Beoz

I know very few property investors. There is far more money to be made by investing elsewhere. All of my circle, here and in the UK, of similar age, with kids, own homes that they live in. Some live in very expensive homes, some live in not so expensive homes, but the common theme amongst them all is they all bought within their means and this meant either owning a better house in a cheaper location or a poorer house in a more expensive location.

I don't know what baffles you so much about this concept. I suspect its resentment - unable to afford to buy in the area you want to live. People have been following this simple concept of living within your means long before you were an itch your parents mind.

"Thinking people, those with kids" tend to buy homes for the security of their families, with the view that they will own something outright in retirement that doesn't require rent or mortgage payments. I agree, buying a house in an unproductive return, there are plenty of other investments you could pump your mortgage money into that would provide greater wealth. This is peoples, families, own choice. I don't understand why you get so upset at people, families, choosing to buy property. Its their life not yours.

Rates "may" go up but before they do, inflation will increase first and before that occurs, wage growth will happen. Central and commercial banks aren't going to increase rates to in order to watch the masses no longer afford mortgage repayments. What bank would want to be saddled with billions worth or property they can't shift?

Amazulu

Luckily I'm not

I'm going to get old in Australia. End of. Where are you going to get old(er)? An actual named country would be a good answer

the troubadour

And there's your problem. When rates are needed to rise, they won't have a lot of choice when US rates rise as international borrowings are in American dollars. A rock and a hard place. Rise rates and the housing market will wobble. We had a taste of falling prices not long ago, here in WA. More the case, those that were given loans to maintain the charade, before and even encouraged to loosen loan criteria by government after Royal Commission recommendations, will of course be sacrificed. Any major down turn would of course require tax payer bail outs. Wage growth has not featured for quite sometime and unlikely to do so for workers. You are a big fan of a Big Australia. Migrants have a downward effect on wages. The record immigration over the past decade and a half has seen falling living conditions for many. House price inflation is the only thing making a lot feel rich. Once the borders open, government and business will be revving up numbers to most likely even greater record figures.

Well no there are not plenty of other investments, to place money. Low interest rates have ensured housing around the world has taken off, as people look to park their money. Australians trust housing it is the closest thing to a religion here. Shares far less so.

As for resentment. I can tell you I'm well over Australian real estate. Gotta be the most boring topic of this century.

the troubadour

I couldn't imagine you doing so anywhere else. Several options on the cards. It could well be part time in a few places until when the time is right a final decision can be made. Until one lives in a place it is difficult to conclude. Never thought of Australia as a first choice. But each to their own.

Beoz

No you are not, if there is a post about Australian property, you are straight onto it. If not, you manage to weave in something about Australian property.

You do need to get over it properly because it's source of unhappiness. For most not.

the troubadour

I am certainly am as a buyer. (but you are always defensive of it) As for government inspired property inflation it is certainly the most pressing medium/longer term issue for Australia as a nation. We will obviously have to adopt measures to cool the market as NZ has done. Australian real estate deserves a mention. It is a drain on the economy as I constantly remind you. Rental alternatives are poor propositions in Australia. Many are priced out of cities. Australia has really lost the plot in this area since the turn of the century.

Moses2013

You can see it while others seem to be like politicians who have lost touch with reality. Everything is linked and unless you already have equity, it's a grim outlook for many. People can argue about weather, health is important and so on but how much I have left at the end of the month/can afford will determine how happy people are. We were lucky and moved at the right time but to believe that the situation today is easier than 10-20 years ago would be naïve.

https://www.news.com.au/finance/real...c1711d731b36b1

Beoz

Yes the government planned Covid well.

What is your budget?

the troubadour

Well Mr real estate agent/mortgage broker , quite simply my budget is not to pay grossly inflated property prices.

Beoz

I am certainly not either of those but sometimes you need to pop the "oh I missed out" or "if only I bought in the 90's" or the "it will crash one day" thoughts aside if you want to be happy.

paulry

Me too, though for much of the next ten years my wife and I intend to be nomadding around the world - as soon as prison Australia lets us out! Unfortunately, going by what the PM said the other day that isn't going to be anytime soon.

No English speaking country offers a better deal than Australia, IMO.

Beoz

Shame on the PM. He saw how well it worked for the inbreds in QLD and WA and drank from the same popular koolaid. Tut tut Scomo

paulry

Seeing as most of the guinea pigs survived, my wife and I were all set ready to take the AZ vaccine. Then we heard what Scomo said about borders continuing to be closed even after successful completion of the vaccine roll out, and we immediately agreed that in that case we'll give the vaccine a miss, we'll wait.

Beoz

I would recommend against that. It's all about the numbers. If the pollies can see enough people getting vaxxed they will feel more confident about removing border restrictions.

paulry

True I suppose, but it was such an astonishing remark that he made. It was like vaxxed or not, we aint opening the borders.