I have given up buying a house

[The Red Baron]

I am not bludging..I am paying rent, so therefore I am a tenant...I have moved up the ranks now

I think I might be joining you as a tenant soon. My 25th might be the moving out of home party.

The board is on the way up and a new couch thrown in if I move out, think the old man is gearing up for retirement. Now he only has to get rid of the 21yr old and 19yr old.

 

[theasxgorilla]

I think I might be joining you as a tenant soon. My 25th might be the moving out of home party.

Whatever you do RB, take good care of that $50k.

 

[krisbarry]

Yes its a tough time finding your feet in this world. My story is a little different though, as I moved out of home at the tender age of 18 years old, by choice. Some would say thats old, but the average age now is about 28 years of age.

Paid more than 10 years rent, them moved back home for a couple of years to save money again.

I am able to move back home at anytime. There is an open door policy in my family home. I have a key and can drop in at anytime.

If my life turns to sh_it I can always pack up my life and move home, that is a great feeling to have.

 

[nioka]

Voluntary, but what does it matter?

Voluntary gives you more credence.Imposed means you didn't want to but.....
(I've seen so many of my friends end up retired with very little because greedy children milked the dry.)

 

[The Red Baron]

Whatever you do RB, take good care of that $50k.

It's not doing anything special with it at the moment, sitting in a 6.8% bank account.

I know I should be making it work harder, but all the talk about a share market correction and overheated Perth property market. I'm just sitting on the sidelines at the moment.

I was in the share market when BHP was $12, WBC $10, ALN $2.90.. took my 10-20% profit and got out. I can't look at them anymore, it makes me feel sick.

 

[juddy]

Just saw the A Current Affair promo for the week and it made me feel physically ill. Two people who have gone from "rags to riches" by buying 97 houses between them. The concern for me is how the promo seems to portray them, as people that others should aspire to be. These are people who have stolen the dreams of 95 others and that is the only way I see it.

The message: "get rich at any cost". But alas, that is Australia in 2007. What the hell are we teaching our kids? and what are we taking away from them?

I would imagine there would be less than 10% of people on this site who would understand my concerns.

 

[Smurf1976]

I would imagine there would be less than 10% of people on this site who would understand my concerns.

To be fair, it is "Aussie Stock Forums" so most of the people on this site would have found it via some sort of internet search looking for ways to make money.

But you can count me in the 10%. Housing is an absolute social necessity. Likewise affordable clothing, food, transport, water and fuel/power (all of which are ultimately under threat for various reasons relating mostly to greed).

 

[Wysiwyg]

Likewise affordable clothing, food, transport, water and fuel/power (all of which are ultimately under threat for various reasons relating mostly to greed).

Looking around me I don`t see myself as greedy (just so you know) but I do wonder at what point or number does greed kick in.I think we all like to have at least a similar quality of life as those who desire to do.

 

[krisbarry]

Just saw the A Current Affair promo for the week and it made me feel physically ill. Two people who have gone from "rags to riches" by buying 97 houses between them. The concern for me is how the promo seems to portray them, as people that others should aspire to be. These are people who have stolen the dreams of 95 others and that is the only way I see it.

The message: "get rich at any cost". But alas, that is Australia in 2007. What the hell are we teaching our kids? and what are we taking away from them?

I would imagine there would be less than 10% of people on this site who would understand my concerns.

Yep completey agree...its just pure greed. Nothing about being smart, or wise with your money etc, its just pure greed. Why cannot we have these 2 people buying shares or business' instead, and leave those other 95 homes to families in need.

Why do we have families living in tents, caravans, cars and shipping containers? Not because they have made the wrong choice, but simply they have be caught up in a housing super cycle caused by greed.

Ya never know A Current Affair might screen an episode next year them losing all 97 homes in a massive housing downturn and they might be the first in line at Centrelink.

Sometimes the mighty (greedy) fall...

 

[krisbarry]

Just for the greedy, take a look at the chart; Its pretty obvious what we need here to survive.

 

[nioka]

Yep completey agree...its just pure greed. Nothing about being smart, or wise with your money etc, its just pure greed. Why cannot we have these 2 people buying shares or business' instead, and leave those other 95 homes to families in need.

Why do we have families living in tents, caravans, cars and shipping containers? Not because they have made the wrong choice, but simply they have be caught up in a housing super cycle caused by greed.

Ya never know A Current Affair might screen an episode next year them losing all 97 homes in a massive housing downturn and they might be the first in line at Centrelink.

Sometimes the mighty (greedy) fall...

Are they really that greedy. They are not living in them all. They are providing homes for a lot of people who, like a lot of people on this forum, say it is better to rent than to buy. Can't have it both ways. I tried owning rental properties but after 2 "tennants from hell" gave up the Idea. I believe owning you own home is the best investment you will ever make but owning someone elses home is the worst.

 

[Julia]

Stop the Clock

You are vehemently defending your position. That's fine. We should all feel free to make our own choices.

However, Nioka asked you if you are now paying rent voluntarily. Apparently so. You have also said you can move back home at any time, presumably rent free if necessary. So you are in a position of choice.

