I have given up buying a house

[Ageo]

Sounds great.

The other option is a poor old man still paying alimoney, hen-pecked and bitter, divorced twice, lost the house to his first wife, lost the investment property to his second. The kids have left and now live overseas. He's too bitter to have friends or a partner. And still has to work just to afford to live. All too common these days as well.

you saying thats the only 2 options in life?

 

[krisbarry]

who said anything about being lonely, I never feel lonely. Don't need to have kids to feel loved, or be loved.

Plenty of people survive just fine, with no kids, and a pet or two instead.

Why buy a family home with 5 bedrooms pop out 4 kids just to feel loved and hope that you wont feel lonely.

That is a very 1950's approach to life....the wholesome family, with the wholesome views etc.

Ohhh would someone from the younger generations wake up these old farts and tell them that the family unit is dead and buried now

Its a whole new ball game these day. Family units now exist of very few people, more than 25% of people now live alone, and that is quite accepted. Even pets can be a better/cheaper option to a family unit!

so my argument still exists....is super a better option than buying a house?

Depends on the person and the lifestyle they want to have!

 

[Happy]

One good thing is no matter what journey you take you must kick the bucket.

Home or no home, chances are you might die and if nobody finds you, your body might have to wait for discovery.

Longer you wait, better chances to make news.

Home or super should cover the cost of funeral, so really doesn’t matter, and super should be fine, no argument from me, and have a nice journey.

 

[Knobby22]

Yea, good luck.
Life is after all about how much money you have at the end.
Each dollar is one point.

Your 65th year will be a bewdy.

 

[The Mint Man]

while I do want to have kids I can see where your coming from stc.
from the age of about 17 I have said that I want kids, however I want to set myself up first. I decided that I will not be having kids or getting married to my now long time partner until at least 30 years of age.
I watched my 2nd eldest brother have a kid and get married, buy a house all at once by 18-20. I watched him struggle and thought 'Im not gonna do it that way'.
for my second experiment I then watched my eldest brother get married at about 28, then have a kid and by a house by 29-30.
Through these examples I came to the conclusion that I could cut out the marriage and the kids and put all my money into investments so that when I do have kids it will be a bit easier. Im doing things the opposite way to the rest of my family.
Dont get me wrong though, My 2nd eldest brother is doing very well, he bought an investment property before the boom then sold it after. He is a very good builder and hardly has to touch the tools if he dosnt want to(although he cant help himself) and he half owns another buisness with a, lets just say wealthy man.
My eldest brother works for a employer to pay the bills for the moment, he is a qualified graphic designer but dosnt use these skills as a job, he loves his art. My money is on some of his art to be printed on shirts etc. that possibly even celebs would wear one day. some people already have some of his unique style of art hanging from their walls. (by the way if your interested in art drop me a PM)

I think the above outlines what your trying to say STC, we all have different ways and each and every way can be successful.

cheers

 

[dj_420]

Realist its all well and good to be renting while your young, BUT what about when you want to retire??? you will still be renting paying off someone elses mortage on only retirement benefits. i know people who have gotten to that age and are still renting and honestly the outlook seems pretty bleak to me.

NO savings, no house, still working at 50 yrs plus and STILL renting. IMO renting is not the way to go, you can be paying off a mortgage rent out the house and the rent you pay on where you live is a tax deduction.

The housing market is not overvalued either, its been in a downturn the last year and a half. Some areas may be overvalued but other areas are not.

To assess real estate you have to look at the region, the demographics ie:
1 - current growth rate
2 - future business opportunities
3 - future infrastructure
4 - other microeconomic influences that will affect the region

Areas such as Hervey Bay have one of the highest growth rates in Australia.
Business is booming up there thanks to new infrastructure (airport) and as a result property prices have gone up. if you purchased a 3 bedroom house 2 years ago up there it would have been priced around sub 150 000, now the market is looking at 250 000 plus.

I had a friend purchase a house there for 200 000 around 9 months ago, today the house is valued at 250 000.

Some areas in real estate may be overvalued (Sydney) but i wouldnt buy there anyway. If you actually look into demographics into particular regions you will find that many areas are reasonably priced.

 

[The Mint Man]

cathers,
I know what your saying in regards to renting when you retire and i agree with all your coments.
However in realist's defence, his plan is clearly to invest money that would otherwise be in a house. he has even said that if the price was right he would invest in a house. basically I beleive that his plan is to have more then enough when he retires

 

