Apparently Everyone Here Is To Blame

This morning on the radio I heard a caller saying it again.

The reason why all the first home owners and others cant afford to buy a property is because of "Property Investors" who keep buying multiple properties again and again, that drives up prices so high no one else can afford to buy!

Wtf

No wonder caller's like that are where they are in life.

Some how I feel people make comments like that because somehow in their own mind it justifies why they cant be bothered get off their backsides and doing some thing constructive for themselves.

If its not investors... its always the government or some other party that's to blame.

 

news.com.au has been milking the topic too!
comments coming through on fb are just ridiculous, i do love stirring the pot though telling people why whinge about being a "have not" and be a "have" etc etc great spot for fishing!

 

Where would property prices be if everyone was limited to buying 1 property each?

 

The government would have to pick up the cost to house all those renters who were privately housed previously.

 

Why don't we just adopt the American model for cheap rental housing..that works!!...not

 

How do you mean privately housed previously? I don't mean from now, I mean a hypothetical parallel universe where that was the case.

 

Should give the caller this link.

https://propertychat.com.au/communi...ors-stop-purchasing-after-two-properties.234/

Most property investors only have 2 IP.

It wouldn't be the interest rate is at 4.5~% would it? Nah that wouldn't cause prices to increase.... If interest rates went overnight to 17% then what would happen to the property prices... It would also kill the economy...

 

Privately housed = the tenants living in our Investment properties...not the tenants living in state housing.

 

So many people complaining while living week to week and wasting money on other things. Even if property prices were to drop by the 40% these doom and gloomers are talking about/praying for they still wouldn't have a deposit.

Other people seem to have an expectation of buying a great house straight away, the whole you can't buy the average house on the average wage mentality. They don't seem to realise that the "average buyer" already has equity from a previous purchase and first home buyers are only 10% of the market so they are competing with 90% with equity already made.

Basically any excuse will do I guess, the media does nothing to educate people or give realistic expectations either as pointing a finger sells more media.

Still it is very difficult on a minimum wage to save for a home even for those that make it a priority; members here can tell you about it and the sacrifices made, which shows it can be done. Things aren't as easy as earning more money with little knowledge and no understanding of how to get it and with your friends, family and the media telling you you can't get into the housing market it would be tough.

 

And to make it worse, some of us are Baby Boomers. We all know it's the rich Baby Boomers out there stealing the dreams of the GenY's.

And yet......in my circle of friends and acquaintances (other than SS/PC members), I know next to no-one who has an IP (two family members), and yep, most of them would qualify as Baby Boomers. And those two family members have a big fat ONE IP each.

 

I cant remember where I saw it but on average a person will own five houses.

If we use this in mind that would mean the median house price for a city should be your third house. Yes you can jump a tier by going from Sydney to Brisbane but you can also go down a tier going from Brisbane to Sydney.

So when the media says how will first home buyers buy their home with the median house price being x. I know when I bought my first place it wasn't the median for Melbourne.

Cause if a FHB can buy the median easily then who is buying the properties below the median?

 

You can take the mindset that property is too expensive (and it always is) and never buy anything, or you can take the mindset that you will find something that you can afford, or barely afford; and buy it.

I'm pretty stupid and have little knowledge in other fields and other investing vehicles, so it had to be property for me.

That's what I've always done, and it has worked well despite lots of mistakes, no timing of the market, no internet forums to help me, no high income.

You either do it, or whinge and do nothing.

Lots of choice.

 

I know numerous people in the baby boomer gen who still rent... One of my fathers close friends inherited 3M worth of property about a decade ago, he now has less than that.... Yes he got a divorce but he would do stupid things like buy a 4wd and campervan to take his son camping and 6 months later they still haven't gone camping... He has never rented out any of the properties (about 6 in total) and is a single man who was a geologist. So smart man with a start in life that would make people jealous but lacked financial knowledge and has been committing financial suicide ever since...

 

This reminded me of my grandmother, who would complain about the banks and their profits. We told her to buy bank shares as those were the 'grubs' profiting from the profit and she said it was to risky..

 

If we didn't have IP's, and instead our system of housing was that individuals could own 1 property each, what do you think housing prices would be doing? Going back in time, not starting from now.

 

I forgot to add "Why didn't they all buy a couple of years ago when properties were half price (in Sydney), and why on earth aren't they buying in Adelaide or Brisbane, cause it isn't expensive there? Oh wait.....we'll just wait until people start buying and prices increase to have a whinge, won't we?"

 

That's a very good point. FHB's shouldn't be able to afford median priced houses. Easily.

 

Same here Skater.

Where all these multitudes of investors they talk of in the media?

 

That's right. Its all you guys fault. I have been trying for a long time to buy a property. Can all the Sydney investors please just hold off for a few months!! seriously.

 

According to Residex the median Melbourne metro property value is $662,500. This is quite affordable for a couple employed in reasonable jobs who are able to put together the deposit of about $100k required to get into that property. The real problem is people can't get the deposit together. First home buyers had similar complaints when they had to get $50k together and $20k of that was grant money. Things never change.

It's not the investors fault house prices are so high, it's the banks fault. If banks didn't lend money to investors, then the investors wouldn't buy property and prices wouldn't increase. Given that my role as a mortgage broker is essentially part of the sales process for the banks, I guess I have to take full responsibility for the high prices.