I'd just like to refer to the hundreds of thousands of people who are in middle age or later who are forced to rent because they weren't prepared to make the sacrifices required for buying their own homes when they were younger and were earning enough to support a mortgage, perhaps going without travel, designer clothes etc. Now they are on Centrelink benefits which fail to keep up with rent increases, and they simply can't manage.

Where I live property prices continue to rise, rental market is very tight and consequently rents are rising exponentially. Many people are several weeks in arrears. On Centrelink payments they have no way of catching up. They also cannot pay electricity accounts or car rego. So they can't drive their cars. It's a miserable existence. They often end up with a grotty room in an emergency housing hostel.

There is a huge waiting list (about 6 years] for Housing Commission units with their cheap rents.

The anxiety of this woeful existence exacerbates pre-existing physical illnesses. Psychological breakdowns and depressions are common.
These people cannot get jobs. They are entirely dependent on the State and their community.

Certainly, most people on this forum won't ever find themselves in such a position, but redundancy, illness and a thousand other unforeseen circumstances can occur. At least if you have your own home, it's a sense of security like no other. If you have your own home, you are in control.
It's worth making some sacrifices when you are younger for the peace of mind later.

And with one property, it's possible to gear into further investment properties.
As Tech and some others have said, there are always opportunities there.
Those who continue to wait for "the perfect time" will just possibly find the years slipping away from them.

Julia

 

[juddy]

Ya never know A Current Affair might screen an episode next year them losing all 97 homes in a massive housing downturn and they might be the first in line at Centrelink.

Sometimes the mighty (greedy) fall...

Hi STC,

I don't wish that on them. I just wish the Australian culture was different, especially that of the older set of my baby-boomer generation, the ones that revolted against the greed they now perpetuate.

Where did this come from? Is it a legacy of the Howard government or is it driven by fear manipulation from those services who stand to maje so much money out of this culture?

 

[nizar]

I have already done it too, only 4 years ago I had $8 grand in my super and by weeks end I will have well over $40,000. Its all relative! I now have 5 times my wealth!

...I also suspect that in 4 years time I will be another 5 times richer too, thanks to the compounding effect and gearing.

So you think the stockmarket will produce the same returns in the next 4 years as it did in the previous 4 ??

Dream on

Gearing means you WILL LOSE MONEY when the markets go south, more than those ungeared super funds.

 

[krisbarry]

Yes I am in a very fortunate position to have choice, the choice to pay a small amount of rent for a good quality of life, or move back home rent free. I do understand that many people don't have those options. I guess its the luck of the draw.

 

[Smurf1976]

Just for the greedy, take a look at the chart; Its pretty obvious what we need here to survive.

Interesting chart but I would say that, in the short term at least, physical safety is somewhat more important than sex. You may want the latter but you won't be alive to get it without the former.

 

[krisbarry]

So you think the stockmarket will produce the same returns in the next 4 years as it did in the previous 4 ??

Dream on

Gearing means you WILL LOSE MONEY when the markets go south, more than those ungeared super funds.

The super fund I am in now has had consistant profits for over 6 years. In 2001 and 2002, while most super funds went into negative, mine was up by 20%. I wasn't in my current super fund at the time, hence mine went south too.

It is very much possible for the ASX to continue its record run for many years to come. Back some 6 years ago the ASX was over priced and running at a figure of 20, now its back down to 14 and is considered fair priced.

China and India want everything under our feet, and we are becoming less reliant on the movement of the DOW. So it appears that we will continue this growth period, with a correction or two.

Don't forget about the next 5 months we will see massive amounts of money flowing into the ASX due to the new super rules, which start in July. Heres to some awesome times ahead!

 

[nioka]

The super fund I am in now has had consistant profits for over 6 years. In 2001 and 2002, while most super funds went into negative, mine was up by 20%. I wasn't in my current super fund at the time, hence mine went south too.

It is very much possible for the ASX to continue its record run for many years to come. Back some 6 years ago the ASX was over priced and running at a figure of 20, now its back down to 14 and is considered fair priced.

China and India want everything under our feet, and we are becoming less reliant on the movement of the DOW. So it appears that we will continue this growth period, with a correction or two.

Don't forget about the next 5 months we will see massive amounts of money flowing into the ASX due to the new super rules, which start in July. Heres to some awesome times ahead!

Sounds a familiar story. Heard it in the 50's and the 70's and the 80's and the 90's. ??????????????

 

[theasxgorilla]

Just for the greedy, take a look at the chart; Its pretty obvious what we need here to survive.

Take note...we need more sex than love.

 

[krisbarry]

Take note...we need more sex than love.

Silly boy, thats not how you read the chart.

This chart is about Maslow's theory in regards to the Hierarchy of Human Needs.

For sure...the need for sex, rates higher than love, but to have more sex doesn't always mean you are going to find more love either now does it?

The chart defines the most basic human needs and moves upwards. I posted this charts as I believe the cost of housing is having a direct effect on how humans are failing at following a simple theory.

Ask a homless person, a stressed out morgagte holder, or a renter (paying over priced rent) how they feel about their personal safety, their sense of beloning, their self esteem etc...bet its very different to the relaxed home owner.