The Great Aussie Housing Bubble - Reality or Fantasy?

[farmerge]

I've got thick skin they can label me what they want , and when they pay for the damage I'll accept their criticisms.

If it wasn't for a large capital gains tax bill I would sell tomorrow.

We found out the hard way that as landlords we had no rights whatsoever. The courst can only see the "poor" tenant being victimised by a cruel, greedy and uncaring landlord, which we were not.

 

[divs4ever]

I've got thick skin they can label me what they want , and when they pay for the damage I'll accept their criticisms.

If it wasn't for a large capital gains tax bill I would sell tomorrow.

if you did ( and i wouldn't condemn you , considering i have already sold ) where do you park the money wisely ??

i got lucky after inspecting several rural properties ( for a new residence )

finding a good place to park your profits , has not been so easy in the 2020s

good luck getting paid for the damages/clean-up/ newly legislated upgrades , maybe your state is landlord friendly

 

[divs4ever]

Hmm had a similar situation a few years ago.
We had to put all the cretons "belongings" into a secure stoarage container at our expense until the magistrate found in our favour.
Took over 6 months to be rid of this druggies belongings.
We did get reimbursed for out efforts but the shyt bags then returned and burnt the house to the ground sometime later.
No more rentals for us.
The one house we still have will remain empty, the only tenants being the locals rodent family.
These are well fed with the appropiate poison.

i preferred venomous reptiles after all they are protected species and they reduce the rodents and other vermin ( not as much as i would have liked , but ... )

but yes my former rental will become a nice expensive block of units in a gentrified crime zone ( courtesy of a big-pocket guy from Victoria )

 

[farmerge]

i preferred venomous reptiles after all they are protected species and they reduce the rodents and other vermin ( not as much as i would have liked , but ... )

but yes my former rental will become a nice expensive block of units in a gentrified crime zone ( courtesy of a big-pocket guy from Victoria )

No doubt there would be the odd dugite taking up residence under the empty house, but we haven't seen any at all this spring/summer. Usually there are a couple of snake skins to show that they are around.

 

[divs4ever]

No doubt there would be the odd dugite taking up residence under the empty house, but we haven't seen any at all this spring/summer. Usually there are a couple of snake skins to show that they are around.

turned out one group were council contractors breaking in for a sly liquid lunch while supposedly doing park maintenance

sadly the property ( vacant at the time ) , didn't have as many arachnids as is normal for a house in the area

maybe our pest control worked ( on smaller creatures )

 

[TimeISmoney]

if you did ( and i wouldn't condemn you , considering i have already sold ) where do you park the money wisely ??

i got lucky after inspecting several rural properties ( for a new residence )

finding a good place to park your profits , has not been so easy in the 2020s

good luck getting paid for the damages/clean-up/ newly legislated upgrades , maybe your state is landlord friendly

The banks are looking good for the moment, you don't lift a finger and make considerably more than you would with rent.

Inflation is always going to wreck you keeping it in the bank but I'm not going to live forever either.
Keeping the house empty here imposes penalties.

I don't see a bright future for rentals, they bring out new laws every day attacking the owners.

With the growth in land value climbing every day, land tax is another issue here too.

 

[divs4ever]

The banks are looking good for the moment, you don't lift a finger and make considerably more than you would with rent.

Inflation is always going to wreck you keeping it in the bank but I'm not going to live forever either.
Keeping the house empty here imposes penalties.

I don't see a bright future for rentals, they bring out new laws every day attacking the owners.

With the growth in land value climbing every day, land tax is another issue here too.

yes the mention of taxing unrealized gains ( on some super funds ) rang big alarm bells for me

how long before they try that on investment properties using some lame excuse

good luck on whatever you select , i am looking for companies that are likely to survive what is coming

 

[farmerge]

The banks are looking good for the moment, you don't lift a finger and make considerably more than you would with rent.

Inflation is always going to wreck you keeping it in the bank but I'm not going to live forever either.
Keeping the house empty here imposes penalties.

I don't see a bright future for rentals, they bring out new laws every day attacking the owners.

With the growth in land value climbing every day, land tax is another issue here too.

