Housing Market

Houses selling in 20 minutes after they open for inspection.

Is the bubble going to burst, or buy now before it becomes unattainable?

I wouldn't. We're due for an earthquake soon and nobody wants a mortgage on a pile of rubble.

Houses selling in 20 minutes after they open for inspection.

.....In  Roxby Downs... because of the mining boom...

In Adelaide, my partner & I have been offering $26k over the asking price & are still getting beaten on $$$$

Its only been 2 months though, but weve made similar offers on 5 propertys unsucessfully..

Apparently houses have gone up 11% since January and apparently its gonna keep going up... so were gonna just keep trying until we get one..

Open Inspections ruin weekends. 

building at the moment, in our area it works out cheaper... Way more bother tho.  Not that land is easy to find...

Is the market artificially inflated? Will it plateau soon?

Working in the mortgage industry, I can safely say there are no signs that the bubble is going to burst anytime soon. (or ever for that matter)

Getting a loan is easier than ever, even though median prices are rising, you have products such as 40 year mortgages, 100% lend etc which ensure that the market is still going strong. Property investment is still as popular as ever with the people who own the security to mortgage.

I think also in Adelaide our properties have been undervalued for so long, that we are experiencing more of a rise...

We'll gain some ground on the eastern states in terms of land values/prices - particularly if our mining boom continues, which I assume it will. I would guess that QLD and WA would be going gangbusters too for the same reason?

Give a fuck, i'll just keep renting from Dad until he dies and I get the house.

Easy.

(PS, don't want to tempt fate...hope he lives another 40 years, I heart you dad)

I think also in Adelaide our properties have been undervalued for so long, that we are experiencing more of a rise...

Concur, but then again, it IS Adelaide. Hardly a bustling metropolis...

Yeah of course...

But I think we're seeing an adjustment in terms of us being undervalued a bit before. Plus the mining boom will have some spill over effect to the capital city, Adelaide or not.

Yeah of course...

But I think we're seeing an adjustment in terms of us being undervalued a bit before. Plus the mining boom will have some spill over effect to the capital city, Adelaide or not.

We are undervalued. I just wanted to slag Adelaide a bit. I feel better now

So who is buying, and where?

So who is buying, and where?

North East to North, within 15Kms of the CBD!! Trying anyhow....

Give a fuck, i'll just keep renting from Dad until he dies and I get the house.

Easy.

(PS, don't want to tempt fate...hope he lives another 40 years, I heart you dad)

haha, just had the same discussion with the folks tonight... except i told dad i'd kill him and be all sneaky so i never got caught!!!

.....In  Roxby Downs... because of the mining boom...

In Adelaide, my partner & I have been offering $26k over the asking price & are still getting beaten on $$$$

Its only been 2 months though, but weve made similar offers on 5 propertys unsucessfully..

Apparently houses have gone up 11% since January and apparently its gonna keep going up... so were gonna just keep trying until we get one..

Open Inspections ruin weekends.  :banghead:

Concur, but then again, it IS Adelaide. Hardly a bustling metropolis...

dont get me started in here 

We are undervalued. I just wanted to slag Adelaide a bit. I feel better now :biggrin:

Hardly a bustling metropolis...

It wouldn't surprise me if Adelaide changes (grows) over the next 15-20 years as much as Perth has in the last 15-20 years, primarily due to mining elsewhere in SA though.

It wouldn't surprise me if Adelaide changes (grows) over the next 15-20 years as much as Perth has in the last 15-20 years, primarily due to mining elsewhere in SA though.

thing that sux about that is even if you are not involved in the mining industry you still suffer the housing costs...may aswell get involved!

well, unless u totally get done  over, it doesnt matter when u buy...ur property will pretty much ALWAYS increase in value, so it doesnt matter if u buy tomorrow or in ten years time!!! maybe it affects how much u get a mortgage for, and how long u pay it, but even if u bow out early u should still make a profit.

as far as i have been told, anyways

thing that sux about that is even if you are not involved in the mining industry you still suffer the housing costs...may aswell get involved!

Well yes, but you don't just "suffer" - you get benefits from huge economic growth even if you aren't working directly in that industry.

trashy_chica, very true.

Went through the house buying bizzo 8 years. Got an awesome place, close to the city and very cheap.

Its already tripled (at least) in value since then. Sucks to be you if yr in the market atm.

What suburb did you buy in Noddy?

Sucks to be you if yr in the market atm.

thats the thing man...do you rent for a few years and wait or bight the big dick and jump in the deep end...i bought a house in gawler 6 or 7 years ago...was there for a year and in that time it increased in value by 35000 by the time we sold it...hate to think what its worth now...

North East to North, within 15Kms of the CBD!! Trying anyhow....

What suburb did you buy in Noddy?

Nailsworth.

Even back then we were doing the open inspection sideshow for close to a year. We basically waited and waited till we got very lucky.

We were also lucky to find a god real estate agent. Find people who specifically work in one area and know it well. People like this will give price guides that are pretty close, rather than some places who can be anywhere from $50-$150K off the mark. There's no fun going to an auction where the opening price is $20K over what the agent said it would sell for.

Fair enough.

I'm pretty sure the media hype around the whole "crisis" isn't helping. People being impatient/jumping in at the deep end isn't helping - and I seem to recall reading that the number of people defaulting on mortgage payments is at really high levels.

What makes me laugh is media "analysts" blaming the banks for "irresponsible lending". As if it's the banks faults. It's irresponsible borrowing that is the problem not irresponsible lending... Good old blame shifting. If you borrow too much and can't afford to service the debt blaming someone else is stupid, in my opinion.

haha, just had the same discussion with the folks tonight... except i told dad i'd kill him and be all sneaky so i never got caught!!!

just look at what happened in the usa!!! what were the banks thinking, lending to people who couldnt afford the repayments?

i am going to buy next year sometime. probably something in a newer urban development, or an older place close to the city. an apartment or townhouse would suit me for my first purchase. i hope by the end of next year to own something in adelaide. or close to it! once i get a place in ads, i will look to buy in melbourne.

my dad really wants me to buy in wagga (country nsw, my hometown, massive housing boom there too!!) but i dunno. not for my first buy!

just look at what happened in the usa!!! what were the banks thinking, lending to people who couldnt afford the repayments?

Why do you ask "what were the banks thinking?" Don't you think the borrowers have primary responsibility for working out their own finances?

Why do you ask "what were the banks thinking?" Don't you think the borrowers have primary responsibility for working out their own finances?

Exactly. If people make stupid decisions and it blows up on them it aint the banks fault.

yah  thats fine, what were both the banks and the customers thinking?!?!?!

still... its the banks that are also punished for the customers' defaulting etc, so really they shoulda been more careful. its their money on the line too.

dont get me started in here  :cry:

It wouldn't surprise me if Adelaide changes (grows) over the next 15-20 years as much as Perth has in the last 15-20 years, primarily due to mining elsewhere in SA though.

thing that sux about that is even if you are not involved in the mining industry you still suffer the housing costs...may aswell get involved!

Well yes, but you don't just "suffer" - you get benefits from huge economic growth even if you aren't working directly in that industry.

trashy_chica, very true. :)

thats the thing man...do you rent for a few years and wait or bight the big dick and jump in the deep end...i bought a house in gawler 6 or 7 years ago...was there for a year and in that time it increased in value by 35000 by the time we sold it...hate to think what its worth now...

Nailsworth.

Even back then we were doing the open inspection sideshow for close to a year. We basically waited and waited till we got very lucky.

We were also lucky to find a god real estate agent. Find people who specifically work in one area and know it well. People like this will give price guides that are pretty close, rather than some places who can be anywhere from $50-$150K off the mark. There's no fun going to an auction where the opening price is $20K over what the agent said it would sell for.

Why do you ask "what were the banks thinking?" Don't you think the borrowers have primary responsibility for working out their own finances?

Exactly. If people make stupid decisions and it blows up on them it aint the banks fault.

Haha doogie...

West side of town is great.

I bought a cute little old house in Torrensville earlier this year.  I hardly knew the west of the city prior but am loving this odd clash of cultures so close to the city and beach.  Theres plenty of Greek old boys arguing on Henley Beach Rd and watching over the junkies.   

Haha doogie...

West side of town is great. :)

still... its the banks that are also punished for the customers' defaulting etc, so really they shoulda been more careful. its their money on the line too.

i don't know how it works in the usa, but when a customer forces a bank to default here, they get their money back plus any profit that has been made through the sale. the vendor gets nothing and the bank get's the whole thing. add the mortgage payments that have already been made, and the bank makes a tidy profit still.

as a conveyancer, i'd definitely say that adelaide is not slowing down, and won't any time soon.

adelaide is australia's next big boom town. there is no doubt about it. it's the mining industry and the huge grant sa has been given for the submarine industry that will push it further on.

ali and i have decided we will be buying in the next couple of years, otherwise we won't have a choice but to rent for the rest of our lives due to the increases.

i'm on a decent enough salary, but unfortunately, the single income isn't gonna get me anything near what i want...

i'd be lucky to get a 1 bedroom piece of shit flat in elizabeth for what i could borrow.

definitely best for me to keep renting at this stage.

Nailsworth.

Nice, real nice... 

Brought in Ridleyton, just past Brompton, nice and close to the city, but the land was at a premium.  Still the gains are to made in the west north/west IMO.  The Clipsal development should help prices go up in a couple of years...

i don't know how it works in the usa, but when a customer forces a bank to default here, they get their money back plus any profit that has been made through the sale. the vendor gets nothing and the bank get's the whole thing. add the mortgage payments that have already been made, and the bank makes a tidy profit still.

as a conveyancer, i'd definitely say that adelaide is not slowing down, and won't any time soon.

adelaide is australia's next big boom town. there is no doubt about it. it's the mining industry and the huge grant sa has been given for the submarine industry that will push it further on.

ali and i have decided we will be buying in the next couple of years, otherwise we won't have a choice but to rent for the rest of our lives due to the increases.

Why do you ask "what were the banks thinking?" Don't you think the borrowers have primary responsibility for working out their own finances?

Glad to see you are sucked in to the "blame the victim" mentality spun by the banks to cover their asses.

This wasn't like something you see on Today Tonight with some buck toothed blue collar worker with 3 ex wives and 7 kids who were too stupid to realise their problem, this was hundreds of thousands (possibly millions) of customers and hundreds of billions of dollars.

Banks have a social responsibility to lend money appropriately.

Unlike Australia, the USA lenders aren't forced to disclose all the fees and costs involved.

The fact that the Federal Bank has tightened banking and lending laws is proof that there was something seriously wrong with the way banks worked.

Nice, real nice... 

Brought in Ridleyton, just past Brompton, nice and close to the city, but the land was at a premium.  Still the gains are to made in the west north/west IMO.  The Clipsal development should help prices go up in a couple of years...

FunkyJ it has nothing to do with "blaming the victim". The individuals concerned are the ones who instigate the situation by attempting to borrow too much money in the first place.

When you say "Banks have a social responsibility to lend money appropriately" are you sure you don't actually mean "In an ideal world, all businesses would be socially responsible"? Banks are businesses out to make money, and I believe what chris said is correct - even when borrowers default on their payments the banks are not the ones that lose out overall...

I am not denying that there are probably lenders out there who do the "wrong thing", but what I am saying is that if people can't manage their own finances or are too foolish not to speak to a qualified accountant then they shouldn't go finger pointing finding someone else to blame..

Nice, real nice... 

Brought in Ridleyton, just past Brompton, nice and close to the city, but the land was at a premium.  Still the gains are to made in the west north/west IMO.  The Clipsal development should help prices go up in a couple of years...

how long have those developments in ridleyton been sold for? i ride past them a lot, and they look like they're ready to be developed but have been sitting there a few years now.

ridleyton will be a wikkid suburb, dunno if i like the block houses tho...

A long time, there was contaminated land issues which takes a long time to remedy.  Our development however wasnt contaminated, it was released November last year.  Our place or any near us arent bonna be block houses, the blocks are big enough for standard homes (just!). 

Glad to see you are sucked in to the "blame the victim" mentality spun by the banks to cover their asses.

This wasn't like something you see on Today Tonight with some buck toothed blue collar worker with 3 ex wives and 7 kids who were too stupid to realise their problem, this was hundreds of thousands (possibly millions) of customers and hundreds of billions of dollars.

Banks have a social responsibility to lend money appropriately.

Unlike Australia, the USA lenders aren't forced to disclose all the fees and costs involved.

The fact that the Federal Bank has tightened banking and lending laws is proof that there was something seriously wrong with the way banks worked.

sweet, well just down from my place they obviously had to rip up a massive pile of contaminated crap, and they are only just laying down new liners and filling it in. making a mess of the suburbs, roads etc while they are at it! hope they repave the streets nearby.

yeah, i's totally buy in the area i live in now. and even further west, and north. cant go wrong really!

Thanks for the insight Erika.

I agree with everything you said - but you only mentioned it highly depending on what Federal Government is in power. Don't you think the way the US market (with interest rates in particular) is going is just as important (if not more) than what Federal Government is in power here?

I ask because when I am sceptical when the government makes comments which suggest they have a huge amount of control or influence over interest rates... I see graphs like this and it makes me think they have as much control over rates as I do:

how long have those developments in ridleyton been sold for? i ride past them a lot, and they look like they're ready to be developed but have been sitting there a few years now.

ridleyton will be a wikkid suburb, dunno if i like the block houses tho...

Thanks for the insight Erika.

I ask because when I am sceptical when the government makes comments which suggest they have a huge amount of control or influence over interest rates... I see graphs like this and it makes me think they have as much control over rates as I do:

Im not very knowledgable on finance but I am aware that when an economy is booming, i.e. unemployment rate is low people are more confident people to borrow. When people borrow Australia's debt increases, therefore the reserve bank puts up interest rates to accomodate this.

