I can afford a house

[Kathmandu]

LOL, not going to buy into that argument

lets just say I have made more in my super in the last few weeks than I would have made by buying a house and renting it out in the same period!

each to their own...I gather you are a "bricks and mortar queen"...there are plenty of them on this discussion board.

I am of the new breed....don't need a house right now and are happy to invest instead!

better run off now and sell your house...as prices are going to go south!

Prices are going South??? where abouts, step out of the cave and have a look around.

Surely even you have heard about whats going on in SA

Normal part of the cycle for them to wash off a bit now and then, before going back up again to even greater heights, which they are now and have been for a while thanks.

Sell ???, doubt it, pay to much CGT out and stamps getting back in when I realize what a mistake selling for no reason was.

Anyway, someone has to supply cheap Accomodation for you.

Dave

 

[krisbarry]

Quick Update of my account balance and it now is over $55,000

Looking forward to purchasing my first house at the age of 60

 

[nomore4s]

Quick Update of my account balance and it now is over $55,000

Looking forward to purchasing my first house at the age of 60

I'd hate to think about what a house will cost when you're 60.

 

[numbercruncher]

I'd hate to think about what a house will cost when you're 60.

Dont worry the Generation delivered at a birthrate four times higher than at any other time known in history aka the Baby Boomers will be dumping there houses on the market over the next 2 decades, many of them financially ill prepared to pay for retirement , nursing care, travel etc.

It starts soon with probably atleast 300k of them a year retiring.

Your SMSF will snap these up as bargains as oversupply crashes demand

 

[Kathmandu]

Dont worry the Generation delivered at a birthrate four times higher than at any other time known in history aka the Baby Boomers will be dumping there houses on the market over the next 2 decades, many of them financially ill prepared to pay for retirement , nursing care, travel etc.

It starts soon with probably atleast 300k of them a year retiring.

Your SMSF will snap these up as bargains as oversupply crashes demand

And do you really think they will be comeing on the market all at once, or will it be over many many years, so no oversupply.

How stupid do you think they are, they know how the market works and what flooding it all at once will do.

Dave

 

[Julia]

Quick Update of my account balance and it now is over $55,000

Looking forward to purchasing my first house at the age of 60

Seems a long time to wait, STC. However, no one can say you don't have a goal. Good luck.

 

[krisbarry]

...and how about that, just checked my account today and it stands at over $56,000...too easy Now just have to find a house

 

[Judd]

I haven't checked my account today but last time I did add at least an "0", STC. So what does that prove? Absolutely stuff all.

 

[BIG BWACULL]

...and how about that, just checked my account today and it stands at over $56,000...too easy Now just have to find a house

Woopee doo, I started a thread especially for you "My super balance is" and no thanks but a comment of "This is a stupid thread" , so 56,000 is a stupid amount :dunno: There were even, now i have found a house for you, Close to transport, shopping and other conveniences hope you like it CHEERS
With the money left over you may be able to do some renovations and really spruce the place up
I'll try and keep an eye out for some other bargains for you
cya l8er

 

[Smurf1976]

Woopee doo, I started a thread especially for you "My super balance is" and no thanks but a comment of "This is a stupid thread" , so 56,000 is a stupid amount :dunno: There were even, now i have found a house for you, Close to transport, shopping and other conveniences hope you like it CHEERS
With the money left over you may be able to do some renovations and really spruce the place up
I'll try and keep an eye out for some other bargains for you
cya l8er

Reminds me of the house I had a look at last weekend. "Convenient location" says the ad. Yep, it's convenient alright. Right on the highway. Nice house otherwise though.

Another nice house 3km away too that I also won't be buying. You could say it's got plenty of energy... A 110kV transmission line tower just metres from the front door and a substation not far away out the back. It'll have even more energy when the new 220kV line goes in soon. At least dim lights shouldn't be a problem.

 

[BIG BWACULL]

Article in the australian today,
Housing more affordable in some states

UNAFFORDABLE housing has prevented many Australians from buying their own home in recent years but the situation is set to improve in some states, an economic forecaster says.

A BIS Shrapnel report on the outlook for residential land from now until 2011 forecasts the capital cities in different stages of the housing cycle.

The report says an upturn in dwelling construction is expected in Queensland, Victoria and South Australia.

BIS Shrapnel senior project manager and report author Angie Zigomanis said lot releases in those states had slowed between 2004 and 2006.

Strong underlying demand for housing would drive an upturn in lot releases in the next few years and improve affordability, he said.

Sydney, Melbourne under pressure

On the other hand, affordability in Perth is starting to take its toll on that market, while Sydney conditions are likely to remain under pressure.

BIS forecasts demand for land in outer Melbourne to remain solid in the next five years, but supply will decline over 2007-08 before beginning to recover in 2008-09.

"The affordability of land relative to house prices means that a new house/land package in the outer suburbs of Melbourne is among the most affordable of the capital cities," Mr Zigomanis said. BIS Shrapnel forecasts a 25 per cent increase in lot production in Sydney in 2008-09, with more increases following.

