The future of Australian property prices

[sptrawler]

bla bla bla bla bla.

Life is going to be **** because of deteriorating economic conditions. There is very little if anything that can be done about it outside of major reforms.

Buy a one bedroom unit for 300k add in the all the fees and **** and you might as well just buy a house.

Could try a bit of hard work and restore a dump, rather than bawl your eyes out in self pity.

If you are going to rely on improving economic conditions, for a free ride, get over it.
It ain't going to happen.

 

[tech/a]

Not everyone can be a winner.

Yes your right.
I think it has to be in your DNA

We are all born Penniless and naked.

I know this guy reasonably well.
In 1987 at age 30 he had a knock on the door from a bailiff---with a summons from the NAB---$470,000 in 21 days or bankruptcy proceedings to follow.

At that time he wasn't making anything---obviously as he couldn't service his debt/s.
He failed Leaving (year 11).So not the smartest knife in the draw.

His home was worth $63,000 so you could say he started way way behind your $100K guy.

Against advice he didn't go Bankrupt.
Lost everything including Wife no 1 and 2 young ones.

Today a very different story.
He did get his year 11
and most--everything else he made a target through life.

But he had that Rare DNA.

If you haven't got it---you haven't got it!

 

[Mrmagoo]

Yes your right.
I think it has to be in your DNA

We are all born Penniless and naked.

I know this guy reasonably well.
In 1987 at age 30 he had a knock on the door from a bailiff---with a summons from the NAB---$470,000 in 21 days or bankruptcy proceedings to follow.

At that time he wasn't making anything---obviously as he couldn't service his debt/s.
He failed Leaving (year 11).So not the smartest knife in the draw.

His home was worth $63,000 so you could say he started way way behind your $100K guy.

Against advice he didn't go Bankrupt.
Lost everything including Wife no 1 and 2 young ones.

Today a very different story.
He did get his year 11
and most--everything else he made a target through life.

But he had that Rare DNA.

If you haven't got it---you haven't got it!

Worth 63k in 1987 ? By age 30 ? He was earning far more than me. How the hell could be borrow 470k ? Sounds c like you gad one of those huge 80s incomes.

 

[tech/a]

Worth 63k in 1987 ? By age 30 ? He was earning far more than me. How the hell could be borrow 470k ? Sounds c like you gad one of those huge 80s incomes.

Self employed.
Debt was business and property related.
In the end profit couldn't service the loan/s interest.
Hence the bank moved in.

All pretty normal except for the 18 % interest rates and
The effect that had on business and individuals alike.

Magoo you need to look outside your shoe box.
Your whokepurpose world is in that box.
Lif the lid and go discover a whole new world.

 

[Mrmagoo]

Self employed.
Debt was business and property related.
In the end profit couldn't service the loan/s interest.
Hence the bank moved in.

All pretty normal except for the 18 % interest rates and
The effect that had on business and individuals alike.

Magoo you need to look outside your shoe box.
Your whokepurpose world is in that box.
Lif the lid and go discover a whole new world.

I've come to learn most rich people were just overpaid tradies from a decade where the unions caused wages and houses to boom. Has very little to do with perspective or anything like that.

 

[tech/a]

I've come to learn most rich people were just overpaid tradies from a decade where the unions caused wages and houses to boom. Has very little to do with perspective or anything like that.

Yeh $475 k in the red.
Booming wages and housing.
Perfectly spotted Magoo.

 

[Mrmagoo]

Yeh $475 k in the red.
Booming wages and housing.
Perfectly spotted Magoo.

I don't care about your silly little business. Good on you if it made some money. I really don't care about your life story.

What has that got to do with housing ? I could probably go borrow 700k tomorrow. Big deal. That is not achieving a god damned thing.

 

[Bill M]

What has that got to do with housing ?

Dear Mrmagoo, people on ASF have been trying to help you, they are not against you or anybody else. 2 years ago you wrote something along the lines of "how can a person on Coles salary afford to buy a house". I took that comment on board and showed you clearly how you can, anybody can and how I would have done it there and then at the time of your comment. Then you just disappeared like you usually do and came back a few weeks later with all your cursing and hatred centered around property again.

That was 2 years ago. Since then the Coles salary has increased by around 3% and interest rates came down further. That means that the mortgage you would have taken out would be easier and cheaper to service now. But also one other big thing has happened, the price of that property has jumped around 30%. It's been a busy 2 years since then. If you bought back then you would be sitting on a nice tidy profit right now, in fact you could sell that one bedroom unit now for around 400K and end up with decent hard equity/cash to put towards a bigger 2 bedroom unit.

We are all trying to help you buddy, follow the link in my post, it is still active. That unit sold back then for 297K, today it's worth around 400K.......... just think about that.

The Coles salary for a Service Assistant (checkout operator or shelf stacker) is currently $19.70 P/H not including Sundays which is $29.55 P/H. With 17.5% annual leave loading, a bit of O/T and some public holidays it can easily reach $42,000 P/A for a full time employee. That is roughly about $800 P/W gross.

Now even in an expensive area like the Northern Beaches of Sydney you can still buy a 1 br unit for 300K. Here is one just 5 minutes walk from the beach. http://www.realestate.com.au/property-unit-nsw-dee+why-112319279

Now how hard would it really be to save 29K for a deposit and borrow $260,000 and pay that off? According to UBanks calculator it would cost $1,455 P/M to pay off this loan at their current rate of 5.37%. $1,455 works out at $363 P/W. I can tell you now I would definitely be able to pay that off on my own even with a Coles salary. With a partner working as well it would be easier. Start small, work hard, be a bit frugal, save money, invest well and it will eventually all fall into place. If I was doing it all over again I would go this route which is the same route I took many years ago.