Also I think our interest rates are reflective on how well the US dollar is doing i.e. Im talkin da global economy baby

Cha ching cha ching

However i dont know much more bout finance im more a property kinda girl so im gonna stick to dat

Well heres my 5c, im a property officer for government and this is what i reckon. Well at the mo, i reckon general economics says that investors who own several properties will struggle a little when interest rates go up. And i definately believe that they will continue to go up. If the investors struggle, then they sometimes are forced to sell up which increases the amounts of properties on the market. When this occurs, there is more supply, and due to properties being less rare, there is less demand shifting the prices down either that or it wil just stabilise them for a short term.

I think this will happen in the short term, peoples incomes can not meet their current debts in australia. In the eastern states the probability of people having to default is increasing and bankrupcy is becoming more common.

Generally the SA property market trend is 12 to 24 months behind the eastern states.

So I would say in the short term there is going to be an increase of properties on the market for a small period of time, keeping the prices stabilised for a couple of years or so. (Also there is going to be a few more government land releases coming up)

But property is a long term investment so if you are looking at the next 5 to ten years the valuations on properties will definately go up.

My recommendation is to stay close to the city or on a coastal zone.
Alot of people in the eastern states are buying up in rural SA and Tasmania too and then sitting on the land. I think thats a good idea if you want to invest and on a good income.

From what I have heard at moment the lands title office have never had so many lodgements and registrations too, they are at record amount.

Valuation SA is working at full pace at the moment too and it doesnt look like it is going to slow down in the next 12 months, but after that who knows.

Property and interest rates work in cycles. Up and down. It also highly depends on what Federal Government is in and the general economy at the time. Currently people are pretty confident to spend up

Nah they say they are pretty safe, generally they take the contaminated soil out and replace it with new. EPA comes along and tests after also.

However I dont like the idea of buying in an old industrial level.

I tell you what I wouldnt be living at Mawson lakes either. Thats an old stock yard cemetary where diseased carcusses used to get buried. thats what i heard anyways

Im not very knowledgable on finance but I am aware that when an economy is booming, i.e. unemployment rate is low people are more confident people to borrow. When people borrow Australia's debt increases, therefore the reserve bank puts up interest rates to accomodate this.

Also I think our interest rates are reflective on how well the US dollar is doing i.e. Im talkin da global economy baby

Cha ching cha ching

However i dont know much more bout finance im more a property kinda girl so im gonna stick to dat

Nah they say they are pretty safe, generally they take the contaminated soil out and replace it with new. EPA comes along and tests after also.

However I dont like the idea of buying in an old industrial level.

I tell you what I wouldnt be living at Mawson lakes either. Thats an old stock yard cemetary where diseased carcusses used to get buried. thats what i heard anyways

Im more concerned with building a house on disrupted soil, the contamination issue doesnt bother me, it is taken away and becomes someone elses problem (who get paid well to do so).  The contamination issue near Mawson Lakes is largely due to the cleaning products & chemicals used in the animal processing process, not the carcasses themselves.  That vacant abattoir land has been unused for how long?  Must gonna be an expensive one to fix!

I am not denying that there are probably lenders out there who do the "wrong thing", but what I am saying is that if people can't manage their own finances or are too foolish not to speak to a qualified accountant then they shouldn't go finger pointing finding someone else to blame..

Remember, this is America we're talking about here.

For someone on a low income looking for a housing loan to get out of the trailer park, it's gonna cost them heaps to talk to a qualified accountant.

For someone on a low income they probably don't even know how to spell accountant to look it up in a telephone book.

In addition to that, the man behind the counter at the bank, who for all intents and purposes should be the only person you see about a home loan, is telling them they CAN afford the loan.

What they don't tell you is that the repayments will go up if the interest rates go up, which is exactly what happened.

The banks know full well their position and the position that it will leave the customer in.

What makes this so bad is that so many lenders did these kinds of dodgy deals. They exploited a poor, uneducated population and then cried foul when that blew up in their face.

It was so bad Federal Government had to step in.

Something needs to be massively bad for the American Federal Government to actually step in and interfere with it's own market and consider restraining banking.

When you say "Banks have a social responsibility to lend money appropriately" are you sure you don't actually mean "In an ideal world, all businesses would be socially responsible"? Banks are businesses out to make money, and I believe what chris said is correct - even when borrowers default on their payments the banks are not the ones that lose out overall...

No, I don't mean in an ideal world, I mean this world. Now.

Banks have the power to devastate an economy.

For example, it is against the law for me to persuade everyone I know to run to the bank and withdraw their money because that will cause the economy to come to a shuddering halt because banks never have that much money on hand. (http://en.wikipedia.org/wiki/Bank_run)

That same theory should apply in reverse - if a bank is giving out loans it knows the people can't afford to pay back if situations change, it should be held accountable.

Luckily for you, you're Australian and we have protectionist laws that will prevent this from happening here.

Im more concerned with building a house on disrupted soil, the contamination issue doesnt bother me, it is taken away and becomes someone elses problem (who get paid well to do so).  The contamination issue near Mawson Lakes is largely due to the cleaning products & chemicals used in the animal processing process, not the carcasses themselves.  That vacant abattoir land has been unused for how long?  Must gonna be an expensive one to fix!

Remember, this is America we're talking about here.

For someone on a low income looking for a housing loan to get out of the trailer park, it's gonna cost them heaps to talk to a qualified accountant.

For someone on a low income they probably don't even know how to spell accountant to look it up in a telephone book.

In addition to that, the man behind the counter at the bank, who for all intents and purposes should be the only person you see about a home loan, is telling them they CAN afford the loan.

What they don't tell you is that the repayments will go up if the interest rates go up, which is exactly what happened.

The banks know full well their position and the position that it will leave the customer in.

What makes this so bad is that so many lenders did these kinds of dodgy deals. They exploited a poor, uneducated population and then cried foul when that blew up in their face.

It was so bad Federal Government had to step in.

Something needs to be massively bad for the American Federal Government to actually step in and interfere with it's own market and consider restraining banking.


No, I don't mean in an ideal world, I mean this world. Now.

Banks have the power to devastate an economy.

For example, it is against the law for me to persuade everyone I know to run to the bank and withdraw their money because that will cause the economy to come to a shuddering halt because banks never have that much money on hand. (http://en.wikipedia.org/wiki/Bank_run)

That same theory should apply in reverse - if a bank is giving out loans it knows the people can't afford to pay back if situations change, it should be held accountable.

Luckily for you, you're Australian and we have protectionist laws that will prevent this from happening here.

Yeh lets get off of the USA finance parket though and more onto housing in SA

more relevant and more interesting

Good idea. I was talking about Australia anyway.

Yeh lets get off of the USA finance parket though and more onto housing in SA

more relevant and more interesting

Good idea. I was talking about Australia anyway. :)

After always living in the east to north east suburbs, we bought a house over in Beverley (west side) about a year ago now. Was a bit of a risk as I never had much to do with this side of town, but I have to say its a wicked place to live, close to Henley/the bay, and straight up port rd (or the back way) to the city. We didnt have to financially rape ourselves to get it either, I definately give the west side two thumbs up!! 

no thanks going out to the current tax breaks going out to investors, ie people who are buying their SECOND , third, fourth homes etc for investments and can claim their interest paid against their income tax "negative gearing" while people who want to just buy their first home cant do the same and cant compete financially.

but hey, costello says he has no plans to change this anytime soon.





and everyone who already owns a house doesnt get anything out of the current 'boom' except higher council rates cos any other house has just gone up in price too... it just means its now harder for first home buyers to get in on things...

So what position are most people here in? A few have said they bought a place in the last few years.

Are you renting? If you are do you intend to buy? If so, when?

Do you own a place and are in the stage of paying it off?

If you can see yourself buying in the next 5 years how worried are you about the current situation?

Or do you live at "home" with parents and getting a free/cheap ride?

i rent.  i'd love to buy, but i seriously can't see it happening on my single income!! 

but if anyone wants to be my housewife and chip in to buy me my dream cottage, i'm all ears!

So what position are most people here in? A few have said they bought a place in the last few years.

Are you renting? If you are do you intend to buy? If so, when?

Do you own a place and are in the stage of paying it off?

If you can see yourself buying in the next 5 years how worried are you about the current situation?

Or do you live at "home" with parents and getting a free/cheap ride?

i'm renting now, will buy in the next year or so (in adelaide, then wagga or melbourne) and am not too concerned with the current housing situation. i am lucky that i have a deposit stashed away, and once i finish my phd should kick some major salary butt in the science world/minerals industry

Hehe warped fairy... Where do you want a "dream cottage"? I am having trouble of thinking of places in Adelaide where you could find a cottage of any sort, let alone a "dream" one.

trashy_chica, yeah you'll probably be allright working in that sector. Can't really go wrong digging up the country for the Chinese - at least until Australia sinks.

One thing that really amazes me is how even in this "crisis" nobody really wants to discuss Australian's cultural obsession with home ownership. Why is it stuck in basically everyone's head that they need to own a place? Personally I think it's crazy - in particular when the view is held by those on incomes where they get themselves into huge debt just to own a home.

Personally I think I will rent for a long time and spend the money I don't spend on mortgage repayments on fun things like travelling (and my expensive hobbies). When you get old a house is not much good to you compared to the memories you could have had instead from spending way more time doing fun stuff. That's my view anyway...

Hehe warped fairy... Where do you want a "dream cottage"? I am having trouble of thinking of places in Adelaide where you could find a cottage of any sort, let alone a "dream" one.

i seen many round the norwood/parkside/unley kinda areas.  little 2 bedroom cottages, small front yard, decent enough back yard for entertaining etc.  whether they've already been done up or the they're a renovators delight, they're still going for $350k + at auction.  basically anything with 'character' these days is way out of my reach!!

obviously it's not a family home, but i'm not really interested in family home at this stage! 

i currently live in a 1 bedroom unit, decent size, backyard etc but i'm dying to have that 2nd bedroom...

i'm renting now, will buy in the next year or so (in adelaide, then wagga or melbourne) and am not too concerned with the current housing situation. i am lucky that i have a deposit stashed away, and once i finish my phd should kick some major salary butt in the science world/minerals industry ;)

Hehe warped fairy... Where do you want a "dream cottage"? I am having trouble of thinking of places in Adelaide where you could find a cottage of any sort, let alone a "dream" one.

trashy_chica, yeah you'll probably be allright working in that sector. Can't really go wrong digging up the country for the Chinese - at least until Australia sinks.

One thing that really amazes me is how even in this "crisis" nobody really wants to discuss Australian's cultural obsession with home ownership. Why is it stuck in basically everyone's head that they need to own a place? Personally I think it's crazy - in particular when the view is held by those on incomes where they get themselves into huge debt just to own a home.

Personally I think I will rent for a long time and spend the money I don't spend on mortgage repayments on fun things like travelling (and my expensive hobbies). When you get old a house is not much good to you compared to the memories you could have had instead from spending way more time doing fun stuff. That's my view anyway...

i'm  moving to spain, or some other european country. i love the urban design there!

suburbs are for chumps, and are reminiscint of 20th century eccentricisms of white culture.

and oli, i dont dig up australia for the chinese. i'm a gold explorer! think about that next time u use a piece of electronic equipment

PS a house represents not only a 'home', but an investment.  just as many people have managed funds. its just one way of saving/putting away money. for when u want to have fun  later on, as well as now

u can live ur life in many ways oli, not everyone (including myself) is going for the 2.5 kids n suburban lot dream

PPS i didnt think u were renting, didnt u live at home??

i seen many round the norwood/parkside/unley kinda areas.  little 2 bedroom cottages, small front yard, decent enough back yard for entertaining etc.  whether they've already been done up or the they're a renovators delight, they're still going for $350k + at auction.  basically anything with 'character' these days is way out of my reach!!

obviously it's not a family home, but i'm not really interested in family home at this stage! 

i currently live in a 1 bedroom unit, decent size, backyard etc but i'm dying to have that 2nd bedroom...

i'm  moving to spain, or some other european country. i love the urban design there!

suburbs are for chumps, and are reminiscint of 20th century eccentricisms of white culture.

and oli, i dont dig up australia for the chinese. i'm a gold explorer! think about that next time u use a piece of electronic equipment :D

PS a house represents not only a 'home', but an investment.  just as many people have managed funds. its just one way of saving/putting away money. for when u want to have fun  later on, as well as now ;)

u can live ur life in many ways oli, not everyone (including myself) is going for the 2.5 kids n suburban lot dream ;)

PPS i didnt think u were renting, didnt u live at home??

basically anything with 'character' these days is way out of my reach!!

Doh Ohwell... Good luck.

i'm  moving to spain, or some other european country. i love the urban design there!

suburbs are for chumps, and are reminiscint of 20th century eccentricisms of white culture.

and oli, i dont dig up australia for the chinese. i'm a gold explorer! think about that next time u use a piece of electronic equipment

PS a house represents not only a 'home', but an investment.  just as many people have managed funds. its just one way of saving/putting away money. for when u want to have fun  later on, as well as now

u can live ur life in many ways oli, not everyone (including myself) is going for the 2.5 kids n suburban lot dream

PPS i didnt think u were renting, didnt u live at home??

Fair enough. I must admit design in architecture and urban planning in general is far more sensible in most western european countries, compared to here...

And I was joking with that "digging up Australia" comment. It's just convenient to put all resources people into that basket sometimes.

I understand that a house is more than a home, but the obsessions with owning one when people are young and don't have the financial means to pay for one (look at the numbers of people in "mortgage stress") is ridiculous. Fair enough when you are 30 or 40+ and can pay for one more easily, but I know a number of people who buy under 25 then complain about the price of it all non stop.

