"Migrant expats priced out of property market"
Oct 24th 2009, 12:00 am
#31
Guest
Posts: n/a
Re: "Migrant expats priced out of property market"
Many people prefer to own rather than rent, and be at the mercy of having to move if the property owner chooses not to have a tenant any more.
People like to be able to hang pictures on walls, without having to ask permission to put holes in the walls, etc.
Economics isn't always a factor, as long as they can afford the property they want to live in.
I personally feel that people are wanting too much these days, and are pushing prices up due to the demand of inclusions etc.
In 1911, a new Sydney house was £1,600 and the average wage was £220 per year.
In 1911 house prices were 7.27 times the average wage.
Times haven't changed much have they.
People like to be able to hang pictures on walls, without having to ask permission to put holes in the walls, etc.
Economics isn't always a factor, as long as they can afford the property they want to live in.
I personally feel that people are wanting too much these days, and are pushing prices up due to the demand of inclusions etc.
In 1911, a new Sydney house was £1,600 and the average wage was £220 per year.
In 1911 house prices were 7.27 times the average wage.
Times haven't changed much have they.
Oct 24th 2009, 2:56 am
#32
BE Enthusiast
Joined: Mar 2009
Location: SE suburbs,Vic
Posts: 828
Re: "Migrant expats priced out of property market"
Many people prefer to own rather than rent, and be at the mercy of having to move if the property owner chooses not to have a tenant any more.
People like to be able to hang pictures on walls, without having to ask permission to put holes in the walls, etc.
Economics isn't always a factor, as long as they can afford the property they want to live in.
I personally feel that people are wanting too much these days, and are pushing prices up due to the demand of inclusions etc.
In 1911, a new Sydney house was £1,600 and the average wage was £220 per year.
In 1911 house prices were 7.27 times the average wage.
Times haven't changed much have they.
People like to be able to hang pictures on walls, without having to ask permission to put holes in the walls, etc.
Economics isn't always a factor, as long as they can afford the property they want to live in.
I personally feel that people are wanting too much these days, and are pushing prices up due to the demand of inclusions etc.
In 1911, a new Sydney house was £1,600 and the average wage was £220 per year.
In 1911 house prices were 7.27 times the average wage.
Times haven't changed much have they.
I read that 1600 pw migrants/students are landing in each of these cities which calls for 500/600 new homes every week. Are we getting that supply?
Last edited by mpgrewal; Oct 24th 2009 at 2:59 am.
Oct 24th 2009, 3:30 am
#33
Guest
Posts: n/a
Re: "Migrant expats priced out of property market"
Number of Dwelling Units Approved - Seasonally Adjusted
New South Wales:
1,846 Jun-2009
2,067 Jul-2009
2,474 Aug-2009
Total 6,387 for Jun-Aug 2009 compared to 7,140 in Jun-Aug 2008
Victoria:
3,909 Jun-2009
4,299 Jul-2009
3,894 Aug-2009
Total 12,102 for Jun-Aug 2009 compared to 10,732 in Jun-Aug 2008
Oct 24th 2009, 3:52 am
#34
Melbourne - NE suburbs
Joined: Jun 2008
Posts: 1,032
Re: "Migrant expats priced out of property market"
We are not long in the door from a walk in our neighbourhood and stopped at this auction (ref attached)
Estimated selling range was 440-480.
Sold for 565k, with multiple bidders actively slugging it out in the end.
The madness continues !
Last edited by DownUnderPaddy; Oct 24th 2009 at 3:57 am.
Oct 24th 2009, 4:32 am
#36
Melbourne - NE suburbs
Joined: Jun 2008
Posts: 1,032
Re: "Migrant expats priced out of property market"
Oct 24th 2009, 4:35 am
#37
Lost in BE Cyberspace
Joined: Dec 2008
Posts: 6,039
Re: "Migrant expats priced out of property market"
I guess with multiple bidders slugging it out that indicates it is close to its true price rather than a one off drongo paying far too much?
Oct 24th 2009, 4:46 am
#39
Melbourne - NE suburbs
Joined: Jun 2008
Posts: 1,032
Re: "Migrant expats priced out of property market"
The figure paid at auction over the last few years always seems to be at least 10% above the upper end of the advised selling range. This is the case for our area in the NE suburbs of Melbourne at any rate.
We have yet to see any house at auction sold for a figure in its advertised selling range and we have rarely seen any properties 'passed in' without being sold.
Where this will all end, who knows ?
Oct 24th 2009, 5:12 am
#40
Hasta la victoria siempre
Thread Starter
Joined: Sep 2006
Posts: 806
Re: "Migrant expats priced out of property market"
So, for a house in Rosanna at $565k, how much does that cost in mortgage, etc?
