Swerv-o

It's baffling that people have known that rates couldn't remain this low, and that they would begin to move up again, yet they evidently continued to buy houses that they can ill afford at the low rates.


S

king kong

i tell ya , they are off their heads .i aint no spring chicken but how the hell are they seriously going to pay for their mortgages .

eugene43

they aint thats why you will find the house price rise will go back the other way as there will be a lot of reprocessed house out there.

iamthecreaturefromuranus

Did none of you guys ever over extend yourselves to get that 'dream home'?. It would be unusual if none of you did... always assuming all three of you have ever bought your own homes.

king kong

absolutely , but only in times when interest rates have been mid-range .10%is a good bench mark in my opinion .Try working out 350000 mortgage on 10 percent and you will see there isnt much to put on the table for the average joe .
The problem i have is the whole system has got out of control , prices of homes are way to expensive even now and interest rates are way too low , its a recipe for disaster and not much room for error for the governments and the likes of the reserve bank .
There are a whole heap of variables ofcourse ie lack of land release etc but thats a whole differnt ball game again .

eugene43

all payed for no morgage with an equity of £200,000 & all done at the age of 46 with a lot of hard work.

JCSUPERMOTO

Hate it when people feel the need to get willys out
Can see why there is a lonely desert island

iamthecreaturefromuranus

yeah, I well remember paying 15% for a while in the UK... nearly wiped us out. Maxing yourself out when interest rates are historic lows is, without doubt, daft... but most of the people doing that are probably young and have never been under that financial cosh that a mortgage can become.

ABCDiamond

Average Home Mortgage against the average Male Full time wage for April 2009, for each State.

•NSW $283,300 against $69,253 or 4.09 times Male income
•QLD $270,800 against $66,518 or 4.07 times Male income
•VIC $249,000 against $66,970 or 3.72 times Male income

king kong

http://www.businessday.com.au/breaki...0809-ee0y.html


interesting reading , seem to be different figures than ABCs .

king kong

thats about 350000 dollars , wouldnt get you much in australia .In a major city close to amenities . Maybe get a 200000 mortgage and you could be getting close ,especially here in perth where prices are on the up and around 450000 is the avaerage .

eugene43

i am not relying on the equity that is just a bonus for been lucky at buying at the right time.i can affored the $450000 but probably will go for a $200,000 morgage as the kids want the extra add ons ie pool ect. Would this be a relistic figure to work to $650,0000 or do i need to up the stakes. i am looking at Perth.Plus my trade can be done anywere.

coolshadows

does that include stamp duty? you can't forget the taxman, he takes a cut of everything!!!

king kong

youll be fine ,with that money to be honest . i just sold mine for 700000 , close to the city [4km ] ,good area . But homes are generally between 700000 to a mil here in inglewood perth .
The outer suburbs ,to the north are cheaper but seem to lack some infrastructure but are otherwise ok .If you are carrying that kind of dosh the same real estate rules apply as anywhere else , crap house in good suburb and u cant lose .
I think you have to come here and actually experience the life here , there is certainly 3 different types of living here , ie very close to city in either a flat or unit , a conventional house with a block up to 600 sqm for as low as 700000 but close to town with lots of amenities ie nice pubs, cafes ,and corner stores etc , or in the outer suburbs with basically same block size with a new house but with you having to drive everywhere and a certain degree of feeling of isolation , the suburbs arnt for everyone but i guess think white america and you get the idea .

king kong

dont know about south australia but i dont think west australians pay stamp duty on purchase of their first house , and migrants come under that category , i know i didnt . Not sure of the cut off point though .