House prices to keep rising for years

[Beej]

I'm talking median prices, you'll find 115k pretty close to the median for 20 years ago.

cheers

Yes but the "median" house is about 50% bigger/better than the median house back then. For $250k in Melbourne today you should be able to get something that is about the same as that $115k median house 20 years ago.

PS: In 1989 the median house price in Sydney was over $200k......life went on.....

 

[MrBurns]

I bought a house in 1978 for $40,000 on bugger all deposit from what I remember.

Different story now, you have to have $100's of thousands to get a decent place and thats just the deposit, no wonder they're all on drugs and binge drinking, unless mum and dad drop dead and leave them the farm they'll be renting crap forever, I hate the BS about "learn the hard way" and "work hard", YOU get out there save $150k then service a $250k loan and bring up a family, it's all BS
Made worse by negative gearing and lately by Mr BS himself , KRudd, stuffing it up for generations to come.

I agree with MACCA350

I'd be happier if my $2M house was worth half that and everyone elses as well, and it may just happen, give future generations a break.

 

[MACCA350]

Yes but the "median" house is about 50% bigger/better than the median house back then. For $250k in Melbourne today you should be able to get something that is about the same as that $115k median house 20 years ago.

Doubt it, we're talking build. 115k for a 20sq 4br home on a 600m2 block.
Same size block now costs around 150-200k
20sq house around 150-180k
carpets tiles etc 20k
total 320-400k not inc site costs, taxes etc

PS: In 1989 the median house price in Sydney was over $200k......life went on.....

And based on this in Melbourne it was around 140k

cheers

 

[MACCA350]

That's 20 living squares, no garage or outdoor areas, virtually all houses now come with a double garage(min 3.5sq) and many developers now mandate you must have a double garage. So to get the same living space you need a 23.5sq house(I haven't factored that into the figures above)

cheers

 

[kincella]

Question for Burnsie....what on earth would you advise the young ones today wanting to get into their own home.....????
as for Macca....there are plenty of new houses on the outskirts for the prices I quoted....Vic govt with faster trains and the new freeways and tollways...mean 30-60 mins travel to the city...but not everyone works in the city...affordable houses, but not at 400k's.....you need to have a life, not be silly and pay all your money into housing...
the govts not going to do anything too fast about the housing problem...and then its going to the outer suburbs...
if you must go to the inner city...then its an apartment thats affordable...
I say there is affordable housing out there for everyone...

 

[trainspotter]

Like Mullewa. $49,500 for fibro 3 x 1 on 871sqm block. Population 726 people of non reflective skin type. 1 billion flies. Great place to drive through.

 

[kincella]

we keep saying Australia is different, most of our population live in the cities , and if that is the most popular place, and everyone wants to be there, the prices will be higher...
its not a god given right that the kids have to live in the middle of the place...start on the edge , then as you step up the career ladder, then move up the house ladder...
or send all the immigrants back home...that should free up a lot of housing...
or stop the bl......y immigration numbers...slow it down...
actually I bet we are still in a similar situation in 10 years time

 

[kincella]

instead of this thread being a great big whinge, and the ridiculous idea of prices dropping suddenly...how about some ideas on how to get into a house within the next 5 years.....knowing the contraints with state govts releasing more land in the outer suburbs....
oh and btw...my first house was 12 squares...look at the kids now...it must be 20 plus squares...
and my other properties are still within that range...they are older houses, not mansions

 

[MACCA350]

Question for Burnsie....what on earth would you advise the young ones today wanting to get into their own home.....????
as for Macca....there are plenty of new houses on the outskirts for the prices I quoted....Vic govt with faster trains and the new freeways and tollways...mean 30-60 mins travel to the city...but not everyone works in the city...affordable houses, but not at 400k's.....you need to have a life, not be silly and pay all your money into housing...
the govts not going to do anything too fast about the housing problem...and then its going to the outer suburbs...
if you must go to the inner city...then its an apartment thats affordable...
I say there is affordable housing out there for everyone...

Like Burnside heights or Doreen.........they are the outskirts and they're the places I used for land quotes.

603m2 190-200
550m2 199k
432m2 179k


We're settling our 800m2 block next month, still deciding on a house/builder

cheers

 

[robots]

hello,

yeah top effort Kincella, and congratulations must go to Gav, fellow Professor Frink and now Gfresh for purchasing a home and hope they have many happy moments at their abode

just keep saving and saving hard, put the $ away as early as you can, so to any 16-18yr olds start piling it away, hammer your parents for extra $ for birthdays, christmas, chores etc

focus on your income, promotion, overtime, totally new career

i like the story of Tom Elliot (mme capital) who had an option of getting a new bike or shares for his birthdays, he took the shares

this is fabulous

and look out for the REIV results on Saturday, will be celebrating with a serve of the succulent bird at my favourite Indian restaurant

thankyou
professor robots

 

[MrBurns]

Question for Burnsie....what on earth would you advise the young ones today wanting to get into their own home.....????
...

Save like buggery
Get a "nice" location
Get the worst house in the best street you can afford
Beg your mother and father for help.

