No, but if you can explain to me how you perceive that it might be, I'd be much obliged.
What does "affordability" mean to you?
- Thread starter hobo-jo
- Start date
Ever lived in Dandenong ? Those houses are a joke. I'd go even further out and you would find something cheaper which wasn't crime riddled and falling apart.
The problem with baby boomers is that they are so rich and spoiled having had everything handed to them their entire lives they have no concept of what it means to struggle. So they try to project this onto their oppressed children. Like a screaming child blaming their younger sibling. That is the baby boomers.
LOL The baby boomer version of struggling is hilarious. I once heard from a younger boomer " Our 200k mortgage is really weighing us down ! " Little do they know that this is cheaper than it would be to rent their place... ...
Is that a dig at me Monopoly? lol I maybe didn't explain what I meant well. I still think affordability is a function of what you are prepared to give up to get what you want.
e.g.
person A likes to have a facial and pedicure every week at a cost of $100, this makes her feel good and results in better relationships with her family as she feels pampered, BUT they never eat out as a family.
person B likes to take their family out for a meal once a week for a cost of $100 where they spend time time talking and catching up which results in a better family relationship, but she never goes and gets a facial.
Person A looks at person B and says "she's lucky, I can't afford to take my family out every week"
Person B looks at person A and says " she's lucky, I can't afford to spoil myself every week"
They both have that $100 a week and both think they can't afford what the other has.
Of course, person C says " I can't afford facials or dinner out- but I am buying a house"
To each their own.
Person E bought in 1990 and has no concept of what an asset bubble means and can't understand that price rises = harder to buy for the next person. Person E thinkgs profits from houses are magical and come from the fairy land and not out of the pocket of the next person buying the property i.e making it unaffordable.
In 1990 prices were at the top of the cycle, having just had a big run up during the 1980's.
Oh Puhleeease!!! Do you actually know ANY baby boomers. I know a LOT and this doesn't fit ANY ONE OF THEM.
You really are a joke.
Agreed. This is some of the most uninformed rubbish I have ever read on this forum.
His pappy!! The one who tells him what to do!! And given from the comments of Betty Boop/b I'd say the apple hasn't fallen far from the tree!!!
And because Beebop doesn't want to hear me waffle on about my son's recent purchase - (perhaps because it proves a low income earner CAN buy something cheap and still eat) - I'll add the following comment.
This son said to me a few months before he bought, before he realised he could afford to buy that he has grown up in a house that is very nice, four bedroom, two and a half bathroom. His memory is a nice house but it has taken us 25 years to get to this level of house. He doesn't remember the crappy first house we bought with windows painted shut and second bedroom not big enough for anything more than a single bed, not even a wardrobe would fit.
He has now bought his first unit, spent a bloody lot of sweat and elbow grease on painting it (with help from me and his friends) and he has realised he cannot afford a big TV or to subscribe to Foxtel which he was used to at home.
The trouble is that for young people, those things (mobile phone plans, flat screen TV, Foxtel, eating takeaway once a week) that they thought were "normal" are not in fact normal at all, and are a luxury.
He has sucked this up and I feel the problem is that too many STILL think these things are "normal" and not luxuries and cannot see past their noses to realise they can ditch all the luxuries and pour all their money into their mortgage - just like the baby boomers and my generation HAD to.
This son said to me a few months before he bought, before he realised he could afford to buy that he has grown up in a house that is very nice, four bedroom, two and a half bathroom. His memory is a nice house but it has taken us 25 years to get to this level of house. He doesn't remember the crappy first house we bought with windows painted shut and second bedroom not big enough for anything more than a single bed, not even a wardrobe would fit.
He has now bought his first unit, spent a bloody lot of sweat and elbow grease on painting it (with help from me and his friends) and he has realised he cannot afford a big TV or to subscribe to Foxtel which he was used to at home.
The trouble is that for young people, those things (mobile phone plans, flat screen TV, Foxtel, eating takeaway once a week) that they thought were "normal" are not in fact normal at all, and are a luxury.
He has sucked this up and I feel the problem is that too many STILL think these things are "normal" and not luxuries and cannot see past their noses to realise they can ditch all the luxuries and pour all their money into their mortgage - just like the baby boomers and my generation HAD to.
FFS! HAVE YOU! I've lived in many, many places in my life AND have visited Dandenong many times and I can tell you now that there are MUCH worse places to live than Dandenong.[/QUOTE]
Well babycakes, I hope you have your life as spoiled and entitled as mine was for the all bar the last nine or so of them. Here's a snippet copied from a post of mine back in 2004.
I found your story to be rather boring. You got married and had kids before you were financially secure and made poor decisions.
If you'd had a sense of economic smarts about you, you'd have known something big was potentially coming and would have held off with your purchases.
You opened a business. You took a risk. What did you expect ? That it would always be all sunshine and roses ? So what ? You had a few tough years BECAUSE OF YOUR OWN CHOICES ???
I have no sympathy for people who claim suffering on the way to success of things they actively chose to inflict upon themselves.
Your story is also in no-way relevant to housing affordabilty of today.
Also... you bought land for $5000 ? I am supposed to feel sorry for that why ?
