Zen10

I agree with most of that, particularly about the rent trap and the reporting. They were celebrating on TV the other morning when news came in about how Sydney was even more unaffordable.

BadgeIsBack

I have met blue-collar Australians who make it quite clear they are on to something because they have bought and seem to indirectly question those who rent.

It must surely be the case that many, many earning professionals simply can not afford to buy. Having said that, the absurd situation is that I have never met one in 8 years or so - even working in the City. I am often surprised at how even young people I meet get the money together - when I might struggle now. It must explain why so many therefore end up living out in the suburbs, even if previously they said they never would move out.

What do you plan to do when you retire? Does Centrelink absorb the cost of the rent.

Zen10

I imagine the answer to this quandary is the same thing that happened in the UK in the late 90s/early00s, which is to say there is a lot of insanely irresponsible borrowing going on. People borrow 130%, etc., 8 time wages, and so on. Of course this ends in mass repossessions, defaults, collapsing house prices, but the big question is............. when? They stopped it happening in the UK with a near ZIRP, here they're putting rates up.

I'm sure life was simpler once.

BadgeIsBack

I am extremely liberal when it comes to home ownership - I believe everyone should have a place to call their own, and hand down to others, even if it's not a big eff off mansion. Or rather, I think it's an injustice the way the market has gone in Anglo-Saxon countries. That said, can Europe afford to house it's population?

Zen10

+1 on all this. My family were all homeowners, both sides, right back into the 19th century, which is as far as we can trace it. Mostly detached places, with nice gardens in the good part of town. I have spoken here before of the perils that can be found in the bad part of town, so this is important.

I share your views on the injustice. It is disgraceful, and it is a scandal. My grandfather grew up in a house in Kingston upon Thames - his father was a bus conductor. Last time I checked that house cost £350,000. I am absolutely certain not many bus conductors could afford it now (or those of that salary rank, of course there are no conductors any more).

As for your last question - no, not in the present style, which is why there is so much talk of planning laws, etc.

mikelincs

Retired now, can't get any housing help because I'm not just living on the state pension.

commonwealth

ok would you buy a newly built studio apartment approx 45sqm
close to train station, 15 mins to Sydney CBD
with fitouts eg washer dryer dishwasher bed aircon
strata etc approx $1K per qtr
no stamp duty plus get $15K govt grant

for $450K?

BadgeIsBack

I'd be happier if it was say 300-350k. But it is close!

Elephant in the room - so how do retired people with little or no income pay rent? Does centerlink cough up? Or do people become homeless? I do not expect you to answer from your own situation which is private.

No they couldn't and this is my gripe. For years, people with some means could borrow 3x their income and they were on the ladder. Or they rented public housing.

mikelincs

There are housing associations and the local councils still have some places. There is housing benefit and council tax benefit for those with less than a certain income. If you are able to get a housing association place, and get full housing benefit, then you could get all your rent provided, but this is only available for those on basic pension.

Margaret3

We are (for various reasons), caught in a rental trap. I hate it, i would love a proper home. Go for it!

Beoz

What is your monthly outgong to support that buying habit and what would it be to rent the same property? Sounds like it might be similar

For mine I live in a $2800 per month place. To buy it I would be up for for about $4800 per month. There's $24000 per year I can't support bad habits with. Too high risk too if Mrs Beoz or I were out of work.

IvanM

Depends on the rent house price ratio in your area, the frequency you move (stamp duty) and what you want from a house. My family is restricted to an area with little choice in buying or renting. The right house to buy eventually came along. Rent is way less than a mortgage plus there is water, rates and insurance. The rentals in the area are awful.

Australia is also at the bottom of the rate cycle. Prices are dependent on resources and Chinese wealth visa buyers.

commonwealth

yeah, but i'd be unable to travel or eat out much or go shopping much. single-person mortgage is a long-term (potentially high risk) sacrifice.

is it worth it?

is life a journey or a destination?

Peepster

Nah, I don't reckon it's worth it. Wait till you've found your Mr Right and then buy something together. If you won't be able to afford to go out as much then you're reducing your chances of meeting that Mr Right. Invest in yourself and being fabulous.

Bernieboy