House prices to keep rising for years

[robots]

hello,

because they spend all of their money, live for today etc,

they can soak up the rises easily, a few less mega-lattes a day, one less tattoo a month

check this, back in 07: average male income 57k, average female income 48k,put that together and around 100k

thankyou

robots

 

[xoa]

check this, back in 07: average male income 57k, average female income 48k,put that together and around 100k

Your data is correct, when you exclude the 7 million adults who are unemployed, studying, working part time, carers, on a pension, or otherwise not full time employees. Unfortunately, these 7 million Australians need a place to live too.

Once you include all those unfortunates, the median household income drops to $54k. The median household income of renting households is even lower. On the other hand, your cherry-picked dual-income couple would traditionally own a house.

 

[Tysonboss1]

Well done you've achieved getting into debt. How independent of you. Now you pay the price for the way you were raised i.e 25-30 years of servitude to the big 4.

Another major thing some people here are missing is that they think you have to wait 30years till you have paid off your home before you see the fruits of home ownership,... this is not true.

The main benefit is that paying of your home locks in your housing costs,...

for example when my father first started paying off his house it cost him $70 a week which was a massive portion of his pay at the time,...

He could have rented for $30 a week, but five years later renting a house was $80 but dad still only paid $70 per week.

10 years later it was $125 to rent,.... but dad still only paid $70.

Today houses of the same type are are well over $350 per week,.. but guess what dad doesn't have a loan any more he has finished paying it off, But he was benifiting from cheaper accomadation long before he had finished the repayments,... and now he has no rent to pay and a decent asset to sell to fund a better retirement,

In fact since mum and dad have had alot of surplus cashflow from not having to pay much for there housing in the last 15years they have built up a sizeable investment portfolio.

 

[Cretin5000]

Another major thing some people here are missing is that they think you have to wait 30years till you have paid off your home before you see the fruits of home ownership,... this is not true.

The main benefit is that paying of your home locks in your housing costs,...

for example when my father first started paying off his house it cost him $70 a week which was a massive portion of his pay at the time,...

He could have rented for $30 a week, but five years later renting a house was $80 but dad still only paid $70 per week.

10 years later it was $125 to rent,.... but dad still only paid $70.

Today houses of the same type are are well over $350 per week,.. but guess what dad doesn't have a loan any more he has finished paying it off, But he was benifiting from cheaper accomadation long before he had finished the repayments,... and now he has no rent to pay and a decent asset to sell to fund a better retirement,

In fact since mum and dad have had alot of surplus cashflow from not having to pay much for there housing in the last 15years they have built up a sizeable investment portfolio.

My parents rented for some years saved and bought the house outright. Nice hey, and they were only in their 40's....House now worth approx 400K according to the estate agent spruikers lol land is worth more though.

 

[robots]

hello,

its like a cheese twist from david jones, any way you like it

great day yesterday, 65% clearance rate up 5% from last week

slow and steady, great new for those looking to buy still

thankyou

robots

 

[Macquack]

In supposedly developed nations like Australia, essentials like housing are supposed to consume a modest share of disposable income. The real estate disciples seem to be praying for a future where an oppressive and ever growing share of our income goes to pay for a roof over our heads.

You nailed it, xoa.

 

[theasxgorilla]

If they are demolishing houses to built town houses and apartments then the houses become fewer and fewer but the number of people wanting them continues to increase increases,... So the suburbs that remain low density within 10ks of the city will have there rents growing faster than inflation,... while the median rent still remains within inflation because there is a gradual move to high density which will keep the average rent in check.

This is plausible, but unfortunately, it means that most people will not be able to afford to rent a house within 10kms of the city. More and more people are forced into medium and high density housing for affordability reasons. Like it or not, the writing is on the wall. People who think that a market crash is going to deliver them their 3-bedder on a 1/4 acre a half an hour commute from town better hope they've saved a sizable deposit and can service a reasonable mortgage.

 

[Pommiegranite]

[FONT=Georgia,]

Quote:[/FONT]
Originally Posted by Pommiegranite
Well done you've achieved getting into debt. How independent of you. Now you pay the price for the way you were raised i.e 25-30 years of servitude to the big 4


Another major thing some people here are missing is that they think you have to wait 30years till you have paid off your home before you see the fruits of home ownership,... this is not true.

The main benefit is that paying of your home locks in your housing costs,...

for example when my father first started paying off his house it cost him $70 a week which was a massive portion of his pay at the time,...

He could have rented for $30 a week, but five years later renting a house was $80 but dad still only paid $70 per week.

10 years later it was $125 to rent,.... but dad still only paid $70.

Today houses of the same type are are well over $350 per week,.. but guess what dad doesn't have a loan any more he has finished paying it off, But he was benifiting from cheaper accomadation long before he had finished the repayments,... and now he has no rent to pay and a decent asset to sell to fund a better retirement,

In fact since mum and dad have had alot of surplus cashflow from not having to pay much for there housing in the last 15years they have built up a sizeable investment portfolio.

Wow...you certainly are conveniently twisting my point. I plainly said nor meant nothing of the sort.