I'm happy too have started in the gutter with 20 cents in my back pocket and worked my way up,and if you think you have a problem with the"BB" cashed up mindsets now
then wait till,the next phase of those in that age group start to retire,or have retired long ago,and stop spending,not one investor in my small group were spoiled or had anything handed too them that did not come with a price of time or stress ,other wise just keep buying your lotto tickets and get in line with everyone else,,
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dump? are you kidding?
that 2 bedder for $320k in Dandenong is
1) earmarked for the Transit City 2030 network upgrade.
2) in a very neat little complex
3) has low BC fees
i think the attitude of the poster has highlighted the "affordability argument" right there - cognitive dissonance.
hobo, i think the affordability issue comes back to "what can a family afford with one person working" because if you need 2 wages just to make ends meet then you are overstretched.
Are you kidding me? you guys see really crappy homes as investment opportunities well i don't i would live in it.and why would i want to spend more money trying to make these awful houses better? its like you saying to me oh you know the crappy 2 bedder will cost you 320+ (don't forget the + they want 320+) a new 2 bedder will cost you 400k or even more so buy the old and live in it and also repair it because Dandenong is the Melbourne's booming south east corridor. well i say NO THANKS!.
Dandenong is not a great suburb.true its the second biggest city and there is a lot of projects that are running to improve dandenong but you have to understand that there is nothing much important in dandenong at the moment. fair if you said to me 320k+ for a crappy 2 bedder once Dandenong becomes a real attraction.
You know its quite funny when some of you think a lot of us who argue about house prices cant afford one.i have a different view to yours.you may like crappy houses but i certainly don't.I'm in late 20s and work in Marketing and I'm on a pretty decent pay and my wife is a PhD student and she gets her tax free Uni grant and she also works part time as well as on occasional paid Uni projects so don't be foolish to think I'm in the low income bracket.right now i have a substantial deposit and i can easily borrow 500k or more.. i can easily buy a 1 bedroom or an old 2 bedder close to my work in Hawthorn . A year ago Stockland sold 2 bedder for 430k in hawthorn reduced from 460k and one bedder at 340k but I'm not stupid enough to buy as i think threes more to life than living in a 1 or 2 bedder for years till you can upgrade.. we aint getting younger you know so enjoy your life while you can.My argument is house prices are just inflated and does not represent its real value especially in South eastern Melbourne.
Don't know why you mention CBD to me ..Why do i want to live near CBD? i like to live a bit further out but not 50k away.30k away from city is fine for me.My argument is prices of property that far from CBD should be not be that high. You just want young people to live in squashy 1 bedders and two bedders? Sorry id rather not!
A year ago i wanted to buy the first hme and then buy the second.I'm glad i changed my plans as house prices keep falling and who knows how much they will fall by.considering rental yields are like 3 to 4 % if i cant get capital growth i really wouldn't bother investing.
Post again in 10years time when you, being so economically savvy, still haven't bought and are waiting for the time to be right.
The point of Skaters story (sorry to paraphase Skater) is that everything is a risk, and the sooner you take that risk, the more opportunity you have to benefit from it, and if things go wrong, the more time you have to put them right. You are what - 25? Wait 10 years, buy a place with a standard mortgage - 65 by the time you pay it off. Yup you could do it faster but that would mean taking a risk and making sacrifices along the way which you don't seem prepared to do.
I wont tell you my story for fear that you would consider it 'boring', but I too took risks like Skater, some worked, some didn't but I am now living in the place I want in the house I want with the lifestyle that I want and I am by no means in my dotage.
I am probably not what you would claim as financially secure as to be that I would need to reduce my risk profile which overall would reduce my long term wealth.
Risk vs reward Beebop thats simply all it is about
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Our work here is done ..... Sammy and his wife can enjoy life and continues renting and making us evil landlords more wealthy - bring it on!!!!
It's not all about HOW MUCH you make (though of course it helps
) it's also about how you make what you do have work for you, to improve yourself, advance (and no, I'm not referring education in the formal sense ie. university degrees. PhD's don't impress me...aside from my undergrad ones I've got 2 of them and frankly they mean diddly to me now). Bill gates doesn't have a PhD but he has a sh**load more than you or I could ever dream of having!!!IMO whether you earn 6, 7 or 8 figured sums unless you know how to WORK IT, it's only a matter of time before you LOSE IT!!!
Sammy,
I honestly thought you were being sarcastic... you really believe that's an overpriced dump??
I'd like to know what your expectations are? Perhaps you could provide a link of a re.com ad (ignore the current price) - being the first home you'd like to buy and put your own price tag on it?
P.S. I promise not to critque too much, I'm just curious.
It's not all about HOW MUCH you make (though of course it helps
IMO whether you earn 6, 7 or 8 figured sums unless you know how to WORK IT, it's only a matter of time before you LOSE IT!!!
I thought i posted a reply but cant find it lol so here is my reply to you mate
Mate why are you just focusing on those 3 letters out of the whole paragraph? Sure PhD probably wouldn't mean nothing to you but im sure it does mean a lot to my wife. i aint highly educated i just have my Uni Degree its just my wife happens to be more determined to continue studying while she still brings an income.
I was simply mentioning what she is doing..i believe she is doing a great job working part time and doing her PhD and other projects.now the reason i mention this is tat all we hear from you guys is "AWW STOP WHINING DO 2 JOBS earn more money". well we are doing just that.i also have a hobby that brings me cash.
Oh I'm doing just fine mate,don't you worry. i wouldn't have a good deposit if i didn't know how to manage my money.
