I agree with that sentiment Biggles/Redcat. Young people nowadays (myself included) want their cake and to eat it too. But that's to be expected - people always want to have affordable accommodation near the city. This is especially the case if you consider that many more younger people are university educated these days and therefore usually work in a professional job in the CBD. This makes that morning commute and proximity to the CBD all that much more important for them than it was 20 years ago.
Melbourne's Hot Property Market
- Thread starter jingo
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Which is fine if they can afford it, but I don't want to hear them complaining when they can't have it.
Which is fine, but the key word there is WANT, they are not be entitled to it. If they want this lifestyle, then perhaps they need to work 80 hours a week to pay for it.
Again this is not a necessity, there was a time I was driving up to 90 minutes one way to work. If it means spending 2 hours on a train a day to get into the city for a few years until they can afford a place then so be it. I'm not saying young people shouldn't aim to achieve what they want, if that's an inner city property then good luck to them if they can afford it. But they should not expect to get this if they can not afford it, and I am sick of hearing about how impossible it is for first home buyers to enter the market. It absolutely is NOT.
I think that's true - you can even afford a house+land on a 1000sqm block in Croydon for sub $400k. Croydon is a bit far from the CBD but people have to start somewhere. I don't know what the affordability situation was like 20 years ago but I can't imagine it being any different from what it is now. Especially during the 1980s bubble.
That is exactly the point, they don't want to start somewhere. They want the best property in the best location yesterday. And yes you can get property in Croydon, but if you think that's too far, my first property was Lilydale (even further out again), and a friend of mine was travelling Silvan to the CBD daily! It's those who sacrifice who are in the market now, who are laughing at property going up, while the others complaining that it's too expensive are sitting there watching it get further and further out of reach.
Well this is the generation that is used to getting what it wants, when it wants it. The flipside is that their parents would have acquired wealth from rising property prices so this makes better property that much more affordable - parents can just use their equity etc. This is something that perhaps I will have to resort to. While I appreciate that you need to start somewhere I think it's always better, if you have the means, to get that head start over the others instead
And when they don't, I simply think tough SH**!
That's all well and good, but when we're talking about the average first home buyer on average salary, I doubt many have this option. Parents may not be in a position to, or parents may not be willing (and rightfully so) to do this. I certainly don't think people should be relying on this option and should learn to stand on their own two feet.
If it is this house below then was it really a million dollar build or was your friend the actual builder? Even englehart quote $1600-$1800 sqm and that looks to be 60-70 sq or so at a somewhat higher quality than the standard stuff. Would have guess $2300-$2500 sqm in today's money just looking at the picures (high quality). Then you have design/architect fees, landscaping/pool, etc.
http://www.domain.com.au/Property/For-Sale/House/VIC/Balwyn-North/?adid=2008249411
I'd say the land value is approx $1.8million today. Would have said $2million+ for the house.
It has been made worse over the last 12 montsh but weren't inner areas always largely out of reach to first home buyers? To me it wouldn't make much sense if the average first home buyer could afford a house a "reasonable" distance ot the CBD. It would be like someone just out of uni expecting to be able to afford a $80k car. A few can, but not many.
I think for the average first home buy they'd need to buy on the fringe and do the hard yards and upgrade over time. Either that or buy something small closer in (unit/apartment) and again do the hard yards and upgrade over time. Or sacrifice alot and throw everything at a big mortgage (even then likely needing a pretty high income). I think most first home buyers do have a reasonable degree of choice of where they want to live but each option involves some degree of sacrifice, location vs space.
Yes people need to sacrifice to buy a place - my father tells me the same thing. But I think nowadays people can only really afford to buy as a double-income family. This is the only way to hedge against future unemployment, interest rate rises and also to enable them to afford a decent place in a better suburb. It's when double-income families can no longer afford to buy a place when you'll see bad things happen.
Interesting, I once bidded in an auction against a buyers advocvate doing golf swing moves. Always wondered who who was. Do you know his second name or website? He was good at what he did, especially bidding in confusing increments and starting off with an unusual bid amount.
I have seen these BA's around (maybe not that particular one) and some of their auction tomfoolery. Not impressed personally and they hardly confuse bidders.
Oh yeh, tossers is how I would describe their auction antics.
Hahaha...it must be the same guy. Dunno his 2nd name and website but he seems to always wear a woolen or cashmere suit.
I remember he was once bidding on a house last year in Locksley Ave, Kew and he was like $1.275mil and a half and then he would go $1.316mil and a half. Confused the ***** out of the auctioneer and his scribe henchmen. and yeah, he likes to start off on unsual bid amounts.
Hi WP,
Very interesting point you make regarding the FIRB and credit fuelled Chinese Money pushing up prices. Is there any evidence / Data to show this is actually happening? ie stats on % change of Foreign investors purchasing property ?
thanks.
Hi Player
Are you suggesting that now is a good time to get revals done on any Melbourne property, realise some equity and having this equity sitting in an offset a/c so that if an opportunity presents, you could be ready to "pounce"?
Are you concerned that if you leave it too long the valuations might not be as favourable as they are currently?
thanks
Exactly!! And for those that INSIST they need to be in the city, it's probably still possible IF you let go of some concessions. The market sentiment was exactly the same when I first bought and I could NOT afford to live in Fitzroy but I needed to be in the city so I bought a tiny super ugly piece of crap in North Melbourne just across the road from the methedone (sic?) clinic. I got CG from it and purchased in Fitzroy after that. I viewed it as a stepping stone.
I see so many FHB couples trying to buy their ultimate long term home and it's just not possible. Not now, but not back then either. Unless they are prepared to live outer, where they WILL find a wonderful home that suits their needs.
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