Originally Posted by the troubadour

Big difference between the two though. Forty years ago,straight out racism would have played I'd say a far larger part. I don't think it was Japanese individuals outbidding locals at close on every prime Sydney and Melbourne action. It wasn't a case of getting who knows how much corrupt money out of China away from their governments scrutiny.
Hence the inability to care about paying way above reserve price to ensure actual freehold.

Japanese were to my knowledge more business and corporates buying up hotels and office developments. Not real estate and specific suburb take over.

It is said 60 million Chinese have the ability and desire to invest abroad. Just a small percentage of that market if Australia was their country of choice have the ability to change the landscape as never seen before.

Originally Posted by the troubadour

Having experience in this field one doesn't get rich. Hardly evil rich nor parasites living on the back of others. Rents as said before are set. Not great appreciation either. While Australia looks after speculators remarkably well little is offered to renters who are more or less forced into expensive housing in Australia, to which they may or may not be able to afford. Getting a mortgage and affording it being of course two very different things.

Better deal though you for sure for all concerned. Housing is about as unproductive as possible to find. Especially in a nation like Australia's case with so much debt and money tied up in such an unproductive resource.

Australia will need to adapt and allow more equality to renters to make the situation anywhere near on par with the German model.

Originally Posted by Amazulu

Details

Basically, I am confused by this thread. The inability of FTB to afford a house means that they will have to rent forever. According to you, this is a good thing because that's how it's done in Germany, where, again, according to you, everything is done 'better'

Very confusing

There are plenty of people (not all but many) making shitloads of money renting out property - in Germany and Australia

They're laughing all the way to the back

Originally Posted by commonwealth

First home buyer habits could be 'recipe for disaster' - The Adviser

"According to the Genworth Streets Ahead report, an increasing number of borrowers are using personal loans and credit cards to fund their deposits."

"...a lot of young people have unrealistic expectations."

'They live in their parents' five-bedroom home into their late 20s, they drive their parents' BMW, their first home is an investment property; I don't think they want to live in what they can afford,'..."

Originally Posted by Amazulu

But you think that the German system of everyone renting forever is much, much better so it's not a problem. Rather than paying their own mortgages, the young can rent and spend their money on a far superior lifestyle. As a consequence, they'll be paying the mortgages of the evil few who actually own the properties, who will all be getting f**king rich - but hey, who cares because the majority will be living the party life

A much better setup where everyone is a winner

Happy days ahead

Originally Posted by john in oz

Finance Broker here - In relation to the deposit required most lenders require 5 % genuine savings for a home Loan - then costs such as stamp duties, legals and loan mortgage insurance. It is the duties and LMI that makes it very hard to afford getting into a home for most. Depending on where you live the price of homes can be unattainable for even those on reasonable good wages.

As a planner as well - no issues in renting as long as you put the cost savings towards retirement savings although depending on interest rates sometimes it makes sense to buy if you can afford to that is...

:-)

Originally Posted by Moses2013

Some people rent forever and some don't in Germany, like any other country. The younger generation are now more into buying, because prices are rising in Germany (especially bigger cities). Then again people have always bought homes in Germany, but it was seen as a home and not an investment. Most foreigners in Germany don't buy, because they own homes back in Turkey, Italy etc. and they eventually want to return back home. Renting was always cheap in Germany, so many people didn't see the point of buying.

Originally Posted by the troubadour

I must say I know nobody besides the kids of my friends and associates that rent. All live in fine very well built houses, only a few in apartments come to think of it, at quality and prices (in the main) that would likely make many an Aussie gasp at the rip off they are paying off here.

Originally Posted by Moses2013

I also know plenty of people who own homes in Germany, but my parents were always happy to rent, as the landlord never bothered them and rent was never increased in 15 years. I also find the prices in OZ shocking when I hear what friends have paid.

Originally Posted by Jandpsistr

Perhaps look in Western Australia. We have bought and sold many homes over the last 30 years (for our residential home). These were not investments, but properties we lived in. We were never asked for 10% deposit and we never had to pay more than $1000 deposit. The real estate laws are really good in WA and cover both the buyer and seller. Anyway,that's my advice.
Cheers