Do cement renderers earn good coin?
 

http://www.domain.com.au/news/developer-destroys-young-couples-dreams-as-ryde-home-sells-for-230000-over-reserve-20161001-grsvrv/

I was just reading this article I'm trying to figure out how this cement renderer and his medical assistant wife can afford 1.5 million.

Lets assume the bank of mum and dad aren't involved, lets say they need a minimum of 10%, $150,000, plus 60k in stamp duty, mortgage insurance of about 20k on that, other fees, 5k, total $235,000. Ok maybe a cement renderer does pay well to accumulate that much by your late 20's.

But wait ......

Lets say the above is the breakdown, what about the repayments. At 3.65% interest, the above is a monthly payment of $6,175.70 over 30 years. If interest rate gets to 5%, that then becomes $7,247.09.

Ok they may have some equity from their unit but still ....

Am I missing something here?

Re: Do cement renderers earn good coin?
 

Maybe they can't afford $1.5million. When the market is rising strongly, people get suckered into paying a price that is only "reasonable" if they believe the price will be higher tomorrow, which doesn't mean they can afford it today.

Re: Do cement renderers earn good coin?
 

Maybe ..... maybe they collectively earn $8000 a month and are throwing $6000 at a mortgage. People do some strange things when panic sets in.

Re: Do cement renderers earn good coin?
 

Just goes to show the state of the property market here!

I read an article a while back, where by a property investor felt sorry for first time buyers when turning up to auctions, as he had no max limit when buying as the bank would just fund him the extra as he already had a number of properties. First time buyers have a max limit and cannot easily get past that or what the bank will lend them. His take was that the property investors and developers would always outbid.

Re: Do cement renderers earn good coin?
 

Young bidders had already had it at 1.5 mil when the developer jumped in.

Developer was irrelevant.