No relief for first-time buyers as house prices to keep rising
- Thread starter JulieW
- Start date
I always find it interesting when this line is dragged out.
What exactly is supposed to happen if you have one person with assets and another without assets?
Is the world supposed to magically stop the first guys assets from appreciating (and the income those assets produce) whilst at the same time increasing the second blokes income and riches in some way?
Doesn't work like that - assets will continue to rise over the decades regardless. Those who have them will benefit, those that don't obviously can't benefit.
I disagree but also read my disclaimer
Again,I disagree because if people wait and 12 months later they still qualify for a loan the interest rate will be higher so the amount they'll be able to borrow would be reduced. Unless they only want to buy the windows....
i realy hate this quote, !!!
i see it as the rich get richer because the poor are financially illiterate,
Ooooooh! I really like this one! Can I use it, can I, can I?
kudos.
Cheers,
Michael
yeah no prob.
Yes, me too.
It is true that the rich get richer, but it's because they are constantly learning more financial stuff, and then implementing it. Maybe put a little risk on it, and take a bit of a punt as well, but it's an educated risk for most.
They see an opportunity and act.
The poor have no or little financial stuff, and never bother to go out and find it and/or use it, instead making lame excuses.
See my sig.
OH another one of our generation!
We moved in to our unfinished house in 2 car loads. 1 x bean bag, 1 x TV & our clothes + clothes dryer.
We brought a fridge and with both our next fortnights pay a washing machine.
We basically finished off one room every 2 to 3 months depending on our savings from wages.
We hired a brush cutter/weedeater to cut downt he front yard's weeds as in our day no one owned one!
Sheryn
yep i still remember the milk crate dinning chairs, we first bought heaps of crap furniture, all different, coffee table, sideboards etc, and i sanded the lot back and spraypainted it all, about 6 items with gloss tractor enamel "white" it looked awsome, the things we did back then compared to now was so different than todays generation, and it shows , if i did'nt help my mum and dad to paint the house , build fences, remove old tiles and stoves i would have had my *** kicked so hard , but i am so glad now i did those things, Thanks mum, and dad, !
Hey Craig, funny that most of us did those things back when housing was soooo much cheaper
I remember convincing other mates to help with building the HW pailing fence, and then dad would get some beer for us to share, i think we were about 16 yo, so after hand nailing 900 hardwood pailings our fingers were so numb from bashing them with the hammers , we could'nt hold the cans, lol...OH what a laugh that day was
I've got a quick question: Some of the posters have said how they struggled to buy their first house, and I've seen comments about posters still living in the same place they bought back in their 20s.
So has there been a structural shift in the market? Was it possible (say twenty years ago) to buy a house that would suit a couple for a lifetime, whereas now a first time buyer will struggle to get a unit. If that's the case, then it's a very big change.
Also, given that 20 - 25% of market activity is from first timers, can prices actually rise to a level where they're forever priced out? Are there enough investors to prop up the bottom end of the market? (That's what happened in the UK.)
So has there been a structural shift in the market? Was it possible (say twenty years ago) to buy a house that would suit a couple for a lifetime, whereas now a first time buyer will struggle to get a unit. If that's the case, then it's a very big change.
Also, given that 20 - 25% of market activity is from first timers, can prices actually rise to a level where they're forever priced out? Are there enough investors to prop up the bottom end of the market? (That's what happened in the UK.)
i reckon it's very possible.
not everyone will be able to afford a house. apparently that's near-on criminal in this country.
not everyone will be able to afford a house. apparently that's near-on criminal in this country.
To answer q.1. It was and still is. But the perception of what constitutes a house for life is different. We are so bombarded in the media now about owning the dream home, and companies like Devine, Australand etc pushing this, that everyone has to have it and have it now.
