning 50, 60 and 70 thousand dollars! How ridiculous! And they still complain about the price of property!
A classic example, a house up the street from me was recently passed in at $650,000 (which was definitely a good buy for this area). People out there are earning the big dollars, and can't afford something like this! It's pure financial ignorance! And what about the FHOG?! We didn't exactly have that when I bought a house. In fact when I bought my house, I had to pay the government. Stamp duty was over $300! And remember, that's with a wage of only $10,000.
Pure whingers if you ask me!
I agree with your sentiments, but I think most people now would love to buy their first home at just 4 times annual salary. They may say you had it pretty good!
$80k x 4 is $320k. That 400k house is 5x income.
I was on $18k when I bought my first house for $40k, but then graduated and got a $35k job a few weeks later (yes, I bought my first house when I was still a student at uni - I'd saved a $13k deposit in a year on that $18k income, go figure).
Mind you at the time I was living in a sharehouse at $60pw expenses included ... fun times. Bit harder to do that now, I have a partner and two rugrats to feed.
I agree with your sentiments, but I think most people now would love to buy their first home at just 4 times annual salary. They may say you had it pretty good!
There are emanantly more important things to worry about in the realm of property investment.
I personally believe we too easily label people. We castigate based on a couple of sentences, personal biases etc.... Greedy investor, bludger renter..... Doesn't anyone get totally bored with this name calling? Gees how many times have threads on SS, from people who obviously have a few more smarts than the average bear, deteriorated into slanging matches on this and related subjects.
Instead of moaning about these people you should thank the lord they pay thier rent!.
Even consider buying them a very expensive christmas present (a plasma tv for instance) for paying on time.
Not much chance of that happening around here is there?.
Assuming the average wage is at $52k per year, which I'd seriously doubt - I reckon it's more, then this would mean a first home would be in the vicinity of $208k.
You don't get much for that, but you can still do alright for $300k or less - if you are not too fussy and just a little bit realistic.