The future of Australian property prices

[Mrmagoo]

Are you forgetting who is in power.

The Labor Party is commonly described as a social democratic party, but its constitution stipulates that it is a democratic socialist party

The political system (for both major parties) is neither capitalist nor socialist it is a vote buying system.

They're described as ... but what they really are is a way for a bunch of people with lots of connections to live a pretty good life...

Neither party has any direction on how to address the housing affordability problem which is most likely goign to negatively impact the economy if it hasn't already.

 

[Tysonboss1]

Neither party has any direction on how to address the housing affordability problem which is most likely goign to negatively impact the economy if it hasn't already.

Because there is not really a housing affordability problem, certain indiviuals just have a personal savings and entitlement attitude problem.

 

[Mrmagoo]

Housing is more expensive relative to income than it has been in the past. If you want to call that a "problem" or not is a matter of subjective definition.

Because there is not really a housing affordability problem, certain indiviuals just have a personal savings and entitlement attitude problem.

Person savings are currently at all time highs.

There is no such thing as entitlement attitude. People simply buy what they can for the money they have available.

Neither of these have anything to do with the affordability of housing, which is determined entirely by the price which is demanded for a property.

 

[satanoperca]

Because there is not really a housing affordability problem, certain indiviuals just have a personal savings and entitlement attitude problem.

Spoken like a true pollie. "Not really", there either is or isn't an affordability problem.

And you better go a tell all those primary school kids that are shipped off to before school care and after school care that their parents cannot save and have an attitude problem when all they are trying to do is put a roof over their kids heads.

Find statements like the above a little bit narrow minded and do not look at the total costs of high priced housing on society.

Wouldn't money be better used in society to fund business that employee people instead of keeping bankers on huge salaries?

Cheers

 

[Tysonboss1]

1,Spoken like a true pollie. "Not really", there either is or isn't an affordability problem.

2, And you better go a tell all those primary school kids that are shipped off to before school care and after school care that their parents cannot save and have an attitude problem when all they are trying to do is put a roof over their kids heads.

3, Find statements like the above a little bit narrow minded and do not look at the total costs of high priced housing on society.

4, Wouldn't money be better used in society to fund business that employee people instead of keeping bankers on huge salaries?

Cheers

1, The reason I say not really is because I myself and my friends and relatives that work hard and save have never had a problem affording realestate, Those but on the other hand a also have some friends who tend to work little or spend tomuch and have never developed any savings who also dream of the mcmansion type house and they tend to complain and say it is an immposible dream, Thats why I say not really, Because it really comes down to a persons earning / spending habits and their personal tatse's.

2, I went to before and after school care, It was great. If both parents are working why can't they save. Obviously they are not budjeting correctly.

3, Housing is at the top end of it's price cycle, times change, It's not where I would call it unaffordable, Perhaps peoples expectations are unaffordable.

4, I never said people shouldn't fund business, I own businesses and invest in the stock market, I also own property. Money should be going to build more dwellings if their is a need for cheaper accomadation and it should be spent on expanding businesses also.

If you want to see a waste of capital, go to all the funds that are going into buying and stockpiling gold and funding gold mines.

 

[Tysonboss1]

affordability of housing, which is determined entirely by the price which is demanded for a property.

It's not the price demanded, it is the price people are willing to pay.

Isn't High price a precurser for more supply to be developed which inturn feeds the demand and causes prices to moderate.

Any attempt to suppress house prices that does not involve increasing supply will ulimately fail.

 

[Mrmagoo]

It's not the price demanded, it is the price people are willing to pay.

Isn't High price a precurser for more supply to be developed which inturn feeds the demand and causes prices to moderate.

It is commonly reported that houses are spending increasingly longer amounts of time on the market. This suggests the price is too high for the current level of demand.

 

[Tysonboss1]

It is commonly reported that houses are spending increasingly longer amounts of time on the market. This suggests the price is too high for the current level of demand.

If that the case then the prices will have to be lowered, that how the free market works.

 

[young-gun]

If that the case then the prices will have to be lowered, that how the free market works.

and prices shall be lowered as this bubble pops. prices ARE unaffordable. I'm sure you have never had a problem buying real estate given you most likely bought pre-2000's. and have ridiculous amounts of equity left right and centre.

a house within 45 minutes of brisbanes cbd (in a reasonable area) is so out of reach for so many people in their early twenties and even older. do you suggest we live at home for years on end until we can finally afford a deposit ranging between 20-40k? this is the only option for many, as rent prices are so high, and cost of living is ever rising, it makes it almost impossible to save at the same time.

I am in a fortunate situation where i didn't go to uni and am making decent money. But even given my situation i fail to see the point in taking out a 300-400k home loan and forking out 500$ a week plus on interest. it's just dead money, and house prices have only been inflated so wildly out of control by baby boomers, so why should we have to compete in a market with people who have had 20+ years to save and push prices so out of reach? i especially feel for those that are at uni and once finished will still find themselves on a 50k starting salary with a hex debt.

One consolation is that as the baby boomers retire and downsize, prices will crash, mark my words and woohoo, us youngsters will finally have the same opportunities as boomers did

 

[trainspotter]

:horse: and here we go again for another trip around the block with how the baby boomers are at fault and $500 a week is dead money on interest and how you can't save and live at the same time blah blah blah.

