By: jaymarcel
4/11/2009
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'Monthly payments rise Average monthly loan repayments for a typical first-home mortgage rose to $2087 in the quarter from $1983'
I don't know of anyone paying that much, put into context thats an extra $25 a week, if this causes a problem then the banks really are lending too much to the wrong people. |
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By: jaymarcel
4/11/2009
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Hi puyi, I'm not sure that I agree with the statement migrants will return overseas due to housing affordability, the answer is for them to rent like anyone else that can't afford to buy.
You don't emigrate to a new country just so you can own a house, otherwise they would all emigrate to a cheap asian or cheap european country. |
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By: puyi
4/11/2009
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Housing affordability worsens
Author: Chris Zappone, SMH
Date: October 29, 2009
Housing affordability for first-home buyers worsened again in Australia in the September quarter, as record low interest rates and government grants stoked demand, a report shows.
Rising urban house prices are already prompting some recent migrants to consider returning overseas, while potential immigrants are being discouraged.
The affordability index dropped 3.3 per cent in the September quarter, following a 5 per cent slide in the June quarter, according to the Housing Industry Association and Commonwealth Bank, which compiled the data.
The deteriorating housing affordability tends to hit the lower end of the market most, said the Victorian chief executive of the Sacred Heart Mission Michael Perusco.
''It's irresponsible to see the housing markets only as an investment tool,'' Mr Perusco said.
''The sooner we learn that, the sooner we're going to learn that having a group locked out is no good for anyone and starts to have broader consequences," he said.
Mr Persuco said Sacred Heart's job of finding accommodation for homeless individuals and couples was getting more difficult.
Monthly payments rise Average monthly loan repayments for a typical first-home mortgage rose to $2087 in the quarter from $1983, an increase of 5.2 per cent, HIA said.
"If we don't succeed in significantly lifting the level of new home building over the next few years then there is a very real risk that we will return to the woeful affordability levels of 2007 and 2008," Mr Phillips said.
The weighted average of home prices increased 4.2 per cent in the June quarter, according to the latest official data. |
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By: jaymarcel
2/11/2009
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| I agree with you there al, I think anyone with no obviou intention of working should be placed in these little country town to sit around & do nothing all day if that is what they choose, leaving the public housing in the city available to the real needy such as the retired, the lower wage workers, single mums etc. all who still deserve/need access to the facilities of the city/suburbs. |
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By: almurrie1@y7mail.com
2/11/2009
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There is plenty of affordable housing. Any country town in Australia has plenty. You need to make your statements clearly.
The demand for housing in major cities is never going to be abated. This is where the jobs are. The only way to do this is redevelop existing properties and this costs hundreds of thousands. Hardly making homes cheaper. Also infrastructure costs are high. How do expect water and sewage to happen? Be realistic.
Releasing more land just makes the urban sprawl more unmanagable, traffic congestion worse etc. Nearly all the food growing land has already been released for housing. Where is the food going to come from? This stupid thinking that the land is huge so you can build anywhere has no logic. There are mountains and arid deserts that should not become city centres, because of lack of water. Coastal areas should be avoided also as the sea level rises. Northern areas are so hot and wet in summer and so dry in winter that no one wants to live there.
There is no simple answer, releasing more and more land has already caused every existing city in Australia to become almost unlivable.
A law should be enacted to restrict any more expansion of existing cities, and force the planned development of select regional centres instead and force all new industries and government services to relocate there.
Al |
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By: sly.guy_nsw1
2/11/2009
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Hey!
Property value will fall significantly. Just a matter of time.
You see, sooner or later the lack of "affordable housing" issue shall become a "political issue" ..
One that shall be big enough to attract the attention of vote hungry politicians. Politicians who having realised the fact that now there are more potential votes available for them to grab held by those who need cheaper housing than those who already hold overvalued housing.
When this happens, serious efforts shall be made by government to deflate the property market bubble and bring house ownership within the reach of the working man.
Afterall, how long does anyone really think the population is going to put up with having to pay so much for a place to live be it rented or owned in a country with so much space.