Land release is forecast to rise to a peak of 7000 lots by 2010-11, with outer Sydney accommodating much of the upturn in activity.

However, new lot production will remain below the average 7600 lots per annum produced in the five years to 2001.

"After the greenfield land cost, development costs and government charges, developers cannot make an effective margin at current values, and we expect they will elect to hold back on development until demand improves and lot prices rise sufficiently to make development viable," Mr Zigomanis said.

Brisbane demand strong

Demand for land in Brisbane is expected to remain strong over the next five years as lot production and stocks rise to accommodate the estimated 15 per cent increase in house approvals in 2006-07.

A further increase of 12.5 per cent is forecast for 2007-08, Mr Zigomanis said.

"Two years of low land price growth in Brisbane following the market escalation to 2003-04 has settled the market and, combined with strong wages growth, has resulted in the affordability situation stabilising," he said.

"This will prompt an acceleration of new house approvals and subsequently an increase in new lot production."

Adelaide to benefit

Adelaide is also forecast to experience strengthening demand, with lot production forecast to rise to an average 3350 lots a year from 3120 between 1996 and 2001.

Land release in outer Adelaide is expected to be even faster, with average lot releases up 19 per cent to 2930 lots per annum in 2001 to 2007.

Mr Zigomanis said a 41 per cent decline in the ratio of land to house prices in Adelaide since 2005-06, following a period of high price growth, had set the stage for a strengthening in demand for new houses and a pick-up in lot production.

 

[Flying Fish]

Woopee doo, I started a thread especially for you "My super balance is" and no thanks but a comment of "This is a stupid thread" , so 56,000 is a stupid amount :dunno: There were even, now i have found a house for you, Close to transport, shopping and other conveniences hope you like it CHEERS
With the money left over you may be able to do some renovations and really spruce the place up
I'll try and keep an eye out for some other bargains for you
cya l8er

nice train set

 

[BIG BWACULL]

nice train set

Yeah Thomas the tank engine will pass soon and you can get a ride on a celebrity

 

[krisbarry]

Will the "Fat Controller" come past soon?

 

[Dukey]

Heard an example on ABC radio recently regarding housing affordability: purchase versus renting.

Can't remember all the details - but i think they were looking at a 350000k $ house. Dunno where their example was set - but the monthly cost of buying including rates and some maintenance costs was well over double the cost of renting the same house. Something like $2800 to buy versus $1200 to rent.

Thats a big statement on affordability (lack of) I think. Obviously each situation will be quite different - but those figures are a bit daunting - especially if we expect interest rates to rise further (do we????).

Whats more likely - rental costs to rise? or house prices to fall??
What do you guys reckon?

 

[nioka]

Heard an example on ABC radio recently regarding housing affordability: purchase versus renting.

Can't remember all the details - but i think they were looking at a 350000k $ house. Dunno where their example was set - but the monthly cost of buying including rates and some maintenance costs was well over double the cost of renting the same house. Something like $2800 to buy versus $1200 to rent.

Thats a big statement on affordability (lack of) I think. Obviously each situation will be quite different - but those figures are a bit daunting - especially if we expect interest rates to rise further (do we????).

Whats more likely - rental costs to rise? or house prices to fall??
What do you guys reckon?

Look at the situation in 20 years time. The renter owns no home ,the purchaser owns a home. Tax free saving. Security.

 

[Dukey]

Look at the situation in 20 years time. The renter owns no home ,the purchaser owns a home. Tax free saving. Security.

I agree totally - anyone with a long term view would rather buy, but the big difference btw buy/rent really makes buying unaffordable for many workers. - I think.

- especially single income-ers

 

[numbercruncher]

I subscribe to the rent and invest doctrine.


A 300k home will cost about 700p/w to pay off (using all borrowed money and other costs incl.) to rent it will be about 300p/w.


If you invest the difference of 400p/w in Shares you will come out a clear cut winner in the long term, Instant liquidity too.

 

[professor_frink]

I subscribe to the rent and invest doctrine.


A 300k home will cost about 700p/w to pay off (using all borrowed money and other costs incl.) to rent it will be about 300p/w.


If you invest the difference of 400p/w in Shares you will come out a clear cut winner in the long term, Instant liquidity too.

morning numbercruncher,

It would be great to see a detailed example of how you've come to this conclusion. What assumptions are you making to say this?

 

[nioka]

I subscribe to the rent and invest doctrine.


A 300k home will cost about 700p/w to pay off (using all borrowed money and other costs incl.) to rent it will be about 300p/w.


If you invest the difference of 400p/w in Shares you will come out a clear cut winner in the long term, Instant liquidity too.

It is the instant liquidity that makes the difference. Too many people I know have used that instant liquidity to have a new car, an overseas trip or just a good time. The mortgage payment is forced savings.