I can afford a house

[tech/a]

Please do not be negative here, we are all trying to be positive and find ways to afford homeownership.

Finding something in a price range is one issue,making a buck out of it very much another.

Shift your mindset Julia, not all investment properties have to be palaces!

True but they should be livable!!

We have miners living in the most filthiest run-down caravans paying $500 a week in rent, so anything is possible.

Really,think I'll start selling caravans to miners.

I can afford a house, and many members have already shown this by the wide range of properties on offer at prices lower than my current balance of $44,000, so there:

Due diligence comes to mind.

Question
Whats stopping you?
Perhaps your waiting for pricing to be more "Realistic?"

 

[Julia]

Please do not be negative here, we are all trying to be positive and find ways to afford homeownership.

Shift your mindset Julia, not all investment properties have to be palaces!

We have miners living in the most filthiest run-down caravans paying $500 a week in rent, so anything is possible.

I can afford a house, and many members have already shown this by the wide range of properties on offer at prices lower than my current balance of $44,000, so there:

Tech/a has made the sort of points in his response that I would have.

At the same time, I do genuinely acknowledge how hard it is for young people to get into home ownership these days. And I also acknowledge, Kris, that you are trying really hard and saving successfully. Good for you.

What I have been attempting to do is (a) query the advisability of putting all your money into super at your young age, (b) cast doubt on the simplicity of getting these funds out via the so called hardship provisions, on the basis that I have known some people in really dire circumstances who have been refused access to their money, and (c) suggest that just because you can afford some rundown shack, that does not ipso facto make it a suitable investment property. e.g. if you were to buy something in a an area which is currently experiencing huge demand due to mining, what do you think could happen if the mine closed down? This is but one small example of the due diligence that Tech/a has mentioned

Not being negative at all, just trying to be realistic.

 

[Flying Fish]

Tech/a has made the sort of points in his response that I would have.

At the same time, I do genuinely acknowledge how hard it is for young people to get into home ownership these days. And I also acknowledge, Kris, that you are trying really hard and saving successfully. Good for you.

What I have been attempting to do is (a) query the advisability of putting all your money into super at your young age, (b) cast doubt on the simplicity of getting these funds out via the so called hardship provisions, on the basis that I have known some people in really dire circumstances who have been refused access to their money, and (c) suggest that just because you can afford some rundown shack, that does not ipso facto make it a suitable investment property. e.g. if you were to buy something in a an area which is currently experiencing huge demand due to mining, what do you think could happen if the mine closed down? This is but one small example of the due diligence that Tech/a has mentioned

Not being negative at all, just trying to be realistic.

ye of little faith.

 

[tech/a]

ye of little faith.

With good reason.

 

[krisbarry]

Tech/a has made the sort of points in his response that I would have.

At the same time, I do genuinely acknowledge how hard it is for young people to get into home ownership these days. And I also acknowledge, Kris, that you are trying really hard and saving successfully. Good for you.

What I have been attempting to do is (a) query the advisability of putting all your money into super at your young age, (b) cast doubt on the simplicity of getting these funds out via the so called hardship provisions, on the basis that I have known some people in really dire circumstances who have been refused access to their money, and (c) suggest that just because you can afford some rundown shack, that does not ipso facto make it a suitable investment property. e.g. if you were to buy something in a an area which is currently experiencing huge demand due to mining, what do you think could happen if the mine closed down? This is but one small example of the due diligence that Tech/a has mentioned

Not being negative at all, just trying to be realistic.

Sorry Julia...alls I read in the above post is negativity.

Putting much of my money into super is a really positive approach to saving. In the last 3 years alone I have increased my savings by 8 times, now that is a massive gain. Pity the rest didn't have the same appoach...no they would rather rack up huge debts, shoot up drugs in dark alleyways, piss up their savings at the uranials of clubs and pubs, bang it down the throats of pokies, or buy over priced cars etc. These are the people you should be focusing your negative energies on, not me!

I have no need to use the hardship clause, as stated I can transfer the money into a SMSF and buy a house and land outright, for investment puposes only.

Stop being neagtive about my aproach to life.... its working and working damn well, thanks for asking and thanks for your concern.

 

[Knobby22]

We are warning you.
Not emitting negative waves as if you are Neal in "The Young Ones".

By putting all your money in super you are ensuring you can't access it when you need it.

No point saying to your girlfriend when you are thirty that you have $500,000 in your super but we can't afford kids because you have no house, no money etc. but hey when we are 65, look out!!!! She won't be impressed.