Lets assume a first time buyer with a little over 10% deposit, say $60k. Add on stamp duty & transfer fees of $30k, less the FHOG of $12,500, and so we're looking at a mortgage of $522,500, which at 6% interest is going to cost $3360 per month. Certainly not affordable for a single person or with only one half of a relationship working, on an average wage.
Factor in a potential rate rise and at 7%, it'll cost $3700 p/month, and at 8% it'll cost $4000 per month.
When you can rent the same place for around $370 per week, it's not surprising that buying isn't attractive.
Lets assume a first time buyer with a little over 10% deposit, say $60k. Add on stamp duty & transfer fees of $30k, less the FHOG of $12,500, and so we're looking at a mortgage of $522,500, which at 6% interest is going to cost $3360 per month. Certainly not affordable for a single person or with only one half of a relationship working, on an average wage.
Factor in a potential rate rise and at 7%, it'll cost $3700 p/month, and at 8% it'll cost $4000 per month.
When you can rent the same place for around $370 per week, it's not surprising that buying isn't attractive.
Oct 24th 2009, 5:15 am
#41
Hasta la victoria siempre
Thread Starter
Joined: Sep 2006
Posts: 806
Re: "Migrant expats priced out of property market"
I think one of the differences is that in 1911 the average wage would have been provided by one person in the relationship. Nowadays it is almost essential for both people in a relationship to be going out to work, and if they have kids then it's back to work as soon as possible before the bank takes the house.
Oct 24th 2009, 5:20 am
#42
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: "Migrant expats priced out of property market"
So, for a house in Rosanna at $565k, how much does that cost in mortgage, etc?
Lets assume a first time buyer with a little over 10% deposit, say $60k. Add on stamp duty & transfer fees of $30k, less the FHOG of $12,500, and so we're looking at a mortgage of $522,500, which at 6% interest is going to cost $3360 per month. Certainly not affordable for a single person or with only one half of a relationship working, on an average wage.
Factor in a potential rate rise and at 7%, it'll cost $3700 p/month, and at 8% it'll cost $4000 per month.
When you can rent the same place for around $370 per week, it's not surprising that buying isn't attractive.
Lets assume a first time buyer with a little over 10% deposit, say $60k. Add on stamp duty & transfer fees of $30k, less the FHOG of $12,500, and so we're looking at a mortgage of $522,500, which at 6% interest is going to cost $3360 per month. Certainly not affordable for a single person or with only one half of a relationship working, on an average wage.
Factor in a potential rate rise and at 7%, it'll cost $3700 p/month, and at 8% it'll cost $4000 per month.
When you can rent the same place for around $370 per week, it's not surprising that buying isn't attractive.
You should use 20% deposit now as less is just not worth considering when going to the banks.
Oct 24th 2009, 5:23 am
#43
Hasta la victoria siempre
Thread Starter
Joined: Sep 2006
Posts: 806
Re: "Migrant expats priced out of property market"
My ex is buying a place at the moment with a 5% deposit!
The house she's buying is in country VIC and is costing a huge amount less than in Melbourne. She'll have a two hour train journey each way to commute into the city every day, and live in a suburb she doesn't like. Personally I don't see the big thing about owning your own bricks and mortar when it costs you a fortune for 25 years for the privilege of living somewhere you don't want to be, and then a quarter of your waking day travelling to & from work.
Last edited by johnnyx0; Oct 24th 2009 at 5:54 am. Reason: Added some more detail...
Oct 24th 2009, 5:33 am
#44
Hasta la victoria siempre
Thread Starter
Joined: Sep 2006
Posts: 806
Re: "Migrant expats priced out of property market"
Stamp duty is very expensive in Victoria and there's no discount for First Home buyers like in some other states such as NSW & QLD.
ie, for a $500k house:
VIC: $21,970 - no FH buyers discount
NSW: $17,990 (FH buyers - nil)
NT: $23,928 (FH buyers - $8,413)
WA: $17,765 (FH buyers - nil)
TAS: $17,550 - no FH buyers discount
QLD: $8,750 (FH buyers - nil)
ACT: $20,500 - no FH buyers discount
SA: $21,330 - no FH buyers discount
QLD looks a good place to buy, first home buyer or not....
ie, for a $500k house:
VIC: $21,970 - no FH buyers discount
NSW: $17,990 (FH buyers - nil)
NT: $23,928 (FH buyers - $8,413)
WA: $17,765 (FH buyers - nil)
TAS: $17,550 - no FH buyers discount
QLD: $8,750 (FH buyers - nil)
ACT: $20,500 - no FH buyers discount
SA: $21,330 - no FH buyers discount
QLD looks a good place to buy, first home buyer or not....
Last edited by johnnyx0; Oct 24th 2009 at 5:35 am. Reason: Forgot SA! Sorry SA, it's easily done....
