Homes officially out of reach for under 35's

[Lamingtons]

About the not being able to save.

I wonder if childcare costs are involved.. $100 per child per day. The 50% whatever they call it... is it CCR or CCB is capped at $7500 per year. So it sounds like they have 2 kids in childcare. One is aged 5 and one aged 3. The older one probably would go to school soon and that might help things.

On the other hand, they might insist that they need a 4bedroom house. Or a large and brand new 3bedroom house. In a capital city and must be near to their work (i assume CBD) would be approximately $550-650/week in Melbourne? I tried telling friends to downsize when renting but I was given the hand to my face. Not possible. So partly right there Lizzie about priorities.

 

[Aaron Sice]

it's been great reading this thread.

i'm 32 this year. hopefully looking to secure my 6th house this year.

who made it official that i can't get a house?

 

[Aaron_C]

it's been great reading this thread.

i'm 32 this year. hopefully looking to secure my 6th house this year.

who made it official that i can't get a house?

You're just the greedy capitalist that we all know you to be. Get back down here!

 

[barney8]

I definetly think that councils need a big over haul in Australia.

Quite simply we should be allowed to duplex/townhouse/granny flat/small block of flats build a lot cheaper than we currently can. Land use is way to strict and min block sizes need reducing in many council areas.(IMO).

Aussie houses and blocks are way too big in many areas where demand dictates they should be carved up a little smaller. Legislate so we can make them smaller and it will be a big win for current land holders wanting to develop and those wanting to buy.(improve affordability...eg make more 300sqm instead of 600sqm properties in middle rung sydney for example)

It seems the only development that gets up in this country is the big mirvac/frasers etc developments pumping 1000s of half million dollar dog boxes on old industrial sites.(i know there are a few exceptions, but not a lot) the only people dumb enough to buy into these huge developments en masse are the wealthy overseas Asian investors. Because thats all they probably see developed over in places like China.

I might be a bit of skeptic here, but I think its a slight sign of corruption at some level of government.(or at the very least some institutionalised red tape which makes it too expensive to build on a smaller scale).

 

[gottabespotless]

Wow! So, how come on an income of over $112k/yr ... a take home pay of $90K+ ... or $1700+/wk ... can they not save anything?

Sorry, but something is really wrong in their priorities if that is the case.

Agree!

Also, why didn't these 'battlers' bother to start saving for a house deposit BEFORE they had kids? Everyone knows that having kids makes it harder to save for a house so what were they wasting their money on before starting a family?

 

[wobbycarly]

I definetly think that councils need a big over haul in Australia.

Quite simply we should be allowed to duplex/townhouse/granny flat/small block of flats build a lot cheaper than we currently can. Land use is way to strict and min block sizes need reducing in many council areas.(IMO).

Aussie houses and blocks are way too big in many areas where demand dictates they should be carved up a little smaller. Legislate so we can make them smaller and it will be a big win for current land holders wanting to develop and those wanting to buy.(improve affordability...eg make more 300sqm instead of 600sqm properties in middle rung sydney for example)

It seems the only development that gets up in this country is the big mirvac/frasers etc developments pumping 1000s of half million dollar dog boxes on old industrial sites.(i know there are a few exceptions, but not a lot) the only people dumb enough to buy into these huge developments en masse are the wealthy overseas Asian investors. Because thats all they probably see developed over in places like China.

I might be a bit of skeptic here, but I think its a slight sign of corruption at some level of government.(or at the very least some institutionalised red tape which makes it too expensive to build on a smaller scale).

We are in an 'outer' suburb of Geelong, and our 1000m² block has a covenant that it may not hold multiple dwellings - along with the majority of this area. And yet, the new estate "just up the road" is pumping out 300-350m² blocks! Mind you, we love the space (and the empty block next door helps! )

 

[mystery]

We are in an 'outer' suburb of Geelong, and our 1000m² block has a covenant that it may not hold multiple dwellings - along with the majority of this area. And yet, the new estate "just up the road" is pumping out 300-350m² blocks! Mind you, we love the space (and the empty block next door helps! )

Same in Ipswich Council WC. Our Redbank Plains property is on 800m2 corner block ... DA approved for dual occupancy, but council won't let us subdivide ... apparently we need 1200m2 for this ... I know, I know ..... it's the same two structures on the 800m2 block as would be on a 1200m2 block ... each will have separate power, water meter, electricity meter etc. We can strata title, but no subdivision.

Within 100m around the corner they have a new housing estate on 250m2 -400m2 blocks ..... crazy, but that's local govt zoning. I was told that they were zoned cottage lots, so block size if fine to build on.

Anyway .... Frustrating, but in our case do-able by dual occupancy/strata.

Mystery

 

[barney8]

We are in an 'outer' suburb of Geelong, and our 1000m² block has a covenant that it may not hold multiple dwellings - along with the majority of this area. And yet, the new estate "just up the road" is pumping out 300-350m² blocks! Mind you, we love the space (and the empty block next door helps! )

Exactly, we should have more freedom to do as we please with out housing blocks(within a little reason obviously). Current state, it is ridiculous. I know of a council in Sydney, about 10kms out of the CBD which increased its minimum block size for a dual occupancy recently from 650 I think to 700sqm. Conveniently this ruled out a lot of potential sites, meaning the only new development sites are a couple of larger ex industrial zones....I wonder if anyone is land banking those.

Happens all over Oz and its a bloody joke. Obvious potential corruption.(I am not having a crack at all town planners/councils here, but you do see it).