Wait................the bubble WILL burst then make your move, no hurry, give it a year or 2

 

[trainspotter]

Keystart Govt loan 2% deposit. Start at what you can afford then work your way up as lifestyle improves. Other option is to buy block first and pay off as much as you can whilst interest rates are LOW.

 

[MrBurns]

Keystart Govt loan 2% deposit. Start at what you can afford then work your way up as lifestyle improves. Other option is to buy block first and pay off as much as you can whilst interest rates are LOW.

Dont worry about interest rates the higher they go the less you'll pay for a property.

 

[Mofra]

instead of this thread being a great big whinge, and the ridiculous idea of prices dropping suddenly...how about some ideas on how to get into a house within the next 5 years.....knowing the contraints with state govts releasing more land in the outer suburbs....

That's a very good question, and I'd expect people who have achieved success in any field have asked themselves a similar question.
Instead of can I get a desired result, ask how can I get a desired result.

I'm fortunate enough to be able to buy a house to live in if I wanted to, but didn't start out in this way. I'd personally advise against holding a prejudice against one or more asset classes for a start

 

[Uncle Festivus]

It's pretty simple really - migrants & investors (with the backing of the banks) are the causes of housing unaffordability for the incumbent population.

If every migrant was self sufficient in creating housing and not competing with the existing population then housing would be more affordable and migrants wouldn't be such a burden on society ie their real cost wouldn't be hidden? Every new house built would get a certificate from the local council. These certificates would then be bought by migrants as part of their requirement to settle here. It would then be up to them where or how they lived, but a new dwelling would have been built regardless.

Get rid of negative gearing for investors so that their fellow taxpayers didn't subsidise their lifestyle, and pay their share of the tax burden. Tax breaks only for building new houses or units.

 

[MrBurns]

Get rid of negative gearing for investors so that their fellow taxpayers didn't subsidise their lifestyle, and pay their share of the tax burden. Tax breaks only for building new houses or units.

Get rid of it for residential property, for commercial it's quite legitimate.

 

[wayneL]

It's pretty simple really - migrants & investors (with the backing of the banks) are the causes of housing unaffordability for the incumbent population.

If every migrant was self sufficient in creating housing and not competing with the existing population then housing would be more affordable and migrants wouldn't be such a burden on society ie their real cost wouldn't be hidden? Every new house built would get a certificate from the local council. These certificates would then be bought by migrants as part of their requirement to settle here. It would then be up to them where or how they lived, but a new dwelling would have been built regardless.

Get rid of negative gearing for investors so that their fellow taxpayers didn't subsidise their lifestyle, and pay their share of the tax burden. Tax breaks only for building new houses or units.

Get rid of it for residential property, for commercial it's quite legitimate.

In normal business, there must be an intention to make a trading profit. You have to be profitable 2 years out of 7 (IIRC).

If a residential investment is made with the intention of making a "trading" profit soon, then I think the tax deduction is legit. However if there is no prospect of profit anytime soon, the deduction should be disallowed. That's how the rest of business operates and see no reason why the business of supplying long term residential accommodation should be any different.

Of course there is the law of unintended consequences though. It could force prices down to economically legitimate levels, but it could equally force rents up.

 

[MrBurns]

If a residential investment is made with the intention of making a "trading" profit soon, then I think the tax deduction is legit.
.

Would be fairer to somehow filter these from the owner occupied properties.

Impossible so just exclude it from the entire residential sector.

Watch the market flooded with places for FHB's to live in then

 

[Uncle Festivus]

In normal business, there must be an intention to make a trading profit. You have to be profitable 2 years out of 7 (IIRC).

If a residential investment is made with the intention of making a "trading" profit soon, then I think the tax deduction is legit. However if there is no prospect of profit anytime soon, the deduction should be disallowed. That's how the rest of business operates and see no reason why the business of supplying long term residential accommodation should be any different.

Of course there is the law of unintended consequences though. It could force prices down to economically legitimate levels, but it could equally force rents up.

I can't see how property investors who buy existing properties contribute to supplying residential accom? Their aim is capital appreciation while reducing income tax? Society needs to make it more attractive for people to build more dwellings to bring prices down, and make it less attractive for speculators who contribute to inflating prices?

Glen Stevens has said as much yesterday, saying funds are being mis-directed into unproductive existing housing instead of building new dwellings.

 

[wayneL]

I can't see how property investors who buy existing properties contribute to supplying residential accom? Their aim is capital appreciation while reducing income tax? Society needs to make it more attractive for people to build more dwellings to bring prices down, and make it less attractive for speculators who contribute to inflating prices?

Glen Stevens has said as much yesterday, saying funds are being mis-directed into unproductive existing housing instead of building new dwellings.

Yes partly agree. We need suppliers of accommodation because not everyone wants or can be an OO. I currently rent by choice, because I'm in a nomadic phase. I want there to be LLs to rent me a decent house. I see no challenge with that.

But I totally agree about the damage of price speculation. It is a malinvestment and does mis-direct capital. That's why the system should encourage trading profits. If people invest for trading profits, obviously the purchase price becomes an important factor. If the rent market is $400 then the purchase price should reflect that, ergo, prices should be much lower.