janlo Posted February 3, 2014 Share Posted February 3, 2014 Maybe that's why we are such a success story? We just came for the weather, sea and beach life. If thats all you came for then of course its a success story because its all Australia has to offer over any other western society these days I'm afraid ! Well done you and your family for sticking it out in the daily 40 degree plus temps as well :wacko: Link to comment Share on other sites More sharing options...
Paul1Perth Posted February 3, 2014 Share Posted February 3, 2014 But I think in Aus housing for young buyers has become pretty unaffordable, if the experiences of my younger colleagues are anything to go by. Many starter houses are snapped up by buy to let investors (using negative gearing of course), and a 25% deposit is needed in many cases. Not easy to save $80,000 - $100,000 when you earn $70,000. If that is really the case then I'd expect house prices to start falling back, or at least levelling off. The industry needs the firs time buyer to keep it ticking over. The market here is still driven by new arrivals with a bit of money in their pockets from selling a house in the UK or wherever they've come from. If the rate of immigration slows then that demand will drop off a bit too. The industry loves to talk up the prices and always forecasts that "it's a buyers market, if you don't get in now you never will.. blah, blah". Saw the same in the UK in the 80's, people were getting together with friends and buying just because the same argument was being used there. Some of them had never thought of buying a house until the prices started going up beyond reasonable levels. The industry did it really well, prices were going ballistic, they were sending out the message that if you didn't get in next week you never would, banks increased their lending payback period and made loans easier to get, just led to a giant bubble that one day had to have a correction. It's never easy to get your first home. You just have to be prepared to sacrifice a lot of other stuff. Link to comment Share on other sites More sharing options...
Paul1Perth Posted February 3, 2014 Share Posted February 3, 2014 If thats all you came for then of course its a success story because its all Australia has to offer over any other western country these days Im afraid ! Well done you and your family for sticking it out in the daily 40 degree plus temps as well :wacko: I pity you if you think that's all Aus has to offer and if I thought that then I wouldn't still be here. As it is I love it and couldn't imagine living anywhere else better. Perth has been pretty mild recently and even when it's 40 degrees I really don't mind it. It's not 40 degrees 24 hours a day, it's gorgeous before and after work and weekends we just go down the beach for a cooling dip and have the aircon on for a few hours. Link to comment Share on other sites More sharing options...
Ausborn Posted February 3, 2014 Share Posted February 3, 2014 But I think in Aus housing for young buyers has become pretty unaffordable, if the experiences of my younger colleagues are anything to go by. Many starter houses are snapped up by buy to let investors (using negative gearing of course), and a 25% deposit is needed in many cases. Not easy to save $80,000 - $100,000 when you earn $70,000. Trouble being people wanting a $500 000 home with a pool and four bedrooms for the first home in a nice suburb. It's not that hard getting on the ladder , buy a townhouse for $300 000 or a older home in a outer suburb. 20 000 for a deposit and your on the ladder. It's what the smarter ones do and work up to the good home. I work with tradie that own 3 or four homes. If your smart is easily done. I don't know why people whinge house prices are just out of everyone's reach. Look at the average incomes in this country.i come from no money growing up and if I can do it as a tradesman , it can't be impossible . Now I own a house and apartment , I'm 35. For couples it's easily doable with work put in. If houses were out of everyone's reach they wouldn't sell would they . Link to comment Share on other sites More sharing options...
janlo Posted February 3, 2014 Share Posted February 3, 2014 Trouble being people wanting a $500 000 home with a pool and four bedrooms for the first home in a nice suburb. It's not that hard getting on the ladder , buy a townhouse for $300 000 or a older home in a outer suburb. 20 000 for a deposit and your on the ladder. It's what the smarter ones do and work up to the good home. I work with tradie that own 3 or four homes. If your smart is easily done. I don't know why people whinge house prices are just out of everyone's reach. Look at the average incomes in this country.i come from no money growing up and if I can do it as a tradesman , it can't be impossible . Now I own a house and apartment , I'm 35. For couples it's easily doable with work put in. If houses were out of everyone's reach they wouldn't sell would they . Who buys them these days are .......the chinese, retirees, imigrants or folk in very good jobs NOT young couples that both work in Tesco (Coles) cos they have no chance ! Honestly good on you all that did that and have ur nice big houses - and I know lots did including my relatives....no way would they live back in the cold UK ! But its the kids I personally worry about (my kids !) when are they gonna have at least $20,000 to get on the ladder ? You do make it sound easy ! :skeptical: Link to comment Share on other sites More sharing options...