Another point, the government will not allow you to put all your money into one asset class.

Also, you have too much faith in the government. Learn to distrust them.
Tech, Julia and I are older and therefore we have learnt to be wary.

 

[tech/a]

Tech, Julia and I are older and therefore we have learnt to be wary.

Thanks mate.
The grey matter is perhaps wiser the body a work in progress and the imagination/desire/intent still that of a 25 yr old.

Best advice I can give is.

Recognise opportunity
Find how to take advantage of the opportunity presented.
DO IT.

Your spot on re accessability of savings/profits.
There are definately times when you need to take advantage of leveraged situations,this will turbo charge your capacity to increase a financial base.Sure some in super is fine all in super is in efficient.

One day it may click for Kris.
But then again if he is so blind he cannot see perhaps not.

 

[Kimosabi]

Also, you have too much faith in the government. Learn to distrust them.
Tech, Julia and I are older and therefore we have learnt to be wary.

This a very important point, the government loves to change the rules.

The super rules today will probably be very different in 10 - 40 years.

 

[ROE]

I'm in my earlies 30's .. I bought a house when I was 24 and now very close to own it now

What I did early on in life was determine not to rent and save and buy a house and pay off as quick as I can.......a long the way, I gave up holiday, expensive cars and various other stuff but still manage to go out and have a good time and loving every minute of it.

I now can travel all I want, spend all I like and still has plenty left over to invest and has no mortgage over my head.

When you are young and don't have many bills, save more, spend less and get a roof over your head, when it's out of the way, you can catch up on lost time and you enjoy much much much more when you don't have debts.

Good luck and keep saving and working hard.

 

[Kimosabi]

I'm in my earlies 30's .. I bought a house when I was 24 and now very close to own it now

What I did early on in life was determine not to rent and save and buy a house and pay off as quick as I can.......a long the way, I gave up holiday, expensive cars and various other stuff but still manage to go out and have a good time and loving every minute of it.

I now can travel all I want, spend all I like and still has plenty left over to invest and has no mortgage over my head.

When you are young and don't have many bills, save more, spend less and get a roof over your head, when it's out of the way, you can catch up on lost time and you enjoy much much much more when you don't have debts.

Good luck and keep saving and working hard.

Well done.

I don't think it is emphasised enough, that if you have to get into debt, pay off the debt ASAP. That way you can get in the situation where the bank pays you interest instead of paying interest to the bank.

I think it also helps if Parents encourage their kids to buy a house ASAP(as long as house prices aren't over-inflated)

 

[Mousie]

CAUTION: This post's gonna rock the boat a bit, if you don't like what I'm saying please say so with constructive criticism.

Seems like there're plenty of people here in favour of house ownership. Maybe shouldn't be a surprise there coz it's the great Australian dream. Question is: with prices the way they're now, is it still a dream worth pursuing?

I'm not here to bash anyone up, ie politicians, landlords, speculators, bankers, let alone the regulars on this thread and elsewhere on this forum. But all I'm asking is: Is home ownership really that worthwhile anymore?

This especially when you have to pay what you know to be a king's ransom for everything related to property ownership these days?

So what if the banks tell ya you can afford a loan? Aren't shares/options/warrants/forex/futures etc. (the 1st of these being the main subject of this great forum) by far and away the best performing asset and the best compounder of interest?

Why work and slave away so hard for something immovable (assuming you like to travel, I most definitely do) only to catch up on lost years?

Why not just pay rent until everything goes belly-up? The boom ain't gonna last forever, you know.

Maybe it's time to put money where it's working its muscles harder. Maybe it's time for some independent thinking instead of following the herd that says: If you want something, you can have it, and you better get it now, just coz everyone else's doing just that.

To renters, maybe it's time to be nicer to your landlords when they come for an inspection.

 

[Kimosabi]

CAUTION: This post's gonna rock the boat a bit, if you don't like what I'm saying please say so with constructive criticism.

Seems like there're plenty of people here in favour of house ownership. Maybe shouldn't be a surprise there coz it's the great Australian dream. Question is: with prices the way they're now, is it still a dream worth pursuing?

I'm not here to bash anyone up, ie politicians, landlords, speculators, bankers, let alone the regulars on this thread and elsewhere on this forum. But all I'm asking is: Is home ownership really that worthwhile anymore?

This especially when you have to pay what you know to be a king's ransom for everything related to property ownership these days?

So what if the banks tell ya you can afford a loan? Aren't shares/options/warrants/forex/futures etc. (the 1st of these being the main subject of this great forum) by far and away the best performing asset and the best compounder of interest?