The people will speak. And when they do, politicians will act and prices will fall. |
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By: jaymarcel
2/11/2009
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| Hi dannyw good to read your comments, I believe the states & gov are to blame due to their lack of land release, developer costs & lack of interest to individuals building applications. |
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By: stevebwilson1
1/11/2009
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FIRST TIME BUYERS - YOU ARE BEING OR HAVE ALREADY BEEN FOOLED
Seeking to shore up the economy for a period of time in the vain hope that the "Golden Years" of prosperity had not evaporated along with the economic health of so many of our trading partners the Government introduced a serioes of measures including the first time buyers "stimulus" which at face value apeared to be measures that would result in the stimulation of a stagnant economy but which were in fact nothing more than economic traps for the less wary. Economic traps designed to ensnare those who grabbed what appeared to be a free ride.. A free ride..? Shouldn`t that in itself be enough to make people sit up and take notice...?
SAdly, many have taken the "Governments Carrot", (as my good friend Rodney referred to it on these same pages not so long ago) and have no nothing except financial ruin and / or debt to look forward to in the years to come.
STIMULUS? Huh!!
All that these failed stimulus measures have managed to do is prolong the agony.
Our economy will collapse and with it shall collapse the dreams of many who would otherwise have survived the comming finacial storm far better than they will now that they have accepted the "Governments Carrot" or should we call it .... a financial "CHAIN & BALL"..?
For surely this STIMULUS shall weigh heavily upon the bank accounts and savings on much of our kneighbours in the years to come. |
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By: puyi
1/11/2009
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By Nick Gardner
From: The Sunday Telegraph
November 01, 2009
Rate rise set to shock the nation
Most financial experts are tipping a rise in the official cash rate of 0.25 per cent, but some economists said the rise could be 0.50 per cent - meaning a $100 increase in repayments on a $300,000 loan.
New research conducted by analysts Fujitsu Consulting and seen exclusively by The Sunday Telegraph has concluded that the number of people who default on their mortgage payments will almost double from 25,000 today to 40,000 by the end of 2010.
First-home buyers, lured by government stimulus but caught by rising rates, pay freezes and reduced working hours, are predicted to account for nearly half the default increase. |
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By: puyi
1/11/2009
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STEPHANIE PEATLING AND JESSICA MAHAR, SMH
November 1, 2009
Each state and territory government would be allowed to cap the ''enormously successful'' grant, federal Housing Minister Tanya Plibersek confirmed yesterday.
But the Federal Government is already winding back stimulus for housing amid concerns about affordability.
Ms Plibersek said the cap had been set by state and territory governments at the level they thought was ''most sensible''.
In NSW, Western Australia and the Northern Territory, only homes less than $750,000 will receive the $7000 grant. In Victoria, the cap will be set at $600,000 while Queenslanders will be able to pay up to $1 million and still receive the bonus.
Prospective property buyers yesterday said the stimulus measures should be wound back.
''We're waiting for it to end, so things settle down.'' |
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By: dannyw1976
31/10/2009
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I wonder if there is a reason why more land is not being released? Could it be so that when the market corrects 15-30% and we have a sub-prime problem the effects won't be as bad as a whole due to less housing supply? Does the government know more than the average punter and mass media about the overall housing market? Thank god for a generous stimulus package, FHBG (although that is a source of the bubble) and this artificial (stimulus generated) market confidence otherwise we would already be need deep. Cash is king and limiting/paying down debt at this moment in time is smart. Also wait for the bear market rally to correct. More short term pain coming until mid 2010.
just my thoughts.... |
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By: puyi
31/10/2009
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MARIKA DOBBIN, The Age
October 31, 2009
Two years ago, housing affordability was a key platform of Kevin Ruddâs campaign and one of his first policy priorities upon winning government.
So what happened?
Well, the suite of measures Rudd introduced â including the first home buyer grants, first home saver accounts and rental affordability scheme â have had no obvious effect on affordability.
A look at the rental market reveals that Melbourneâs vacancy rate is still close to non-existent at 1.3 per cent.
Weekly rents have plateaued but remain at all-time highs.
Spoiling the picture further, the Governmentâs $1.1 billion home saver accounts, launched a year ago to help first timers save deposits, has flopped. A Senate committee in June found that just 11,000 accounts had been opened to March, making the target of 730,000 accounts in five years seem fanciful.
The Age has been repeatedly frustrated in getting an update on account numbers since then.
Victorian Council of Social Service head Cath Smith says while the Federal governmentâs $6 billion injection into social housing was a positive step, its other measures have failed to meet the underlying causes of exorbitant rental and house prices.
ââWhen youâve got people having to borrow $400,000 or more to buy their first home â a debt that is at least six times their annual income â it shows weâve got a really big problem with the Australian market,ââ she said.
