Petals

Pressure is also coming from the relaxed overseas investment laws. Well heeled from overseas are buying up top end and next to top end properties which then puts more pressure on the market.

Its not just migrants who cannot get into the property market its also our young people.

The housing lists here are very very long.

The idea that we buy an investment has to change and we buy a home and when we start out we do not need ten bedrooms, pool, brand new furniture, etc etc, where is the fun in having it all on a plate. Working for something and being young and just married and buying second hand stuff getting a small house that we can afford is the way to a happy marriage in my opinion. Actually looking at my life once we got better off it got harder because then you really start to worry.

ABCDiamond

You try telling todays younger generation that though

kporte

Agreed. I'd have to be Tom Thumb to live in a house that fits on a plate.

koalakim

There was an article in the paper this morning saying that Aussie FTBs aren't so willing to start off small and work their way up - which I'm guessing is what most of us did back in the UK. Unfortunately I think the main factor in this thinking is the fact that it costs so much to buy and sell houses these days the less moves you do will save you in the long run!

It's the same in the UK - just sold our place and the bill was incredible! So and so wants this amount - we were wondering if we were going to have anything left!

Here it's even more expensive (depending on your State) so that's why we've taken our time as we want to get it right and not give another $20k in stamp duty to the Gov in a short space of time. It would seem that you need to make maximum profit on your house just to fund the next move in moving costs.

In QLD don't you get the FTB help if you've previously owned a property anywhere in the world - or have they changed it?

Renting does seem the best financial option sometimes, we are living in a house we can't afford to buy but at the end of the day you are at the mercy of the landlord - no pictures, pets, colours (cream everywhere is driving me mad), you can't correct things that annoy you - maybe if we'd found the perfect rental it would be different but with only 10 minutes to assess the place you will be living in for the next year it's a little hard to take it all in and you only realise things once you've moved in. Plus you can never get attached to a rental in case you are turfed out.

Maybe if you are used to renting then you'll feel more relaxed about it but this is the first time we ever rented and it's starting to get a bit tiresome after nearly 3 years.

kporte

You still get ftb grant in Qld if it is your first Aussie house but if you have owned anywhere else you do not get the reduction in stamp duty, if I recall correctly.

sr71

Think that was just a media fallacy, sure they tightened up on low/no doc mortgages or 100-110% mortgages but 5% was always easily available from the banks if you had a good income.

And with the help of developers and the first home buyers grant people were still able to get a home with virtually no deposit if they didn't mind living on a new estate.

Geelong Gent

Oh but they deserve it







the high prices that is

Geelong Gent

Agreed but using 20% just shows how inflated the market has got. For demonstrating Johnnys point which I agree, I think 20% would have more shock value.

Bear also in mind that with 20%+ increases in utility prices before thinking about food prices, the true 30% or 3.5 times salary reference points are being squeezed.

Geelong Gent

Exactly my point, which reinforces how out of kilt the property market is.

Further this morning The Age is providing more propaganda too prop up the local market.
http://www.theage.com.au/national/ra...1024-he4l.html

Stating a 82% auction result on 818 properties? But what happened to the other 200 auctions? Take these into account and it was more like 65%.

We had 3 auctions in and around our blue chip area ($2m+). On all 3 the turnout was over 100 at each but no bidders and all properties were passed in with vendors bids.

http://www.jamesbuyeradvocates.com.a...html?newsid=71

Geelong Gent

http://www.marshallwhite.com.au/abou...sletterID=9668

From above

"Latest News
Wednesday, October 28, 2009
Latest News



Biggest Weekend of 2009

The biggest auction weekend of the year so far, in which almost 1000 auctions took place across Melbourne yielding a success rate of 82 per cent"

They let that slip then

What they actually are saying is that the rate was in fact 66%? being 670/1000 but that would show the market a decline from 80% but they would not want to show you that now would they.

Vash the Stampede

Damn straight! That's the big issue, right there. People need to lower their expectations and learn to be content with less instead of convincing themselves that they "deserve" a McMansion after 12 months in their first job.

We bought a cheap Aussie house in a good area, and now we're renovating it to suit ourselves. Nobody's going to walk up and offer us $500k for it, but that's OK because we don't want to sell. What we want is a family home that will last us for a couple of decades, by which time it'll be paid off.

The "instant gratification" generation has a steep learning curve ahead, and I'll have no sympathy for any of them who don't learn the lesson before it's too late.

swigski

If things are so good in the Australian economy/property market, why does the press feel the need to try and throw people off with the figures they're reporting??

Geelong Gent

Advertising dollar

Catch

with all due respect mr vash you did buy this property over 2 years ago in Adelaide, historically one of Australia's more affordable area's.over the last 2 years i suspect it has gone up in value.Not everyone can renovate due to lack of skill,lack of money etc.As you mentioned previously your mother and her husband have made money from a series of renovators,you can obviously gain experience and advice from this.I do agree about "instant gratification" being a problem in the younger genneration.In many Aus cities young people are pushed to the far outer suburbs where you can probably buy land and build for around $400k,rather than pay the same price for a "reno"and have the expense of renovations.I think you may find your property may be worth very close to $500k after renovation.. Good buy

johnnyx0

I was talking to a girl a few weeks ago. She's 22, got no regular income, wants to be a successful singer songwriter, but can't sing and is procrastinating about taking singing lessons. She said she wants to buy her first house soon, and it MUST have four bedrooms, a disco room, a pool, a tennis court, and a roller derby rink! Nothing less will do. It'll need to be near her parents house as she can't cook and doesn't know how to use a washing machine.....

I think they need to start teaching a new subject in schools: "Reality 101"