Quote:
Originally Posted by andyc
So it's a cop-out to say that people's expectations are too high. If you're a potential first-time buyer in Australia, you're stuffed six ways to Sunday, whether your ambitions are high or low...
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Well if you want all the really cool furniture, electronic devices, brand name white goods, a mod con house when you could have a basic house too with no landscaping, just basic furniture and just have to work at doing that yourself it would be a hell of a lot cheaper. Buying established homes close to the city has always been out of the reach of young people. It is not something new. Yes you will be paying for someone else's mortgage like all of us have done at one point. I did not get my first home until I was 35 and it was a unit. I owned a piece of land in my 20's right at the time interest rates went to 18%. I was paying out half of my income a week to pay for that and pay rent and walked to work each day, rain, hail or shine. I saved for things prior to just going to buy them and never once would have considered interest free repayments. The more of those repayments that are present in your life the less money you have to save for a loan. Think about other costs too that are luxuries that impact on saving. Mobile phone, internet, coffee, lunch etc. Those are luxuries and help to produce the high expectations that many now have. Don't worry, if a decent recession comes along the price of housing will drop but then everyone will be out of work.