 

[tech/a]

I don't care about your silly little business. Good on you if it made some money. I really don't care about your life story.

What has that got to do with housing ? I could probably go borrow 700k tomorrow. Big deal. That is not achieving a god damned thing.

How terribly unkind.
I'm so hurt Magoo

Plenty of housing here in SA under $300k
House and land or established.

 

[skyQuake]

...most rich people were just overpaid tradies from a decade where the unions caused wages and houses to boom. Has very little to do with perspective or anything like that.

No part of the sentence is true.

Source plz

 

[Mrmagoo]

Dear Mrmagoo, people on ASF have been trying to help you, they are not against you or anybody else. 2 years ago you wrote something along the lines of "how can a person on Coles salary afford to buy a house". I took that comment on board and showed you clearly how you can, anybody can and how I would have done it there and then at the time of your comment. Then you just disappeared like you usually do and came back a few weeks later with all your cursing and hatred centered around property again.

That was 2 years ago. Since then the Coles salary has increased by around 3% and interest rates came down further. That means that the mortgage you would have taken out would be easier and cheaper to service now. But also one other big thing has happened, the price of that property has jumped around 30%. It's been a busy 2 years since then. If you bought back then you would be sitting on a nice tidy profit right now, in fact you could sell that one bedroom unit now for around 400K and end up with decent hard equity/cash to put towards a bigger 2 bedroom unit.

We are all trying to help you buddy, follow the link in my post, it is still active. That unit sold back then for 297K, today it's worth around 400K.......... just think about that.

This is the problem. Borrow 300k, create nothing, DO NOTHING, that is the path to riches. Leverage yourself to the hilt and buy a home. Society is far too used to that easy road. I understand why you think that is the path to riches and the only way to run a society because it is what you're used to happening.

40k a year from working 50k a year from property price increases. Now the next guy has to front up 400k. You don't see anything wrong with that ?

 

[banco]

If you are going to rely on improving economic conditions, for a free ride, get over it.
It ain't going to happen.

Isn't a free ride what any baby boomer with half a brain has relied on with regards to housing prices over the last 30 years or do they think that the price of their property holdings increased due to their virtue?

 

[sptrawler]

Isn't a free ride what any baby boomer with half a brain has relied on with regards to housing prices over the last 30 years or do they think that the price of their property holdings increased due to their virtue?

When baby boomers bought their houses, there was no guarantee the value was going to increase.
There are a lot of baby boomers, that don't own a house, didn't want to take the risk.
Like I've already stated before, my first house was 50 year old fibro ant tile, jinkered and re stumped on a rural block.

That can still be done today, actually people are prepared to give the house away, as long as the purchaser removes it. So what is wrong with someone going that path? Other than it is bloody hard work.

 

[banco]

When baby boomers bought their houses, there was no guarantee the value was going to increase.

You're right. They got a free ride from being in the right place at the right time and dumb luck.

 

[Bill M]

This is the problem. Borrow 300k, create nothing, DO NOTHING, that is the path to riches. Leverage yourself to the hilt and buy a home. Society is far too used to that easy road. I understand why you think that is the path to riches and the only way to run a society because it is what you're used to happening.

40k a year from working 50k a year from property price increases. Now the next guy has to front up 400k. You don't see anything wrong with that ?

You are missing the point magoo, the point is it can be done anytime. The only difference now from 2 years ago is that the price jumped more than what it normally does. The Sydney market was slow for quite a few years and in the last 2 years it caught up. The other difference is that in the next 2 years it might not jump at all..............Is it worth taking the risk to rent and get nowhere or buy and have a place of your own? If I was a Coles employee today, I would still buy that 1 br unit and suck it up for being an idiot not buying earlier. Eventually, you will come out in front, it just might take longer than expected.

It has never been an easy road, I am a baby boomer and I bought my first property in Sydney in the late 80's. I worked 2 jobs and my wife worked full time as well, she also juggled TAFE studies 3 nights a week. Cooking a meal at 8 PM after TAFE to save a bit of money is the kind of things we did back then. The road was never easy or guaranteed it was all RISK ON!

 

[Mrmagoo]

oh no ! cooking a meal !? at 8pm ! how did you manage ?

 

[tech/a]

oh no ! cooking a meal !? at 8pm ! how did you manage ?

It was tough then
Now we just get the staff to cook it!

 

[Bill M]

oh no ! cooking a meal !? at 8pm ! how did you manage ?

Honestly magoo, you are a lost cause. For someone on a 100K a year you are a very bitter person, I can't believe you didn't do the right thing by yourself and save some money and buy a place.

Anyhow, as they say UP TO YOU..........do what you like buddy.

 

[Mrmagoo]

Honestly magoo, you are a lost cause. For someone on a 100K a year you are a very bitter person, I can't believe you didn't do the right thing by yourself and save some money and buy a place.

Anyhow, as they say UP TO YOU..........do what you like buddy.

You convinced me. Why 1 ? Lets do 6 !!!!!! I'll be a millionaire in 2 years time. Won't even need to work for it. Just sick back and watch the cash flow in. (sadly this is actually true). Only suckers like what I was work for living. Lets just buy houses. Only way to be a good person. Only way to succeed.

Wonder where those poor people who weren't smart enough to buy 6 houses like me will live ? Who cares hey ? In the gutter. Maybe a hot tin shed ! Doesn't matter. To the moooonn !! Never been a better time to buy.

Gonna talk to my bank manager tomorrow. Need to borrow 2 mill.

 

[Mrmagoo]

It was tough then
Now we just get the staff to cook it!

Yup. I admire you. Working hard to watch houses appreciate is hard work. I hear you had to mingle with peasants at one point and had to once eat baked beans ! Is that also true ?