What I am saying is there's no reason to rush in and buy something, then (in my opinion) waste the years of your life when you could be spending your money on more adventurous things that you really can't do later.

And yes I live at home trashy_chica, my post was meant to indicate that when I will move out it won't be because I'm putting down 5% of a house price and going to sit in debt for 30+ years, but rather because I will rent for a longer period.

Doh :( Ohwell... Good luck. :)


Fair enough. I must admit design in architecture and urban planning in general is far more sensible in most western european countries, compared to here...

And I was joking with that "digging up Australia" comment. It's just convenient to put all resources people into that basket sometimes. ;)

I understand that a house is more than a home, but the obsessions with owning one when people are young and don't have the financial means to pay for one (look at the numbers of people in "mortgage stress") is ridiculous. Fair enough when you are 30 or 40+ and can pay for one more easily, but I know a number of people who buy under 25 then complain about the price of it all non stop.

What I am saying is there's no reason to rush in and buy something, then (in my opinion) waste the years of your life when you could be spending your money on more adventurous things that you really can't do later.

And yes I live at home trashy_chica, my post was meant to indicate that when I will move out it won't be because I'm putting down 5% of a house price and going to sit in debt for 30+ years, but rather because I will rent for a longer period.

its true a lot of people are rushing in n buying places...but a hell of a lot of young people are also gtting the best of both worlds, i think its a bit unfair to generalise every young home owner as someone jumping the bandwagon.

Doh Ohwell... Good luck.

I understand that a house is more than a home, but the obsessions with owning one when people are young and don't have the financial means to pay for one (look at the numbers of people in "mortgage stress") is ridiculous. Fair enough when you are 30 or 40+ and can pay for one more easily, but I know a number of people who buy under 25 then complain about the price of it all non stop.

What I am saying is there's no reason to rush in and buy something, then (in my opinion) waste the years of your life when you could be spending your money on more adventurous things that you really can't do later.

what makes a mortgage easier to pay off when you are 30 or 40+ though? just because you are older doesn't mean you have more money than you did when you were twenty. you probably have more expenses if anything (especially if you are starting a family). add to that the fact that property prices will go up higher and higher until then, and living day to day will be more expensive as well i.e. shopping, bills, clothes etc.

renting sucks arse. i do it now, and i'll be fucked if i have to have inspections every six months at the place where i live for the rest of my life. not to mention the prospect of possibly having to move year in year out, not being able to do anything that change anything in the house, and the fact that it is someone elses, and will never be yours.

me and a mate are looking to buy early/middle next year...fuck doing it by yourself and i dont have a lady friend so this seems the best way to tap into it...

its true a lot of people are rushing in n buying places...but a hell of a lot of young people are also gtting the best of both worlds, i think its a bit unfair to generalise every young home owner as someone jumping the bandwagon.

Sorry if I come across as if I am generalising. I am not trying to do that. It's just that I know a few young people (early twenties) who are in the process of buying or have just bought. I look at these people who have barely started their careers (or at some cases are still uni students working a hell of a lot alongside their studies) and see them tie themself down with a home now. Some of these people haven't even left the country before and now that they are buying a place are not going to have much disposable income around to do anything adventurous for awhile.

I know it's a personal choice and I am not trying to tell people how to live their lives, I am just saying I find it hard to comprehend how people can value something like owning a home so highly compared to lots of other things.

That said, I have come across people who are the complete opposite of me and see no value in doing the things I would prefer to do first... So each to their own.

what makes a mortgage easier to pay off when you are 30 or 40+ though? just because you are older doesn't mean you have more money than you did when you were twenty. you probably have more expenses if anything (especially if you are starting a family). add to that the fact that property prices will go up higher and higher until then, and living day to day will be more expensive as well i.e. shopping, bills, clothes etc.

Well it depends how you live your life I guess. You're right that some people might not be in a better position to buy when they are 30 or 40, but I would honestly hope that most people at that age are earning significantly compared to when they were in their early 20s. You're right about starting a family though, that isn't getting any cheaper either.

renting sucks arse. i do it now, and i'll be fucked if i have to have inspections every six months at the place where i live for the rest of my life. not to mention the prospect of possibly having to move year in year out, not being able to do anything that change anything in the house, and the fact that it is someone elses, and will never be yours.

Fair enough. They're all the shitty things. I am probably a bit misguided with this whole topic anyway since I honestly haven't experienced renting anyway - but what about the flexibility that goes with renting? You can literally pack up and go overseas to work/do something else anytime/anywhere else and not have anything to worry about here. I value that highly and can see myself continuing to value that highly down the track...

Thats the pretty much exactly what we were looking for and simply kept getting outbid for maisonettes.  So, we found this cool little old cottage in the west close to the city as I was saying earlier.  Its not perfect but we love it here.  After months of seriously looking, it was the best we came across of all of them anyway.  Definitely lots of character in the whole area.

what did you end up paying there? 

i've seen a couple in the bowden/brompton area, little bit cheaper than the other side of town, but still well out my price range!!!  i wouldn't mind living there since i work in dudley park!!

what makes a mortgage easier to pay off when you are 30 or 40+ though? just because you are older doesn't mean you have more money than you did when you were twenty. you probably have more expenses if anything (especially if you are starting a family). add to that the fact that property prices will go up higher and higher until then, and living day to day will be more expensive as well i.e. shopping, bills, clothes etc.

renting sucks arse. i do it now, and i'll be fucked if i have to have inspections every six months at the place where i live for the rest of my life. not to mention the prospect of possibly having to move year in year out, not being able to do anything that change anything in the house, and the fact that it is someone elses, and will never be yours.

Well it depends how you live your life I guess. You're right that some people might not be in a better position to buy when they are 30 or 40, but I would honestly hope that most people at that age are earning significantly compared to when they were in their early 20s. You're right about starting a family though, that isn't getting any cheaper either.

Fair enough. They're all the shitty things. I am probably a bit misguided with this whole topic anyway since I honestly haven't experienced renting anyway - but what about the flexibility that goes with renting? You can literally pack up and go overseas to work/do something else anytime/anywhere else and not have anything to worry about here. I value that highly and can see myself continuing to value that highly down the track...

i disagree on what you think in relation to people's earnings. yes, for sure if you are in an industry that you can always be promoted, but not for most. i'm sure a brickie for example would earn just as much at the age of 25 as he would at 40. i know as a conveyancer, i earn as much as other conveyancers that are about 40-50 too.

with relation to the being able to pack up and leave whenever you want, good luck! you will be held to your lease until it has run out, or face a fine for breaking the lease in the first place. you also have to consider where all of your possessions are going to go. i'm sure you can't just leave them at your folks house once you have decided to move out.

i reckon it's just as easy to already have bought a house, and rent it out while you are overseas. that way your mortgage is being paid, you can travel and you actually have something to come home too, rather than absolutely nothing and starting all over again.

Sorry if I come across as if I am generalising. I am not trying to do that. It's just that I know a few young people (early twenties) who are in the process of buying or have just bought. I look at these people who have barely started their careers (or at some cases are still uni students working a hell of a lot alongside their studies) and see them tie themself down with a home now. Some of these people haven't even left the country before and now that they are buying a place are not going to have much disposable income around to do anything adventurous for awhile.

I know it's a personal choice and I am not trying to tell people how to live their lives, I am just saying I find it hard to comprehend how people can value something like owning a home so highly compared to lots of other things.

That said, I have come across people who are the complete opposite of me and see no value in doing the things I would prefer to do first... So each to their own. :)


Well it depends how you live your life I guess. You're right that some people might not be in a better position to buy when they are 30 or 40, but I would honestly hope that most people at that age are earning significantly compared to when they were in their early 20s. You're right about starting a family though, that isn't getting any cheaper either.


Fair enough. They're all the shitty things. I am probably a bit misguided with this whole topic anyway since I honestly haven't experienced renting anyway - but what about the flexibility that goes with renting? You can literally pack up and go overseas to work/do something else anytime/anywhere else and not have anything to worry about here. I value that highly and can see myself continuing to value that highly down the track... :)

i disagree on what you think in relation to people's earnings. yes, for sure if you are in an industry that you can always be promoted, but not for most. i'm sure a brickie for example would earn just as much at the age of 25 as he would at 40. i know as a conveyancer, i earn as much as other conveyancers that are about 40-50 too.

Do you honestly think that most people don't earn more 10 or 15 years into their career compared to when they first started that career?

To be honest I think if people want to step up the income scale and be earning more they can, regardless of whether they're a brickie or something else. In the building industry people can always be running their own larger business rather than contracting for someone else, or move into the management area of the building industry. I don't think people have anyone else to blame but themselves if they are earning the same amount at 35 or 40 compared to 25, if they haven't made a genuine effort to change that.

I certainly intend to be earning a lot more at 35/40 than at 25 (in 2 years, hehe).

with relation to the being able to pack up and leave whenever you want, good luck! you will be held to your lease until it has run out, or face a fine for breaking the lease in the first place. you also have to consider where all of your possessions are going to go. i'm sure you can't just leave them at your folks house once you have decided to move out.

I wasn't talking about breaking leases, I just meant if you rent you have more flexibility and no big asset to pay for or have someone else take care of if you want to go somewhere else for an extended period. And if you're young and don't have a huge amount of possessions you can leave them at friends/folks house. I know heaps of people who do that well into their twenties while they "experiment" a bit with living in different places and letting their career take them elsewhere.

By the way I should have clarified when I say "travel" or "work elsewhere" I am not talking about 3 or 6 months trips to do the "europe thing" like so many young people here do. I am talking about 3+ years somewhere else.

i reckon it's just as easy to already have bought a house, and rent it out while you are overseas. that way your mortgage is being paid, you can travel and you actually have something to come home too, rather than absolutely nothing and starting all over again.

I don't think rent would cover mortgage costs for people who have just borrowed 50+ % value of a house, besides if you buy a place then move out or travel within 12 months for a longer period it is not classed the same way as a normal "home", but rather it is treated more like an investment property and taxed as such.

Not sure exactly how it works but I think if you buy/build a place you had better live in it for at least 12 months otherwise any income you make off it by selling or renting it out before that 12 months is classed differently to thereafter.

fair enough. i disagree with you on what people earn still, but can't be bothered continuing. almost everyone i know is going to be earning very good money come the age of 40 going by your logic.

sure your wage may go up, but so does the cost of living.

also, i'd hate to be in your family or a friend of yours if you plan on leaving them with all of your junk for 2-3 years at a time.

you are right about buying and then moving out within 12 months thing though.

Thats the pretty much exactly what we were looking for and simply kept getting outbid for maisonettes.  So, we found this cool little old cottage in the west close to the city as I was saying earlier.  Its not perfect but we love it here.  After months of seriously looking, it was the best we came across of all of them anyway.  Definitely lots of character in the whole area. 


The way that I look at it is that now that the hard part is done, I am free to do whatever.


Haha yeah man I would say you need to get out of the parents house.  One way or another!  I've done my share of traveling and I would say I have had some of the best times just renting with friends and randoms who became friends in Adelaide - theres some cool areas around and its very affordable to live a pretty good lifestyle. 

Fair enough. They're all the shitty things. I am probably a bit misguided with this whole topic anyway since I honestly haven't experienced renting anyway - but what about the flexibility that goes with renting? You can literally pack up and go overseas to work/do something else anytime/anywhere else and not have anything to worry about here. I value that highly and can see myself continuing to value that highly down the track...

all good oli, i would just like tp pointout that once u spend ur first year in a house (first home-buyers loan thing requires u to live in your first home purchase for a year) u are pretty much set to move interstate, work overseas etc IF you have done your homework, and buy sensibly. In adelaide, you can still get away with buying a home, setting up your mortgage repayments to equal roughly what yourself (or new tenants) would pay for rent, so it pays for itself once you make the purchase. a lot of people take off overseas, knowing that the rent AND mortgage is taken care of for them. and the house will only APPRECIATE in value, so its a win win.

not bad eh? and completely doable for most young people

the idea of going into a shared purchase with other people (family, like betty did, or friends) is fantastic, i reckon my first purchase will be something along the lines of a contractual agreement

what did you end up paying there? 

i've seen a couple in the bowden/brompton area, little bit cheaper than the other side of town, but still well out my price range!!!  i wouldn't mind living there since i work in dudley park!!

chris, I wasn't saying everyone will earn more at 40 than at 20something. I am saying if people are ambitious and aim higher then it is reachable to be earning more 10 years into your career compared to when you begin.

I hardly have any junk I think some family members (ahem.. siblings) would like to see me go and leave my "junk" cause they'd end up getting it. It's good junk

etc IF you have done your homework, and buy sensibly.

Completely agree with what you have posted Anna. The part I have highlighted above though is the part that stands out for so many people these days. If record numbers of people are having trouble meeting repayments then obviously lots of people have not made sensible decisions at all when purchasing real estate - regardless of whether they're living in it for a longer period or just for 12 months with the intention of moving on.

You're right that if you make a sensible purchase, don't borrow more than you can't manage, and then rent it out you can do whatever else and it is all "doable" as you put it.

Each to their own, I can't see myself buying till I am at least 30.

Then again everytime I say that to anyone a bit older than me they just say "wait till you get a girlfriend and you'll change your mind". 

So what position are most people here in? A few have said they bought a place in the last few years.

Are you renting? If you are do you intend to buy? If so, when?

Do you own a place and are in the stage of paying it off?

If you can see yourself buying in the next 5 years how worried are you about the current situation?

Or do you live at "home" with parents and getting a free/cheap ride?