[krisbarry]

while I do want to have kids I can see where your coming from stc.
from the age of about 17 I have said that I want kids, however I want to set myself up first. I decided that I will not be having kids or getting married to my now long time partner until at least 30 years of age.
I watched my 2nd eldest brother have a kid and get married, buy a house all at once by 18-20. I watched him struggle and thought 'Im not gonna do it that way'.
for my second experiment I then watched my eldest brother get married at about 28, then have a kid and by a house by 29-30.
Through these examples I came to the conclusion that I could cut out the marriage and the kids and put all my money into investments so that when I do have kids it will be a bit easier. Im doing things the opposite way to the rest of my family.
Dont get me wrong though, My 2nd eldest brother is doing very well, he bought an investment property before the boom then sold it after. He is a very good builder and hardly has to touch the tools if he dosnt want to(although he cant help himself) and he half owns another buisness with a, lets just say wealthy man.
My eldest brother works for a employer to pay the bills for the moment, he is a qualified graphic designer but dosnt use these skills as a job, he loves his art. My money is on some of his art to be printed on shirts etc. that possibly even celebs would wear one day. some people already have some of his unique style of art hanging from their walls. (by the way if your interested in art drop me a PM)

I think the above outlines what your trying to say STC, we all have different ways and each and every way can be successful.

cheers

I am 31 years of age, and have no interest in having children at all, neither does my partner, so that is a relief, like I said its just one thing to factor out of the equation. I have no need for a McMansion (3,4,or 5 bedroom home).

My brother and sister are also close in age to myself, and are not interested in having children either, fancy that more people in their early 30's not interested in kids, are we the exception to the rule, I think not, we are becoming the norm!

Who really wants to be on struggle street, having 1,2, or 3 kids and owing a McMansion that you really cannot afford, just to keep up with Mr and Mrs Jones, and their expectations.

No I say, choose a different path! :

 

[Smurf1976]

Most people fit into one of three categories:

1. They own the house outright.

2. They rent the house from a landlord.

3. They rent the house from a bank (mortgage).

Only those in the first category are home "owners" in the true sense of the word. It's those in the third category, renting from a bank, who tend to live in fear of interest rates. They are, ultimately, no more secure than those renting from a landlord.

As for the overall real estate market, the outlook has become steadily worse over the past couple of years. First they said that growth would only slow. Then when that failed they said prices would plateau. Now that has failed and they are predicting that the falls will only be small. Anyone brave enough to say that they'll finally be right this time? Or will "small" falls become "moderate" falls which are actually rather large falls at least in real terms?

Ever hear that joke about "real estate always goes up..."?

Not in Sydney, Hobart, Brisbane or Melbourne it seems. http://www.homepriceguide.com.au/media_release\Home Price Guide Media Release 0506.pdf

 

[bullmarket]

Hi smurf1976

...........Only those in the first category are home "owners" in the true sense of the word. It's those in the third category, renting from a bank, who tend to live in fear of interest rates. They are, ultimately, no more secure than those renting from a landlord...................

Regarding those with mortgages, imo the 'fear factor' is largely dependant on the size of their equity in their home. Obviosly those with low equity and mortgaged to the hilt are vulnerable to interest rate rises, but those with a high equity in their home are much more likely to comfortably cope with rate rises and so are much more secure.

I also think that in say 10 years time residential property values in general will be higher than their previous peaks.

cheers

bullmarket

 

[lewstherin]

I'm on the verge of giving up buying a house in Perth. Whilst east coast real estate might be in a funk, the market is crazy here. Like freaking scary crazy.

Houses are being sold within hours of being listed, the land developers have been forced to use bingo wheels to decide who out of the 100 buyers that rocked up will get the 10 lots on offer...just unbelievable. Median prices are increasing at around $10k a month.

Its got to slow sometime, but even when it does, the recent boom has pretty much priced me out of the market.
Hell even if I could afford a decent place I probably won't buy it because its too sickening to pay more than double what the property was worth 3 years ago.

Contrary to the renters here, I think decent residential, developed land close to infrastructure is going the way oil has.
I view decent real estate as an increasingly scarce commodity in the face of slow land release, increasingly tight anti-urban sprawl policies, and the continous influx of migrants.
So I want some for me - at least a primary residence.
I also want something that I can consider my own rather than having to put up with a landlord.

Given Perth has already had its boom, I'm considering Adelaide.

 

[crackaton]

Why not?

I rent, I love renting. Why would I buy a house?

If anything breaks I get the landlord in to fix it. I have no body corporate fees, no water bills, no rates, no taxes, no repairs, no rennovations, no lawns. NO STRESS.

AND NO MORTGAGE. I am completley debt free. I could lose my job tomorrow, and not have a care in the world.

I pay a small weekly fee to rid myself of all these problems.

If I get annoying neighbours or a great job interstate or overseas, I just find another place and move - I'm free, I can do whatever I want - move overseas, move down the street whenever I want!!

I pay under $10,000 a year to share with a girl a place worth about $650,000.

Hence why I can afford to buy shares. If I had a mortgage I couldn't.

I'm still entiteld to stamp duty excemptions and first home owners grant when I want to buy as well.

RENT!! (it is great )

I tend to agree. Renting does have advantages, as long as you are not forking out too much of your wage. It's good for young singles or professionals who often move arounds. Plus you can still have investment properties if so desired.

