Hi Guys,
Today, while watching Today Morning News, and some other news affair shows, they were talking about first home ownership.
Is the Dream Gone…
Part of the media news was that, many Australians will find it now, either impossilbe or slim to low chance of ever owning there own home…
Is the dream for buying your own home, a past fassed or is this just, a bit of a media scare….
Your views please.
Cheers,
sisHi SIS,
I saw most of the segment this morning on the Today Show.
I definately agree that for many lower income earners, and lower educated people in the community, that it is EXTREMELY difficult now. The FHOG doesn’t help them nearly as much as it should, yet it’s still there to help the wealthy, as long as they have not owned a home before! If it wasn’t so pathetic it would be a funny…..[:o)]
For many young couples starting out, I believe that if you want something so bad, that you dream about it all the time, and you can set goals, and SACRIFICE A SOCIAL LIFE FOR A WHILE, then the dream of owning your 1st home can easily become a reality.
If you think you can – you can..
If you think you can’t – you probably won’t bother trying.Regards,[
]Del
Consider most students today will attend a tertiary institution until about 22-23 and then go on to get a job.
Most will run their own car, have a part-time job, live at home, have a little bit of cash saved, gofor a holiday (maybe Bali or GC, Qld) and have an active social life, want to have nice clothes, mobile phones etc etc. (Notice I said most, not all).The median price of a house in Melbourne is approx. $360-370k, so a deposit of $72k plus costs would be required. How long would it take for you all to save $72k, forgetting average annual salaries for grads are around $35k. Many years I would suspect. Whilst you wouldn’t choose to buy somehting that price range, you would still need to spend I think in the mid-200’s (old apt/unit etc) to get something somewhat central or not in need of too much work. A
Of course then to service a loan of $290k is at 7.07% over 30 yrs, $1943.03 PCM. One wouold need to work for a few years to get to the point where they could comfortably service this loan.
Of course I am talking about those who take this path, others will be less fortunate, so their task is extremely difficult.
My sister is in the same situation, while she has a small investment property, she desparately wants to buy a place to live in herself. After doing the sums this last week, the best way for her to get to her current wish (they change weekly with my sister!), is to essentially buy another IP and wait another year or two. My parents are happy for her to stay at home, so she has no problems there.
So maybe the dream isn’t over, you just need to go through a different path to get there, if that is what you want. Of course, there may be assistance from family parents etc, which has been discussed previously on another forum topic.
My question is….why should we still maintain the same fixation to own your own home in the 21st century. Isn’t it time to realise that your own home is an asset but just not a income producing one, which cuts peoples options to invest and grow their own wealth. Don’t many people rent and at the same time, continue to invest in property and/or shares in this forum?? (or am I mistaken..again)
James
yep I did it….
I think part of hte problem that challenges us is that most young couples want to live in thier dream home from day one….. instead on using it as a stepping stone. We are living in the have it all now society as the average Aussie dept expenditure rate goes over the 105% average…. this shows how most get sucked into the marketing hype and can thus never (in their own minds) get into the property market.If everybody practiced the 7 steps of success for at least 2 – 7 years …. most would never have to work again.
We slogged our way into the market and clawed our way from arriving in Aussie broke, penniless and luxuryless to ….. not too bad off should I put it.
….. if people really put thier minds to it….. they would go in with others for a few years to get into the market and then sell up and use the combined equity to buy their own…. teamwork my friend ….teamwork …. a very uncommon thing in the common place today.
Cheers,
Kiwi [^]In 1977 I met my future hubby, in 1980 we got married, but we had bought a home before that. It cost me 29,000
my wage was $125 a week.Today that same house is values at 650k, my wage is 1400 a fortnight (not week)
I think that speaks volumes, but then there was no first home’rs grant I could have and interest was appraoching 10%, going higher later on. We thought we would die.
I know too many people today, dont want to give up their lifestyle to pay for things. They dont want to go without, and it isnt limited to the young. My 64 year old aunty wants a second hand car, but she wont give up her tennis club, or her lunches a few times a week with the girls.
cheers
Elves, of course inflation from what I can recall from my economics classes in the late 70’s & early 80’s was around this mark and a touch higher. One of the reasons for de-regulation of the banking system. The banks losing money as “real rates” were actually negative.