I'm currently renting. I'd love to own my own home, but I can't see it happening any time soon. It irks me that I'm paying someone else's mortgage. I hate having inspections every three months... especially now that I've been in my current house for nearly three years and have proven that I can and have looked after this house very well in that time.

I don't like dealing with an agent, especially when my landlord lives next door... and I'm bored of asking to have things serviced or fixed and then waiting only to never have anything done (ie. I've been waiting all winter to have my air-conditioner serviced... I've also asked to have a proper window put in my toilet as the permanent louvres in there make the toilet and laundry *freezing* in winter... or extremely hot and stuffy in summer).

I don't think rent would cover mortgage costs for people who have just borrowed 50+ % value of a house, besides if you buy a place then move out or travel within 12 months for a longer period it is not classed the same way as a normal "home", but rather it is treated more like an investment property and taxed as such.

Not sure exactly how it works but I think if you buy/build a place you had better live in it for at least 12 months otherwise any income you make off it by selling or renting it out before that 12 months is classed differently to thereafter.

I was under the impression that if you received the first homeowner's grant, then you were required to live in the property for at least 12 months before renting it out.

oli, i can see me buying now, having it paid off by mid forties and then heading overseas. i wouldn't fully appreciate going over while i was so young still. will stick to the cheaper option of our own country till then.

sounds like we have opposite agenda's.

i disagree on what you think in relation to people's earnings. yes, for sure if you are in an industry that you can always be promoted, but not for most. i'm sure a brickie for example would earn just as much at the age of 25 as he would at 40. i know as a conveyancer, i earn as much as other conveyancers that are about 40-50 too.

with relation to the being able to pack up and leave whenever you want, good luck! you will be held to your lease until it has run out, or face a fine for breaking the lease in the first place. you also have to consider where all of your possessions are going to go. i'm sure you can't just leave them at your folks house once you have decided to move out.

i reckon it's just as easy to already have bought a house, and rent it out while you are overseas. that way your mortgage is being paid, you can travel and you actually have something to come home too, rather than absolutely nothing and starting all over again.

you are right lexy.

if you are getting the first home owners grant, you do have to live or build with the intention to live for the first 12 months.

i'm personally trying to convince my old man to buy, demolish, subdivide and sell me a block of land. would save myself a good 10 grand in stamp duty that way. would also save myself at least another 50 grand by building. would have a new place at a very good price. hoping he sees the logic in it i do.

...situation...

Eh, that sounds a bit crap. Sounds like landlords are like other types of professions. We hear lots about the bad ones but not much else. Surely there are landlords/agents that leave people alone once they've experienced that people can take care of a place themself??

Or am I way off the mark?

I was under the impression that if you received the first homeowner's grant, then you were required to live in the property for at least 12 months before renting it out.

Yeah, I was referring to that but also the rule about selling the place. Ie. You can't buy then sell within 12 months otherwise the value the place went up is taxed differently. I don't really know though.

oli, i can see me buying now, having it paid off by mid forties and then heading overseas. i wouldn't fully appreciate going over while i was so young still. will stick to the cheaper option of our own country till then.

sounds like we have opposite agenda's.

Fair enough Chris. I wasn't trying to be critical of others with my posts.

I see you're a year older than me now... But saying what you say now (about travelling when 40) is like me saying I won't buy till I am 30+. We don't know our circumstances down the track. I might not be so independent (read: single) and end up buying something earlier. You might have a family at 40 and not be able to travel so easily either.

The reason I am so keen on doing stuff when young is because everyone I know who is older (35+) says they regret not doing the things I do now when they were younger.

And yeah, getting something sorted with your dad would be good... I think many young people get a lot of support from parents since in their time it was relatively easier (I think) to get into the housing market compared to now, so they feel sorry for us a bit. Good luck with that.

Eh, that sounds a bit crap. Sounds like landlords are like other types of professions. We hear lots about the bad ones but not much else. Surely there are landlords/agents that leave people alone once they've experienced that people can take care of a place themself??

Or am I way off the mark?

Hmm... I have not had an experience like that with an agent before. The only situations I have been in where I little to no inspections was when I was renting privately (ie. an inspection every year, or every six months) but even then, because I knew the landlord personally, it wasn't so much of an inspection, as a coffee and chat.

Do you honestly think that most people don't earn more 10 or 15 years into their career compared to when they first started that career?

To be honest I think if people want to step up the income scale and be earning more they can, regardless of whether they're a brickie or something else. In the building industry people can always be running their own larger business rather than contracting for someone else, or move into the management area of the building industry. I don't think people have anyone else to blame but themselves if they are earning the same amount at 35 or 40 compared to 25, if they haven't made a genuine effort to change that.

I certainly intend to be earning a lot more at 35/40 than at 25 (in 2 years, hehe).


I wasn't talking about breaking leases, I just meant if you rent you have more flexibility and no big asset to pay for or have someone else take care of if you want to go somewhere else for an extended period. And if you're young and don't have a huge amount of possessions you can leave them at friends/folks house. I know heaps of people who do that well into their twenties while they "experiment" a bit with living in different places and letting their career take them elsewhere.

By the way I should have clarified when I say "travel" or "work elsewhere" I am not talking about 3 or 6 months trips to do the "europe thing" like so many young people here do. I am talking about 3+ years somewhere else. :)


I don't think rent would cover mortgage costs for people who have just borrowed 50+ % value of a house, besides if you buy a place then move out or travel within 12 months for a longer period it is not classed the same way as a normal "home", but rather it is treated more like an investment property and taxed as such.

Not sure exactly how it works but I think if you buy/build a place you had better live in it for at least 12 months otherwise any income you make off it by selling or renting it out before that 12 months is classed differently to thereafter.

I am 26 and for me I would just say if it is feasible and something you want to do then go for it as soon as you can.

yep, completely agree.

i regret ever getting involved in renting. didn't have a choice though at the time. would have bought by now for sure with the money i would have been able to save.

Where are you getting your numbers from?  That really is not the case in metro Adelaide.  The numbers just don't work all things considered.  Maybe if you bought years ago and rented out at todays rates.  It does seem to happen on ACA all the time though!

nope got friends doing it now jsut depends on what sort of deposit u start off on, and what u can reasonably expect to rent ur new home out for !

Hmm... I have not had an experience like that with an agent before. The only situations I have been in where I little to no inspections was when I was renting privately (ie. an inspection every year, or every six months) but even then, because I knew the landlord personally, it wasn't so much of an inspection, as a coffee and chat.

But when you aren't renting privately, can you describe roughly how an inspection pans outs? Do they just wander through the place and make sure you haven't trashed it or what? How long would it take?

Arranging it privately certainly sounds better anyway.

I was looking to buy a place about two years ago and regret I didn't do it then!  I am 26 and for me I would just say if it is feasible and something you want to do then go for it as soon as you can.

Well to be honest even if it was something I wanted to do it certainly wouldn't be feasible anyway. I've been studying and working on my own business for awhile now, and spending my money on my expensive hobbies. 

PS these links are an interesting read:

http://www.incrediblecharts.com/forums/messages/35933/1112448.html
http://www.domain.com.au/Public/Article.aspx?id=1172338845435&index=NationalIndex&headline=Keep%20renting%20only%20if%20you're%20a%20good%20saver

RE: the second one, i was told by a geologist (who was quite well off and obviously quite sensible with money) that depending on what you wanted to do with urself (travel n rent vs settle down n buy) if you SAVE AND RENT, and RE INVEST well, then after 30 years you would be ell in front of the home owners bogged down with mortgages. why? cause the real estate market offer a safe investment, with small returns, compared to investing in moderate to high risk funds/shares.

interesting take!

Do you honestly think that most people don't earn more 10 or 15 years into their career compared to when they first started that career?

Yeh but you have to remember that costs of living goes up in that ten years also

PS these links are an interesting read:

links ....

RE: the second one, i was told by a geologist (who was quite well off and obviously quite sensible with money) that depending on what you wanted to do with urself (travel n rent vs settle down n buy) if you SAVE AND RENT, and RE INVEST well, then after 30 years you would be ell in front of the home owners bogged down with mortgages. why? cause the real estate market offer a safe investment, with small returns, compared to investing in moderate to high risk funds/shares.

interesting take!

My Dad's a professional investor for a charity here in Adelaide, and manages a large fund of investments in lots of areas (mostly in banking shares, but there's plenty of commercial real estate in there as well).

From what I have understood from speaking with him, residential real estate isn't really a good "investment" at all (in a financial sense). If you need a place to live then it's a sensible thing to put your money into. If you want something safe (because you don't understand or want to learn about the share market) then it's a good place to put your money. But, if you have time to learn the share market, and you are not impatient, then there are better things to do with your money than buying residential real estate.

It's also a hell of a lot easier to sell hundreds of thousands of dollars worth of shares (call a broker and it's done, essentially) than it is to sell a physical thing like a house.

Yeh but you have to remember that costs of living goes up in that ten years also

Yes I acknowledge that, but I'd hope that in 10 years the % my income has gone up is more than the inflation rate...

all good oli, i would just like tp pointout that once u spend ur first year in a house (first home-buyers loan thing requires u to live in your first home purchase for a year) u are pretty much set to move interstate, work overseas etc IF you have done your homework, and buy sensibly. In adelaide, you can still get away with buying a home, setting up your mortgage repayments to equal roughly what yourself (or new tenants) would pay for rent, so it pays for itself once you make the purchase. a lot of people take off overseas, knowing that the rent AND mortgage is taken care of for them. and the house will only APPRECIATE in value, so its a win win.

not bad eh? and completely doable for most young people :)

the idea of going into a shared purchase with other people (family, like betty did, or friends) is fantastic, i reckon my first purchase will be something along the lines of a contractual agreement :)

Eh, that sounds a bit crap. Sounds like landlords are like other types of professions. We hear lots about the bad ones but not much else. Surely there are landlords/agents that leave people alone once they've experienced that people can take care of a place themself??

you are way off the mark! any professional real estate property manager makes sure that there are approximately 4 inspections a year.

Saves a call to today tonight  

There are lots of people who treat other peoples property really badly, thats why they have inspections.

However there are lots of landlords which are shonky too. I used to have a landlord where i would have to ring and ring and ring just to get the toilet fixed and then he would come and try to fix it himself! fker

you are way off the mark! any professional real estate property manager makes sure that there are approximately 4 inspections a year.

OK. So can you detail what this inspection consists of? Is it literally just a visit from the agent - a wander through the property to make sure it hasn't been trashed, and that's it?

I'm currently renting. I'd love to own my own home, but I can't see it happening any time soon. It irks me that I'm paying someone else's mortgage. I hate having inspections every three months... especially now that I've been in my current house for nearly three years and have proven that I can and have looked after this house very well in that time.

I don't like dealing with an agent, especially when my landlord lives next door... and I'm bored of asking to have things serviced or fixed and then waiting only to never have anything done (ie. I've been waiting all winter to have my air-conditioner serviced... I've also asked to have a proper window put in my toilet as the permanent louvres in there make the toilet and laundry *freezing* in winter... or extremely hot and stuffy in summer).


I was under the impression that if you received the first homeowner's grant, then you were required to live in the property for at least 12 months before renting it out.

The agent is usually in and out in 2-3mins when you're there... fuck knows how long they're there when you're not home, they let themselves in. I had one agent knock then put the key straight into the door without waiting for me to answer it... I was still in bed.

Erika, did you quote my post without adding any comment because you think I am so awesome or what?   

But when you aren't renting privately, can you describe roughly how an inspection pans outs? Do they just wander through the place and make sure you haven't trashed it or what? How long would it take?

man you need to get into the reeeal world  

for insepctions they check everything from paint, scratches, carpets etc if everything is looking hunky dorey and if anything needs to be fixed

when you enter a lease you need sign off on a agreement saying what condition everything is in and then they check it when you move out. If repairs need to be done it comes out of your bond whe you move out

Dude read the tenancy act and real estate property act.  

Eh, that sounds a bit crap. Sounds like landlords are like other types of professions. We hear lots about the bad ones but not much else. Surely there are landlords/agents that leave people alone once they've experienced that people can take care of a place themself??

Or am I way off the mark?


Yeah, I was referring to that but also the rule about selling the place. Ie. You can't buy then sell within 12 months otherwise the value the place went up is taxed differently. I don't really know though.


Fair enough Chris. I wasn't trying to be critical of others with my posts. :)

I see you're a year older than me now... But saying what you say now (about travelling when 40) is like me saying I won't buy till I am 30+. We don't know our circumstances down the track. I might not be so independent (read: single) and end up buying something earlier. You might have a family at 40 and not be able to travel so easily either.

The reason I am so keen on doing stuff when young is because everyone I know who is older (35+) says they regret not doing the things I do now when they were younger.

And yeah, getting something sorted with your dad would be good... I think many young people get a lot of support from parents since in their time it was relatively easier (I think) to get into the housing market compared to now, so they feel sorry for us a bit. Good luck with that. :D

But when you aren't renting privately, can you describe roughly how an inspection pans outs? Do they just wander through the place and make sure you haven't trashed it or what? How long would it take?

Arranging it privately certainly sounds better anyway.

When I was renting privately, they would seriously take a 30 second look at the place... sit down, have a chat and then leave... and most importantly, I'd never feel anxious because I knew they knew, that I was looking after the place and they trusted me.

At the moment, when I have an inspection, the guy comes through with a check list and takes about 5-10 minutes looking around the place and he may ask me a few questions about whatever and then leave... but he talks to me like I'm stupid, for example; when I asked him about having the air-conditioner serviced, he implied that I just didn't know how to use the remote control properly. I had to show him how the remote worked, that I understood there were different settings for warm and cool air *and* that I knew how to work each of them... THEN he said he'll LOOK INTO getting the damn thing serviced. I received an electricity bill for nearly $700 last quarter, cos I had to run my electric bar heater all winter cos the damn air-conditioner didn't work.