 

[crackaton]

There are really good arguments for and against both owning and renting.

Something which may not mean much to many of you but which means a huge amount to me is simply pride of ownership and delight in where I live.
My home and garden are as I have created them and I feel proud and happy to live here. I can't imagine getting that warm fuzzy if I were renting anything.

Julia

Hate to be sexist here, but women seem to be more attached to homes than males. I personally have no fondness for any property, whether it be a five story mansion or otherwise. Being stuck behind four walls or confined in one spot is not particularly appealing to me. To me a home is a roof over my head to sleep, and perhaps entertain occasionally, nothing more.

 

[crackaton]

An old man in a porsche, leading a lonely and shallow existance, no kids, no one who gives a damn about him trying to impress younger women, not missed by anyone much when he dies, all too common.

True but then again I see marriages break up, kids go down the wrong track etc etc. You can't predict the future. Personally I see no need to give extra money to some fund which may not exist in 30 years time. Likewise I am happy to have my boss donate money for my retirement. In the meantime I'll try and make a million by other means!!

 

[crackaton]

who said anything about being lonely, I never feel lonely. Don't need to have kids to feel loved, or be loved.

Plenty of people survive just fine, with no kids, and a pet or two instead.

Why buy a family home with 5 bedrooms pop out 4 kids just to feel loved and hope that you wont feel lonely.

That is a very 1950's approach to life....the wholesome family, with the wholesome views etc.

Ohhh would someone from the younger generations wake up these old farts and tell them that the family unit is dead and buried now

Its a whole new ball game these day. Family units now exist of very few people, more than 25% of people now live alone, and that is quite accepted. Even pets can be a better/cheaper option to a family unit!

so my argument still exists....is super a better option than buying a house?

Depends on the person and the lifestyle they want to have!

true but you can't make love to your pet. Well i guess you could if it was your neighbours goat. ROFLMHO

 

[krisbarry]

Given Perth has already had its boom, I'm considering Adelaide.

Don't even bother with Adelaide, its way over-priced as well, prices here have risen over 150% in 5 years, pricing almost everyone out of the market, not unless you want to live over 1 hour out of the city

Try Hobart.

 

[krisbarry]

true but you can't make love to your pet. Well i guess you could if it was your neighbours goat. ROFLMHO

Now that is sick, just on the phone to the RSPCA....LOL

You know what they say about people who make love to animals.

I have a loving partner for that!

 

[Realist]

Realist its all well and good to be renting while your young, BUT what about when you want to retire??? you will still be renting paying off someone elses mortage on only retirement benefits. i know people who have gotten to that age and are still renting and honestly the outlook seems pretty bleak to me.

NO savings, no house, still working at 50 yrs plus and STILL renting.

Oh for Christ sakes listen

I do not plan to be renting in 30 years time. I plan to own a mansion outright (hopefully). Just because I do not own a house now it does not mean I am not wealthier than others that do own a house.

There are plenty of people in Sydney who have bought a house in the past 3 years that have negative equity. They are far more likely to be renting in 20 years time than I am.

"Owning a house" is as someone said only a true statement for people that do not have a mortgage. In all other cases the bank owns most of their house and they pay the bank a big premium for it. My bank pays me money not the other way around.

I will buy soomer or later, but I still do not believe now is a good time in Sydney. It is much better than 3 years ago, but still has at least 6 months, and maybe as long as 4 years before I can buy safely in the knowledge I have not paid too much and confident the price will go up and it is a good investment.

 

[Realist]

you saying thats the only 2 options in life?

I was trying to as negative as possible about being married, just to counter the negative as possible being single post. Tongue in cheek of course.

Single, married, rich, poor - everyone can be happy. It is ridiculous to assume that someone who is "old" and single and poor is not happy.

Plenty of young, rich and married people are very unhappy.

 

[Smurf1976]

I'm on the verge of giving up buying a house in Perth. Whilst east coast real estate might be in a funk, the market is crazy here. Like freaking scary crazy.

Houses are being sold within hours of being listed, the land developers have been forced to use bingo wheels to decide who out of the 100 buyers that rocked up will get the 10 lots on offer...just unbelievable. Median prices are increasing at around $10k a month.

Sounds exactly like Tasmania a 3 years ago. There was an outright buying frenzy in mid-2003 in Hobart and to a lesser extent other parts of the state. The "for sale" boards were going up with "sold" already on them and it was hard to get away from hearing real estate this, real estate that and more real estate.

3 years later and house prices in Hobart are now falling, especially if you're comparing prices for the same house rather than an "average" house which, due to renovations etc, has increased in quality over that time (but even then prices are falling slightly).

After the boom comes the bust. Not a problem for home owners not wanting to be net sellers of property but for first home buyers paying less and saving interest in the meantime is a definate advantage IMO.

Note that in all of this I am NOT wishing bad luck on real estate investors or for that matter anyone else. I'm just observing where I think the market is heading and it's not up.