Homes officially out of reach for under 35's
- Thread starter haydos1979
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Nothing new, eh. Okay. Would you please refer me back to a time in history where the price of a home was so high that banks would offer perpetual "interest only" loans on houses, rather than set terms of 8-15 years as per about 20-25 years ago?
If they refuse option 1, to have a go, they end up in this vortex of cyber bleating....makes for fascinating reading....what with their literary skills on full display, but always ends up nowhere in the real world.
Did I ever tell you the story of the little boy and the Zen master?
There is a difference between real increases in worker productivity/technological innovation, and artificial increases in housing prices.You know what's really unfair? That people who are now in their 50s had to deal with far, far higher prices for a whole range of things when they were starting out than youngsters of today, such as:
* Cars
* Whitegoods
* Appliances
* Travel
* Clothing
* Food
Also, people of this age group had to deal with the high inflationary environment of the 1970's, and real incomes were lower.
It's just so unfair...
(Swings and roundabouts, people)
Henry Ford built his Model T with a production line and a lot of human labour.
Nissan builds their high performance skyline with 3 blokes and 15 robots.
Maybe dump was not the right word, and it was being lived in, but "liveable" only just scrapes through
. Shower came up to son's chest, so he could have knelt to shower but when we gutted the shower it was so wet and had been leaking so badly that I don't understand why the unit beneath it was not having issues.I suppose I was meaning that it was a solid tiny two bedroom unit, that needed painting, new bathroom and the kitchen was disgusting, but able to be cleaned up and refurbished rather than install new (which he couldn't afford). Many first home owners are wanting three bed, one bathroom, or better.
You are kidding, aren't you?
That's nice, but the real issue is that at different times different things are cheap or expensive, and other opportunities may or may not exist.
Times past, real incomes were much lower. Standard of living was lower. Credit was harder to get. Houses cost less.
Ultimately, we have choices to make and need to adapt. Perhaps we're headed for a more rental oriented model of housing with stronger tenants rights (like in parts of Europe)? Perhaps property prices really will crash? Or perhaps they won't.
Either way, people should be looking at what they can do, what they're good at and playing to their strengths. Trying to do things the way 'everyone else' does them is not generally a recipe for success.
Not at all.
I've never, ever been asked by a bank to repay a loan for house over 8 years or 12 years. Loan terms have always been 25 or 30 years from memory. My first proper "housing loan" was when I was 23, nearly 30 years ago.
I would be interested to hear whether anybody has been told to repay a housing loan in such a short term.
I would be interested to hear whether anybody has been told to repay a housing loan in such a short term.
It's pretty simple to paint everyone struggling as "getting the dole, having a girlfriend with 4 different kids to 4 different fathers, sit at home you little beauty, never need to lift a finger except to change the foxtel channel", and you know, I do agree with Einstein in that "if you cannot explain something simply, you do not understand it well enough", but there comes a point ala Richard Feynman that oversimplifying complex ideas is a disservice to those with a mind.
I mean, it's great that you simplify things so as to make them easier to understand...except when you do so to such a degree that you yourself seem simple.
Just sayin.
Homes might be more expensive now but interest rates are significantly down.
As for ease in buying a house, it's no different to when they were cheaper and rates were up.
Easing conditions (schemes like FHBG, lower or nil stamp duty, etc.) for FHB or low income earners often create higher house prices, with an eventual flow on effect upwards, so you have the issues present all over again.
Booms don't go on for ever either, so plenty of opportunity to save and buy a modest home or unit.
My first home was a 3/1/1 in a crap area, that I rented out while I lived in a 1/1/1 maisonette in a decent area for 30% less than I recieved in rent. To buy this now, as it was then, I'd say it would be worth no more than 200K.
I was about 21 and single (the days when the bank manager laughed at you for thinking a single female could buy a house - the fool smirked and sent me away).
Personally I think things are much easier now in so many ways. Items needed then to furnish, vehicles, clothing, etc. were so much more expensive. There is more free entertainment now too.
Being poor and going without, is not like poor and going without was then.
As for ease in buying a house, it's no different to when they were cheaper and rates were up.
Easing conditions (schemes like FHBG, lower or nil stamp duty, etc.) for FHB or low income earners often create higher house prices, with an eventual flow on effect upwards, so you have the issues present all over again.
Booms don't go on for ever either, so plenty of opportunity to save and buy a modest home or unit.
My first home was a 3/1/1 in a crap area, that I rented out while I lived in a 1/1/1 maisonette in a decent area for 30% less than I recieved in rent. To buy this now, as it was then, I'd say it would be worth no more than 200K.
I was about 21 and single (the days when the bank manager laughed at you for thinking a single female could buy a house - the fool smirked and sent me away).
Personally I think things are much easier now in so many ways. Items needed then to furnish, vehicles, clothing, etc. were so much more expensive. There is more free entertainment now too.
Being poor and going without, is not like poor and going without was then.
Which affects deposit negatively.
Which affects overall loan term negatively.
Which affects long term equity negatively.
At what (human) price?
You could say the same thing as compared to medieval times.
That is correct. Back then, being poor was more of a choice in behaviour. Today, being poor is more a manifestation of system.
You want some "positive input"? How about this. The market goes up, and the market goes down. People who say that the "market is going down" when you have your business model built upon the market growing are not your enemies. They are merely those saying that rather than tying yourself to a growth or contraction paradigm (with associated ridicule whenever their ideas conflict with yours), that you learn to adapt to whatever market is there, or where it is going, at the time.