Ausborn Posted February 3, 2014 Share Posted February 3, 2014 Honestly good on you all that did that and have ur nice big houses - and I know lots did including my relatives....no way would they live back in the cold UK ! But its the kids I personally worry about (my kids !) when are they gonna have at least $20,000 to get on the ladder ? and then for a old house in outer suburbia as you say but in Oz is usually at least an hour out of town where nowt goes on. You do make it sound easy ! :skeptical: like every country if you want in on the housing ladder , you make it happen. Kids will go out on a Friday and Saturday night and spend $400 on drinks , taxi and entry fees to clubs. It's fine once a month but it's not hard saving if you knuckle down to it. I work with young kids that blow there whole pay. They bring home $1200 a week. You think for couples, if you and your partner earn say $120 000 a year between them. Makes it very doable to have a $500 000 mortgage doesn't it. If they can't there is something very wrong IMO. Where my apartment is on the Gold Coast you can buy a waterfront apartment for under $300 . Here in brissie I built land and house packages , some starting at $319 000 , 30 - 40 mins from cbd. I wouldn't want l to live in cbd anyway.Start with one of them and work your way up the ladder. It's really not hard. Troubles is kids want the best straight from the get go. I'm looking at houses in Suffolk uk . I want on ether too and they are around 250 000 pound. If I convert that I could get a lot better place here for $500 000 . I don't see why some find it so hard I guess. I just worked hard. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 3, 2014 Share Posted February 3, 2014 If that is really the case then I'd expect house prices to start falling back, or at least levelling off. The industry needs the firs time buyer to keep it ticking over. The market here is still driven by new arrivals with a bit of money in their pockets from selling a house in the UK or wherever they've come from. If the rate of immigration slows then that demand will drop off a bit too. The industry loves to talk up the prices and always forecasts that "it's a buyers market, if you don't get in now you never will.. blah, blah". Saw the same in the UK in the 80's, people were getting together with friends and buying just because the same argument was being used there. Some of them had never thought of buying a house until the prices started going up beyond reasonable levels. The industry did it really well, prices were going ballistic, they were sending out the message that if you didn't get in next week you never would, banks increased their lending payback period and made loans easier to get, just led to a giant bubble that one day had to have a correction. It's never easy to get your first home. You just have to be prepared to sacrifice a lot of other stuff. Not to sacrifice one's life on the altar of wage slavery in order to pay of mortgage debt though. Those in their forties that come over and think living the dream consists of a large bank loan I can only shake my head. You have answered the question posed yourself. High immigration and overseas buyers ensures for now that prices will not decline. Little to do with First Home Buyers, whom are becoming an increasingly not relevant in the scheme of things, which is concerning to say the least over the medium to longer term health of the housing market. Link to comment Share on other sites More sharing options...
Guest Posted February 3, 2014 Share Posted February 3, 2014 Not to sacrifice one's life on the altar of wage slavery in order to pay of mortgage debt though. Those in their forties that come over and think living the dream consists of a large bank loan I can only shake my head. The alternative is wage slavery in order to pay a large fruitless rent each month..... Link to comment Share on other sites More sharing options...
flag of convenience Posted February 3, 2014 Share Posted February 3, 2014 Trouble being people wanting a $500 000 home with a pool and four bedrooms for the first home in a nice suburb. It's not that hard getting on the ladder , buy a townhouse for $300 000 or a older home in a outer suburb. 20 000 for a deposit and your on the ladder. It's what the smarter ones do and work up to the good home. I work with tradie that own 3 or four homes. If your smart is easily done. I don't know why people whinge house prices are just out of everyone's reach. Look at the average incomes in this country.i come from no money growing up and if I can do it as a tradesman , it can't be impossible . Now I own a house and apartment , I'm 35. For couples it's easily doable with work put in. If houses were out of everyone's reach they wouldn't sell would they . You won't get much in the way of a town house anywhere close to Perth. Average incomes do not reflect the over inflated house prices. If you own a house and an apartment at 35, then good for you. A number I know have even more but the bank owns them and the rental yield is very poor. Hardly a good investment in those terms. And if appreciation goes backwards your stuck with an over priced asset as well. Common thinking here though. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 3, 2014 Share Posted February 3, 2014 The alternative is wage slavery in order to pay a large fruitless rent each month..... Weigh up the difference giving money to the bank or the paying of rent and the freedom that allows. I agree far less than in the past with how a lot of letting management companies treat their clients but never the less. When rental demand eases off so will they. Not being panicked to jump into the fire and pick a time of choosing to buy preferable as well. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 3, 2014 Share Posted February 3, 2014 Who buys them these days are .......the chinese, retirees, imigrants or folk in very good jobs NOT young couples that both work in Tesco (Coles) cos they have no chance ! Honestly good on you all that did that and have ur nice big houses - and I know lots did including my relatives....no way would they live back in the cold UK ! But its the kids I personally worry about (my kids !) when are they gonna have at least $20,000 to get on the ladder ? You do make it sound easy ! :skeptical: Or the approaching quarter of the population on short term or temp contracts. Amazing the UK/OZ behaviour towards housing treating it as the holy grail. Link to comment Share on other sites More sharing options...