My P.I.L bought a 3 x 1 brick home in Noble Park 40 years ago. They added one bedroom and bathroom to it about 20 years ago, and are still there.
q.2. FHB's have always had it tough to buy. They are typically younger, lower income and have little savings when they want to buy. Very few reach 18 years old and are cashed up, or leave school and go out immediately into the big bucks jobs. But, the expectations of a first home have changed now. Many FHB's are younger professional types these days, wanting to live near the city, cafes, lifestyle areas. They want a cool pad, and all of this costs more than you traditional tract home with no gardens out in the boondock new suburbs.
Investors make up around 30% of the market. Typically, they will only buy when the signs are good - in a growth stage and when yields are higher. Very few investors buy in doom and hold on. Many buy on the way up, and sell at the start of the slowdown when things start to look bad. As what has happened on this forum in the last 3 years. Lots of sellers last year, and not a lot of buyers.
So, mostly they react to the market - not set it.
I bought my first property in 2002 and it wasn't a struggle at all. Low wage, but had saved up a bit first and rented it out for the first year. This house whilst small, could have suited a couple for a life time, but these days expectations of FHB's have changed. 60yrs ago, people bought a 93m2 house, raised their kids, lived a long life and died in it. I'd say a lot of today's FHB's wouldn't even consider buying a 93m2 house.
As to your second question, yes I believe it can happen - but we're still a long way off from that. There are so many properties in Australia within FHB territory. If they turn their noses up at these properties as not good enough - that's choice, not being priced out of the market. So they may decide not to buy, or wait longer, rent forever, not invest to increase their options etc - but it's a choice they're making.
Hey Craig, funny that most of us did those things back when housing was soooo much cheaper
Yeah my first place was a 40 ac hobby farm an hr from Melbourne b/c I wanted to get out of Melbourne so I thought I'd build a house up on the block.
First I built a 50ft shed with a room in 1/2, scrounged all the stuff 2nd hd , did it for 400 bucks. My brother helped mix the the slab in a wheelbarrow , 1 x 1 .only 1/2 the shed. Dug 14 holes with a shovel , solid granitey dirt. He didn't come back up for about 2 yrs after that - strange !
Watered all my new trees from a big barrel in the back of the wagon I;d fill up at the creek down the road. Car was always swimming by the time we got back to the block.
Built a Barbie out of the rock from around the place and we'd have beers and steaks after working - was great stuff really.
Freinds back then were all getting into mudbrick on a few ac away from Melb'
We'd find a big dirt truck , head out into bushy areas and fill it up with rocks for the foundations and floors . I was usually too busy to get up on those runs - cough !
They built some stunning places , all by hand . Made their bricks and all.
Great days
PS. The funniest thing about that shed compared to now was the permit. 50 bucks . A ph call , oh just get started I'll see if I can get out one day, he never did make it.
One I'm doing right now , 400 soil test , 400 slab permit,650 shed permit , 300 planning permit , 4 inspections so far. It's just a f'n 8 mtr shed in a paddock for God sake.
Cheers
One I'm doing right now , 400 soil test , 400 slab permit,650 shed permit , 300 planning permit , 4 inspections so far. It's just a f'n 8 mtr shed in a paddock for God sake.
Cheers
yep - local government love to have a hand in your wallet the minute you open your mouth.
you should see some of the cheques i'm writing on behalf of my clients - $5350, $9870, $6635.....
you should see some of the cheques i'm writing on behalf of my clients - $5350, $9870, $6635.....
A lot of people are rich because of who they KNOW, not what they know. It's WHO YOU KNOW that lands the contracts (e.g. brisbane airport link, 2nd bridge, etc).....let me be more specific ---> its who you PAY OFF who gets you the contract.
And its across the board.....e.g. I don't think Anna Bligh was having dinners at Ken Talbots mansion because they were mates?
Nutall, Mackenroth, Beattie - all scumbags by very definition.
Yes, financial education is good (better than no education).....but financial literacy will only get you so far in this world.
... and rising, and rising...
End of the Australian dream
Robert Gottliebsen said:
If you've got 'em, hold 'em...
Cheers,
Michael