Of course, the "property only goes up!" crew don't like that idea, because it requires thought, O Liver in Dens Drinking Watered Down Milk Sayer.
Which affects deposit negatively.
Which affects overall loan term negatively.
Which affects long term equity negatively.
At what (human) price?
That same 3/1/1 I bought would be 200K to buy now. One can always buy one of those. The human price would have to be it's not a 4/2/2 in a blue chip area.
You could say the same thing as compared to medieval times.
That is correct. Back then, being poor was more of a choice in behaviour. Today, being poor is more a manifestation of system.
It was due to NO choice in behaviour.
At the time, many people still didn't have a VCR let alone 2 or 3 TV's/cars or NEW furnishings because they were expensive - much more expensive. Many took a while to purchase things like curtains, carpets and other basic items. TRUE!
These items are now cheap. We bought a 68inch Panasonic box in 1996 for $1350, yet now we can buy a house full of LCD's for the same price (and we have
Then there's the free stuff - so much entertainment for people now whereas we had only the beach or drives (in our very basic cars).
My post wasnt directed to you OA, .... I have not made any comments in this thread or any others about the market or any paradigm at all that warrants your criticism of me.
My post was in regard to the attitudes expressed by our new member... the generalisations about "dole bludgers/ unwed mothers" etc... I dont think that it is a very positive way to begin life on our forum... and I was trying to work out a gentle way to say that.
I think you might need to pull your head in abit and realise that not every post we write revolves around you and your opinions!!
Your wish is my command
No don't send me back there again!
Life is too precious to be attached to all this negativity. Mate, surely you want to come back over to the bright side. Something dark has entered your mind. We can help you. Just let it go.
Homes are not out of reach for the under 35 year old. But they might be out of reach to be paid of fully by retirement.(assuming they are average earners, want kids, the odd holiday etc etc).
My story. I bought an inner city apartment in Sydney 5-6 years ago after having to rent my whole life.(dont have the luxury of the family home to live in to scrimp and save, so it was not easy getting on that first rung I can tell you).
That apartment isn't fully paid off, but I now have enough equity in it(may sell it to really smash my PPOR debt down when i move) to buy a house in a more family area with my partner.(we have no kids, but unlike our friends we plan on buying and paying down our debt before starting a family). I have a budget of around mid 500s to early 600s. I expect to be able to still find a semi or an older house within comfortable commuting distance to Sydney.
I am in my early 30s. Did go to uni, but only just passed and only have ever had really pretty average paid jobs.
I expect us to have a pretty large mortgage on this new house. I would say with a 4 in front of it. But with double income and no kids, I think we can pay down enough principal on it in 5 years before starting a family to make it bearable.
Its not easy street, but I think its worth it. I want a family home.
I can see how its hard for a lot of people though. I am not on a fairly fixed wage like say a nurse or a teacher. I think its wrong that honest hardworking people cannot get into their own house.
My story. I bought an inner city apartment in Sydney 5-6 years ago after having to rent my whole life.(dont have the luxury of the family home to live in to scrimp and save, so it was not easy getting on that first rung I can tell you).
That apartment isn't fully paid off, but I now have enough equity in it(may sell it to really smash my PPOR debt down when i move) to buy a house in a more family area with my partner.(we have no kids, but unlike our friends we plan on buying and paying down our debt before starting a family). I have a budget of around mid 500s to early 600s. I expect to be able to still find a semi or an older house within comfortable commuting distance to Sydney.
I am in my early 30s. Did go to uni, but only just passed and only have ever had really pretty average paid jobs.
I expect us to have a pretty large mortgage on this new house. I would say with a 4 in front of it. But with double income and no kids, I think we can pay down enough principal on it in 5 years before starting a family to make it bearable.
Its not easy street, but I think its worth it. I want a family home.
I can see how its hard for a lot of people though. I am not on a fairly fixed wage like say a nurse or a teacher. I think its wrong that honest hardworking people cannot get into their own house.
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Two people who work for me
Male aged 25, $50k pa,works Northside Brisbane wife aged 25, nurse, $50kpa works RBH, purchased 3/2/2 in Northlakes for $345k with 45k deposit - 3 x income.
Female aged 30 $50kpa,works Northside brisbane, Husband, 33 Nurse C$55kpa works Redcliffe Hospital, bought 2nd home in Caboolture 4/2/2 on 1100 sqm for $550k with $100k equity earned on their fist home purchased 6 years earlier - just over 4 x income (oh and 3 kids)
Commute - 35 minutes to Northside, 1 hour to CBD, 15 Minutes to Redcliffe - affordable, yes with 2 incomes but neither earning over the odds. Times have changed and 2 incomes are needed but also available. These guys are not struggling, have holidays, evenings out etc but set a priority of buying their own homes early.
Male aged 25, $50k pa,works Northside Brisbane wife aged 25, nurse, $50kpa works RBH, purchased 3/2/2 in Northlakes for $345k with 45k deposit - 3 x income.
Female aged 30 $50kpa,works Northside brisbane, Husband, 33 Nurse C$55kpa works Redcliffe Hospital, bought 2nd home in Caboolture 4/2/2 on 1100 sqm for $550k with $100k equity earned on their fist home purchased 6 years earlier - just over 4 x income (oh and 3 kids)
Commute - 35 minutes to Northside, 1 hour to CBD, 15 Minutes to Redcliffe - affordable, yes with 2 incomes but neither earning over the odds. Times have changed and 2 incomes are needed but also available. These guys are not struggling, have holidays, evenings out etc but set a priority of buying their own homes early.
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