Australia housing bubble

[FairmontGS]

Amazing value in Hobart and Launceston as well. thousands of properties under $400k.

[FTE217]

Not OTT at all, thems the facts, people in general are having families later and it wasn't because of property rising but wanting to live life prior to settling down, the opposite to the past so we've been led to believe.
During the time of enjoying themselves costs rise/rose whilst they spend.
Women want careers before baring kids (no worries to me good on them why not), yep those risks come into it.
The biological boundary has been tested for quite a while.
In the meantime these people make it harder for themselves to home ownership (unless they bought a investment in between), that is if they desire it today....

[Fed]

There's too many people here.

[Maka]

Originally Posted by Fed

There's too many people here.

As in the country is over crowded & pushing house etc prices up? If so, there's a lot more to it than that..

cheers, Maka

[Fed]

Originally Posted by Maka

As in the country is over crowded & pushing house etc prices up? If so, there's a lot more to it than that..

cheers, Maka

That's what I mean Maka.

[Maka]

Originally Posted by Fed

That's what I mean Maka.

Np Fed, as we both know its all about supply & demand at the end of the day plus other factors influencing those real estate prices. A overcrowded market can push prices up for sure as well as cheap home loans or finance etc etc.

Fact is prices are sky high atm generally pricing some out of the market now & into the future in certain capital cities & some other regions of Australia.

cheers, Maka

[ebzery]

i just had the battery fail i needed 4 tyres then when the car heated up the radiator failed and thats just tuesday.

[ebzery]

1 ac at torrington nsw 45000 with houseing frame buy now!

[ebzery]

had someone i know buy house in melbourne with a loan of the bank of melbourne that went bankrupt lost there house and ended up owing money after they couldn't refinance and the bank foreclosed on them beware of your contractes

[GO FURTHER]

With young people and couples priced out of the housing market, especially in suburbs close to the city and available work, I can see the future trend will become a popular option...

Parents that have a home on a deep block with large backyard, applying for dual occupancy subdivision, then allowing their children to build a townhouse/unit at the back.

[au350hp]

Originally Posted by GO FURTHER

With young people and couples priced out of the housing market, especially in suburbs close to the city and available work, I can see the future trend will become a popular option...

Parents that have a home on a deep block with large backyard, applying for dual occupancy subdivision, then allowing their children to build a townhouse/unit at the back.

I run a little garden design/maintenance business and have done 9 granny flat style jobs in the last 12 months alone. I believe the Blacktown council (one of NSW 10 biggest) has scrapped fees usually associated with building extra dwelling's on your property. It is a wonderful way to share the load with your kids or folks if your the sort of family that can live together. When I was a kid, people used to make fun of Italians & Greeks for buying houses next door or close by. I never understood what was funny about it as it makes perfect sense. Perhaps a strategy for younger people to consider with their family or good friends, especially if you have a building trade.

[ford71V8]

Originally Posted by GO FURTHER

With young people and couples priced out of the housing market, especially in suburbs close to the city and available work, I can see the future trend will become a popular option...

Parents that have a home on a deep block with large backyard, applying for dual occupancy subdivision, then allowing their children to build a townhouse/unit at the back.

People directly across the road from me did pretty much that.
Used part of their backyard to build a self-contained unit and daughter was to live in there. Unfortunately just as it was completed the father died so she never did get to move in there and now cares for her mother in the main home. Poor buggas, they jumped through a few hoops to get that thing built for her, and then just as they were about to enjoy what they had done, everything went pear-shaped.

[GO FURTHER]

Originally Posted by ford71V8

People directly across the road from me did pretty much that.
Used part of their backyard to build a self-contained unit and daughter was to live in there. Unfortunately just as it was completed the father died so she never did get to move in there and now cares for her mother in the main home. Poor buggas, they jumped through a few hoops to get that thing built for her, and then just as they were about to enjoy what they had done, everything went pear-shaped.

That's unfortunate, but if they don't sell the home, they can always rent out the self contained unit, and provide some extra income security for the mother.

[danzvtil]

APRA is causing banks to assess their potential loans much more closely, the ability to borrow funds for a lot of people is slipping away. There is now a softening of prices in many markets. The problem with waiting for a house to be 25% cheaper is that you won’t qualify for a loan to get it.
Some friends of mine bought a vacant block 2 years ago to build on, because they have kids, the banks are now reluctant to offer them a loan for the construction.

[b0son]

Originally Posted by danzvtil

Some friends of mine bought a vacant block 2 years ago to build on, because they have kids, the banks are now reluctant to offer them a loan for the construction.

They're lazy and they dont want it enough. /s

[DoreSlamR]

Originally Posted by danzvtil

APRA is causing banks to assess their potential loans much more closely

Maybe this is why I’m struggling to get even a measly $315,000 mortgage with a $65,000 deposit?

Even the mortgage broker is baffled why I’m being rejected.

It’s frustrating because I’m in Karratha and we’re on the brink of another (mini) boom and prices are super low at the moment. I’ll be super ****ed if I miss out due to some pencil pushing muppet decides my fate.

I can easily service the mortgage, the repayments are marginally less than what I’m paying in rent, but they don’t care about that sort of thing.

[.:4:.]

Originally Posted by DoreSlamR

Maybe this is why I’m struggling to get even a measly $315,000 mortgage with a $65,000 deposit?

Even the mortgage broker is baffled why I’m being rejected.