Guest Posted February 3, 2014 Share Posted February 3, 2014 Weigh up the difference giving money to the bank or the paying of rent and the freedom that allows. I agree far less than in the past with how a lot of letting management companies treat their clients but never the less. When rental demand eases off so will they. Not being panicked to jump into the fire and pick a time of choosing to buy preferable as well. Renting doesn't offer freedom - unless your a single - families can't sofa surf or have the kids regularly swaps schools. They need a stable address. If you're not paying your own mortgage, you're paying someone elses. Sure thing spending $26,000 a year on rent to avoid panic is a fab idea... Link to comment Share on other sites More sharing options...
PommyPaul Posted February 3, 2014 Share Posted February 3, 2014 better wages, less bills and you can still watch the chase on channel 7 Link to comment Share on other sites More sharing options...
Paul1Perth Posted February 3, 2014 Share Posted February 3, 2014 The alternative is wage slavery in order to pay a large fruitless rent each month..... Unfortunately whatever we do in life there is always going to be work to contend with Peach. Up to you what you spend the money on I suppose but I would rather pay off my home loan over 25 years and have some idea of what my outgoings are rather than have rents creep up and have several addresses. We could have gone and lived in a tent I suppose or one of those trailer parks or something. Funny how if you end up doing that though you would end up being classed as a bit of a failure. Trailer Trash springs to mind. Link to comment Share on other sites More sharing options...
janlo Posted February 3, 2014 Share Posted February 3, 2014 Or the approaching quarter of the population on short term or temp contracts. Amazing the UK/OZ behaviour towards housing treating it as the holy grail. Well yeh ...it is a bit ! No better feeling than owing your own bricks and mortar (or weatherboard !) I think it means everything in terms of feeling more settled. :smile: Link to comment Share on other sites More sharing options...
MARYROSE02 Posted February 3, 2014 Share Posted February 3, 2014 But then you came out as a young man equivalent to today's backpackers. They have a come what ever attitude as well. Hardly comparable to arriving in one of the most expensive countries in the world with a family in tow as many do today. Technically speaking, I WAS a backpacker, on a WHV for a year, although I did not have a 'come whatever' attitude, probably due to naivety! I certainly struggled for money until I got my first job. Perhaps I've just been here too long to offer any objective advice? I'm not so much 'living the dream' as simply 'living' here. I have not lost my sense of wonder, though. Driving down to Bondi Beach, and seeing that huge spread of sand in the sunshine, felt as good today, as it did the first time, thirty five years ago. Is Australia 'one of the most expensive countries in the world?' Perhaps, but then you have to pay if you want the best! Link to comment Share on other sites More sharing options...
MARYROSE02 Posted February 3, 2014 Share Posted February 3, 2014 Or the approaching quarter of the population on short term or temp contracts. Amazing the UK/OZ behaviour towards housing treating it as the holy grail. I don't particularly like working as a casual on a short term contract, but what can I do? I want a job, so I have to take what is offered. It's actually good money at over $28 per hour, including, I think, $5 per hour towards holiday and sick pay. Since when has there been any right to life time employment, anyway? Some countries do not have a tradition of home ownership, but it IS the way that most people in the UK and Australia like to go. But plenty of people choose to rent, which is good for landlords too, because they get long term, stable tenants. If you cannot afford to buy your own house, or don't want to make the sacrifices necessary to save for a deposit, then why not rent. There's no commitment to a lifetime of mortgage payments, and you can invest any spare cash in other things, the stock market, superannuation, funds. Or you can just build up wealth for the tobacco, alcohol and bookmaking industries! Link to comment Share on other sites More sharing options...
akiralx Posted February 4, 2014 Share Posted February 4, 2014 Trouble being people wanting a $500 000 home with a pool and four bedrooms for the first home in a nice suburb. It's not that hard getting on the ladder , buy a townhouse for $300 000 or a older home in a outer suburb. 20 000 for a deposit and your on the ladder. But $20K isn't enough for a deposit - you may need 25%, which would be $75K. There was also an article I read where the young writer calculated that if he saved everything he spent on 'leisure'/his social life he would amass $58K over 5 years. Still not enough for a deposit for a property within commutable distance of where he works in Sydney. Link to comment Share on other sites More sharing options...