He also gives me a three or four hour window when he could rock up for the inspection, which is annoying if I am home (eg. when can I have a shower? I don't want him coming into the house if I'm in the bathroom) and states that this time and day cannot be changed if it's not convenient for me... however, if he wants to rock up OUTSIDE of the times he's told me, that's fine.

Etc. etc... I could go on, but I'm going a little off topic.

I'm well behind the eight ball in terms of my life and financial position... sometimes I honestly don't think I'll ever be able to afford my own home and that upsets me because I don't want to be renting forever. I have discussed the possiblity of buying property with my mum and sister... and I think that's the only way I'll be able to own anything.

The agent is usually in and out in 2-3mins when you're there... fuck knows how long they're there when you're not home, they let themselves in. I had one agent knock then put the key straight into the door without waiting for me to answer it... I was still in bed.

I prefer to be home for inspections... ever since my previous neighbours told me that my agent spent far too long in my house doing an inspection one day (in excess of 20 minutes). He's a slimey little man and I wouldn't put it past him to go through my stuff.

My Dad's a professional investor for a charity here in Adelaide, and manages a large fund of investments in lots of areas (mostly in banking shares, but there's plenty of commercial real estate in there as well).

well that sounds shonky enuff for me.

Investor banker for a charity? when since did charities get in the investment market

dodggy

I dont like the idea of people donating money for the chairy company to go and invest and make moola

Where are you getting your numbers from?  That really is not the case in metro Adelaide.  The numbers just don't work all things considered.  Maybe if you bought years ago and rented out at todays rates.  It does seem to happen on ACA all the time though!

I prefer to be home for inspections... ever since my previous neighbours told me that my agent spent far too long in my house doing an inspection one day (in excess of 20 minutes). He's a slimey little man and I wouldn't put it past him to go through my stuff.

yeh i like the idea of being at home too

fk having a strager looking at all ya things

I own a place and rent

A lil bit of both worlds at the mo

Hmm... I have not had an experience like that with an agent before. The only situations I have been in where I little to no inspections was when I was renting privately (ie. an inspection every year, or every six months) but even then, because I knew the landlord personally, it wasn't so much of an inspection, as a coffee and chat.

I was looking to buy a place about two years ago and regret I didn't do it then!  I am 26 and for me I would just say if it is feasible and something you want to do then go for it as soon as you can.

The housing market really shits me. Realistically when I finished uni and got a grad job I was in a position to borrow enough (~130K) to buy a house that was worth living in (mitcham area). Seemed like a lot of money back then but fuck, all those houses are at least 350 now. houses in my suburb start at half a million and even houses in Wackham West are over 200K ffs!!!

yep, completely agree.

i regret ever getting involved in renting. didn't have a choice though at the time. would have bought by now for sure with the money i would have been able to save.

nope got friends doing it now ;) jsut depends on what sort of deposit u start off on, and what u can reasonably expect to rent ur new home out for !

But when you aren't renting privately, can you describe roughly how an inspection pans outs? Do they just wander through the place and make sure you haven't trashed it or what? How long would it take?

Arranging it privately certainly sounds better anyway. :)


Well to be honest even if it was something I wanted to do it certainly wouldn't be feasible anyway. I've been studying and working on my own business for awhile now, and spending my money on my expensive hobbies.  :nod:

i regret ever getting involved in renting. didn't have a choice though at the time. would have bought by now for sure with the money i would have been able to save.

I dunno if that's really possible. Unless your parents buy you a place or you stay at home until your mid-twenties then move out of home into the place you buy. I know quite a few people that have done the latter.

Edit: Dunno if you could save enough money for a house just by not renting, the rent prices in Adelaide aren't that bad and haven't gone up with the property prices. In all the share housing situations I've had in Adelaide I've never paid $100 a week (thats only 5K a year)

At the moment, when I have an inspection, the guy comes through with a check list and takes about 5-10 minutes looking around the place and he may ask me a few questions about whatever and then leave... but he talks to me like I'm stupid, for example; when I asked him about having the air-conditioner serviced, he implied that I just didn't know how to use the remote control properly. I had to show him how the remote worked, that I understood there were different settings for warm and cool air *and* that I knew how to work each of them... THEN he said he'll LOOK INTO getting the damn thing serviced. I received an electricity bill for nearly $700 last quarter, cos I had to run my electric bar heater all winter cos the damn air-conditioner didn't work.

He also gives me a three or four hour window when he could rock up for the inspection, which is annoying if I am home (eg. when can I have a shower? I don't want him coming into the house if I'm in the bathroom) and states that this time and day cannot be changed if it's not convenient for me... however, if he wants to rock up OUTSIDE of the times he's told me, that's fine.

Depending on whether you want to do something about the above situation, I really recommend taking it up with the residential tenancy guys. The landlord really IS ultimately responsible for catering to your maintenance requests, in a professional matter. Private lease or not!

I am glad my private lease in prospect was really easy n carefree. The only concern was that I kept the lawn mowed out front, so that was easy. Seems our new agents are decent too, they let us amend something on the property inspection report. Which is just as well, it really wasnt our responsibility. Was just nice they took our word and informed us promptly!

Depending on whether you want to do something about the above situation, I really recommend taking it up with the residential tenancy guys. The landlord really IS ultimately responsible for catering to your maintenance requests, in a professional matter. Private lease or not!

Well... tomorrow, it will have been a week since inspection and the second time I will have asked for something to be done... so I will be calling him again. I want that thing serviced before summer... I am not going to roast in this house all summer, that's for sure.

I dunno if that's really possible. Unless your parents buy you a place or you stay at home until your mid-twenties then move out of home into the place you buy. I know quite a few people that have done the latter.

Ugh. I've been living out of home since I was 15...

Of course if you are not borrowing the majority it is possible!  For the average home buyer that is a far stretch and you would have to be very fortunate to replicate otherwise. 

Then of course the question is, if you didn't have to borrow the majority, wouldn't you be better off investing it otherwise?

Yeh but you have to remember that costs of living goes up in that ten years also

My Dad's a professional investor for a charity here in Adelaide, and manages a large fund of investments in lots of areas (mostly in banking shares, but there's plenty of commercial real estate in there as well).

From what I have understood from speaking with him, residential real estate isn't really a good "investment" at all (in a financial sense). If you need a place to live then it's a sensible thing to put your money into. If you want something safe (because you don't understand or want to learn about the share market) then it's a good place to put your money. But, if you have time to learn the share market, and you are not impatient, then there are better things to do with your money than buying residential real estate.

It's also a hell of a lot easier to sell hundreds of thousands of dollars worth of shares (call a broker and it's done, essentially) than it is to sell a physical thing like a house.


Yes I acknowledge that, but I'd hope that in 10 years the % my income has gone up is more than the inflation rate... :)

you are way off the mark! any professional real estate property manager makes sure that there are approximately 4 inspections a year.

Saves a call to today tonight  :biggrin:

There are lots of people who treat other peoples property really badly, thats why they have inspections.

However there are lots of landlords which are shonky too. I used to have a landlord where i would have to ring and ring and ring just to get the toilet fixed and then he would come and try to fix it himself! fker

OK. So can you detail what this inspection consists of? Is it literally just a visit from the agent - a wander through the property to make sure it hasn't been trashed, and that's it?

I had a shonky cash only landlord for a few years and lived in two of his houses.  Our friends lived in another of his houses and had endless troubles and ended up taking him to the housing tribunal etc.  But, for some reason he liked me and I never had any grief apart from one time we had a monster party and the back fence got torn down and his dad's vegetable garden which happened to be next door, got trampled     

That was the only time he wanted an inspection and even then it was really just a glance around and a rant.  i guess other than that time we took great care of the house.

Interesting to read how varied peoples experiences with inspections are - but not all that surprising... Are the people usually doing the inspections the agents responsible for the properties, ie. real estate agents?

man you need to get into the reeeal world 

Well you outlined your experience, but read some of the others here and it's clear yours is not what everyone experiences...

well that sounds shonky enuff for me.

Investor banker for a charity? when since did charities get in the investment market

dodggy

I dont like the idea of people donating money for the chairy company to go and invest and make moola

I'm sorry Erika but you don't have any idea what you are talking about. This is a charity put in place by an act of parliament and has existed since 1875. When people die and leave assets to certain institutions in the health sector the money is managed by the charity and the income it is able to earn from those assets goes to the delegated institutions.

Not all charities have a public face you know... There are plenty of them around (that usually have much lower overheads by the way) which move along just fine without the average person knowing anything about them.

And what on earth is there to not like about sensible qualified investors making money for health institutions in the state?

Here's a common scenario for you to consider, perhaps it will make you realise that this system is perfectly sensible: Person dies and leaves a million dollars to a hospital in Adelaide. The hospital can't sensibly spend so much money all at once anyway, and this was recognised long ago (hence the reason this institution has existed for over 100 years). The money goes into an investment fund and is managed according to very strict laws put together by the state parliament. The fund earns 8, 9 or 10% from that million dollars and releases it to the hospital over time so they can make intelligent investments in infrastructure or whatever the person who died wanted in their will - rather than the hospital management jumping the gun and spending it all at once...

If you can't see how this is a good idea or don't understand send me a PM and I will direct you to a report on the parliament of SA website which explains in more detail how this works... I don't mean to come across as brash with this post but when you jumped to an (incorrect) conclusion about what someone in my family does I felt a bit offended to be honest...

man you need to get into the reeeal world  :lol:

for insepctions they check everything from paint, scratches, carpets etc if everything is looking hunky dorey and if anything needs to be fixed

when you enter a lease you need sign off on a agreement saying what condition everything is in and then they check it when you move out. If repairs need to be done it comes out of your bond whe you move out

Dude read the tenancy act and real estate property act.  :E

When I was renting privately, they would seriously take a 30 second look at the place... sit down, have a chat and then leave... and most importantly, I'd never feel anxious because I knew they knew, that I was looking after the place and they trusted me.

At the moment, when I have an inspection, the guy comes through with a check list and takes about 5-10 minutes looking around the place and he may ask me a few questions about whatever and then leave... but he talks to me like I'm stupid, for example; when I asked him about having the air-conditioner serviced, he implied that I just didn't know how to use the remote control properly. I had to show him how the remote worked, that I understood there were different settings for warm and cool air *and* that I knew how to work each of them... THEN he said he'll LOOK INTO getting the damn thing serviced. I received an electricity bill for nearly $700 last quarter, cos I had to run my electric bar heater all winter cos the damn air-conditioner didn't work.

He also gives me a three or four hour window when he could rock up for the inspection, which is annoying if I am home (eg. when can I have a shower? I don't want him coming into the house if I'm in the bathroom) and states that this time and day cannot be changed if it's not convenient for me... however, if he wants to rock up OUTSIDE of the times he's told me, that's fine.

Etc. etc... I could go on, but I'm going a little off topic.

I'm well behind the eight ball in terms of my life and financial position... sometimes I honestly don't think I'll ever be able to afford my own home and that upsets me because I don't want to be renting forever. I have discussed the possiblity of buying property with my mum and sister... and I think that's the only way I'll be able to own anything.


I prefer to be home for inspections... ever since my previous neighbours told me that my agent spent far too long in my house doing an inspection one day (in excess of 20 minutes). He's a slimey little man and I wouldn't put it past him to go through my stuff.

Interesting to read how varied peoples experiences with inspections are - but not all that surprising... Are the people usually doing the inspections the agents responsible for the properties, ie. real estate agents?

Yep, real estate agents do the inspections.

Yep, real estate agents do the inspections.

Well we all know how dodgy they are anyway...

I'm referring to your suspicious inspection, by the way.

well that sounds shonky enuff for me.

Investor banker for a charity? when since did charities get in the investment market

dodggy

I dont like the idea of people donating money for the chairy company to go and invest and make moola

Well we all know how dodgy they are anyway...

I'm referring to your suspicious inspection, by the way.

 

Aah, the wonderful world of renting 

yeh i like the idea of being at home too

fk having a strager looking at all ya things

I own a place and rent

A lil bit of both worlds at the mo

I dunno if that's really possible. Unless your parents buy you a place or you stay at home until your mid-twenties then move out of home into the place you buy. I know quite a few people that have done the latter.

yeah i was referring to the latter.

it's not just the savings in rent you have to consider. You also have the luxury of food being bought for you rather than having to shop week in week out as well as no electricity or gas bills or insurance to worry about. it all adds up. as do your savings cos you've basically got no expenses, other than personal.

I dunno if that's really possible. Unless your parents buy you a place or you stay at home until your mid-twenties then move out of home into the place you buy. I know quite a few people that have done the latter.

Edit: Dunno if you could save enough money for a house just by not renting, the rent prices in Adelaide aren't that bad and haven't gone up with the property prices. In all the share housing situations I've had in Adelaide I've never paid $100 a week (thats only 5K a year)

Depending on whether you want to do something about the above situation, I really recommend taking it up with the residential tenancy guys. The landlord really IS ultimately responsible for catering to your maintenance requests, in a professional matter. Private lease or not!

I am glad my private lease in prospect was really easy n carefree. The only concern was that I kept the lawn mowed out front, so that was easy. Seems our new agents are decent too, they let us amend something on the property inspection report. Which is just as well, it really wasnt our responsibility. Was just nice they took our word and informed us promptly! :)

Well... tomorrow, it will have been a week since inspection and the second time I will have asked for something to be done... so I will be calling him again. I want that thing serviced before summer... I am not going to roast in this house all summer, that's for sure.


Ugh. I've been living out of home since I was 15...

Yep, real estate agents do the inspections.

Well we all know how dodgy they are anyway... ;)

I'm referring to your suspicious inspection, by the way.