It’s frustrating because I’m in Karratha and we’re on the brink of another (mini) boom and prices are super low at the moment. I’ll be super ****ed if I miss out due to some pencil pushing muppet decides my fate.

I can easily service the mortgage, the repayments are marginally less than what I’m paying in rent, but they don’t care about that sort of thing.

I'm not saying go behind you mortgage brokers back, but maybe consult another. Not that brokers can be in bed with banks per say for better deals, however a different broker may have different contacts with different financial institutions. I had to pay an additional 12 grand for loan insurance and only 1 bank would accept my application at the time after that. I was 25 and was asking for a larger loan then what you are seeking . Plus a 5% deposit. So to be fair it was high risk for a bank.

[MITCHAY]

A bloke from work has tried to refinance but inbetween getting that loan and now the lending criteria has gone up and he would not have got it these days so now is pretty much ripe for rape by his bank as they see fit. Yet another trap to be aware of.

[FairmontGS]

Wrong thread

[b0son]

Possibly the location .... boom busts or never eventuates, and they're stuck with a mortgage for a property worth less than what was lent.

[davenl5l]

Location can be a major issue with finance .a friend of mine is trying to sell a beautiful house in Point Turton oon Yorke Peninsula SA and no one can get finance because there are too many houses/shacks for sale in the town so it is seen as a risk. He has been told this by sevveral banks

[au350hp]

The amount of pitfalls I read about paying your own mortgage Vs paying rent is staggering. I am glad the topic's not Australia vehicle bubble...

[danzvtil]

Originally Posted by Roostercam

The amount of pitfalls I read about paying your own mortgage Vs paying rent is staggering. I am glad the topic's not Australia vehicle bubble...

How’s this for a pit fall..... you pay rent for 25 years, and own NOTHING.
If you do nothing more than pay the minimum on your mortgage, you then own an asset you can live in for free when you retire, or leave it to your kids when you die.

[nstg8a]

Originally Posted by danzvtil

How’s this for a pit fall..... you pay rent for 25 years, and own NOTHING.
If you do nothing more than pay the minimum on your mortgage, you then own an asset you can live in for free when you retire, or leave it to your kids when you die.

That's the big thing that many of those on the pro-rent side seem to ignore.
How are they gonna keep paying market rents when they're old and decrepit? Who wants to be spending their hard earned super on paying someone else's mortgage?

[FTE217]

Originally Posted by nstg8a

That's the big thing that many of those on the pro-rent side seem to ignore.
How are they gonna keep paying market rents when they're old and decrepit? Who wants to be spending their hard earned super on paying someone else's mortgage?

Oh, I think they know very well what position they are in.....
I'm sure everyone has their logical reasons/mishaps/negatives/hard luck/good luck stories........but I know what side of the fence I'd prefer being on.

[BENT_8]

Originally Posted by nstg8a

That's the big thing that many of those on the pro-rent side seem to ignore.
How are they gonna keep paying market rents when they're old and decrepit? Who wants to be spending their hard earned super on paying someone else's mortgage?

Easy, raise you kids well enough, provide them with the required deposit so that they can own an investment property, rent said investment property from them, claim the pension and rent assistance, have the government pay off a 3rd of your kids investment property without the stress of renting to some random...no landlord.
Buy a caravan and travel.

I know someone who did this 15 years ago and hasnt looked back, sold her house, gave her son the deposit he needed to buy her a unit, banked the rest, rented the unit from him, she claims the pension and rent assistance to pay his mortgage.
When she's dead its his, swings and roundabouts..

[ebxr8240]

All the negatives on here . Retired 3 years ago . Up till then I had over $3m in real estate . Sold one rental to pay mortgage. Living on the rest . After helping our children purchase their house . I have been away in motorhome off and on since . 8 months cruising South, West coast and back down the centre . With out dabbling in real estate 20 years ago . I couldn’t have done it . Ok I may come me over as bragging. Please I’m only commenting due to negatives . Just be positive work hard .. You’ll get there . Graeme .

[b0son]

Originally Posted by ebxr8240

With out dabbling in real estate 20 years ago . I couldn’t have done it . Ok I may come me over as bragging. Please I’m only commenting due to negatives . Just be positive work hard .. You’ll get there . Graeme .

Being positive doesn't get around the fact that new buyers will never again see the sort of market conditions you've benefitted from. You've benefitted from quickly rising equity ... do you honestly believe the market will soar like it did over the last 20 years? If so, who exactly will pay for these homes? Its going to require mortgages longer than peoples working lives. I don't see APRA approving that any time soon.

[au350hp]

Originally Posted by b0son

Being positive doesn't get around the fact that new buyers will never again see the sort of market conditions you've benefitted from. You've benefitted from quickly rising equity ... do you honestly believe the market will soar like it did over the last 20 years? If so, who exactly will pay for these homes? Its going to require mortgages longer than peoples working lives. I don't see APRA approving that any time soon.

There are still so many property's in areas that have yet to see the highs that others have. Some of them are not great, but enough people realise the potential & ten years later, it is going through a 'high' so you sell & move up to a better place. That is what everybody has done, and continues to do so. Big cities in Australia will continue to grow simply because of migration & population growth. Live within your means or make adjustments so you are & get in the market anyway you can, would be my advice to anybody young & employed.

[CyberWasp]

As a pensioner how many $$$ in assets are you able to have and what is the max you can have in the bank to be still able to claim a full pension for this to work?