And if its not zoning, they cop you in other ways with different levies/taxes/ expensive red tape.

I've also heard of people battle for over 10 years to get suitable rural land rezoned for residential. Yet some DAs go through in months...

 

[lizzie]

.. each will have separate power, water meter, electricity meter etc. We can strata title, but no subdivision.

Actually - you can, sort of, and I have done so in the past. It's called a "dashed strata plan".

In the plan any buildings/structures are dashed in place so the buildings don't come under the strata title - only the external facilities are "strata". This means that the strata only covers the water/sewer lines and such "if they are shared".

Talk to your solicitor/conveyancer about this. They should know.

 

[VYBerlinaV8]

Also, why didn't these 'battlers' bother to start saving for a house deposit BEFORE they had kids?

This is spot on.

 

[challengeclub]

They don't have to take the whole loan period to pay it of though.

But of course; that's not what people do; you've gotta borrow as much as you physically can, pay the minimum repayment (because you're at your borrowing limit) and hope like hell the interest rates don't go up.

This would explain why a .25% change, or a jump in the price of petrol each week, sends so many screaming into the streets with shouts of.... "OMG!...how will I afford the groceries now?"

Even then, over the course of 30 years, borrower's incomes appreciate, the repayments remain reasonably static (give or take rate fluctuations) so it rarely takes more than 15-20 years to pay it off. Yes cost of living increases too, but generally the portion available to spend on mortgage repayments increases.

 

[Deltaberry]

Homes officially out of reachfor under 35s but European backpacking holidays and new iphones and ipads are officialy within reach!!!!

Woohoo!

 

[BayView]

Homes officially out of reachfor under 35s but European backpacking holidays and new iphones and ipads are officialy within reach!!!!

Woohoo!

Our choices define our path, I've observed.

Your post reminded me of a young-ish couple we had to sort out tyres for the other day at my workshop;

Young - maybe early 20's. Nice couple. Arrived in a clapped-out old "P.O.S" Conformadore with bald tyres. (in fact; I am thinking of changing the name of the business to POS Motors )

They needed two tyres to get them through a roadworthy (they are doing it up for this event) but have no money. "The tyres have to be cheap - any second hand ones?"

By a stroke of luck we did, and put them on...

While I was dong all this, I noticed they were both covered in tatts, and the car (which was a pig-stye) was full of cigarette butts.

My SIL is a tattooist, and she is covered in them, so I know what tattoos cost.

My mother smoked between a pack a day (died of lung cancer at 67), so I know what they cost as well.

Now, you can't tell me that if they didn't CHOOSE to spend a fortune on tatts and ciggies, they might be able to afford a decent car which is already on the road and safe.

 

[BayView]

Even then, over the course of 30 years, borrower's incomes appreciate

That is a very (financially) dangerous assumption.

I have seen many, many people whose incomes have gone tremendously UP, and also tremendously DOWN in their working life.

 

[Dazz]

if they didn't CHOOSE to spend a fortune on tatts and ciggies, they might be able to afford a decent car which is already on the road and safe.

.....100% true.....but unfortunately this is where it all goes pear shaped....as society in general forms a view and "judges" individuals choices and the resultant effects.

People's choices are always exaggerated over time.

Make consistently good choices and over a lifetime, one ends in a very desirable position....you end up choosing whether you wish to live on the riverfront in the Spanish villa or the Georgian mansion.

Make consistently bad choices, and you end up choosing whether you wish to take the top or bottom bunk in a prison cell.


The lines used to be fairly clear. It gets very murky indeed when people who make bad choices defend their choices and proudly state they wouldn't want it any other way. They are very happy to be in a hospital bed with lung cancer after smoking for 40 years.....and they'll be right back to carry on the conversation, just after they nip down and have another ciggie.

 

[Luv2Travel]

Make consistently good choices and over a lifetime, one ends in a very desirable position....you end up choosing whether you wish to live on the riverfront in the Spanish villa or the Georgian mansion.

I think that's called 'lucky' these days.

Make consistently bad choices, and you end up choosing whether you wish to take the top or bottom bunk in a prison cell.

And that's called 'unlucky' these days.

 

[cimbom]

Homes officially out of reachfor under 35s but European backpacking holidays and new iphones and ipads are officialy within reach!!!!

Woohoo!

I am under 35 and can buy houses and travel as well (although I don't have an iPhone or iPad....or a car for that matter)

 

[lizzie]

It gets very murky indeed when people who make bad choices defend their choices and proudly state they wouldn't want it any other way.

Everyone's actions are justifiable to themselves - otherwise they wouldn't have made that choice.

Or if they realise it was a poor choice after the event, they find a way to excuse their actions through blame or "luck" - as - they have to justify the reason they made that choice.

Even a mass-murderer vehmently believes in his choice to kill and cannot see why it would be wrong.

Human nature - funny old thing that it is.

 

[Angel]

Make consistently bad choices, and you end up choosing whether you wish to take the top or bottom bunk in a prison cell.

O Dazz, I didnt think the new guy gets to choose which bunk he gets.

 

[Token Funder]

Homes officially out of reachfor under 35s but European backpacking holidays and new iphones and ipads are officialy within reach!!!!

Woohoo!

So, all the young people spent too much time and money swanning around Europe posting photos to their Facebook page with their new iPhone and can't save a deposit as a result.

This is a scenario you believe to be in some way representative of first homebuyers in Australia?

Really?