 :D

Aah, the wonderful world of renting  :nahnah:

yeah i was referring to the latter.

it's not just the savings in rent you have to consider. You also have the luxury of food being bought for you rather than having to shop week in week out as well as no electricity or gas bills or insurance to worry about. it all adds up. as do your savings cos you've basically got no expenses, other than personal.

yeah i was referring to the latter.

it's not just the savings in rent you have to consider. You also have the luxury of food being bought for you rather than having to shop week in week out as well as no electricity or gas bills or insurance to worry about. it all adds up. as do your savings cos you've basically got no expenses, other than personal.

You got it. Living on my own at 18 and earning only 200ish a week is painfully hard to live off. Especially when rent is 90.

You got it. Living on my own at 18 and earning only 200ish a week is painfully hard to live off. Especially when rent is 90.

How is it that you are in that situation, if you don't mind me asking?

And can't you get some kind of support (from Centrelink or whatever)? If you have to pay all your expenses yourself $110 a week sounds impossible.

You got it. Living on my own at 18 and earning only 200ish a week is painfully hard to live off. Especially when rent is 90.

How is it that you are in that situation, if you don't mind me asking?

And can't you get some kind of support (from Centrelink or whatever)? If you have to pay all your expenses yourself $110 a week sounds impossible. :|

My parents live in Goolwa. I'm sorting out trying to get centrelink, but I think my parents earn too much for me to get it or something. My parents do sort of help out now and then if I'm running short though which is handy. Coming up for summer though I should be working alot more hours. Probably like 6-3 friday saturday and a nice 3-1.30 on sunday. Maybe even thursdays as well.

Fair enough. So the $200 a week you described is more of a rut you're in and not the normal situation?

When I moved out of home to go to Uni at 17, my rent was 80pw and my Centrelink (I believe it was still called DSS at the time) was about $130pw. They gave me a bit more when I turned 18 then a bit more when they changed to Centrelink (rent assistance came in). My parents helped me out a little in the first year, particularly when bills came in and uni were just complete cunts (ie HECS pays for just your right to be there, they have like a million fees). By second year I had my shit sorted out and worked heaps of part-time jobs. It's not impossible but it pretty fuckern hard.

Fair enough Richie. Yeah obviously it's not impossible. Just "sounds" impossible - especially to people like me who have it (relatively) easy. I am not in denial about that ...

And yes the extra costs associated with Uni can suck pretty hard. Textbooks in particular... At least now Student Association/Union type fees are voluntary which should make it easier for a lot of people - though on the other hand many people who needed their services may not be able to get them anymore as some of them are slowly being phased out.

what's really cunty about centrelink when you're studying is that you're classed as dependent on your parents until you're 25yo. In my case I was effectively independent at around 18. Dad gets a pay rise then I get a pay cut. As a dole-bludger centrelink class you as independent at 21. You can get around it if you work full time for a while before you start studying though.

add running a car to most people's expenses too. not just petrol either.

...and an addiction to weed 

yep. that's just us though richie. not most.

Just because hardly anyone comes out drinking in the wintertime. I havn't worked a full summer yet so it'll be hard as. It sucks though caus I get payed about 8 dollars an hour less than someone who is 21, even though I do exactly the same thing. So we get glassy's in who are 22 and are shit at it, and get payed more than someone thats been there 8 months. Laws are messed up. Long weekend next weeks gonna suck as well.

If you live away from home for a certain period can't you get classed as "independent" as well though? I knew a few people who moved out ASAP just so they could be classes as independent as early as possible and start getting Centrelink benefits...


Yeah the pay system in hospitality (I'm guessing) is stupid like that. I really don't know why such a discriminatory practice can still exist. Age means nothing compared to experience/skill in that area of work...

Dunno, they change the laws all the time, all I know is that I was classed dependent on my parents until I was 25 even though they live 2 hours drive away. Luckily Dad earns SFA and I actually got Austudy, although one of his pay rises resulted in a cut for me. I finished Uni at the same time I turned 21 and received $100 per fortnight pay rise because I'd moved up the ranks in life from tertiary student to dole bludger. (this was back in 2000) 

youth allowance is fucked. i was at uni for 4 years and only for the last 6 months had i earnt enough to be classed as independent. and then you are only allowed to earn a certain amount of money working whilst studying until your payments get reduced. the best way to do it is to take a year off after school and work for the year then you should have enough money to be classed as independent. then if you move out you also get rent assistance.

oh lordy i wish i had that extra 10K i needed to buy that 3 bedroom heritage listed (but VERY run down) house i was bidding on in the CBD back in 2001... it went for 165K and i only could bid up to 155K
but anyways, cant focus on the negative...




dont bet on saving 50grand mate
im currently designing my own place and building it yourself isnt any cheaper, but you get all the extra headaches of trying to get it through council etc too.
seriously

Where are you building Jayar? I am guessing you are building something that isn't so "normal" (or boring) compared to most people in Adelaide...

i'll bet on what i want. 

i've done the math on it all. i would save about 50 grand compared to if i was to buy a house for say $275000.00 (if not more)

add to that, the savings on having a much smaller loan over a period of years too.

stamp duty on 2750000 is $10142.50 which is a total of approx 285k. add to that any work on the property that will almost certainly need doing.

stamp duty on block for $85000 = 288.12 (inclusive of first home owners stamp duty concession, not applicable to properties over 250k)
building for 140 000 (after all expenses are taken out). that's a total of approx 225k. say there's another 15k required for extras that i didn't calculate for earlier and you have $240k. and that's not even with the 1st home owners grant.

still a saving of  about $45 000 and it would be a new home...

The property managers (not realestate agents) are basically employed by the owner of the property. So they will have a standard list of what they provide for the owner such as the amount of times they will inspect the property in a year, etc. In regards to getting repairs done (not including private rental), you contact the Property Managers and they contact the owner. In most cases the owner will want to come around and see if they can fix the problem or at least get a good idea of what is actually wrong and then it is up to them if and when they will get it fixed as they have to pay for it. This is where alot of renters get fucked over. The owner thinks you fucked it and will take the time in doing anything about it or they are simply tightarses and don't want to spend the money.

So the Property Managers are there to earn money and they do this by being a middle man for the owner. They don't make any decisions without the owners consent.

gotta love it, rented a unit in maylands a few years ago... on one of those 40 degree days our ceiling fan decided to fall from the ceiling and just hang there loosely from all the wires...

our fucktard landlord didn't do shit about, so we basically decided fuck him, and moved out the next week... luckily we'd never signed a lease so he couldn't take us to the residential tribunal... although he did try!!

Chris: Trust me, building nearly always works out more expensive. Granted you usually get alot more for your money, but still more expensive. What you've said below sounds about right but the simple fact is:

Building costs more than buying established.

The main reason for this is people want everything to be perfect when building their OWN home.

You say that you are planning on subdividing a block... are you planning on building multiple homes or selling off the divided blocks of land???
Have you thought of which method of building your going to go with, ie predesigned homes or through an Architect???
Have you allowed for establishment costs such as landscaping and substructure requirements???
Another big variation that can arise depends on the location of the land. Some areas around SA have such bad soil that you can instantly double the costs of your foundations.

cleasc: trust me, i know what i'm talking about.

it will be a pre-designed home.

my dad is going to buy the property. he is going to subdivide and sell me a block of land at a good price. ($80000)

i am going to be building on that land.

and yes, i have already accounted for all of your costs. you forgot to mention all of the fixtures and fittings as well that need to be added to the cost also. again, i've covered all of that.

If i remember ill be able to confirm or deny this in about March 08...

don't forget you paid a bit for your land though tristen. location location location and all that.

i reckon it will end up being about even with yours. but you'll have a new place.

Same here mate, even is my tip too.  Its probably not gonna cost less, especially counting all the little things like a shed etc...

Fuck we paid a bit for the land, but 320+ for a 2 brm thing wasnt gonna cut it. 

If you were just building an investment property you could build for cheaper than something that has all the top furnishings and so on. But like I said, people who are building their OWN home usually want everything perfect and the best of everything within their budget. Their are alot of dodgy buildings (and builders) around that are done so god damn cheap it isn't funny.

Obviously every case would be different... just speaking generally.

If shortcuts were being made couldve definately built cheaper IMO.  Wouldve been a shit home though. 

Just thinking of how much a good kitchen costs thesedays makes me cringe 

The real estate agent at **** Realty is the guy who does my inspections. It's a very small business. I think it's only him... and the incompetent receptionist. I'm sure the larger businesses have property managers.

The owner of my house is well aware that my air conditioner needs servicing (as his did) and he had his done before winter and told me he would have mine done as well. Still waiting. I also asked the owner directly to do something about the window (or shall I say, non-existant window) in the toilet at the beginning of winter - still waiting. However, in the meantime, he has found the money to have a verandah put on the back of his house. Funnily enough... he came around last year to measure the back of the house because he wanted to put verandah's on both houses... I doubt I'll ever get one on mine.

I've just received a letter from the agent as well, telling me that if I don't get the back grass mown within seven days, they will employ someone to do it at my cost. Now, if my landlord wasn't living right next door, with the ability to look over the fence check... they wouldn't know if it had been done within the seven days or not. Does this mean I can send a letter to the owner, advising that if the air conditioner is not serviced within seven days, that I will employ someone to service it at HIS cost?

Bah, sorry for going off topic - perhaps we should start a thread for the people who rent!

Good idea on the new thread. But by the sounds of it, I'd be fucking moving out. You could take them to the tribunal and win easily. So either do that or tell them that they need to sort shit out now or you'll be leaving immediately (obviously when your ready to leave). You leagally don't have to put up with that shit, it will be a bit of effort to get things done through the proper channels.

mate, one thing i'll say as someone who works in the building industry is that you will NEVER, EVER be able to say that building will cost you X amount of dollars. it will ALWAYS cost you more than you expect or plan. if it doesnt, then you'll be the first person that hasnt had that happen. dont want to rain on your parade or nowt, but plan to spend 10-20% more than what you 'budget' for. every building contract has its clauses that allow extra costs for unknowns. and fuck me, you dont know the meaning of the word 'unexpected' until you build a place - its just a myriad of factors (site, council, authorities, builder) beyond your control!


Oli: St Peters - yep a phat fucking area, but it means we'll probably pay a premuim price as builders will just expect that we are loaded to have a block in that area.

couldn't agree more with what you are saying. again though, i've already allowed for that stuff.

lexy, the receptionist at that real estate firm wouldn't be claudia would it?

I don't know what her name is, sorry 

does their name start with and A and end with and E?

if so, they're jerks. of the highest order.

Start with an A, end with an L. I think we're talking about the same one, just different spelling 

And yes, they are the turds I've been dealing with the whole time I've been living in this house.

UGHHHH

I thought they were just mean to me cos I was a young person. Obviously not?

nope, they're pricks. to EVERYONE!

pretty sure we mean the same people too. i just wasn't sure on their spelling.

UGH

Maybe I should think about moving somewhere else 

cool
just dont wanna see people get burned - its a stressful experience!!

cheers mate.

nothing has been finalised as yet. it's all just an idea at the moment. liking it more and more though.

when does ya lease finish up? move in with me bahahahah

i have just started a new lease, after moving out of a place i own with someone. we most probably will end up selling end of this year   I am living my myself at the mo which is kinda cool in a pretty new large modern flat by the beach. I pay $250 a week though! But I think i kinda kinda afford it and the rent i pay is no price when it comes to kinda being happy. Some of the other flats i looked at were real crusty and i just wanted somewhere where i could relax and kinda find myself again with all the mod cons. I am only planning to be there for a year or so, after that i am hoping to maybe go overseas or live in a house with a bunch of crazy fun people, like i did a few years back. Looking forward to running amok again.

I dont really want to enter the housing market like i did two years ago, i probably would rather just sell up and start afresh. A 30 year mortgage is a huge commitment when it comes to paying up each week. it has its pros and cons though, its really nice to have something to call your own home.

u can work ur ass off and get classed as independent by Centrelink, if you are under 25...just have to make $18000 in 18 months, or something! which is pretty crazy, if you were expecting to be studying full time..thats basically working part to full time also!!!

Ooh I am listening to a HOT podcast from ABC's Radio National Big Ideas program.  I have uploaded it to yousendit, recommend a listen for anyone interested in understanding the current market (housing, investment etc) and how everyday people's lives are affected by financial risk. Basically, your average joe and jane are shouldering a major amount of financial risk which normally was the domain of big companies and governments.

there is a really interesting discussion about WHY housing prices are sky rocketing in australia! (becuase we have double-income families, people are more competitive for housing, but if you are a single parent/income family, then its so much harder...)

http://download.yousendit.com/7F4C3C966768D98F

Risky Business

Nation states and corporations used to bear the brunt of financial risk in an uncertain world. But the process of market liberalisation over the past two decades has changed all that. One of the hallmarks of the globalised economy is the process by which risk has been the transferred on to the shoulders of ordinary people who now routinely take part of the hit if things come unstuck. According to the International Monetary Fund, the household sector has become the shock absorber of last resort in the financial system. Welcome to the world of individually managed risk. But are we equipped for this role and is it desirable?

latest offer i put in... $280k on a house with a price guide of $250k... found out today it sold for $305k... (in Ingle Farm too)

also, thanks Anna- will download the ABC thing tonight for a listen 

agents are cunts.

some have a price guide of 250+, but they really want about 300 anyway.

5 years ago, if an agent said 250+, your offer would have been accepted.

then again, 5 years ago, the place you put an offer in for would have been 200+, and everything would have been wonderful.

point is though. don't trust the price guide. or at least add 30 grand (minimum) to it.

Too true Chris... weve been offereing about $26-$28k above asking price & still getting beaten... offer number 8 coming up 

good luck mate.

