I have given up buying a house

[insider]

Well done with you savings plan.

This coming week I will be depositing a further $600 into my super, some of which is share trading profit and the rest is my own money.

So yes its very true that I may die b4 reaching retirement, but the chances are much higher of living well into my 70's and 80's.

Will Centrelink exists in 33 years time to pay my pension...who knows?

I reckon any money saved now is a nest egg for the future.

There are so many worse places to stash my cash...I could gamble it away on the pokies, piss it up against a wall (urinal) after hitting the booze, choke up a lung or two with a packet of ciggs a day or shoot up in a back alley with the latest party drug.

Pensions will be a thing of the past... if they are around in 33 years they will be so bad that you'll be made to work or something like that... It seems like you are prepared for the worst... you're doing well.

 

[Happy]

From ABC, January 4, 2007

YOUNGER GENERATION BEING SQUEEZED OUT OF HOUSING MARKET: REIA

A new report from the Real Estate Institute of Australia (REIA) says young people wanting to buy homes will be the hardest hit in the coming year by the recent interest rate rises.

The report also has bad news for tenants, with predictions of significant rent rises across Australia's major cities as landlords pass on the burden of the rate increases.

REIA spokesman Graham Joyce says the rising cost of accommodation mean it is possible that younger Australians will be a generation that never buys their own home.

"There's anecdotal evidence to suggest that those in the 25 to 35-year age bracket are finding it very difficult to buy property," he said.

"We could see into the future that home ownership will decline - it fact we have seen that, but I think that's going to be an ongoing trend into the future."

This trend is not created by high interest rates, it is rather result of new generation preference to lavish lifestyle instead of saving money for deposit and making sacrifices to own the property.

I am not saying it is good or it is bad, all I am saying it is.

 

[judge]

I don't think it as simple as you suggest Happy.

The boom in house prices over the last few years (especially over in WA) has been driven primarily by demand from property developers, new home buyers and home owners wanting to upgrade along with record low interest rates making finance relatively cheap. This resulted in buyers junping over each other trying to get into residential property, for their own reasons, before the music stops.

I don't think the music has stopped yet, but on the east coast the pause button is on

The cost of paying off an "average" home as a percentage of average household income is much higher now than it was 20-30 years ago. And that is not all due to young people now wanting a more lavish lifestyle/home imo.

A basic home is becoming out of reach of low income earners in some parts of the country. Low income earners are not in a position to make many sacrifices to help them save for a home deposit.

 

[theasxgorilla]

I don't think it as simple as you suggest Happy.
A basic home is becoming out of reach of low income earners in some parts of the country. Low income earners are not in a position to make many sacrifices to help them save for a home deposit.

This is probably true. The "renter" class has seemingly expanded, as has the "landlord" class. We're a lot less "egalitarian" than we used to be. This is the price we pay for lower taxes and the promise of making it big some day.

In Sweden the middle-class is a lot larger (and a lot narrower). The lower-middle is much higher, thanks to hand-outs and subsidies, and the upper-middle is lower thanks to a 55% top tax-bracket that kicks in at approx. $60k AUD p.a.

In Sweden investment properties are unheard of. Nobody has one. If you rent you rent from a state-run housing commission. Rent controls mean that if you are a private landlord you must charge rent in line with the commissions guidelines. If you over charge there is a tenant union who will take you to the cleaners.

Worth noting though is that per capita Sweden has the largest second home and personal watercraft ownership in the world. I'm yet to get to the bottom of it, but something is making it all tick!

 

[Happy]

It is as simple as you want it to be and it is as difficult as you want it to be.

All depends on your mindset, if you want excuses you’ll find many, if you want reasons they are there too, if you want to change something you have to change something.

As Tech-a used to say, -you cannot do the same thing and expect different result-.

Congrats if you are bull and you are back already, apologies if not.

 

[judge]

Congrats if you are bull and you are back already, apologies if not.

Hi Happy

It's common knowledge I change my nic regularly. Others change theirs as well.

We were away over Christmas/New Year. We're back now until tomorrow when we head off again

Best wishes for 2007

 

[krisbarry]

My current super account balance is now $36,000. It has grown about $3,000 in less than a month.

 

[hilly1981]

Oh nice one how much did you put into it in the past month?

 

[krisbarry]

$1,000 of my own money and the other $2,000 is profit from the super fund

 

[markrmau]

It's common knowledge I change my nic regularly.

People who have the balls to stand up for what they believe in see no need to change nics.

 

[theasxgorilla]

People who have the balls to stand up for what they believe in see no need to change nics.

...or use pseudonyms!

The ASX Gorilla.

 

[krisbarry]

My current super account balance is now $37,000 Easy Money

Glad I am geared!