ââBillions of dollars a year is being spent by the Federal government, primarily on tax incentives for investors, which has not actually assisted affordability and there is massive market failure now occurring.ââ Indeed, there is a strong argument to say that the Governmentâs measures to stimulate artificially an already hungry appetite for property has overcooked the Melbourne market. |
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By: jaymarcel
30/10/2009
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Hi rodney, sorry if I have mixed you up with another poster, I suffer from bad memory due to my old drinking habits. I will look back before jumping to conclusions & making statements which may cause offense in the future.
Interesting to read your comments though, so if your not in the sharemarket or property, where do you dabble these days? I hope you didn't get tricked by the gov & put it all into super. |
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By: rodneysaviour2
28/10/2009
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Hello Jay!
Hmmmm. I'm not really "into" investing in shares mate. Though I do find it somewhat interesting to hear whatâs going on and might be tempted to have a nibble at something every now and again just for fun.
You may remember my posting comment relating to the property market several times in the past and encouraging people NOT to buy property at this time given the fact that an economic disaster is imminent.
To refresh your memory, (please refer to my numerous earlier posts on this as well as several different BLOG's) - I used to own several properties and benefitted greatly from the income generated by them over the last few, ("Golden") years in addition to a very nice profit which was realised when I sold each of them, (which now largely finances my retirement). I sold my last "investment property" earlier this year after retiring from full time employment and realising that the property market was bound to crash.
Maybe you have me confused with another poster(?). |
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By: jaymarcel
28/10/2009
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Hi Guy,
I totally agree with you, that is part of the problem on here, a different age or stage in life means your view & timeline for different investments will vary but with shares you do have to take a much more active roll, if he would have invested in property when he started investing in shares he wouldn't have to closely follow the sharemarket like he does now, he could be fishing or playing golf or travelling or just basically spending his money rather than gambling with it.
Sorry rodney I am sure your still enjoying yourself on the sharemarket its just not for me.
I agree each to their own. |
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By: guy.longshank1
28/10/2009
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Hi Jaymarcel!
Looks like you are doing well!
Always good to see someone doing well. And indeed the returns on your investment which you posted do seem very attractive.
But I am sure you will agree that one investment is not the right one for everyone..
From what he has written in the past, I gather that Rodney is retired and living a relatively quiet and peaceful life. Whereas from what you have written I am lead to understand that you are probably much younger than him and still very much involved in the process of acquiring wealth.
Whereas at your current stage in life you might regard 5%, (probably soon to be more like 7% or 8% IMHO) fixed income on savings to be less than attractive, I would venture to say that people in Rodney's position, (judging by what he has posted previously) would find it to be nmore han satisfatory, (for various reasons).
Each to their own. |
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By: jaymarcel
27/10/2009
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Hi Rodney, 7% how exciting, my investment property in the super corridor between brisbane & ipswich went up 33% in 2007, 18% in 2008 & 12% so far in 2009. I also managed to claim back my tax thanks to negative gearing & got majority of the mortgage paid by a renter & claimed back the interest on the loan.
You are welcome to you 7%, good luck.
I hope most of the FTB got a 5 year fixed rate of 5% which has been floating around, silly if they didn't, but I doubt with the tightening of the bank lend that anyone will be in trouble unless they lose their job or interest rates rise above 10% |
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By: rodneysaviour2
26/10/2009
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| Hello yuhongli64. A 5 year term deposit deal if remember and the letters A M & P come to mind for some reason. I am sure that you will easily find all the details online. Just do a quick search. I am not ready to leap just yet myself since I have a feeling that we shall soon see better rates offered for shorter terms. |
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By: yuhongli64
26/10/2009
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Hello rodney.
Good to hear about the 7% term deposit rate offered by a bank. May I ask which bank it is and, how long do we need to lock our money in? one, two or three years.
Thanks for the information.
Have a good week. |
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By: rodneysaviour2
25/10/2009
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Just came across a bank ad announcing the release of a new 7% term deposit savings account...
As a saver keeping my savings safe and insured by the government in bank accounts at present, I am happy!
But... Uh Oh!! As the rates now begin to rise significantly, the pressure on those who have loans is going to become intense.
Many are going to be struggling soon!
Well! Cannot say we did not try to warn them! |
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By: communistevil
25/10/2009
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AWASH WITH CASH THE P.R. OF CHINA EXPANDS ITS POLITICAL INFLUENCE.
Almost daily, reports that the evil and corrupt P.R. of China surface inicating that this most corrupt of states is either negotiating or closing supply contracts with resource rich third world countries worldwide?