Offer 8 is in.. $282k on http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=104308088&f=0&p=10.


 

Good luck dude. Under 300K and 12KM from CBD is cool.

But when was the property built???

Houses are like cars, they can start falling apart and structural work can be extremely pricey!!!

Prob don't have to say it, BUT GET AN ENGINEERS INSPECTION!!!

absolutely subject to building Inspection!!!!!!!!!!!!!!!!!!!!!!!! dont buy home without one 

You'd be surprised how many people don't. A mate of mine just bought a place in Morphett Vale and when I asked him who he got to inspect it... he said his fuckin Grandfather did!!!

 

 

fucking cool looking place, love that old school design! new garden n stucco walls, hotness

make sure that your subject to finance clause is written in as well. don't let the agent only give you a week to get your finance though. demand at least two (especially if you are using a mortgage broker)

if you haven't thought about your finance that you require, pm me, and i can give you a couple of phone numbers for people that might be able to help.

i'm a conveyancer too b@ch. if you require someone to go through your contract with you at all, need any advice, or need a conveyancer in general, shoot through a pm, and we can sort something out for you as cheap as possible.

it is a very nice place. good luck!

yep cool joint, i love the contemporary homes around that area and para hills!

choiceness!!! thanks bro!!

My GF is family friends with the manager for Bernie Lewis @ Stepney so the finance is sorted.. dont think we have a conveyancer though... will check that!!

I always put subject to finance and have a min settlement of 30 days with 2 weeks for finance!!

(p.s- if I get this house- the big extension room will be my studio booyahhh!!!!; )

Hope your getting a special deal from them mate. Going by what my other half says who is a lender for westpac, Bernie is out to rip the honest hard-working home buyer off in a major way. Shop around dude. Not saying that because my partner works for Westpac, but their conditions are dam good. We have have our house mortgage and an investment property through them and we haven't looked back. I know it sounds like a plug for westpac, but shop around mate

Nice one man, ive got the studio all planned in my new house too.  Building to start hopefully in a month

EZ bro.. have been doing the rounds but am getting a sweet deal through the family friend... ( but they are all sharks regardless of how you know them hehe)

cool!! where abouts are you building?? *double post madness*

Ridleyton, next to Brompton... 3br + a study, the studio is going to be one of the bedrooms tho, I need my space!

thats good then, hope you are getting a good deal. dont want to see you getting ripped off mate 

Heaps nice!!! & i know what ya mean about space... by the time u fit dex & speakers, a computer or 2, midi keyboards etc etc before ya know it its like 3.5mtrs x 3.5 mtrs or more!!

u must be 10kms or less from the cbd??

oh we'll run into you in foodland, except we won't know who you are 

Are you building in one of those newly created areas? I want one of those new houses in that area too, but I'd be worried about the noise as they seem so close to eachother.

Yup, stoked...  ill be able to get a cab for $10 from the city 

DM, ill post a photo one day (without a dick drawn on my face).  The development is at the back of Foodland, we get a laneway there so it will be handy.  Not too fussed bout neighbours and noise, ill be making more than my fair share 

Sure about that, when I lived at Kent Town on Rundle st, usually cost me more than a $10er to get home from Tonic, etc.

But still fairly close.

Probably closer to $15 as it's about $11 from the city to the start of Hawker street 

Very convenient location.... west sieeeed 

thanks for the correction, one less pint then

ooh i love the crack-den foodland!!! was there this morning, best viet bakery this side of the city too

brompton/ridleyton aint even 5 kms from the city, awesome area to live!

PS I pay $13 max from the city for cabs, straight down port rd and we live near the intersection of port and south

i live in marleston, and it doesn't ever cost me more than 10 dollars to get home ever.

no worries at all mate. i'm sure bernie lewis will recommend someone (it's what they do) but the final decision is entirely yours. don't ever feel pressured to go with a certain firm when it involves your property. you are the boss, and your employees need to realise that. employees being the agent, broker and conveyancer. you pay them, make them earn their money.

well we get the keys to our super hot new house tomorrow and i'm so freaking excited.

absolute steal too, they could of got at least 100k more than what we paid. stupid retard estate agent 

there may be underlying reasons for that. dont be so cocky! 

why the lack of interest from other buyers??

theres a housing shortage ATM & houses are going for $30k above asking price! 

your mum and her husband have done very well with that place.

it's been an absolute pleasure working for them too. your mum is lovely.

So Chris, can you provide any insight as to why/ how they achieved a super bargain?? ( tips for us who are trying ; )

it could be this mate 

i personally don't know how they managed to find the property they have purchased at such a good price mate. your best bet is to ask lauren how they went about it. as a conveyancer, we tend not to ask those questions, as it has no real relation to the work that we need to do. all of our work comes after the contract has been signed. before that, all we can do is help with advice/searches etc etc.

this house lauren is speaking of though is truly a bargain. it was featured as one of the main houses the week after it sold in the advertiser.

there are plenty of circumstances which can lead to finding a bargain. people moving interstate/overseas. another purchase may have already been made and they may have needed to sell quickly. quite often you just have to be in the right place, right time. also  have a look to see what the public trustee is selling on behalf of the banks that have taken posession of properties from mortgagee's that can't pay their mortgages. quite often they are sold at very good prices, as the banks only really need to get back what is owing to them. they usually have a small advertisement in the saturday guide only about a column.

cool mate cheers.. & ill look out for the PT advertisment in the paper from now on too 

do it mate. we had a client that the bank sold his house out from under him for a good $50 grand less than they could have gotten through a proper sale.

dont they all go to auction though chris??

yep. but they all start the bidding at the capital value on the property, rather than a recommendation fromt he agent. they also don't attract the crowds of real estate auctions either, as they try to do everything as cheaply as possible and don't advertise as excessively as agents. this means that the auctions rarely blow out  in price (unless there is sizeable land attached).

it's certainly worth looking into.

well there were 51 registered buyers to view the property on the first open. 51, thats a lot.
the estate agent pressured all the interested buyers to put in their best and only offer the tuesday after the inspection. our first offer was rejected but we only knew that cause we were lucky enough to have a bit of inside help on what the offers were.
we ended up winning because the estate agent wanted to settle and we were the only people whos offer wasnt subject to sale of our current house. and he also was under the impression that we would sell our house with him (which we didnt, but he wasnt happy, no contracts were signed though cause as i have already said, he was a serious tosser).
i dont know the first thing about real estate or the market but i could of done a better job selling that house than that guy did. he was a damn fool basically...

on topic, just got the keys and went and had a look again, wooooooooo i'm gonna drink a whole bottle of champagne in the spa the day we move in.


oh and i'll be cocky if i want, we just got a wicked house and im happy 

Is the agent a private guy or does he work through one of the larger real estate companies??? I'm just wondering if it was an investment property of his or something. Maybe the owners were really in that much of a hurry to sell up to cover debts. Not that it makes any difference to you, your parents still saved enough money to give you a deposit for your own home...

Oh, I might be in a similar situation by tomorrow... but not buying obviously. So we'll be cocky together

it's certainly not an investment property. more like cribs style.

i heard there are some plans for a november b'day bash, look forward to checking it out!

november 17, keep it free 

one of the largest real estate companies. and the owners weren't in any huge hurry.
i dont have a deposit for my own home, this is my family home. i wont be moving out for a good few years now, no need.

Cooling off finishes @ Midnight

Phone call from Building Inspector any minute...

Ooh which place bach? the awesome retro one??

yessum 

good luck with it!!! looks hot

Housing Inspection = Good!!

Approx $3000 of repairs needed ( mainly old Plumbing)


12 hours- 5mins till its on like Donkey Kong (cooling off anyhow)

congratulations mate. looks like it's all go then from the sounds of it.

like i said earlier, if you require a conveyancer at all, just shoot through a pm, and i can look into it for ya.

Well its all go now!! Everything appears to be moving along smoothly.. only 23 days till settlement ( & get to move out of mums house again yay!!!!)

good work man

having a horrid day mate. will have that quote to you by 5.

busy day on AM mate? 

you sure you can keep up with work and moderate a busy forum??

i was struggling yesterday. flat out!

well my g/f and i have possibly had the best news of our lives.

if all goes according to plan, we may be given a block of land in cheltenham behind her parents place.

if it all comes together, we should hopefully only have a very small mortgage to contend with and have a brand new place at the same time...

no issues about living behind her folks either. great people and stoners like myself.

*crosses fingers*

Nice work mate!! Hope it does go through for you

cheers mate. all a bit up in the air at the moment. but the offer is there if the property is able to be subdivided accordingly.

would be a perfect start for us considering we don't earn a hell of a lot of money between us as is...

wow dude thats freakin awesome!!!

the valuation guy went through ours yesterday with no problems boh!

tell me about it! pretty happy right now. should give us a good start for our future, that's for sure.

good news for you too! all systems go then.

yeah nice work... good spot too.

settlement = 1 week today 

thats wicked..... just keep it off the flood plains you know what its like round here 

There's a suburb here, in Adelaide, called Cheltenham too.

Half of Adelaide's suburbs are London suburbs. Aldgate, Croydon, Dulwitch, Enfield, Fulham, Kensington, Kilburn, Highbury, Mile End, Mitcham, Stepney, can anyone think of anything else?

Hyde Park, Richmond, Hackney, .... and don't forget Piccadilly springwater and Southwark beer!

ahhhh right oki thanks 
I didnt know that England shared so many different names accross the world. USA seems to have a load also. My bad

Bloody migrants, come up with some new names would ya? 

We've also got a shitload of German name towns in the Barossa and surrounds, though admittedly most were changed during the great 'diassociate ourselves with anything German campaign' during the World Wars...

I was actually talkin about namin my horses "London" "Cambridge" and "Lord Bob" in the car yesterday 

 Yeah the Pat gets pretty full sometimes

what about adelaide itself 

not when ya room is bigger than most peoples lounge rooms!

Clapham too...  I stayed in West Hampstead for a bit, dunno if there is a Hampstead Gdns

do i ever!

Settlements today bitches!!! wooo hooo!!! 

all done mate. congratulations and the like. was a pleasure doing business with you! 

nowood, hackney...

A decent article from The Age, about the decline of affordable housing in Australia...Pretty scary really, housing is more expensive in Australia than in Britain, USA or Canada! :shock:

A Generation's Dream Home Vanishes

That can't be right, unless they mean in comparison to earnings, the cost of housing is through the roof here! But then again that may just be London itself, not teh UK in general.

yeah i think they mean in comparison to earnings. a lot of australians are now taking out mortgages that take up over 30% of their average income (dodgy stuff!)

Woo finally some action! Least  the government should feel a bit more pressure to free up land, spose it was one of Rudd's election promises.

Lets hope the churches get some decent architects to design 2-4 story buildings (townhouses etc) that inspire some cretivity and pride in their residents! Not like the shoebox lands like we get nowadays...

Churches free up land to fight housing crisis

CHURCHES are planning to make city properties and land available for inexpensive housing to fight Victoria's home-affordability crisis.

Church-run charities say prime land worth hundreds of millions of dollars has been sitting untouched for more than 100 years. And the charities want the land to be used to help the state's most needy and build affordable rental homes, Fairfax newspapers report. Uniting and Catholic church charities and the Salvation Army back the plan, which comes as Australia's Reserve Bank is expected to announce another interest rate rise.

Fujitsu Consulting analyst Martin North said JP Morgan/Fujitsu research showed up to 300,000 Australians were at risk of losing their homes this year. About 750,000 households will struggle to pay food and bills. "This is a problem that is now hitting middle Australia. Rates will go up by another 0.5 per cent to 1 per cent over the year, so people who are in an already fragile position are going to be hard-hit," he said.

The mortgage crisis has caused more pressure on the strained rental market, leaving poorer people without hope of renting a private home. UnitingCare Victoria, the Catholic-affiliated St Vincent de Paul Society and the Salvation Army are seeking state government approval to become developers for housing. Melbourne City Mission wants to fund-raise and team with businesses to create housing for the needy, particularly homeless youth. "If we are going to really affect people's lives and the housing crisis for young people then we need to be in it to change the outcomes -- sometimes (people) only need a little bit of a break," the mission's general manager of community development, Sally James, said.

Apparently the new odd apartments next to the new Adelaide bus terminal are meant to be some kind of cheap housing initiative project from the Government too.  So there may be hope yet for Adelaideans.

Most cheap housing looks very ordinary but check out these in Slovakia - Tetris inspired!

http://io9.com/341919/tetris+style-slovenian-housing-projects

you'd be lucky to qualify for those cheap apartments though.

have to be basically earning near to nothing.

yup chris

you cant buy those - its a form of 'emergency' housing for nearly homeless people, those on almost no income, artists etc etc etc and managed by a new housing body called 'Common Ground'... Im working with this same body on another project in the CBD.

It was a thinkers in residence programme initiative, the woman here last year or the year before, from (Common Ground) New York... Hopefully will deal with some elements of the homelessness problem at least.

haha! are there that many homeless ARTISTS in particular? :teehee: i live in brompton/bowden, the home of the starving artist in adelaide! it makes for great people watching at cafes and busstops tho.

i think the housing initiatives are great, so too are the new apartments being built specifically for younger people, who dont own cars but have decent jobs (albeit with a low salary)...cant wait to see more people treating the housing market as a communal infrastructure, instead of a get rich quick scheme! i am sure we can somehow do both

also, its really interesting hearing from overseas visitors/residents that our high priced city and near-city suburbs are a phenomenon, compared to england or the like... apparently, the urban suburbs are usually the crack dens and everyone who has money lives in the outer burbs!

Cabinet OKs first home-buyers scheme

FEDERAL cabinet today approved a scheme offering an effective tax break for aspiring first home owners, giving them incentives to save a deposit.

