lol
Disagree entirely. The cheapest best value places will be closer to the CBd than all those places where the battlers will be trying to hold on to their over priced mc mansion.
Most people are too brain dead to think outside the square
It's nothing to do with Boomers, Gen X, Y, Z.
The only fundamental is credit.
Loose credit => house prices boom
Tight credit => house prices plateau/fall
Everything else is a side issue
I think most of the baby boomer hate comes from lack of understanding of the above quoted statement. Increase in house prices is not due to their investment genius but due to a credit boom, and prices were cheaper back when they were FHBs. I think these are all clear facts.
Some of my friends who have bought recently have taken on INSANE amounts of leverage for places which were half the price a few years ago.
If credit is not expanding I can't see that the next buyer will be saving 400k deposit on their 1000 pw income of which they pay 300 of in rent ...
So therefore this would be 7 times the average income in 1991. So what has changed?
The year is not 1991. A single average figure, from a single year, from a single paper is not going to convince me. (also their data collection methods are not clearly reliable or necessarily of high quality)
If you can show me reliable and accurate statistics and not a single data point I am more than open to changing my point of view on property. But I still won't invest in it.
Show me how income relative to prices is the same now as it has been consistently for the last 20 years.
Not just two data points.
Anything could have happened in 1991 to cause that ratio to occur.
I also find it interesting that this was the start of a fall in property prices (according to the index provided) and stagnation over the next few years... indicating, wow, I don't know A RECESSION.
The links I provided evidence property and wages from 1970 to 2010 and not just one data point. An ability to read and understand facts is essential.
ALSO one of the links is to the Australian Bureau of Statistics. WHAT more do you want .... are you saying the data is flawed from the ABS??
The other link uses the ABS as a reference point as well. Once again the ability to comprehend what is being posted is an advantage.
In 1991 rates were coming down from 17% and property had stagnated. Unemployment was at 10% ... Yes yes yes ..... "The RECESSION WE HAD TO HAVE" by Paul Keating.
After that if you read the data, prices consistently increased on a mean average and wages kept pace. Same situation we are having now. I have seen this cycle 3 times already and am aware of the nuances that are involved.
If you do the research you will get it eventually. So DON'T invest in property.
Exactly.
Young gun, your attitude is so defeatist it's unbelievable. The only person you're hurting by this negativity and failure to have a bit of 'get up and go' is yourself.
As long as you believe yourself to be a victim, so shall you be. And don't expect anyone to come and take you by the hand and say, 'ah, come on then, I'll fix it all for you".
Stop blaming baby boomers. Many of us still have children living at home, essentially sponging off us, whilst we support our elderly parents. We're not whining about this, just getting on with managing what we need to.
As TS has said, buy something that you CAN afford. When prices improve, you'll be able to trade up to something more in line with what you actually want.
My first home was on the outskirts of the city, in a mediocre but not awful area, on leasehold land so that I didn't have to find the money for the block, and was a very ordinary 40 year old two bedroom bungalow. A bit of work and creating a magical garden saw 100% profit in a couple of years.
So maybe stop focusing on what's hard and instead think about what is achievable.
And please, please stop whining about baby boomers.!
How do you reason this out?
How do you know it wasn't high flying, 'I want it, I need it all now', gen Y's who inflated the market.
So you don't think the Baby Boomers weren't in the same position you are now?
Getting really tired of advice from people who rode the credit expansion by investing in real estate. Well done to you all, seriously, well done. But what happened has not much to do with now.
unless -
Can you tell me that growth in property prices is going to continue the same growth trend as the last ten years ? If not then your anecdotes of " I borrowed every cent possible and bought a house, 2 years later it doubled in value " aren't useful.
HAHA because gen y cant afford to get into the market let alone inflate it! with all the government stimulus gen y were BARELY able to sustain the ridiculous prices let alone push them higher.
and NO baby boomers absolutely were not in the same position we are now. please do some research into house prices before the boom. my parents picked up a 4 bed double bath house for 170k(thats right 170k!) in 1999 just 20 minutes from the cbd on a 600m2 block!! at the time that would have been possibly just over 3-4 times my fathers salary. that same house today is worth half a mill! maybe a little less due to the poor market.
it is truly laughable that any boomer can compare their first home purchase with that of gen y's today. unless the boomer bought 2004 onwards which would be unusual.
You are not quite with it are you then? Post some research and facts up to evidence this asinine statement. Opinions are a dime a dozen from people who smoke the broad leaf entertainment plant and most of them have delusions of grandeur.
You are not quite with it are you then? Post some research and facts up to evidence this asinine statement. Opinions are a dime a dozen from people who smoke the broad leaf entertainment plant and most of them have delusions of grandeur.
Spoken like the true guru he is. I think we discussed this about 213 pages ago to the nth degree when the credit squeeze started.
Yes.
No guru savant-ness required. Like the climate change thread, we go around in circles here.
Some of the characters change, some egos bigger than others, some more rude than others, some both, but the same ol' same ol'.
You forgot to mention that some actually will learn from the more experienced posters in this thread who use property as an income/investment deriving tool and others will remain internet experts beacuse they can google in 4 seconds the information they think is required to make them proficient in trading RE.:
Negative growth of median house prices over the next 3-5 years?
Nah could never happen
My point was that why do you need the McMansion???? As a starter buy a two brm unit somewhere, something you can actually afford.I'd like to see you buy this so called "mcmansion" for 300k in brisbanes outter suburbs that most are striving for, do some research.
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