Heres a tip ........ START WITH WHAT YOU CAN AFFORD AND NOT THE FREAKING McMANSION 15 mins out of the CBD !

 

[Whiskers]

and prices shall be lowered as this bubble pops. prices ARE unaffordable. I'm sure you have never had a problem buying real estate given you most likely bought pre-2000's. and have ridiculous amounts of equity left right and centre.

a house within 45 minutes of brisbanes cbd (in a reasonable area) is so out of reach for so many people in their early twenties and even older. do you suggest we live at home for years on end until we can finally afford a deposit ranging between 20-40k? this is the only option for many, as rent prices are so high, and cost of living is ever rising, it makes it almost impossible to save at the same time.

I am in a fortunate situation where i didn't go to uni and am making decent money. But even given my situation i fail to see the point in taking out a 300-400k home loan and forking out 500$ a week plus on interest. it's just dead money, and house prices have only been inflated so wildly out of control by baby boomers,

How do you reason this out?

How do you know it wasn't high flying, 'I want it, I need it all now', gen Y's who inflated the market.

so why should we have to compete in a market with people who have had
20+ years to save and push prices so out of reach?

So you don't think the Baby Boomers weren't in the same position you are now?

 

[cynic]

:horse: and here we go again for another trip around the block with how the baby boomers are at fault and $500 a week is dead money on interest and how you can't save and live at the same time blah blah blah.

Heres a tip ........ START WITH WHAT YOU CAN AFFORD AND NOT THE FREAKING McMANSION 15 mins out of the CBD !

+1 .

 

[Julia]

:horse: and here we go again for another trip around the block with how the baby boomers are at fault and $500 a week is dead money on interest and how you can't save and live at the same time blah blah blah.

Heres a tip ........ START WITH WHAT YOU CAN AFFORD AND NOT THE FREAKING McMANSION 15 mins out of the CBD !

Exactly.

Young gun, your attitude is so defeatist it's unbelievable. The only person you're hurting by this negativity and failure to have a bit of 'get up and go' is yourself.
As long as you believe yourself to be a victim, so shall you be. And don't expect anyone to come and take you by the hand and say, 'ah, come on then, I'll fix it all for you".

Stop blaming baby boomers. Many of us still have children living at home, essentially sponging off us, whilst we support our elderly parents. We're not whining about this, just getting on with managing what we need to.

As TS has said, buy something that you CAN afford. When prices improve, you'll be able to trade up to something more in line with what you actually want.

My first home was on the outskirts of the city, in a mediocre but not awful area, on leasehold land so that I didn't have to find the money for the block, and was a very ordinary 40 year old two bedroom bungalow. A bit of work and creating a magical garden saw 100% profit in a couple of years.

So maybe stop focusing on what's hard and instead think about what is achievable.
And please, please stop whining about baby boomers.!

 

[Tysonboss1]

Young gun,

I am 29, I bought my first property just before I turned 20 in 2001, it was a big commitment at the time and not easy, but it is possible. I had been saving and investing money from part time jobs since I was 12, so don't make out it was all cheese and biscuits for me but you have it hard.

Obviously you can spend every cent you earn, take on loans for holidays and cars extra and then expect to beable to by a first home that is your dream home.

Our generation has to learn that you can't start where our parents finished, take a look back at some old photos of your parents first home, bet it's not a mc mansion.

Plenty of places round Brisbane you could work towards making a start,

 

[choofer]

:horse: and here we go again for another trip around the block with how the baby boomers are at fault and $500 a week is dead money on interest and how you can't save and live at the same time blah blah blah.

Heres a tip ........ START WITH WHAT YOU CAN AFFORD AND NOT THE FREAKING McMANSION 15 mins out of the CBD !

lol
Disagree entirely. The cheapest best value places will be closer to the CBd than all those places where the battlers will be trying to hold on to their over priced mc mansion.

Most people are too brain dead to think outside the square

 

[wayneL]

It's nothing to do with Boomers, Gen X, Y, Z.

The only fundamental is credit.

Loose credit => house prices boom

Tight credit => house prices plateau/fall

Everything else is a side issue

 

[Mrmagoo]

:horse: and here we go again for another trip around the block with how the baby boomers are at fault and $500 a week is dead money on interest and how you can't save and live at the same time blah blah blah.

Heres a tip ........ START WITH WHAT YOU CAN AFFORD AND NOT THE FREAKING McMANSION 15 mins out of the CBD !

You think $500 a week in interest buys you a mansion 15 mins from the CBD ?

Wow... I'll take two in that case.

 

[trainspotter]

You think $500 a week in interest buys you a mansion 15 mins from the CBD ?

Wow... I'll take two in that case.

Your failure to comprehend the simplest annotation shall preclude you from owning property in the first instance.

 

[Mrmagoo]

Getting really tired of advice from people who rode the credit expansion by investing in real estate. Well done to you all, seriously, well done. But what happened has not much to do with now.

unless -

Can you tell me that growth in property prices is going to continue the same growth trend as the last ten years ? If not then your anecdotes of " I borrowed every cent possible and bought a house, 2 years later it doubled in value " aren't useful.

 

[Mrmagoo]

Your failure to comprehend the simplest annotation shall preclude you from owning property in the first instance.

That makes no sense. You told the guy who didn't want to spend $500 on interest to not look at a mc-mansion 15mins from the city.

$500 in interest MAY get you sometyhing 45ks or 50 kms out which is very small and a starter home.