The latest being Guinea.
Can you who doubt the evil intent of this most corrupt and power hungry of states not see what is going on?
Political manipulation and control.
But to what end? What is the plan? For what real reason does this evil state now seek to spread its political influence in the the third world?
Possibly to control voting as and when G20 becomes a reality I hear you say....
BEWARE THE EVIL CENTRAL KINGDOM |
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By: qitulong
25/10/2009
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| Buying house is big decision for everyone who want to do it. But I always think what my granny said to me about buy anything cheap or not cheap. She said, "NOT BUY WHEN PRICE MOST HIGH. KEEP MONEY IN POCKET TO BUT WHEN PRICE IS CHEAP". I think this good advice for everyone now just like it was good advice to me when I was young man starting out to find new life in new country. Now is time of price of house is MOST HIGH I am thinking. So no good time to buy house. Maybe wait see what happen to prices now. Then maybe buy later I am thinking is best idea. |
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By: ding.duck
24/10/2009
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Cast your minds back to July 2000. Wasn't the $7,000 first brought in as a counter for the G.S.T.? As that is what they reckoned the cost of a new house would be with the new regime.
Go forward a couple of years, and the G.S.T. assistance changed it's name to the F.H.O.G. Now, I have had a look around, and there is still some bargains to be had in the real estate market. I am looking to invest, as I want to set myself up for retirement, and I see real estate as the best vehicle for my needs.
I missed out on the stimulus package, and I will miss out on the F.H.O.G. It is luck of the draw. All that means is that I have to work harder to make my dream come true. I realize that I have to forget about the government helping me to achieve my dreams.
Having talked with a couple of people in the know... they are suggesting that the sub-prime crisis worst case is still to come. We have seen Bridgestone Austraila announce that they are shutting production at Salisbury - loss of 600 jobs... I am also hearing rumblings about Holden... These two places, if both are shut, will have a major flow on effect in the economy...
We wait and see what happens... |
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By: hdmausguy
18/10/2009
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| gny - Why do couples in the majority of cases go out and buy themselves an expensive home usually with a small deposit and a large debt? Why don't couples start off with something less expensive and therefore much less debt? They'll take on a long term debt plan but don't seem to look at a step up plan to get something better further down the track. Some alternatives that I,ve suggested to some people have been met with horrified looks and replies. Here's some ideas I put forward with the goal to avoid the interest debt spiral.Just rent,out here in western Sydney you can rent a house for $360 - $400 pw. That's about 1/2 of a $350k mortgage repay. Set up in a residential caravan park or mobile home village. 10 - 25% of the price of an average home. Buy a house in a country town @ 1/2 the city cost. Get work in mining areas. I had a nice 4 br brick mine house for $17pw many years ago. The mining ended so it all closed down. Buy a house boat and live on a river etc rent free(yeah nice if council does'nt grab you). The main idea is to minimise your debt and maximise your savings. With a mortgage you have to keep meeting those repayments month in month out for 25 years or so. You have to encounter interest rate rises,possible unemployment,surviving on one income if/when babies come along then budgeting for the extra money absorbers. One factor I notice most people don't consider too much is that having a big mortgage impacts negatively on their long term Quality of life. If home interest rates get to 12% many many people will have already lost their home.Then they're back at square one.I did it the low debt way. With little money in the bank when 1st married, with hard work,prepared & did travel to remote areas,disiplined saving & good investments we bought a house debt free in Sydney in 8 years. Most of our friends have only just paid off their mortgage in the last few years. Admittedly because houses were much cheaper then their repays were nothing like today. |
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By: gnyakudjga
18/10/2009
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| Buying a house is the single most important step one can take. There are many advandages as there are many disadvanges which comes from doing so but the advandages do out weigh the disadvandages by far. Any change in the economy will definitely affect house buyers either positively or negatively, with the low income earners becoming vulnerable if interests rates rises. After all this is said, buying a house means securing your future.There are many ideas to follow which are like a road map for home buyers.One idea is to try to pay more than what you are supposed to pay monthly. The reason being that you will shorten the prescribed period you are supposed to pay for the house. During the ending recessional period, we saw interest rates falling to record lows. For those who were fortunate enough with there jobs not affected, it was the proper time to pay more.The list of what to do when the tough gets going for new house buyers is endless. Onother one is to lobby the the government to interfere. Above all having your house is better than renting. |
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