The future of Australian property prices

[sptrawler]

I have looked and that is what I have thought about too. Rent out the other rooms to help. But I also don't count on those things. I also share my current rental to save more on costs (I save the money and will put it to starting up new systems to trade).

But you are definitely correct. I also see the market as just being well over-valued so right now I can rarely justify it. It's also only up to this time year that I left my job that had me move every year or two for work. Now that I am in a stable location and job, I'll start looking more seriously.

Open your mind to options, car sharing and living further out, going tenants in common in a house, ask your employer if you can salary sacrifice the rent and they pay fringe benefits, there is a multitude of options if you open your mind.
One of the richest guys i've known rented, he was worth zillions, but only invested in shares, not my bag but I'm not worth zillions.

 

[Warr87]

Open your mind to options, car sharing and living further out, going tenants in common in a house, ask your employer if you can salary sacrifice the rent and they pay fringe benefits, there is a multitude of options if you open your mind.

I'm open to options. But I can assure you, the path I have taken in life wouldn't have allowed it prior to the past few years. And owning a house isn't the be-all,end-all.

If I had 100k for a house deposit, or 100k for trading a system, I would go the system. I'm sure that's a contentious position in this thread, despite the forum lol.

 

[sptrawler]

If I was in your shoes, I would do exactly the same.

 

[Warr87]

If I was in your shoes, I would do exactly the same.

Be sure to follow my ASX300 Super thread. Will eventually transfer that to a SMSF and then use the gains from that system to invest in a house to use in my retirement .

Shameless plug I know. But I couldn't resist haha.

 

[sptrawler]

Be sure to follow my ASX300 Super thread. Will eventually transfer that to a SMSF and then use the gains from that system to invest in a house to use in my retirement .

Shameless plug I know. But I couldn't resist haha.

I've been running my SMSF since 2007 and retired in 2011 at 55, so will watch your progress with interest.
By the way left school at 15 and always worked for wages, plus didn't inherit or rip off anyone for anything.

 

[3 hound]

I sit right in the middle on this, from one side I see some of this as being out of touch from the boomers point of view, but from the other side I definately think the "young" people or majority of them have ridiculous expectations. Is there any normal people left in this country? ? But if there is still any normal people that don't have high expectations I still think it is very hard for them and not easy to pack up your family and leave melb or syd, but this argument goes in circles, im no longer that passionate on it anyway.

What I do agree on here is why we need to keep bailing out and babying those in melb and syd. Saw some chick on news saying how ohhh nooo her mortgage payments are up and food bills are already high... "ahh then get a better job mate"

When you are young and healthy you move to where the work is and you work. It's not out of touch to say youngsters don't want to work as much, the data on job vacancies prove it.

Organisation have no choice but to employ foreigners in all manner of skilled and unskilled work just to get someone to do the job.

My entire family was invited by the Australian government to do work here and the government

That's what I would love. The freedom to make changes to the house. I also love pets, but in a rental I'm just not willing to do that. All your points are valid (pizza oven, makeshift upgrades to the place, etc.). It's why I will eventually own, but in the meantime it just hasn't been viable. If the market finally cools then I will look more seriously.

Certainly not disputing what you're saying but it hasn't been right time with my particular circumstances.

And agian, I prefer putting my money into shares and trading systems. lol

Yeah timing is an issue, I bought at the tip of the last peak and for the last 10 years I would have got less than I paid for it. If I was forced to sell it would have been a financial disaster and who knows what would have happened to the dogs. It was anxiety inducing knowing you were paying a mortgage on something that was worth less than you bought it for.

Fast forward to COVID when everybody lost their job and businesses went broke, somehow that triggered a housing boom here and things have gone batshit crazy. Every vacant block is sold, builders are booked out 4 years in advance and has prices are climbing. COVID lock downs alone caused that boom....go figure.

From that cycle I learnt the only time the house price matters is the day you buy it and the day you sell it. All that matters in between is your ability to make monthly payments and you will still be making payments anyway no matter what you do. Living in a frikkin van is even hella expensive, I have friends living in vans to have the van life experience and they say it's definitely cheaper to rent a flat than live in a van.

 

[3 hound]

I've been running my SMSF since 2007 and retired in 2011 at 55, so will watch your progress with interest.
By the way left school at 15 and always worked for wages, plus didn't inherit or rip off anyone for anything.

What's an SMSF?

 

[sptrawler]

From that cycle I learnt the only time the house price matters is the day you buy it and the day you sell it. .

From a very early age I told my kids you don't make money on a car when you sell it, you make all the money when you buy it, that goes for most things but especially so on depreciating assets, if you can buy a demo for $10k less, when you sell it you will get the same price as if you had bought it new.

 

[sptrawler]

What's an SMSF?

Taking responsibility for your own destiny.

