Mortgage Stress and Rental Stress in Sydney

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kamchatsky

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alexlee said:
Ya know something, if you are having mortgage stress and you're living in Point Piper, MOVE!!!
Click to expand...

Surely people "NEED" to live in Point Piper to be hip and get their potential spouses .......

In the mean time it is quite disturbing that the areas of people in mortgage stress are located in the west/south-west. And the data was probably collected before the recent interest rate rise .......
 
we had some rubbish printed here today about rent stress in WA... you can only shake your head. the only crisis is the fact that it has gone up but what hasn't? by that definition I would say I am petrol, beer and coffee stressed.

whichever way you cut it, renters are getting a bargain compared to cost of ownership - they are getting a free ride and just want to take take take
 
edison said:
Even by harbour, renters do it tough
http://www.smh.com.au/news/national...ers-do-it-tough/2007/08/24/1187462523576.html

Sydney not alone in seeking housing crisis solution
http://www.smh.com.au/news/national...crisis-solution/2007/08/24/1187462523625.html

Less of the mixed life as rents go up
http://www.smh.com.au/news/national...-as-rents-go-up/2007/08/24/1187462523634.html

See attached files for mortgage and rental stress statistics in Sydney.
Click to expand...

These are all those too poor, and probably too lazy, to own even their houses. Not surprising some are stressing after all that slackness.
 
Ausprop said:
whichever way you cut it, renters are getting a bargain compared to cost of ownership - they are getting a free ride and just want to take take take
Click to expand...

Renters just want somewhere to live and have been paying rent rises in line with wages, historical trends and inflation.

They have NO CHOICE in how much someone bids on the price of the property they are staying in causing the yield to go down.

It is like you are complaining that dividends are crap compared to prices after everyone bid up the price of the shares.
 
HiredGoon said:
Renters just want somewhere to live and have been paying rent rises in line with wages, historical trends and inflation.

They have NO CHOICE in how much someone bids on the price of the property they are staying in causing the yield to go down.

It is like you are complaining that dividends are crap compared to prices after everyone bid up the price of the shares.
Click to expand...

to some extent yes. I think true rents lie somewhere between where they are now and rents+100%. I reckon it would sit at about 175% of current rent in a free market that hasn't been stuffed up by govt intervention. This would see house prices come back a little and rents go up a lot.

the shares comparison is not relevant as there is no reason to bid up a share for lifestyle reasons.
 
L.AAussie said:
Keeping up with the Joneses is just so hard these days; it's not fair.
Click to expand...

Second top rental stress area in Melbourne is Dallas. You don't see many "Joneses" in Dallas. You do see average rents increasing to $170/week which is too high for the very disadvantaged families who live there.

Alex, you suggested people with rental stress should "MOVE". Well where should these people move, when there are really no rentals under $170 in the whole of Melbourne?

-Dave99
 
Hi Dave99

Just take note of Alexlee's quote " ... mortgage stress and you are living in Point Piper "

Point Piper -- being significant words.

This area is known as wealthy area. I don't know the counterpart in Melbourne... Maybe Toorak (?)

I do not know Melbourne at all. I should visit Melbourne one of these days.

Jocker10
 
Hi Boatboy,

It was not a big drama really. It was highly sensationalised.

It was only a few paddle here and there. Your cruiser will be dissappointed.:D

It is just because we are so used to perfect weather here, that a bucket of rain is considered natural calamity.:)

Thanks for asking.

Cheers Jocker10
 
Highly sensationalised!!, the media!! surely not.

Glad it's all good, the river could do with a good flush out, might open up the entrance to the bar again if your lucky.

Bound to bring the Muddies on as well, they like a bit of fresh.

Dave
 
dave99 said:
Alex, you suggested people with rental stress should "MOVE". Well where should these people move, when there are really no rentals under $170 in the whole of Melbourne?

-Dave99
Click to expand...

How about sharing with someone else or another family in a similar situation? I find it difficult to believe you can't rent a home for $340 in the western suburbs of Melb. If you pooled your resources together, you'd only be paying half the rent but it does mean the kids might have to share a room or god forbid, with their parents or in-laws!

Seeing 3 generations of a Ugandan family live happily together in a shoe box first hand provides me with a constant reminder of how lucky and spoilt we Australians are. Yet we bitc* and moan about everything that goes wrong and lay the blame on everyone else for our misery, except look in the mirror. Keeping up with the Joneses is a plague that shall be the death of us one day.
 
edison said:
In the mean time it is quite disturbing that the areas of people in mortgage stress are located in the west/south-west. And the data was probably collected before the recent interest rate rise .......
Click to expand...

The mortgage stress is moving closer to the CBD.
I saw in the news that Baulkham hills was highest up on the list of defaults in NW Sydney.
I wouldn't be surprised if Cherrybrook, Epping or even North Ryde were next.
Cheers
 
The biggest enemy to success is trying to do the same thing as everyone else. If you are genuinely struggling with 170/wk rent, then move in with family or friends who are in the same boat. Maybe between you you could afford to buy!

When you look at what people in other countries do to get by, we have it very easy. Maybe that's what has made us soft.
 
BV said:
The mortgage stress is moving closer to the CBD.
I saw in the news that Baulkham hills was highest up on the list of defaults in NW Sydney.
I wouldn't be surprised if Cherrybrook, Epping or even North Ryde were next.
Cheers
Click to expand...

I am just DROOLING over that possibility.

Makes sense, though. The lower end was hit first because manufacturing jobs have been weak. As rates keep moving up, though, it'll hit everyone. The very top end may not be affected unless the sharemarket really goes pear shaped, but the 'middle class' don't have unlimited resources.
Alex
 
the other day i nearly choked on my breakfast when the local paper was reporting that newcastle prices were just as unaffordable as sydney. only the day before i'd been looking at some cheap investment properties and came up with 620 properties for sale under $300k, 308 of which were under $250k ... i know this doesn't sound many to you sydney people, but this is newcastle!

and they weren't all dumps out in the sticks. granted the closer into town you came the smaller the yard and the more of a tart up required - but they weren't dumps by any stretch (says me who spent the weekend cleaning up a new purchase ready for rental) and some were blimin' nice.

what a load of crock!
 
I think an important thing to remember is how important seller and buyer sentiment is. If people believe, based on incorrect media reports, that mortgage stress is spreading to the mid-tier suburbs, buyers will offer less and sellers will be more willing to come down in price. In short, prices WILL come down if enough people believe it.
Alex
 
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