Paul1Perth Posted February 4, 2014 Share Posted February 4, 2014 But $20K isn't enough for a deposit - you may need 25%, which would be $75K. There was also an article I read where the young writer calculated that if he saved everything he spent on 'leisure'/his social life he would amass $58K over 5 years. Still not enough for a deposit for a property within commutable distance of where he works in Sydney. But he was a "young writer", they need to get a proper job. I could have been a young writer but I would have still been living in the UK in my Mum and Dads back room. Link to comment Share on other sites More sharing options...
Johndoe Posted February 4, 2014 Share Posted February 4, 2014 Looking at the figures it does look very hard for younger folk to get on the ladder but is that due to (young) lifestyle? I know of 3 young tradies under the age of 25 who already have their own homes (mortgaged). I also know of one aged 28 with a partner who has an investment property as well as his own home......................my lad isn't a tradie but he's only just 20, holding down 2 part-time jobs and has 35k in the bank after just forking our 12k for the UK trip................if you want something bad enough, then it goes without saying that the majority would have to sacrifice other things for it................I'm guessing he'll bank another 25 to 30k this year. Link to comment Share on other sites More sharing options...
FOL Posted February 4, 2014 Share Posted February 4, 2014 A better lifestyle says something about YOU as a person, not a characteristic of a country. If your lifestyle fits the characteristics of Australia better, then you will have a better lifestyle. Our life definitely fits better with the Australian climate and nature. Link to comment Share on other sites More sharing options...
Gbye grey sky Posted February 4, 2014 Share Posted February 4, 2014 But $20K isn't enough for a deposit - you may need 25%, which would be $75K. There was also an article I read where the young writer calculated that if he saved everything he spent on 'leisure'/his social life he would amass $58K over 5 years. Still not enough for a deposit for a property within commutable distance of where he works in Sydney. When I was young in the 1980s in the SE of England it was the same for me. Had to rent/house-share as seemingly impossible to buy anything at all on my own within commutable distance of London. Then I met my first wife and with two incomes and savings we got a foot on the bottom of the ladder. We struggled for a few years. Nothing worthwhile comes easily and nor should it. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2014 Share Posted February 4, 2014 Renting doesn't offer freedom - unless your a single - families can't sofa surf or have the kids regularly swaps schools. They need a stable address. If you're not paying your own mortgage, you're paying someone elses. Sure thing spending $26,000 a year on rent to avoid panic is a fab idea... It certainly does offer a degree of freedom depending on situation. All too many feel pressure to purchase in order to get on the bandwagon with fear of losing out. If one finds a place that suits their circumstances well and good. There are a lot of considerations and the amount paid to the bank before debt is began to be paid off is substantial. Folk go on actual amount paid in comparison to rent and often not how much is being paid after bank payments. It is far from clear cut. Just as years ago many got caught out with rapid rate rises. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2014 Share Posted February 4, 2014 Unfortunately whatever we do in life there is always going to be work to contend with Peach. Up to you what you spend the money on I suppose but I would rather pay off my home loan over 25 years and have some idea of what my outgoings are rather than have rents creep up and have several addresses. We could have gone and lived in a tent I suppose or one of those trailer parks or something. Funny how if you end up doing that though you would end up being classed as a bit of a failure. Trailer Trash springs to mind. Housing as I continue to state was far more affordable in the past. But then rent was a synch as well. Most though for reasons clearly articulated did buy. The ability to purchase and the area and a host of other things are far more blurred in recent times. It should be pretty clear that the present state of affairs around housing is un sustainable over the medium to longer term which will result in losers. Folk being increasingly saddled with debt is hardly a solution. Link to comment Share on other sites More sharing options...
flag of convenience Posted February 4, 2014 Share Posted February 4, 2014 When I was young in the 1980s in the SE of England it was the same for me. Had to rent/house-share as seemingly impossible to buy anything at all on my own within commutable distance of London. Then I met my first wife and with two incomes and savings we got a foot on the bottom of the ladder. We struggled for a few years. Nothing worthwhile comes easily and nor should it. Indeed. Two incomes though have long been factored into the equation. Now the tendency is ever cheaper debt, which still must be paid over time, and at quite considerable cost to quality of life . Link to comment Share on other sites More sharing options...
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