MORE Australian property spruiking, will it ever stop?
This is the headline from an article yesterday which I think was originally from the Australian Financial Review
“RBA rate cut to spark record housing boom”

http://www.msn.com/en-au/money/markets/rba-rate-cut-to-spark-record-housing-boom/ar-AA8Zrt1?ocid=mailsignout

Seriously? WTF?
Haven’t we already been through a massive housing boom!

Look, I’m sure all you folks who’ve been lucky enough to be able to afford your own home are really happy about this, I’m happy for you, but as a person who would love to buy their first home, not for an “investment” but as a home to LIVE IN, a place to call my own…this really fucking sucks balls.
As it is, I can’t afford even the cheapest of what’s available on the market now…to buy a run down 30-40 year old house, with just a carport, needing more dollars on renovation, I’d have to fork out over 60% of my previous full-time wage! that’s insane… I may as well give up, it’s just simply unaffordable.

/vent/whinge/throws computer at wall

Aquila said:

MORE Australian property spruiking, will it ever stop?
This is the headline from an article yesterday which I think was originally from the Australian Financial Review
“RBA rate cut to spark record housing boom”

http://www.msn.com/en-au/money/markets/rba-rate-cut-to-spark-record-housing-boom/ar-AA8Zrt1?ocid=mailsignout

Seriously? WTF?
Haven’t we already been through a massive housing boom!

Look, I’m sure all you folks who’ve been lucky enough to be able to afford your own home are really happy about this, I’m happy for you, but as a person who would love to buy their first home, not for an “investment” but as a home to LIVE IN, a place to call my own…this really fucking sucks balls.
As it is, I can’t afford even the cheapest of what’s available on the market now…to buy a run down 30-40 year old house, with just a carport, needing more dollars on renovation, I’d have to fork out over 60% of my previous full-time wage! that’s insane… I may as well give up, it’s just simply unaffordable.

/vent/whinge/throws computer at wall

Pretty shit hey, we built our house during the last housing boom and its only because both of us were working that we got a loan, I don’t ever plan on upgrading it suits me fine, it’s what most would consider a below average home. Our house was recently valued at 150,000 more than what it cost us for the land and the house 7 years ago

That 60% of my wage that I mentioned is just the mortgage payment btw, then there is insurance, rates, maintenance costs, food, car running costs…etc…

The governments, banks and the wealthy just dont give a fuck about struggling average workers.
That’s probably why you need a partner so you have two incomes, just to get started.

The international banking boffins are taking aim at banks funding negatively geared aus property…it may be your time in the future.

Aquila said:

That 60% of my wage that I mentioned is just the mortgage payment btw, then there is insurance, rates, maintenance costs, food, car running costs…etc…

The governments, banks and the wealthy just dont give a fuck about struggling average workers.
That’s probably why you need a partner so you have two incomes, just to get started.

Pretty much, we saved for over two years putting all our spare money into a savings account.
Rates suck big time, I had to cash in my long service leave to pay them one year.
The only reason I am not still struggling is my dad gave my brother and I a decent amount of money from selling his house after my mum died.

Aquila said:

Seriously? WTF?
Haven’t we already been through a massive housing boom!

Over the last five years growth in the national housing market has been modest. However there have been certain locations that have fared better then others.

I’ve also found a fair amount of disdain and snobbery from people saying if you struggle to pay a mortage you have no business having a home loan, someone reckoned if you can’t afford double the repayments too bad. This is from a man who is the most money hungry person I’ve ever met.

Cymek said:

I’ve also found a fair amount of disdain and snobbery from people saying if you struggle to pay a mortage you have no business having a home loan, someone reckoned if you can’t afford double the repayments too bad. This is from a man who is the most money hungry person I’ve ever met.

It’s all about how you want to your asset to perform. For your principal place of residence there isn’t too much you can do in terms of offsets, so it makes seanse to pay down debt as quickly as possible (but then that has to be measured against the quality of life you want to live). For investment properties there are so many way to skin the cat it isn’t funny.

If you get greedy and want some youbeautsuperhouse that requires two decent incomes to pay off then yes you are asking for trouble but everyone should be allowed to try and buy a modest house and not struggle for years with the worry may lose it.

Cymek said:

If you get greedy and want some youbeautsuperhouse that requires two decent incomes to pay off then yes you are asking for trouble but everyone should be allowed to try and buy a modest house and not struggle for years with the worry may lose it.

well IMO, it really comes down to the quality of life you want to live… I have no problem with someone struggling to pay down a mortgage if that is the life they want (and this doesn’t necessarily mean that ‘you are asking for trouble’

The most important thing to remember is that interest rates are dynamic things… and while it’s likely they will drop further, I don’t think we’ll quite go interest free.

property boom – low interest ?

yes, maybe no

there already many people already over extended with their loan

when the rates go back is when you’ll see the fall

the only way they can keep going now is to bring in more people that can be encouraged to take out more loans

they are building with a fury in Melbourne

massive housing estates are being built to the north and south east unless you drive around to see it you’d have no sense of the scale. just seems like a huge ponzi scheme myself, people encouraged to take debt on houses that I couldn’t see why they would go up in value

unless the house is in a valuable location you are really buying into an identical housing estate that could be anywhere in Melbourne

the yards are non existent and are glorified prisons

I’ve just bought a house. Interest rates are too awful to leave money in the bank.

mollwollfumble said:

I’ve just bought a house. Interest rates are too awful to leave money in the bank.

investment property I guess

hey, do you know a good accountant that knows about how to run your finances with an investment property?