Now how many years to retirement?

60 years - 32 (current age) that makes 28 years

 

[krisbarry]

By the way I have my eye on an awesome tent from Kmart for $29.95 and a great place to pitch it by a park bench...then wait, and wait, and wait till 60 years of age. Ahhh home ownership is just a dream.

 

[theasxgorilla]

Now how many years to retirement?

60 years - 32 (current age) that makes 28 years

If you ever wanted to own your own home, unless you are a nuffy, I can almost guarantee that I could help you come up with a plan that would get you there in less than 28 years.

 

[krisbarry]

I dumped another lazy $2,000 into my super today, so that makes it over $39,000.

 

[Mofra]

I dumped another lazy $2,000 into my super today, so that makes it over $39,000.

$39K? As a lender, I could have found you a home and 1-2 smaller investment properties for that size of deposit if you are earning even close to an average salary.

No offense intended, but why such a defeatist attitude?

 

[Smurf1976]

$39K? As a lender, I could have found you a home and 1-2 smaller investment properties for that size of deposit if you are earning even close to an average salary.

Nothing personal Mofra, but that this level of debt is so easily available is precisely why housing has become so unaffordable.

Even close to an average salary I would take to mean anything over 40K given that the average isn't much over 50K.

A house and two investment properties - surely that's at least $500K debt in total with at best a 5% deposit once all the costs of buying, moving, etc are considered.

500K at present interest rates means literally 100% of wages income going straight to the bank just to pay the interest. Then there's insurance, maintenance on the properties plus personal living expenses. Just hope you never have a rental void, nothing expensive breaks and interest rates rise no faster than income.

 

[krisbarry]

$39K? As a lender, I could have found you a home and 1-2 smaller investment properties for that size of deposit if you are earning even close to an average salary.

No offense intended, but why such a defeatist attitude?

How is this showing any attitude, considering my returns are averaging around 35%, cannot find that in the housing market anymore.

Sorry mate bricks and mortar...is so yesterday...superannuation is all the talk nowdays, much better returns and low risk too.

....and ya going to hear a damn lot more superannuation talk in the lead up to the end of this financial year, with the new changes on the horizion.

The stock market is going to be flooded with money for the next 5 months, every man and his dog, and his dogs, dog will be selling up their investment properties and dumping their million dollars tax free into super.

Ya think I am dumb and showing attitiude, na...just thumbing my nose at an over hyped over priced housing market.

No need to worry mate, I thought I was the only one not buying a house...it appears the norm nowdays not to buy, and its the smart ones that don't buy!

Even the best in the business are telling young people, either to hold off buying, or save more before buying, or live at home longer, or to move to a cheaper state etc etc.

 

[nizar]

How is this showing any attitude, considering my returns are averaging around 35%, cannot find that in the housing market anymore.

Sorry mate bricks and mortar...is so yesterday...superannuation is all the talk nowdays, much better returns and low risk too.

....and ya going to hear a damn lot more superannuation talk in the lead up to the end of this financial year, with the new changes on the horizion.

The stock market is going to be flooded with money for the next 5 months, every man and his dog, and his dogs, dog will be selling up their investment properties and dumping their million dollars tax free into super.

Ya think I am dumb and showing attitiude, na...just thumbing my nose at an over hyped over priced housing market.

No need to worry mate, I thought I was the only one not buying a house...it appears the norm nowdays not to buy, and its the smart ones that don't buy!

Even the best in the business are telling young people, either to hold off buying, or save more before buying, or live at home longer, or to move to a cheaper state etc etc.

Brother from my understanding, Mofra wasnt recommending you to BUY A HOUSE RIGHT NOW, but simply stating that home ownership for you is possible and is a viable option, and this was in response to your comment:

Ahhh home ownership is just a dream.

 

[krisbarry]

Off course I could buy a house right now and possibly 1 to 2 investment properties as well, but as Smurf mention, this is damn high risk, lending at such extremes. Buying at the top of the market, and gearing with invesment properties is just down right foolish in this current climate. Even the most dopiest of dick_heads could see that.

There is no way in the world I would risk working up to 7 days a week just to support a loan of this size. I have worked 7 days a week before and all it did was make me sick. What fun is life if ya working 7 days a weeks, no time for your own mental health, no time to socialize with friends or family etc etc.

Thats where Australian's are F-cked!

We are so obsessed with owning bricks and mortar and have forgotten about the art of having fun.

In most countries around the world most people rent, and have way more fun. It really is sad to see so many people with morgagte stress in this country trying to live the great Australian dream.

ITS THE BIGGEST CROCK OF SH_IT TO OWN YOUR OWN HOME....meanwhile you are crying yourself to sleep, or not getting any sleep due to skipped morgagte payments.