I guess our situation is slightly different to a "normal" rental. The vacant house we have is on the farm as a 2nd house. As mentined before had out fill of tenants who don't pay, destroy and cause havoc.

 

[TimeISmoney]

I guess our situation is slightly different to a "normal" rental. The vacant house we have is on the farm as a 2nd house. As mentined before had out fill of tenants who don't pay, destroy and cause havoc.

That doesn't sound good.

I've had some grubs but luckily I was able to get them out in time with the old laws, The worst I've had is a couple of punched holes in the walls and doors so far.

 

[TimeISmoney]

The grass is always greener on the other side of the fence.

An Aussie woman has shared her struggles after becoming a homeowner​

“Buying a house was a bad investment. My partner and I couldn’t afford a house close to the city so we bought way out in the suburbs,” she said.

“I’ve just had to start working a second job at a local pub a few nights a week due to rising interest rates and needing to afford mortgage payments.

“House maintenance is expensive — no more calling up your landlord, that’s your problem now.”

“Honestly owning a house has been the worst thing for my mental health,” one person shared.

“Prior to buying, I had money for anything, constantly travelled, shopping sprees, brand new car etc — was not under any financial pressure whatsoever since buying however sooo much of my money goes on the house.”

A third said: “I regret buying a home. I could have done so much with that money, everyone lies — a house is a liability.”

 

[StockyGuy]

The grass is always greener on the other side of the fence.

An Aussie woman has shared her struggles after becoming a homeowner​

“Buying a house was a bad investment. My partner and I couldn’t afford a house close to the city so we bought way out in the suburbs,” she said.

“I’ve just had to start working a second job at a local pub a few nights a week due to rising interest rates and needing to afford mortgage payments.

“House maintenance is expensive — no more calling up your landlord, that’s your problem now.”

“Honestly owning a house has been the worst thing for my mental health,” one person shared.

“Prior to buying, I had money for anything, constantly travelled, shopping sprees, brand new car etc — was not under any financial pressure whatsoever since buying however sooo much of my money goes on the house.”

A third said: “I regret buying a home. I could have done so much with that money, everyone lies — a house is a liability.”

Probably doesn't augur well for their relationship lol - both of them all stressed AND now she's working a job where if she's even vaguely decent looking she'll be hit on all the time.

 

[TimeISmoney]

Probably doesn't augur well for their relationship lol - both of them all stressed AND now she's working a job where if she's even vaguely decent looking she'll be hit on all the time.

I don't think some people realise how much is sacrificed to own a home. My first home was a nightmare, bought off the plan and the build looked fairly good until the last few months. Ended up paying and fixing a lot of the defects myself, lawyers wanted as much as the repair bill and wouldn't guarantee a win or the builder folding. They actually did go under a few years later but I got through it all and still own it to this day.

 

[StockyGuy]

I don't think some people realise how much is sacrificed to own a home. My first home was a nightmare, bought off the plan and the build looked fairly good until the last few months. Ended up paying and fixing a lot of the defects myself, lawyers wanted as much as the repair bill and wouldn't guarantee a win or the builder folding. They actually did go under a few years later but I got through it all and still own it to this day.

Life is hard

 

[Smurf1976]

The grass is always greener on the other side of the fence.

Or it's the media trying to convince the masses that missing out and not having their own home isn't so bad after all.

 

[farmerge]

Or it's the media trying to convince the masses that missing out and not having their own home isn't so bad after all.

That;s closer to the mark I feel. Being a life long renter (not Me and She), is a sign of no get up and go. safrifices have to be made to be the owner of your own castle, no matter if it is just a sarter home.

 

[TimeISmoney]

Or it's the media trying to convince the masses that missing out and not having their own home isn't so bad after all.

One of the media outlets actually owns part of realestate.com, but they all have money invested in homes, even most of these leftie politicians. Old assassin Kevin Rud had a fancy home here in Qld in the Noosa district that he sold for in the millions.

If the govt really wanted to help people get into homes it could do a lot more than it does. I tell a lot of young people don't wait for the govt to do anything because you might be waiting until you're dead, start doing something now yourself, help yourself.

I see them spend tons on new phones and cars every year, gap year holidays while they study at UNI, buy cheap phones, buy older cars, and look after them, choose recreational activities that don't cost the world. This small part of your life now that you're missing out on is nothing in comparison to when you get older.