 

[3 hound]

From a very early age I told my kids you don't make money on a car when you sell it, you make all the money when you buy it, that goes for most things but especially so on depreciating assets, if you can buy a demo for $10k less when you sell it you will get the same price as if you had bought it new.

Funny, my old man stopped buying cars and just leases them. He constantly pays the same payment but keeps getting a brand new car every few years.

Could never figure how it works TBH.

I buy my vehicles outright and drive them until they literally fall a apart. My last three cars are still sitting in my yard unregistered and have not been started in 12 years.

 

[Warr87]

I've been running my SMSF since 2007 and retired in 2011 at 55, so will watch your progress with interest.
By the way left school at 15 and always worked for wages, plus didn't inherit or rip off anyone for anything.

It's a long story, but no money left to me or inheritance. Even spent some time destitute. Worked several jobs while at uni. Worked 30hrs a week even while I was in highschool. I'm only paying off my HECS-HELP debt this year, despite graduating from that degree in 2008, lol. Certainly no silver spoon or gifts here, lol.

If it works how I want, the trading within super should work well. It's already returned me more than a fund manager would've given me. I have a high super for people my age so I must be doing something right. I hope to be able to retire early, but honestly, even if I had the money I probably wouldn't. Retiring at 55 would be the goal.

Will probably be a few years before the super can afford to put a deposit on a house, but the trading should be entertaining enough .

 

[Warr87]

Funny, my old man stopped buying cars and just leases them. He constantly pays the same payment but keeps getting a brand new car every few years.

Could never figure how it works TBH.

I buy my vehicles outright and drive them until they literally fall a apart. My last three cars are still sitting in my yard unregistered and have not been started in 12 years.

Best not to segway too much from the thread, but I am always weary of leases. It can help in some circumstances, and I know some who make it work for them financially, but I've seen more being burnt from it than benefiting.

Like you, I buy outright and run it into the ground. I had to upgrade my car finally last year, didn't even come close to my limit. Would rather save the money for something else. But I've never been too into cars anyway, so there is that.

 

[sptrawler]

Funny, my old man stopped buying cars and just leases them. He constantly pays the same payment but keeps getting a brand new car every few years.

Could never figure how it works TBH.

A really close friend of mine did that, but I couldn't see any sense in it, basically you are taking a car on hire purchase and also paying for the the leasers lunch.
A car is a depreciating asset, the lower the loss the better, but at the end of the day unless you are lucky there is a loss.
The only time I leased a car was when I could salary sacrifice it and the fuel, maintenance etc and I was on the top tax scale.

 

[sptrawler]

You guys seem to have your $hit together, stay simple, don't buy into the hype, be logical.
The herd is never predictable, so have your own long term plan.

 

[Smurf1976]

I sit right in the middle on this, from one side I see some of this as being out of touch from the boomers point of view, but from the other side I definately think the "young" people or majority of them have ridiculous expectations.

On one hand housing is overpriced and that's bad in terms of broader economic consequences both to individuals and the nation. For anyone who says otherwise, just compare price versus wages in the past with today's figures and it's readily apparent.

On the other hand though, well it's a strange world where houses better than the one I lived in as a kid are now routinely sold as fit for nothing other than demolition meanwhile overseas travel is seen as a right. That mentality is one that not so long ago only the rich could afford, not the middle class and certainly not anyone just starting out.

I think a point often missed is that those with success mostly weren't born with it. I don't idolise celebrities, not by a long shot, but they're a good example simply because plenty of information is readily available about them. Pick an actor or singer, do some research into their background, and odds are you'll find some pretty humble jobs completely unrelated to the acting or singing and you'll find their first work in that field wasn't particularly glamorous either. In most cases it took them years to achieve actual success.

 

[Smurf1976]

What's an SMSF?

Self Managed Super Fund.

 

[againsthegrain]

Self Managed Super Fund.

I thought we were playing the game of describing it without naming it ☺

 

[3 hound]

Self Managed Super Fund.

K, seems obvious now duh

 

[3 hound]

Geez just talking to a friend in Caloundra, his neighbour bought his house 5 years ago for around $580 000 sold it last week for 1.2 million. The house is over 40yo.

No house on the street was bought for a million, now every house on the market gets a minimum of a million and they are selling like hotcakes.

Why is anyone wasting time and money on the stock exchange, show me where you can get 100% gain in 5 years in any share market.

Housing has gone nuts.

 

[JohnDe]

Geez just talking to a friend in Caloundra, his neighbour bought his house 5 years ago for around $580 000 sold it last week for 1.2 million. The house is over 40yo.

No house on the street was bought for a million, now every house on the market gets a minimum of a million and they are selling like hotcakes.

Why is anyone wasting time and money on the stock exchange, show me where you can get 100% gain in 5 years in any share market.

Housing has gone nuts.

That’s inflation for you, with the added bonus of extremely low interest rates and low unemployment.

As for making money from it, like anything it’s all in the timing.