W
Imagine how great life would be then? You would be under or barely 30
And would have done nothing in your twenties, oh and wait. Your kitchen, bathrooms, carpet and paint need to be replaced. Now you find out that the 3 bedroom showbox cannot house the 3 kids you barely managed to feed over the past 4 years as your P&I was so high, so you need to buy another house.
I'm not sure I see your points?
I did heaps in my 20s while I had a house and mortgage - built a successful professional career and did loads of interesting things. I travelled extensively (just rented my house out for 12 months), partied heaps, chased the ladies, and always had somewhere to take them back toThe percieved impact of what I am suggesting is nowhere near as great as most imagine. You just have to think outside the square a little.
As for the house needing renos etc all of a sudden - well usually no-one ever *has* to replace a kitchen or bathroom, people do that because they want to 90% of the time. Carpet?? I'd rip it up and polish the floorboards anyway. Painting you can do yourself if you don't want to spend too much dosh. Anyway a few years of living rent and mortgage free will leave most people with enough spare cash to do all these things comfortably if they want.
Also re a 3 bedroom house + 3 kids, well you don't *have* to move. You might choose to, but there's nothing wrong with 2 kids sharing a room - in fact most want to and enjoy it! If you really want you could extend your house, which you could do probably with an amount equivelent to 2-3 years rent (which you don't have to pay now remember EVER again if you choose - that's 40-50 years of no rent.....). And that expenditure also adds value to your house - so when you sell you get it back, unlike rent. And even if you move, at least you already own a big chunk of housing equity to use to fund that lifestyle upgrade.
Cheers,
Beej
Not that I say people should not purchase property, but to pay it off that fast AND have a lifestyle is plainly ridiculous for most people (interns and registrars included)
450 / 50 = 9
and you would also be paying back the bank about 150 - in interest over that time
150 / 50 = 3
so around 12 years given he never upgrades his car, goes on a holiday, has no other expenses such as kids, not to mention rates and interest rates will only be going up form here.
Only if the rental payments on a property exceed what the mortgage payments would have been, though obviously this is not usually the case.As for your "what ifs" - if you are stuck paying high rent then those "what ifs" stuff your lifestyle up just as badly.
a. Property is at 4.6x household income - the constant comparison to ave salary is less relevantbut i see no evidence presented in why it isnt a bubble. no research, no facts.. just generalised remarks on the prices.. they are flattening out,, they are stable.. lol .. to bring confidence to the masses.. its ok.. its all ok.. lets all hope for a happy spring clearance..
There are a number of reasons why the Australian market is different to overseas markets. Do I believe we will have rises in property prices in the short or medium term? No. Is there overwhelming, compelling evidence for a crash? Apart from the "it happened elsewhere" crowd failing to take into account domestic issues, no there aren't.
Question - Is it possible to borrow overseas to purchase Australian property at their lower interest rates?
I imagine not but was wondering.
cheers
But that's not true in the case of the post I originally replied to - read it again - Prawn86 stated that if they had a $450k mortgage he and his partner could pay off $50k-$60k of principle per year if they really went for it, so they could achieve *exactly* what I am saying. QED.
But yes, for me to buy the apartment where i live at the moment would cost 450k. Even if we put all our money into it and had no holiday etc the maximum we could pay off is 50 - 60k pa. Certainly not going to have it paid off in 6 yrs thats for sure
hello,
Well another great week, its tuff getting an early morning latte down here in Geelong
Oh well, things just plodding along and please think about securing a roof over your head for the later years of your life
No worries
Thankyou
Professor robots
House prices across Perth dropped another 1 per cent in September, new figures released today show, with home values tumbling more than 4 per cent over the past quarter.
The RP Data-Rismark measure of prices, considered the most accurate in the country, shows the median price of a house in Perth is now at $480,000, down 2.8 per cent since the start of the year
Perth units took a hammering in September, with the median price down 4.1 per cent to be 6.8 per cent lower over the quarter.
The median price of a Perth unit now stands at $405,000, 3.2 per cent lower than a year ago.
RP believes those markets with the greatest supply of housing are struggling the most.
It estimates that Perth has a housing supply of nine months.
Senior research analyst Cameron Kusher said there were signs that the national market was unlikely to improve any time soon.
"The middle of the year is typically a much slower time for sales activity and this year was no exception, with capital city property values declining during winter," he said.
"Following on from these soft conditions there is little to suggest there will be any significant rebound during spring.
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