When I was in my mid 20s my neighbour's BIL about the same age bought 2 crappy houses before he owned a car, he worked as a storeman and used public transport to get around. I'll never forget when he finally bought his first car it was an old Torana that had more rust than steel in it, the floor had rust holes the size of your fist. He was stoked at the time that he finally had his own transport.

 

[Dona Ferentes]

an American view.
.
"I do not think now is an especially good time to buy a house. Some people don’t have a choice as to when they buy a house, though—they move somewhere for a new job, and they have to buy.

At this point in the cycle, owning is more expensive than renting. And one thing I talk about is .... the idea that buying a house is probably the riskiest financial decision you will ever make. If you overpay for a house, you might not go bankrupt, but if you are spending 50% of your income on mortgage, insurance, and property taxes, plus maintenance, it will crowd out your ability to save for retirement.

Remember: Debt is the chief activator of financial stress. If you have a lot of debt, you will have a lot of stress. Don’t let buying a house become an emotional decision. Run the numbers. Make sure you can afford it. Your housing costs should be less than 25% of your income. Maybe 30% if you stretch.

With interest rates and housing prices high, homes are exceptionally unaffordable. That’s just a fact. When will they become affordable again? I have no idea.

You might be in the position where you’re renting, and you really don’t want to rent, and you can’t see yourself renting for another five years. I get it. But you don’t have to own a house. There is a cult of homeownership in this country. All the 27-year-olds write in and tell me that they don’t feel like an adult unless they own a house. There are advantages to owning a house, for sure—it is a bit like a forced savings program, and you own an asset that will probably appreciate over time. But if you buy an overpriced asset, it will take a long time to appreciate...

 

[farmerge]

an American view.
.
"I do not think now is an especially good time to buy a house. Some people don’t have a choice as to when they buy a house, though—they move somewhere for a new job, and they have to buy.

At this point in the cycle, owning is more expensive than renting. And one thing I talk about is .... the idea that buying a house is probably the riskiest financial decision you will ever make. If you overpay for a house, you might not go bankrupt, but if you are spending 50% of your income on mortgage, insurance, and property taxes, plus maintenance, it will crowd out your ability to save for retirement.

Remember: Debt is the chief activator of financial stress. If you have a lot of debt, you will have a lot of stress. Don’t let buying a house become an emotional decision. Run the numbers. Make sure you can afford it. Your housing costs should be less than 25% of your income. Maybe 30% if you stretch.

With interest rates and housing prices high, homes are exceptionally unaffordable. That’s just a fact. When will they become affordable again? I have no idea.

You might be in the position where you’re renting, and you really don’t want to rent, and you can’t see yourself renting for another five years. I get it. But you don’t have to own a house. There is a cult of homeownership in this country. All the 27-year-olds write in and tell me that they don’t feel like an adult unless they own a house. There are advantages to owning a house, for sure—it is a bit like a forced savings program, and you own an asset that will probably appreciate over time. But if you buy an overpriced asset, it will take a long time to appreciate...

Good morning DF what you have posted makes a lot of sense. But with the boot on the other foot, a renter can be shown the door very quickly for a number of reasons. Owner is selling, the rent goes sky high etc. Definitely pluses and minuses, for mine though I would rather be under a roof that I own a couple of sheets of iron knowing that one I will own the asset.
Have a good one today

 

[tech/a]

Good morning DF what you have posted makes a lot of sense. But with the boot on the other foot, a renter can be shown the door very quickly for a number of reasons. Owner is selling, the rent goes sky high etc. Definitely pluses and minuses, for mine though I would rather be under a roof that I own a couple of sheets of iron knowing that one I will own the asset.
Have a good one today

Just to add a little more thought to this.

At 20-30, increasing income (2 Jobs or climbing the ladder) Is life.
Get to 70 and that's not an option. If you're still renting and not well-heeled (If you were you'd own a house or 3) .
Life at that age could be your worst nightmare.

The old story ----- moneys is not everything until your 70 and dont have enough!

 

[tech/a]

So what are the options?
I have a few but interested in others' ideas first.
You've really got to think well out of the square (Conventional thinking).