However, a young family, both parents working as unskilled labour with a couple of kids, trying to make ends meet are probably not splurging or indulging in luxuries. In fact most likely the opposite. (Although you could question the decisionn to have kids though!)I suspect this comes back to education. Financial education which there isn’t enough of or indeed any. (except for this web-site of course!)
James
ahhhh sorry to say there is no financial situation I havent seen in my work….
There is no family problem, or situation you can tell me which will horrify me….
I have dealt in debt collection.
What amazes me so often is they say they can barely make ends meet, and barely put food on the table, but I tell you, so many have a mobile phone….just my observation….
oh and internet
and computer
and the kids, well keep up with the jones fellas!I used to wash and use cloth nappies, disposables were out of my league and yes interest went up to around 18%
Hey Elves…… you forgot to add the smokes and beer…. most people my daughter hangs out with live like porpers….. not that there is anything wrong with that …. but we are realists. I did feel good when one day our daughter came home one day and said out of the blue ” You know Mum and Dad…. I am very lucky compared to my mates”…. we were so proud! [:o)]
We do not live like kings by any means and we hardly go out at all (maybe to the park)….. but it has not always been that way and we know that things will change and swing in our favour if we continue to do what we are doing. It is a little like starting to walk to burn off the 20KG that just crept up on ya[8]
When you start you are in so much pain for hte first 3 weeks of walking averyday that you just want to give up …. but as they say sucess is just round the corner …. al of a sudden your shin splints are miraculously gone and then you start winging about the body weight not changing …. but persist and all of a sudden you start feeling fitter , stronger and then the fat starts to actually melt off you. This does not happen over night by the way… it is the same for all your goals …
1. Resolve to change.
2. Make a plan and anylise it for faults
3. Take action.
4. persist through the lag – Lag is time where nothings seems to be happenin
5. Watch the success surge your forward on a wave of glory!Cheers
Kiwi [^]Well here is my 2 cents,
I am 25 and i have a few mates around my age and my brother is 17 and he has mates of that ageand here is what i and he have noticed
That even though i have 2 IP’s and a PPOR that i still seem to be able to go out as often as most of my mates however i do drive the oldest car out of all my mates.They seem to need to have they latest model commodore ute that hits the market. I drive a 1995 model. Not one of my mates has a PPOR ( They all rent )however they all earn only around $60 PW less than me.
They all have a mobile phone less than 1 year old.
my phone is over 2 yars old.
My brother noticed how even though he only earns $130PW (part Time) he has more money than his mates as they smoke and drive cars that are only 5years old.
Just some observations of the younger generation that i have made[]If you really want something, you can generally find a way to do it.
I bought a house with my then husband when I was 22 (got married when young and stupid). got divorced 4 years later, and sold the house for exactly the same price we paid for it. I didn’t have the money (or motivation to find it) at the time to buy him out. I had wasted so much time, and was back to square one.
Moved in with new husband-to-be a year later. We rented a modest house and worked hard so that we could try and buy a house of our own in a few years. Sacrified a lot of social outings etc. We also made the effort to secure better paying jobs. Unfortunately, I shouldn’t look at the real estate section of papers, because I happened to comment about an area and how some houses seemed to be a lot cheaper than I expected.
So, we went and had a look. Of course, fell in love with this house, but didn’t think we had had the money to pay for it. We eventually found a lender who would lend us the money. We actually exchanged contracts without finance approved (something I definately wouldn’t recommend!!). We were left with a grand total of $113.00 in our bank account.
This was 2 and a bit years ago, and I am now 30. We now have our own house, 4 IP’s and we own our own business. I have been able to stop working to have a baby, and don’t need to go back if I don’t want to.
It just takes will power and a focus on want you want to achieve. I think that is more the issue for some young people. A lack of a goal or purpose. We have goals for the next 5, 10, 20 years etc. Yes, they will probably change slightly in time, but at least we know the general direction we want to take.
Cheers,
Karen[]
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