Quote:
Originally Posted by AdamJL
Buying a house has never been easier? Try chasing a deposit that grows by the same ratio as house prices each year.
Even at the high interest rates of the 90s, buyers now spend more on their home loans because of the bigger principles and loan to income ratios.
No first home buyer wants to start at the top of the market. That’s a generalisation. People just want to live close to where they work, not 2hr commutes each way.
That’s not a life
Plus the general attitude (not aimed at you, Alex, just a comment a I read what other older generations say) of “it was worse back in my day, don’t ask for something better” is something that we need to let go of quickly. Every generation needs to leave the world in a better place for those coming after. Why people would wish their own previous hardships on future generations is puzzling
If housing is an export, that’s pretty sad
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First let me thank you for giving me something to think about and to be able to tell it as it is...
Yes easier...pre 1970 you needed 50% of the purchase price..the Bank would lend 60%of valuation..their valuation and that came out at 50%or less of the purchase price...I ran a solicitors office and lent clients money on first mortgage and the result was much the same..then Building Societies would lend a higher percentage but you still had to think 40%deposit...it often saw a buyer with a personal loan and a first and second mortgage with both working two jobs for the first three years...then you would refinance and consolidate and if you were lucky only have one mortgage and Mum could give up her second job ...now tell me how easy that was...I was very lucky as my parents lent me most of the money to buy my first home, but I still saved 25% of the purchase price..two bedrooms, fibro, needed repair and no sewerage connection..yes a pan toilet.but so was most of Hornsby..certainly much easier than today I think not...most folk had to get most of the cash from their parents ..how do I know? Because I did between four and six conveyances a week. I was at the coal face as they say and it was never easy..that is just nonsence to look back and believe the opposite.
As to inflation, and I did this, after three years and things getting better...One could go out to Baulkham Hills or Castle Hill or many places where subdivisions were going on and buy a block of land at say $2000 and before you settled come back to the agent and put it back on the market at $2750 and get your price and that buyer would do the same putting it back on the market at a higher price again...tell me if inflation is anywhere near that today...
Well back in the day when Gosford was not at the end of a freeway and it took a long drive or train trip in excess of two hours many people bought up that way as it was the only way they could buy a house...sure was easy.
Look back in history and tell me when it has been easier.
There is the dream and then there is the reality and this hand wringing over the future generations is baseless.
And it is not s case of jumping on people wanting better but just dealing with reality..you dont start life as a rich man unless you are born into wealth.. it is that simple..its not s case of wishing any ill on anyone..you have money or not if not you need to get it but to expect that you are entitled to a magic house within a walk to where you work is naive in the extreme and takes no account of supply and demand or needing to set aside heaps of cash just to get a deposit ...and if you think inflation will get better I suggest that is unrealistic...further check out home ownership in other parts of the world and tell me how easy they find it...And housing being exported, what is so sad about that????..we have little else to provide wealth for the average person..it means that after the headaches of working two jobs, borrowing part deposit from a loan shark and doing it tuff our folk can retire with something and that something comes from the fact we have people coming to this country and funding many many retirrments..if you can come up with something better please do do...and realise building Utopia is a fools dream ...never been done and never will be done.
Honestly look around the world and how people live ..how many a room on average..we are the very privileged minority and still we get folk winging that its all to hard...non realists...seven billion ..how many can buy a home?
Alex
One apartment covers our expenses, another pays the loans, another gets saved.
