Steven Keen is back - so everything is going to be okay

thats your unique situation, you moved to a cheaper city,

I am referring to buying in Melbourne in 2018, moving to bendigo for example just isnt realisitc

 

I don't think you will ever purchase a property. Cheers

 

Skater is right - we were on average incomes but we most certainly bought below average houses in below average areas and with great sacrifice.

Going out for breakfast was heading to the inlaws on the weekend - first house was under 100sqm - didn't have carpet for 2 years (chipboard floors) - one car - clothes/shoes all bought from Kmart and BigW (including hubby's suits) - furniture was all second hand (including the fridge and washing machine)

It was just "what we did" and no one thought any different

 

Have a look on the other thread going - about "property always going up".

I did a quick search, Sydney not being my stomping ground, and found a couple of thousand properties under the 4x average household income - lot of units but if that's where you gotta start then that's no different from buying what you can afford 30 years ago and moving up.

Buy a worn and tired unit in a ordinary location and do it up - sell - buy a bigger reno-delight unit is a good location and do it up - sell - buy a cruddy house in a ordinary location and do it up - sell - buy a cruddy house in a good location and do it up - sell ... might take you 30 years but that's no different from those that have gone before

 

Nope don't have it - nope don't have it - yes have one on a "bring your own" $30/mth plan that never seems to run out and comes with 8gb of data

It's all choice

 

Oh - and avocado is currently 2 for $4 at the supermarket ... can have your smashed avo and eat it too ... at home

$2 for the avo - 20c for the wholemeal bread - 35c for the egg - 20c for the bacon - 50c for the plunger coffee ... smashed avo breaky for $3.25 and 10 minutes of your time

 

Why are we still on this debate about whether it was easier to buy in 80s and harder to buy now? What do we do with this information? Would the bank have compassion upon hearing this? I thought we are past that?

Stop complaining and use what’s in your hand to create something.

 

That is the one constant in the investment world.

It doesn’t matter whether property (or shares) are rising or crashing, whingers will ALWAY whinge.

Such behaviour does nothing to increase their Net Worth.

 

I know! Feels like it comes up every couple of years. It wasn't easier or harder - just different - and you did what you had to do

 

No, but you could move to Corio. That's cheap & nasty & that's a similar situation.

 

Exactly! It's not what you earn, it's what you do with it that counts. It worked then & it works now. The problem is that many won't do what we did to get what we wanted. Ask yourself how badly do you want it & if it's bad enough, you'll do what you have to do to get there. There's no free lunch.

 

... and most certainly not a smashed avo and netflix

 

True. I was writing my post and thinking. Corio would fit the bill for cheap affordable property without being 3 hrs drive away
You read my mind

 

I'm on 16gb per month for $16

But I paid upfront for the year!

A small price to pay in terms of cash flow for a super discount

 

Haha, we don't have Netflix, or Stan, or whatever. Just free-to-air & that's enough.

 

I'm hearing lots of this time it's different.... I don't have a crystal ball, but if I did it would show a lot of people in a decade or so time with their hands in the air, screaming about how unfair life still is and how everything is still so over priced and how the crash is around the corner and how this crash will be different.

One of the most famous, overused quotes is something along the lines of "the most expensive words in the English language is this time it's different".

In my opinion, there will be policy changes, stimulus, the foot possibly slowly coming off the tight lending pedal etc that will ensure the party continues for those who invested and lived within their means.

 

Every cycle is different.

Find me two cycles that are identical and you can have my phone plan

 

I'm happy with my hand me down phone and my $35 per month pre paid plan but thanks!
Granted there are no identical cycles however the outcome is always the same. Prices decline or flatline then reach higher highs.
Grandparent bought a home in 1958, saw many a cycle, many political changes etc, no cycle had a different outcome, hence the homes worth more in the long term.
I'm confident that in 10/20/30'years from now the properties I purchase now will be worth more, regardless of cycles.
If I'm wrong my bad luck

 

I don't have netflix or quickflix or whatever and my mobile plan is $15 a month. I have used 85% of my data for the month a my data resets tomorrow

 

No cycle is going to be identical either.
There are multiple amounts of factors, each cycle these factors are different.

These various factors aren't going to turn a bust into a boom or vice versa