How is the real estate market.

[wavelandscott (Scott)]

Originally Posted by OICURMT

This was a great show... sadly true.

http://www.abc.net.au/4corners/stori...02/4451883.htm

If you missed it... http://iview.abc.net.au/programs/fou.../NC1604H014S00

The only way my kids are going to afford housing is to move back to the USA...

OIC!

Not in my neighborhood...it is not particularly affordable in this area either

[OICURMT]

Originally Posted by wavelandscott

Not in my neighborhood...it is not particularly affordable in this area either

East Coast / West Coast aside, on a percentage basis, the US offer far more opportunities for young couples to own a home.

Also, the simple fact that the IRS allows a direct deduction against income for the interest on the loan for the primary residence and the FHA downpayment of 3.5% (for credit scores over 580). The downside to FHA of course is having to purchase default insurance (though tax deductable), but even with this kids can at least get into starter homes, even new build ones. The transaction fees, including commisions are also deductable.


This is what I did in 1990 in Colorado. FHA, 3.5% down, fixed rate at 5-3/8% for 30 years. Sold the house 6 years later when the Californians came in due to CA being too expensive and moved to Texas where I could then afford a commercial loan (20% down)...

Here in Australia, the situation is very different. I live in a nice, but small home (compared to American standards). Variable rates are the dominant package here, so I purchased a home assuming a max rate of 12% so that I could afford the mortage no matter what happened. Also, the "Stamp Duty", which is a form of penalty for being able to afford a home, is complete nonsense as it stiffles both the new home buyer and investors.

I'm now retired, but still paying a mortage. Will sell the house within the year and move back to the USA, where I will start to build my home on some mountain acreage I have.

[wavelandscott (Scott)]

Originally Posted by OICURMT

East Coast / West Coast aside, on a percentage basis, the US offer far more opportunities for young couples to own a home.

Also, the simple fact that the IRS allows a direct deduction against income for the interest on the loan for the primary residence and the FHA downpayment of 3.5% (for credit scores over 580). The downside to FHA of course is having to purchase default insurance (though tax deductable), but even with this kids can at least get into starter homes, even new build ones. The transaction fees, including commisions are also deductable.


This is what I did in 1990 in Colorado. FHA, 3.5% down, fixed rate at 5-3/8% for 30 years. Sold the house 6 years later when the Californians came in due to CA being too expensive and moved to Texas where I could then afford a commercial loan (20% down)...

Here in Australia, the situation is very different. I live in a nice, but small home (compared to American standards). Variable rates are the dominant package here, so I purchased a home assuming a max rate of 12% so that I could afford the mortage no matter what happened. Also, the "Stamp Duty", which is a form of penalty for being able to afford a home, is complete nonsense as it stiffles both the new home buyer and investors.

I'm now retired, but still paying a mortage. Will sell the house within the year and move back to the USA, where I will start to build my home on some mountain acreage I have.

You are correct on all accounts...if you are willing and able to live in a more rural part of the USA it is a completely different story in terms of affordability but salary and wages are also markedly lower too.

Back closer to topic, one of the biggest financial mistakes I have made was not buying a house in the Sydney area during our nearly 8 years there. Between the exchange rate change and the increase in home prices we could have pocketed a tidy sum. Oh well, I would probably be bored if I retired now anyway.

But the night sky down under is spectacular. Clear Dark Skies to All