Why work and slave away so hard for something immovable (assuming you like to travel, I most definitely do) only to catch up on lost years?

Why not just pay rent until everything goes belly-up? The boom ain't gonna last forever, you know.

Maybe it's time to put money where it's working its muscles harder. Maybe it's time for some independent thinking instead of following the herd that says: If you want something, you can have it, and you better get it now, just coz everyone else's doing just that.

To renters, maybe it's time to be nicer to your landlords when they come for an inspection.

Oh, this boat has been rocked nice and hard. There are a few of us waiting for the 'BOOM' to bust, before entering the housing market.

In the mean time we are all getting nicely cashed up with all that available capital we have lying around, because we aren't paying huge amounts of 'interest', on over-inflated houses, funded by irresponsible lending institutions...

 

[nomore4s]

This a very important point, the government loves to change the rules.

The super rules today will probably be very different in 10 - 40 years.

I agree with this, you just have to look over the last 10+ years to see how many times they have changed the rules to super, so who knows what the rules will be in 20 or 30 years.

STP,

I'm also a fairly young fella (30yo) and I can't think why you would want to lock all your money away for 25+ years (it's hard enough to come by without locking it up for that long). I need as much as possible now to set up my family & investments for the future ie build trading capital, pay off property I own, and just generally enjoy life (I wakeboard/ski and like to travel) - no point having money to buy a good ski boat when I'm 60(but hopefully I'm still ski-ing at 60 )! This doesn't mean I'm not saving money, I'm just saving it in areas where I can use it when I need it.
I don't put anymore into super than I have to atm, unless I get some major benefit ie - tax break or co-contribution from the Govt, but unfortunately (or fortunately depending on which way you look at it) I don't qualify for co-contribution atm. At my age I just don't see much benefit in plowing heaps of money into super.
But good luck STP, you obviously have a different view & plan to this so I hope it all works out for you and you achieve your goals. And you are saving money which is alot better than alot of other people out there atm.

P.S - I don't think Tech/Julia/Knobby are being negative, they're just giving you thier opinions based on thier expirences and most probably past mistakes, I really think they're trying to offer you some help.

 

[krisbarry]

Many of your own experiences, are just that, your own experiences.

I question why you all need houses?

Who says you need to own a house to be happy, or to have security, or have a girlfriend, or wife or kids for that matter.

God that mentatliy is so old sckool!

I am satisfied with my life and the way I am living it.

I am already happy, I have security, I have a loving partner, and no need for kids...I have all this without homeownership...so your point is?

The external world out their matters less to me, the higher my account balance grows.

 

[Kimosabi]

Many of your own experiences, are just that, your own experiences.

I question why you all need houses?

Who says you need to own a house to be happy, or to have security, or have a girlfriend, or wife or kids for that matter.

God that mentatliy is so old sckool!

I am satisfied with my life and the way I am living it.

I am already happy, I have security, I have a loving partner, and no need for kids...I have all this without homeownership...so your point is?

The external world out their matters less to me, the higher my account balance grows.

Didn't anyone tell you, you've got to buy a house so you can use it as security for all those low yield Investment Property's you have to buy...

 

[krisbarry]

Didn't anyone tell you, you've got to buy a house so you can use it as security for all those low yield Investment Property's you have to buy...

LOL...no you actually have to live within your means first and start small, then move up the ranks. That is what security is, not owning something you cannot afford, that is called in-security or (living up to the Jones')

 

[Kimosabi]

LOL...no you actually have to live within your means first and start small, then move up the ranks. That is what security is, not owning something you cannot afford, that is called in-security or (living up to the Jones')

Just which planet are you on?

Living within your means, who does that?

You've got to go get the huge mortgage for the house you'll never be able to pay off, because, well everyone else is doing it...

 

[nomore4s]

Just which planet are you on?

Living within your means, who does that?

You've got to go get the huge mortgage for the house you'll never be able to pay off, because, well everyone else is doing it...

lol, don't forget the credit cards

 

[krisbarry]

...LOL, too true!

seems only the grey nomad on this board know how to live life correctly, or so they keep on telling me...

gotta get the house, the morgagte, and the happiness, girlfriend/wife, and the kids will follow, to round out what will be a sucessfull life.

GOD I AM DOING THE EXACT OPPOSITE OF MY PARENTS AND WILL CONTINUE TO DO SO!

 

[wayneL]

Home ownership is nice under most circumstances...at the right price!

At the wrong price it's hell.

Value investing 101.