Sydney housing crisis tv show on tonight

I do agree with this to a point, there are many people though that pay more in rent than a half mill mortgage would cost just so they can live in a particular postcode or X number of K's from the city.

 

Not too sure as the evidence presented to the senate suggests otherwise. We will have to wait for the report (end jul 2016) or a Royal Commission if we have Prime Minister Shorten .

Irrespective of the report, the commission structure is such that it would encourage fudging and there is lot of anecdotal evidence as well (Moranbah etc).

Bank fraud rife, institutions fudge loan applications: economists

 

yep. the house prices to salary ratio in sydney is at an all time high or near all time highs. Thats an issue re:affordqbility ( assuming you have no other sources of income except an AUD wage- which is the case for most of us).
Right also that sydney wage growth is no where near RE price growth - contributing to the above point regarding affordability. Yes there are jobs in sydney, but not so many that employers have to offer a huge wage increase to get the candidates they want.
This data is all publically available ( someone posted on here a while back), as is the RE price to salary ratios in other cities- you will see that sydney has the worst ratio, certainly amongst the big cities.

 

And they want it NOW. That is my issue with this FHB.

Doesn't want to walk down the same path that we did as it takes 30 years, requires knowledge/experience and is hard work.

It is not called Delayed Gratification for nothing.

 

I get that you made the sacrifice of moving, but it kinda sucks that you have to when there is such easy low hanging fruit to tweak housing affordability for the government.
Specifically I think the government needs to tweak asset assessment for pensioners & superannuation.

Its nuts that 80% of Australian households over the age of 65 around the $1m asset mark are still getting the aged pension (which we spend far, far more on than unemployment payments). There is very little incentive for them to move out of inner family homes and to not just bury their assets in their PPOR while collecting the pension for as long as possible, costing the government a tonne and maximising what they can pass onto the kids.

We also need to have a good hard look at super contributions, 15% on contributions by people earning more than $180k is just peanuts & isn't going to be feasible for younger generations, so the drawbridge needs to be closed sooner rather than later. Right now its just a huge loophole for the very wealthy.

Have a read of this paper:
Distributional analysis of superannuation taxation concessions | The Treasury

• $15,000,000,000+ per year in concessions on contributions and a further $15,000,000,000+ per year in concessions on earnings.
• Top 5% of contributors receive 20%+ of the concessions with the benefit overwhelmingly going to high income earners (presumably because low income earners don't have tens of thousands extra every year to plow into super)

Lets say you only claw back $10,000,000,000 of that. its still $100,000,000,000 over the next decade to fund high speed public transport & affordable housing projects. That's about $4,500 per living person in the country... You can make a big impact with that sort of money.


I would settle for just seeing PPOR's included with a reasonable asset allowance (say $450k? if your place is worth more than that, IMO you shouldn't be on the pension) so that people don't have a huge financial incentive to ramp up debt pre-retirement, withdraw their super as a lump sum at 60, dump their super to pay off the expensive (pension exempt) asset & jump on the pension at 65.

Something like 50%+ of retirees are pulling all or part of their pensions as lump sums, so as is huge amounts of the money isn't going to funding retirements anyway.

 

Yep.

 

When my wife and I bought our first property/home 30+ years ago, neither of us wore make-up, expensive clothes, fancy cars, etc. We couldn't afford it.

I have three nieces, all in their early 20's. One is an engineer, one is a teacher and the other is a nurse. All three are blonde (not saying they are dumb as they all have done Uni studies) and very attractive. All spend a fortune on hairdressing, makeup, clothes, going out (clubbing, sporting events, etc), drinking and so on. Ask them how they are going with their first property purchase - they tell you they can't afford it.

They believe they are struggling. Yeah right.

And I have a nephew in the Navy. He wants to buy his first property as soon as he can. He eats on base, doesn't go out, doesn't drink, etc. He is saving every dollar for his deposit. He can't believe how good his life is.

 

I didn't watch. But if that is her situation then she has nothing to complain about. My mate lives in Sunshine with a wife and baby. Can train to city.

 

Now that RBA has dropped IR for another 0.25%, property price will get a boost again .....

 

Please don't tell the FHB that she could have bought 6 x 2 bed units in East St Kilda in the early 1980's with that $150k deposit, all owned outright. She will be very, very deflated.

I wish. Unfortunately, I have never bought a property in Sydney - couldn't never afford it.

This poor old investor took 30+ years to get where he is!!!!

 

That is a individual mindset problem not because they are attractive and want to be attractive.
A girl (similar age as your niece) I know spends a fair amount doing the things above. She has a 2 bedder in Randwick, bought last year. She enjoys life more than you do dissecting people based on how they dress up and how they enjoy spending their life and cribbing about it. She might be struggling with the mortgage, who knows, but she sure is not spending pondering over it. She works as hard as she parties and now making a motza. She does not want to be an investor!

Again mindset.

 

yes in Adelaide, but have plenty of mates that have made the jump to syd so have a fair idea of what its like, maybe not as much as someone living there would though.

But are going to tell me there is nowhere for someone with 150K in the back pocket and a decent paying job to buy in to?

 

It would have to be good because my life is bloody fantastic.

That is a individual mindset problem.

 

Really depends what you are looking for. If you are looking for a really bog standard detached 3 bedder, its very difficult to get anything under $500k, even $600k, unless you really want to mix with the commission housing areas. Therefore that's a $350k to $450k mortgage (without any spare cash) for a single woman in the ABC show, not sure how easy it would be to get finance?

These days the only way to get decent finance in Sydney is to go in as a childless couple with 2 full time incomes. IMO its better to get the biggest and best you can get as a FHB while childless because it becomes a lot more difficult married and kids. Therefore I would argue buying a 2 bed unit just to get on the ladder to upgrade later is bad idea.

 

A person I work with is on a single income it would be above average I am guessing about 100-110k including commission and car allowance. However his wife doesn't work and has worked in the last 6 or more years, so you could class as one dependent.

He has bought (still have mortgages) his PPOR and an IP which is being rented. He would most likely have leveraged both to 80% at the time of purchasing the IP.

To say it is unachievable to buy a property for an home owner on one income in modern Australia is stupid as this guy has bought 2. The IP he bought is negative gear yes however it isn't the reason he bought it.

 

Would like to do an in-depth report on all these FHO's and see what their actual expectations are, what sacrifices they're making and what they're doing to save for a deposit. How many budget, control their spending and actually try?

I'm a wannabe FHO and I can't afford to buy in Sydney but instead of complaining about it and accepting defeat I started to look into how I can afford it. So started educating myself, saving and sacrificing. Putting in the extra effort at work and upskilling myself for a promotion.

Decided instead of buying a modest PPOR first, I'll buy IP's and magnify the asset base to buy a significantly better PPOR. So in 1.5 years I'll have the deposit + closing a for my first IP saved and that's not counting on my partner helping or the promotion I'm told to expect where there'll be a 50% wage increase (solely from working harder and smarter than the rest).

Mindset and attitude all the way!

 

Don't tell me he bought it to provide accommodation for others and to increase his Net Worth. He would be the only one in Australia who has .

 

It's crazy sometimes. I know someone looking for a new house. Don't these people know it's the top of the market?

 

The programme is available on the ABC website if you missed it the other day.

I don't think that the girl was being entitled. She was looking at what was a modest house in an outer suburb.

 

But why hasn't ASIC touched it? They have the mandate but there's nothing systemic there. Look at the arrears rates. Very very very low. If there was this widespread fraud the arrears rates would be far higher.