coolshadows

http://www.heraldsun.com.au/news/rep...rom=public_rss

Centurion

The most hilarious part of the article -

REIV chief executive Enzo Raimondo called on governments to increase first home buyer grants for existing homes and cut stamp duty for first home buyers.

Rather than acknowledge that house prices have reached the point when people cannot actually afford to borrow the money to buy one, it should be the responsibility of the government to spend my taxes to keep the bubble growing ?

It's this sort of mentality that seems somehow ingrained in the Australian psyche.

freebo

You can say that again! Boils my p*** to think my taxes are subsidising the housing bubble, as you say why need a grant other than to prop up the ailing property market.

ozzieeagle

I had to save over 15 pct deposit back in 1984.... It took us four full years to do it.... It's not that different. The rules then where 20pct deposit as well, I kept getting turned away from banks after numerous meetings as they point blank refused to even negoitate. Plenty of Legal fees ate into that 15 pct as well so it basically was only a 10pct deposit on the house once solictors/stamp duty and other fees were paid.

I used my cousins solicitor to get my bank loan, which he did over the phone with the State Bank of Victoria, without us even having to go to the Bank, that was a real eye opener that one. I've never bothered doing things as per the book since and always asked people in the know, the 'best' way to go about things. .

We had savings of around 12,000 dollars when I bought our house. Which if I took as the same percentage of what would be required to buy my house now would be. .... at least 100,000 Aud, as my house is currently somewhere and conservatively valued at between 670,000 and 700,000 K.... I paid 62,000 (including legals) Aud in 1984. BTW we were renting at the time... not sure of the rent but it would have been market value or equiv to at least 300 bucks per week in todays money. In fact we were sharing with another couple... how many people do that now..... so we would have been paying half rent.

Not sure of the average wage at that time.... circa 18,000 Aud from Memory.... maybe less.... Wow around 12,000 Aud by the looks.


I'm guessing thats around 6 months to 1 years extra savings required at present.