Home ownership doesn't give the benefit that you are talking about unless the homeloan is paid off early. You are making a huge assumption here, that most of the population does this.

In fact, I would say the opposite is true, in that most homeowners are more than happy to pay off the homeloan over the original term, or even extending the term/taking out equity.

Isn't this what a major part of the problem is?

Also, what's to say that the 'extra' payments which are made to pay off a homeloan early aren't better off invested elsewhere for better returns?

 

[Tysonboss1]

You nailed it, xoa.

I think there will always be affordable housing to rent,.... It won't be a house and land within 10ks of the capital cities though,... there is simply not enough land for every person in the large capital cities to house a house and land each,... as the population grows this situation will simply worsen.

So as the houses close to the city become fewer and fewer obviously they are going to go to the people willing to pay the most for them both to own and rent.

if you want affordable housing you simply have to move further away,... or increase your density,....

 

[jersey10]

Any one watching sixty minutes right now? A 'leading economist' saying the housing crisis evident in USA will hit Australia within 2 years

Better sell up!

 

[Tysonboss1]

[FONT=Georgia,]


Wow...you certainly are conveniently twisting my point. I plainly said nor meant nothing of the sort.

Home ownership doesn't give the benefit that you are talking about unless the homeloan is paid off early. You are making a huge assumption here, that most of the population does this.

In fact, I would say the opposite is true, in that most homeowners are more than happy to pay off the homeloan over the original term, or even extending the term/taking out equity.

Isn't this what a major part of the problem is?

Also, what's to say that the 'extra' payments which are made to pay off a homeloan early aren't better off invested elsewhere for better returns?

I wan't talking about paying off the loan early,.... I was saying that once you have bought a house your weekly payments will pretty much be constant over the next 25 years,... where as the rent a renter pays will increase with inflation.

Rent increases with inflation over the years but your homeloan repayment decreases with inflation over the years.

So as your wage increases over the years your homeloan repayment takes up less and less of it,... But if you rent the rental payment will increase over the years,.... people that bought houses 10years ago are probally paying less each month now than people that rent similar houses today.

 

[Tysonboss1]

Any one watching sixty minutes right now? A 'leading economist' saying the housing crisis evident in USA will hit Australia within 2 years

Better sell up!

If it does I will watch it come and I will watch it go,... It won't decrease the rent I am getting,...

 

[numbercruncher]

If it does I will watch it come and I will watch it go,... It won't decrease the rent I am getting,...

If prices fell 50pc and an army of New investors jumped in able to rent out lower than your rentals ? .... your tenants are so faithful to your empire that theyll continue paying your asking price ?


Good article though, sure to add to growing negative sentiment and downward momentum.

 

[numbercruncher]

Heres the article beamed to Millions of AUstralians incase anyone missed it ...

Hold on tight, because it's about to hit hard. The great mortgage meltdown is coming. Already, record numbers of Australian homebuyers are going to the wall. And, if we're to believe some experts, there's a hell of a lot more pain to come. So, who's to blame? Well, a good starting point is the Yanks. You see, it was the greed of American bankers that caused the global financial crisis now pushing interest rates through the roof. In the US, they call it the "subprime crisis", after the dodgy, low security loans that sparked this meltdown. These loans were offered to millions of people who simply couldn't afford them. And when they began defaulting in droves it set off a chain reaction that's now being felt around the world, including right here at home.

http://sixtyminutes.ninemsn.com.au/article.aspx?id=560015

 

[robots]

If prices fell 50pc and an army of New investors jumped in able to rent out lower than your rentals ? .... your tenants are so faithful to your empire that theyll continue paying your asking price ?


Good article though, sure to add to growing negative sentiment and downward momentum.

hello,

if,if,if,if, could, could, maybe,maybe,maybe,

thankyou

robots

 

[numbercruncher]

Well I was replying to an If, after all ?

What you reckon Robi, that article would of got millions thinking hey ?

 

[robots]

hello,

60 minutes ran similar program around 6mths ago,

keen has been on for months probably years and the guy has a "large" mortgage on inner sydney prop,

its been a great weekend

thankyou

robots

 

[Julia]

Any one watching sixty minutes right now? A 'leading economist' saying the housing crisis evident in USA will hit Australia within 2 years

Better sell up!

1. Jersey, who are you suggesting should 'sell up' and why?

2. Do you believe that lending in Australia has been equally as irresponsible as that in America?

 

[YChromozome]

2. Do you believe that lending in Australia has been equally as irresponsible as that in America?

OECD data shows our house prices are more overvalued than the US. It shows in our household debt per disposable incom. Australian leaders have probably been more irresponsible.

 

[numbercruncher]

Do you believe that lending in Australia has been equally as irresponsible as that in America?

Absolutely , anyone with a small deposit and a ABN could borrow tons of cash ! Thats little different than Subprime.

Banks went out and lent people absolute max debt when Interest rates where 6pc ish , now they are up 50pc at 9pc+, thats no different than ARM.

Many banks are in the process of fixing that making it am ABN and GST registration for two years i think it is. Other tightening is happening too, that is the equivalent to a credit crunch compared to how easy easy peezi it was before!