More supporting evidence

If the rest of the forum are like me , I sometimes avoid very long threads that I haven't been actively involved with , as they tend to be just a reiteration of the same opinions in different clothing ( I know I never do this myself ....:rolleyes::eek: ) but I did take a plunge into the " building towards a new property boom " thread and noticed a couple of quotes that I had missed in the media which add further support for the current sydney centric price increases being an ongoing phenomena .

Glenn Stevens speech yesterday. ( 3/7/13)

"Likewise, dwelling investment has been low for an unusually long period, with at least some households intent on reducing debt, thereby strengthening balance sheets. Households have accumulated a good deal of cash as well over recent years. Meanwhile, population growth is quite solid and it has been picking up a bit of late. If anything, we will need to build more dwellings than we have been over recent years. Meanwhile, interest rates are low, dwellings are more ‘affordable’, and finance approvals for housing purchases have risen by 16 per cent over the past year. So there are ‘fundamentals’ that favour a pick-up in these sectors."

and from Barry O'Farrell

http://www.theadviser.com.au/breaking-news/28987-ten-year-high-for-housing

Ten-year high for housing

28 August 2013

The number of properties being constructed in Sydney has reached a 10-year high, jumping by more than one third in a year, according to NSW premier Barry O’Farrell.

With figures from the NSW Department of Planning and Infrastructure showing that 21,097 homes were built in Sydney during the past financial year, Mr O’Farrell said housing is an important driver.

“Housing is such a crucial economic driver because of the jobs it creates and the flow-on investment as people buy new appliances, carpet, blinds and furnishings,” Mr O’Farrell said.

Nice to see Glen Stevens has been listening to me in my thought that the property market is affordable at the moment :cool::D

Cliff
 
I still reckon it's all a dead cat bounce....

Let's wait and see what the end of year unemployment figures are after the election, and see if the interest rates stay low enough to keep the myth alive that property is again affordable.

Bad news on both fronts will see the penguin flock go screaming back into the surf.
 
I was looking over someones shoulder at a newspaper on a train (i cant affod my own :p) and he was reading an article with some real estate affordability stats for Perth. Apparently we've hit a a new low (meaning more affordable) since 2003.
 
Personally I can't recall a time where someone hasn't been whingeing about affordability. It's an australian past time and I think it's often perception . I remember when we started thinking about buying our first home , we thought how expensive and unaffordable things looked , but when we sat down and talked to the bank we were surprised how much we could buy.

Many of the current generations , as per those linked article want to live in cool places rather than start with something cheap and working up . Having said that , my Niece and her husband were able to buy a tired 2 bedder in Coogee when they were around 27 . This has become their first IP and they have bought a town house in Maroubra aged around 30-31. My daughter aged 24 is looking around to buy her first property at the moment. So if you want to , property is affordable for many if they are prepared to put some elements of their lifestyle on hold .

Personally , I think every one on the forum should send those people in the articles some messages of support , saying how right they are , and what a nasty bunch of people their landlords are for charging exorbitant rents .

I'm quite happy for them to continue their lifestyles and their whinging so they can rent my IP's. The longer the better. :)

Cliff
 
I still reckon it's all a dead cat bounce....

Let's wait and see what the end of year unemployment figures are after the election, and see if the interest rates stay low enough to keep the myth alive that property is again affordable.

Bad news on both fronts will see the penguin flock go screaming back into the surf.

Yep , I'll be watching with interest . I know two people who are thinking of buying their first IP's . One is looking at spending around 1.8 for a property and the other was looking at a shoe box in bangaroo for around 1 mill, but thinks a 1 bedder with parking in kings wharf for around 800 is better value :eek:.

The tradies we're using to do up our new house are saying they are busy than normal with people tidying up properties before marketing in spring . At first this worried me in terms of over supply , but thinking about it , most of these people won't be leaving the market. Some will be trading up and some will down sizing .

I chat to many people about property and so far every one I've talked to out side this forum seem fairly up beat about what they think will happen.

Cliff
 
The Spring selling strategy is about to start, yes....it'll be interesting to see what the volumes are compared to the good years.
 
So if you want to , property is affordable for many if they are prepared to put some elements of their lifestyle on hold .

I see this even in those in mid to late 30's. The lack of willingness to let go of the need to live in the inner west or eastern suburbs even though they have been priced out AND are unwilling to take a big mortgage (catch 22).

I was actually recently asked by someone if living in the west is safe for someone with a baby. It did not make me happy.

At the end of the day it's a choice. I understand people are used to living where they have lived...humans are creatures of habit, but I also know we are resilient and can adopt to change.