Treasurer Wayne Swan said cabinet had agreed on the first home saver account, first flagged during the election campaign.

"This is a modest long-term measure to assist more young Australians to achieve their dream of home ownership," he told reporters following a cabinet meeting.

"Young Australians saving for their first home will attract a government contribution equivalent to 15 per cent discount on their marginal tax rate."

The scheme will start in the second half of this year.

Housing Minister Tanya Plibersek said there had been a marked decline in housing affordability in recent years, with the proportion of 18- to 34-year-olds buying their home falling by 11 per cent in the 10 years to 2004.

"This problem has emerged over many years and we know there is no overnight solution to the housing affordability problem, but we do believe with a suite of measures we can improve housing affordability over time," Ms Plibersek said.

She said the first home saver account would help first home buyers get into the market.

"The low income measures ... are particularly useful and will make a big impact to people who are starting out in the workforce, and hoping to save a little bit of money not to buy a home in the next few years but perhaps in 10 years time or even longer."

Inflation woes

Mr Swan said the government had inherited an economy that by some measures looked good and by others looked bad.

"I wouldn't describe underlying inflation at a 16-year high as being good for the economy," he said.

Mr Swan said the government was working on short, medium and long-term measures to help people struggling with cost of living pressures.

"This one is a long-term savings measure but the sooner we get it up and running the sooner it will kick in."

Mr Swan said many people were using more than 30 per cent of their income to meet mortgage repayments or pay rent.

"There are a lot of people out there who are doing it very tough and we understand that," he said.

"I believe that the great bulk of people who are in housing stress out there, are in housing stress because of the affordability crisis in housing, not necessarily because of some personal fault of their own.

"I for one know a lot of people in this situation, and when you have had six interest rate rises in three years ... there are a lot of people who are in mortgage stress."

Ms Plibersek said figures measuring how many people had lost their homes due to mortgage stress had not been systematically collected.

"(But) what we do have is a significant jump in every state," she said.

http://www.news.com.au/adelaidenow/story/0,22606,23157156-5005962,00.html

sweet!

hey bach, how is ur new place?

also, its really interesting hearing from overseas visitors/residents that our high priced city and near-city suburbs are a phenomenon, compared to england or the like... apparently, the urban suburbs are usually the crack dens and everyone who has money lives in the outer burbs!
[/quote]


adelaide too was like this. believe or not north adelaide was run by bikies and was quite a ghetto.

during the industrial revelotion, the workers, miners etc were based close to town. the wealthy lived out in whoop whoop, hence all the stately homesteads in the magill/kensington park area.
now people are being pushed out of their homes, even those whose homes have been in the fam for generations - due to higher council taxes etc they simply cannot afford. if i had the funds, i would buy in kilburn 

that's true! its interesting then, that the housing prices have stayed relatively the same in the UK (ie cheap near the city and expensive on the fringes) compared to australia tho.

of course, yes the cute cottages that I love to live in once were lived in by the working classes..same story for much of oz. but it was just interesting to think that the way our cities are set up now, are quite a phenomenon.

apparently there is a massive push in sydney to settle new immigrants and lower income earners along the train and bus routes, so its easier for them to get around (instead of being stuck in ghetto burbs) but the influx of young, well-off aussie couples is making it hard! so they have introduced special housing projects.

 


damn you middle Australia 

Hey Anna, The place is awesome... i still sit on the couch ( usually 5am sunday morning after a big night) and look into my studio and spin out that my first house is a place that i absolutely love...how lucky am I !!!

sick of gardening / having to care but its all good!!

Superglad I locked in my interest rate for 3 years last November!! 

Ooh ur place sounds great Bach! Pics?

And news today...people skipping meals to pay rent!

Not Eating To Pay Rent

THOUSANDS of people across the country are skipping meals to pay rising rents, a housing affordability conference in Sydney heard yesterday. And housing experts warn the home affordability crisis threatens to destabilise the economy and drive the country into recession. Experts told the housing conference yesterday that Australia faced great social unrest and human suffering as well as chronic labour shortages without affordable housing.

Professor Terry Burke of the Australian Housing and Urban Research Unit presented the research, which showed 26 per cent of low-income renters sometimes go without food and 42 per cent of low-income renters cannot afford school excursions, Fairfax reported. Professor Rachel Gatt, an affordable housing policy expert from Tufts University, Massachusetts, said the housing affordability equation was brutally simple. "Either wages have to stay high enough so people can afford to buy housing on the private market or if the private market is not able to meet the housing challenge then you need to have government subsidies,'' she told reporters.

"If you don't have affordable housing, and if your wages don't keep pace with the cost of housing, you are going to find people doubling up with relatives, turning into homeless people and creating a great deal of social unrest and human suffering than what you have now.'' The federal opposition has called on federal and state governments to cut land tax and stamp duty to help boost rental stock. Opposition frontbencher Greg Hunt today said this week's national housing conference was an ideal opportunity for federal Housing Minister Tanya Plibersek to address land tax and stamp duty, to lessen the burden and help increase the stock of homes available for rent.

"These are killers for people and what they do is decrease the rental stock,'' Mr Hunt, opposition spokesman for Climate Change, Environment and Urban Water, told the Seven Network. "A lot of people have said we're not willing to pay the cost of holding a rental property if we're whacked with a huge land tax or we have to deal with stamp duty and today is the day, Tanya, stamp duty, land tax and more land releases - you have a great opportunity.''

Ms Plibersek said a lot of people had taken money out of investment property and put it into superannuation when favourable tax treatment was introduced last year under the previous government. She said the Rudd government had committed to introducing the first home saver account to help people into their first house. "We know that as a proportion of all home buyers, first home buyers have shrunk as a proportion, so we want to help them save through a superannuation-style savings account,'' Ms Plibersek told the Seven Network.

"We've also got a national rental affordability scheme, 50,000 new rental properties, because there is a terrible shortage all around the country.'' Labor says the Howard government failed to acknowledge the rental crisis, despite knowing more than two years ago that more than one third of renters were suffering from rental stress.

Some excellent properties popping up on the market at the moment. No doubt more to follow with the rate rise...

absolutely mate! by the time you need to evaluate a new option, they will hopefully be due to start coming back down.


get in touch if you find a place at all mate. would love to do the work for ya.

Good work mate... Building on mine will hopefully start in a month, we'll have to talk house soon 

ooh lemme know where n when! i love wandering round the newly constructed houses before the owners move in. some are so tiny shoebox-stylee!!!

apparently a few economists are predicting a massive recession in the next few years, in oz, cause our lil inflation bubble doesnt accurately reflect world economics at the moment...some sort of lag effect, due to our over-exporting of iron ore and stuffs to china. hope so, i think that means housing prices will come down??

once i get some employment sorted, will start seriously looking for a place next year

I just bought an investment property! I completely forgot you're a conveyancer, otherwise you would have had the business for sure.

Next one, I promise

Did you buy a 2nd residential investment property Rob? A house or apartment or something else?

PS. Good on you if that's what you are comfortable doing. 

Yes, I bought a 2br apartment in Somerton Park (on the Western side of Brighton Road, right in between Sacred Heart College and Brighton Highschool).

I felt that whilst it needs a little upgrading, it was undervalued for the area and should not suffer any vacanies, given it's proximity to the beach, schools, shops and transport (and how bullish the current rent market is!)

Everyone's investing strategy is different. Thorough research and understanding of the market you chose to invest in are key.

I like property as an investment vehicle because of the potential capital growth and steady income. I would like to attain some more properties over the coming years.

I do understand it's important to diversify though in order to mitigate risk, so I am currently learning about shares as there are a few companies I would like to invest in.

all good mate. keep me in mind in the future.

congratulations on your first purchase too. that's a huge step, and a pretty smart one at that. property is a very good way to go, if you know what you are doing. i know a few people who started doing that, and now that's their living.

Hmm

Give me your full name and I can do a search on the real valuation of your property, what the Valuer General actually values it at, at what value you are paying council rates at, what you actually paid for it at settlement, what your mortgage is, the details of your property i.e. car parking, area bedrooms, fittings etc, what everyone else in your neighbourhood paid for a unit which is similiar to yours, what the person who owned it previous to you originally and then I will tell you if whether or not what you paid was "undervalued" 

All in a matter of 30 seconds 

Does it really matter? I felt it was undervalued, and that's all that counts at the end of the day. I had a budget to work with, and it fell within that.

Besides, even at a conservative capital growth rate of 8% PA (Adelaide WAS growing at 12-15% PA over the last 12 months), anything extra I paid 'above market' will be re-couped pretty quickly.

If you hold property for long enough, it will pay off eventually.

Anyway, I am not too keen on a complete stranger knowing that much information about my financial standings.

Rob

Thanks Chris, wanted to get another property for about 12 months. Timing and $ was right, so jumped on it.

Now, if I can just get my tenant to pay me more rent!

so can i. not in 30 seconds though.

anybody can find out that information if they are willing to pay for it.

they can't find out your mortgage details though rob. that's between you and your financial institution.

Good!

yeh i was only mucking around.  

However, to say something is "undervalued" when really, that terminology really should be determined by a proper valuer or someone in the property field who actually has the info and and history on the past transactions of the property- they can make those calls not someone who has a "general feel" of the market.

I guess thats my opinion though as I work on Property. when I research a property if I am looking at buying one I do it properly.

In Somerton Park the general amount for average units ranges from 200- to 260 so if you paid anything in that range... the unit is not undervalued. Especially if it needs work.

Anways in regards to looking at property info- anyone can do it. Anyone can check anyones info- just gotta know how to do it. for example, you can go check all my info and do searches at the Lands title office through a program called property assist. I can get it off databases immediately instead of having to go to LTO through gov

Its all public info- just gotta pay for the searches at the front counter.

However anything i see I always treat as confidential. LOL I was only trying to prove a point about valuation before

 

You can get a copy of the mortgage doc thou by getting the doc number off of his title copy, and what he has a mortgage for, what stamp duty he paid and who his banker is though.

 

sorry rob hope im not freaking you out 

Fair enough. We all work within the boundaries we're comfortable with.

I felt a got a bargain, and I think the market will prove me right over the next 12-18 months.

If not, all that means is that it will take slightly longer to realise the capital gain. It's not like the property is going backwards in price.

Not freaked out. What would anyone want my mortgage information for at the end of the day? To tell me I 'overpaid' on a property?

I'd like to think people have better things to do with their time

You have a point there, but all I was trying to say is that people who have the correct info/research can determine true valuations. Valuations are done in a calculated manner. Its not a "feeling/judgemental" kind of thing. There is a maths behind it.
People do it for a living, so I dont consider it a "waste of time"

 

Anyways all good... good on you for starting out in property, property will only go up! $$$!!!

Provided the country doesnt go into recession. 

I have been abstaining from the Adelaide and even Australian property market, and will continue to do so because I feel that people are not going to want to live here in five or ten years time.

We will be either under water (being a floodplain) or we will have no water and either way it will be scorching hot.

For these and many other reasons I am looking at moving to another country, and so will not be buying a house in Aus.

Yeh you have a good point, but I would still stay in Australia as it is harder to buy O/S cos of the lending money aspect & risk/exchange rates etc

If I had the cash I would seriously look at buying in the countru. HEAPS of investors in the eastern states are  doing that and they are buying up interstate land. I would buy up land SE and Tasmania.

Good rains there and land is pretty cheap there too and is going up at a good rate.

However if you were looking at buying land O/S I would recommend buying in NZ. Christchurch is lovely and there are some nice neighbourhoods in the outskirts of Auckland. Rent is really dear there too. They pay a fortune in rent there and land is pretty scarce, meaning that it will only go up in value as it will become harder to find.

eww double post! you  are going to spain yeh? Lots of Brits at the moment are buying land in Spain due to the Tourist potential. B&Bs etc

I dont know much about the market over there though

I understand the 'science' behind it.

But if all your paper research shows a property is 'valued' at $200k, and the market is paying $230k+, then you would never get into propery because you would always be against the market.

The market determines the value. Properties are getting snapped up at opens, and people are paying above and beyond the asking price.

So, based on my theory that market determines value, I assessed the property in front of me, made an offer I thought was fair given it's location, the rates/strata fees, the work that needed to be done to upgrade it and my offer was accepted.

If the agent had done another round of opens (he only did one open on a Sunday for 30 minutes), I think someone would have paid another $10k more than I offered purely because of the location.

So whilst crunching the numbers can only help your situation, you have to understand where the market is at, and still try to find that property that you can get at the best price possible.

I am not in it for money. I want to live somewhere that inspires me with someone I love. Not where I was born, with closed minded people.

Who knows.

Exactly.

But at the same time, an apartment is an apartment, and will always be an apartment.

It's only as valuable as the land it's on, if you even have rights to the land, ie strata titled with someone owning a majority you're fucked

I wonder how many people in the States said that and then ended up walking away from their properties because they were in more debt than what it was worth? 

I know this. Apartments are not going to grow as quickly as houses.

The right apartment in the right area however will return low/no vacancies, and provide a steady income stream.

You become wealthy by having multiple income streams. This is why you will never get rich working for someone in the same job for 10 years. More income equals more wealth.

As I am a single-wage earner, apartments provide easy access to the property market and a steady income stream.

Hopefully, as my equity grows over time (yes, more slowly than houses, but I have factored that in to my investing strategy), I can hopefully pick up some townhouses or courtyard homes. Then onto houses. Then onto Commercial property.

Please know what you're talking about before you tell someone they're 'fucked'. Thanks.

If you do not over-extend, you will not have a problem. Know your investment strategy, research properly and save for 'rainy days'.

People with bad credit being mortgaged up to the hilt = receipe for disaster.