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The cost of housing in Melbourne has gotten ridiculous!

Discussion in 'The Pub' at netrider.net.au started by smee, May 15, 2008.

  1. So is the cost of rental and the huge shortage,
    this is what you can get in Malvern at the lower end of the scale

  2. haha very good.

    Don't live in the city and the problem is solved though :p
  3. With no locks, anyone could just squat at that location without paying rent :LOL:

    But yes, it is going up, no matter where you are at the moment... :(
  4. Have spent the last 5 years collecting properties for investment.

    Hope the boom continues personally, then I can retire in a few years.

    Would rather 25% equity in 4 houses than 100% equity in one house.

    But I aknowledge that high prices cause pain for some. The issue has not changed in 100 years, each generation worries that they cant buy in. Somehow they do.
    We struggled to buy our first house in 1980, and had 30% deposit by the time we did. Raised 6 children on one wage, and still managed (maybe not so well sometimes). Now I am approaching 50, I own a number of houses by simply using my head, and the equity in my residence to leverage multiples.

    Only advice I can give is to just save save save, and then buy an affordable property as soon as you can. As your equity grows, leverage this into a better residence, and then buy more. Note that the above takes 25-30 years!. Such is life for us wage slaves.
  5. :LOL:

    It's just as bad around the Island. Can't believe the prices they're asking for absolute little dog boxes (not that I mind dog boxes).
  6. Try renting in a rural town that has a high population employed in off shore oil and gas production and all the support industries.
    And the same town has hugely subsidised rentals for RAAF staff.
    This doesn't leave the private average wage people much to choose from. We pay northern suburb Melb (or equivalent) prices :cry:
  7. I am sympathetic to the plight of anyone who is renting a the moment, and it's not all joy on a mortgage either.

    But I believe that, in part, the situation has been fueled by rising expectations on the part of just a bout everyone. When I was young, people of my age were simply less materialistic than they are now. My crowd never really had expectations of home ownership (we were lucky if we had a car to sleep in!) But if we did, it meant saving. People shared rental properties for years while they saved. I lived in other peoples' back sheds and garages for more than a decade while I got a bit of money together, and then bought a property together with people that I knew I could trust. Nothing special, and the first one wasn't in the city. Gradually leapfrogged up a bit. People just wouldn't do that nowadays. They want what they see on the lifestyle shows - now.
  8. i was lucky that my parents lent me some money a few years back.
    It would have been alot easier if i was living at home but they were in Perth.

    We have been in the house for just over 2 years now and house prices have gone up $100,00 over that time. WTF?????

    Movinh further away from the city is cheaper but then again the cost in petrol doesnt do it any justice and also time spent commuting... not a problem if you dont work in the city.
  9. While current house prices have made it seem near impossible to ever own my own house, an older friend pointed out that investing in shares just might have a better outcome than investing in property.

    What I don't get is why bother buying property 'for investment purposes'? Once the Capital Gains Tax is sorted - your left with next to shit anyway.

    I believe the rising house prices was the government trying to get in on the property buying boom around the year 2000. All of sudden a heap of people are buying "investment properties" so they raise the prices a little so when they sell up they get a better cut because of the CGT.
  10. I agree about the rise in materialism - esp. with housing - one only has to look at the size of the houses being built these days to know that a mere roof over their heads isn't enough. I don't poo poo that though. It's their life and if that's what they want then so be it.

    It's not for me though. I just want a roof over our heads (rental). Something clean. Doesn't have to be big or fancy. Just as long as it's clean for me and the girls.

    A nice big house with a gorgeous view may work for some, and I can see the attraction and would love to own one one day, but not at the expense of enjoyment of life..not at the added expense of working my arse off to pay for it.
  11. The interesting thing is this is part of the “problem†Investors drive up house purchase prices, which in turn means there is more “headroom†to lift rents.
    Investors are a major reason that first home buyers have issues getting into the market.
    What has also been shown is that there is better return at the bottom end of the market, and so investors focus there, meaning that wanting “better†is not the problem for most people, but wanting “something†is the problem. Because in the part of the market they have a chance of targeting there is simply nothing there. It has all been inflated by investors.
  12. I agree, if I ever got something of my own I'd be happy living in a shed with a small kitchen and bathroom on a small piece of land. As long as there's cover for the bikes and a bed, I'll be happy.
  13. Yep, and that's what drives it for most people - their kids. I wouldn't want mine to have to live in the conditions that I have put up with in the past. It's a helluva lot easier to make do when it's just yourself.
    I guess what I am trying to say is that there is still a chance to get a foothold (at least when you are young) if you go in to ownership at less than your ideal, and work your way up from there.
  14. I recently bought an investment property, and plan to hold on to it for a looooooooong time. Its my "nest egg" as I doubt that my super will keep me in the lifestyle to which I am accustomed..

    So CGT doesn't really bother me. Its the quick turnover type people that get hit with CGT...

    There will always be people who need to rent, for whatever reasons (lifestyle, money, temporary accommodation etc). If it wasn't for investors, where would you rent from?
  15. If you want to buy a house, stop whining, save a deposit and do it.
    It's not going to get any cheaper, so get into the market.
    If you can't afford where you are now, move.

    Regards, Andrew.
  16. i, financially, can buy a house now.
    but, i'm not going to.
    i have no desire, whatsoever, to own a house. a lot of people tell me im silly, or other similar things, but i just dont want to do it.
    if i ever get the shits with renting, i'll move to the farm.
    oh, and you'd be mad to buy around here now anyway, the arse is falling out of the market!
  17. I don't know why people are acting so shocked that prices will rise.

    They'll continue to, as demand increases prices will soar because people will stay pay that for them. Look at New York, Paris or London - Melbourne will be the same one day.

    The main issue is the lack of infastructure, a high speed rail link or whatever that links the outer regional areas to the city.
  18. Yep that's right. Just tell your boss that property is too expensive and he will move the building and all of his employees to a location that suits you. :roll:

    Cheaper or not, you won't be buying a house without a job. Most places with cheap housing don't have too many employment opportunities. :wink:

    Thank fcuk I'm a teacher. I'm in demand everywhere and so is Shell (midwife). At least I can buy in the country and still find a job because I sure as hell could never afford Melbourne prices but there are many on less income than me that don't have the same options.
  19. Thank fcuk for the recent pay rise as well.
    It's really gonna make a difference around our parts as I'm the single income earner currently although it may affect family assistance.
  20. As far as I can tell not good enough though. NSW negotiate their new contract in December. I will watch and move if it's worthwhile. :)