I'm quite sure, if one home is what we had to buy, we could have lived almost anywhere close to the city...

While I bought my first IP in 2770, I had family friends saying people with credit cards live there as well as they thought prices would drop 40% soon anyway. The property has received close to 40% capital growth in 3 years (in fact it will be 3 years from settlement in mid September!)....

....All I know is, I'm not really waiting for the dream home to arrive.....

...I'm just going to make it happen anyway!
 
Personally I can't recall a time where someone hasn't been whingeing about affordability. It's an australian past time and I think it's often perception . I remember when we started thinking about buying our first home , we thought how expensive and unaffordable things looked , but when we sat down and talked to the bank we were surprised how much we could buy.

Many of the current generations , as per those linked article want to live in cool places rather than start with something cheap and working up . Having said that , my Niece and her husband were able to buy a tired 2 bedder in Coogee when they were around 27 . This has become their first IP and they have bought a town house in Maroubra aged around 30-31. My daughter aged 24 is looking around to buy her first property at the moment. So if you want to , property is affordable for many if they are prepared to put some elements of their lifestyle on hold .

Personally , I think every one on the forum should send those people in the articles some messages of support , saying how right they are , and what a nasty bunch of people their landlords are for charging exorbitant rents .

I'm quite happy for them to continue their lifestyles and their whinging so they can rent my IP's. The longer the better. :)

Cliff

Don't worry I have done that already as most here would guess from my style.
 
Personally I can't recall a time where someone hasn't been whingeing about affordability. It's an australian past time and I think it's often perception . I remember when we started thinking about buying our first home , we thought how expensive and unaffordable things looked , but when we sat down and talked to the bank we were surprised how much we could buy.

Many of the current generations , as per those linked article want to live in cool places rather than start with something cheap and working up . Having said that , my Niece and her husband were able to buy a tired 2 bedder in Coogee when they were around 27 . This has become their first IP and they have bought a town house in Maroubra aged around 30-31. My daughter aged 24 is looking around to buy her first property at the moment. So if you want to , property is affordable for many if they are prepared to put some elements of their lifestyle on hold .


Cliff


What is NOT well known is that there has always been a sizeable percentage of first home buyers (FHB) who pay for their home outright without mortgage.

Table 4 from this australian bureau of statistics report is interesting.

In 1995-2001, around 15% of FHBs bought without a mortgage.

The latest figures for 2010-2011 showed that despite regular outcries of non-affordability, almost 7% or 30000 FHBs bought without a mortgage.


http://www.abs.gov.au/ausstats/[email protected]?OpenDocument
 
What is NOT well known is that there has always been a sizeable percentage of first home buyers (FHB) who pay for their home outright without mortgage.

Table 4 from this australian bureau of statistics report is interesting.

In 1995-2001, around 15% of FHBs bought without a mortgage.

The latest figures for 2010-2011 showed that despite regular outcries of non-affordability, almost 7% or 30000 FHBs bought without a mortgage.


http://www.abs.gov.au/ausstats/[email protected]?OpenDocument

Yeah good find.
 
I cannot believe the bile that is spilling out of some of the people who comment at the bottom of the articles and the bitterness about different generations. I know there is a bit of that here sometimes, but it is just oozing out in the comments section :eek:
 
Last edited:
What is NOT well known is that there has always been a sizeable percentage of first home buyers (FHB) who pay for their home outright without mortgage.

Table 4 from this australian bureau of statistics report is interesting.

In 1995-2001, around 15% of FHBs bought without a mortgage.

The latest figures for 2010-2011 showed that despite regular outcries of non-affordability, almost 7% or 30000 FHBs bought without a mortgage.


http://www.abs.gov.au/ausstats/[email protected]?OpenDocument

Nitpicking here, but article says they bought in previous 3 years (with neitherthemselves or partner previously owning a home), but don't have mortgage. The way I read it is that they could have bought the house almost 3 years ago and paid it off in that time before the interview.

Of course they could have bought outright too.

The sentiment remains the same
 
I cannot believe the bile that is spilling out of some of the people who comment and the bitterness about different generations. I know there is a bit of that here sometimes, but it is just oozing out in the comments section :eek:

Typical. Blame others for their failings....happens with every generation I guess.
 
I cannot believe the bile that is spilling out of some of the people who comment at the bottom of the articles and the bitterness about different generations. I know there is a bit of that here sometimes, but it is just oozing out in the comments section :eek:

Yea well, you should be happy there are people like that. If everyone was like you, then retiring wouldn't be so easy.
 
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