Which brings me back to the other point. Governments will do all they can to stableize property prices once the event of any bubble burst. So looking to find a way to decrease property prices artificially is NOT GOING TO HAPPEN.
I think most people are aware that you can rent a nicer place in a better area than what you could mortgaging at the same RRP.
Most who would look at this super solution are the sorts of people who want stability over lifestyle.
Again, this would need to be an option for people who arnt over extending and have modest expectations of the home they want before they apply for their Super.
People underestimate the sense of community you get at caravan parks.
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Benfti, the only way your proposal works is if interest rates stay historically low and no-one ever, ever loses their job.
A lot of us lived through the 90âs.
I assume you were here for that.
I know your heart is in the right place, but it seems like youâre refusing to acknowledge what appears to the rest of us to be a historical inevitability.
The housing system is â â â â â â .
Itâs wrong.
What should be an entitlement to all in a first world country is instead a plaything for rich people to make money from.
Yes, changing that is a pipedream, but we can get closer to the ideal.
We have to do that.
And the way to do it is not betting poor peopleâs pension on what is already some twisted â â â â â â â futures market.
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Maybe we should move to Romania. 96.4% home ownership suggests affordable housing but definitely stay away from Switzerland at only 44.5%. https://en.wikipedia.org/wiki/List_of_countries_by_home_ownership_rate
Also, I donât wanna get judgey or anything, but if anyone hasnât been throwing money hand over fist at their mortgage for the pastâŚwhatâŚseven yearsâŚreally, start doing that.
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If itâs not affecting existing house prices, itâs not solving the problem. And if itâs not solving the problem itâs going to end up contributing to it.
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If the bubble bursts, thereâll be â â â â -all the government will be able to do about it. Best they can do is some sort of stimulus package/handout to help out struggling mortgage-holders, but that will just reduce defaults, not put a floor under prices.
And itâs already (afaik) ALP policy to cut back negative gearing in order to improve home affordability for owner-buyers and direct investment income elsewhere, so I suspect your capital letters are probably not quite correct⌠
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http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/rrsp-reer/hbp-rap/menu-eng.html
How Canadas plan works
1.5 million people in Canada use it
All of that I am well aware of and agree entirely Wim, I have reached he point though (not me personally, we are fine) where I am totally awake to the realisation that the only thing that can tip things back towards the little guy is market forces. Expecting public action or more laughably, government intervention doesnât help anyone other than investors or the upperclass.
What are these people going to do.
What happened to the great Australian dream?
canadas hbp did lower housing prices because more building make more supply softening the market
[quote=âbenfti, post:4914, topic:3090, full:trueâ]
I am totally awake to the realisation that the only thing that can tip things back towards the little guy is market forces.[/quote]
Wow. You are Tripping.
(Iâm not actually bagging market forces in this case. The tax encouragements for unproductive investment are a huge part of the problem, which the invisible hand will not overcome alone.)
The issue is employment and wages; we need to have full-time work on a livable wage. If the median income is $82,000; after tax it is about $66,000; even with a $450,000 in South Morang, assuming you borrow $400,000 the repayments are about $28,000 per year, so you spend just under half for a mortgage. You could rent the same place probably for $1,200 per month; about half the mortgage repayment.
Back in 1975 when I got my first house, it cost $24,000 and I was earning about $10,000 a year as a scientist; Mrs Fox the First was earning about $12,000 also as a scientist. Reality is that wages have gone nowhere in over 40 years. Bring back Gough !!!
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If and when I sell my business Soulnet; I will be too old to put anything in super; probably will go to the elephant zone to die.
I think though you also need to look at the other side. There are so many people out there who didnât have access to super in the early days, who were a bit leery of shares, who have their âsuperannuationâ tied up in a couple of properties.
If the market drops significantly they lose their âretirement planâ and end up on the age pension and in rental accommodationâŚand the government loses office.
Its just not so easy to find a solution.
People like myself have tried to work within the existing system to build a future for myself and my sons.
So I have the house I live in, a unit around the corner, as well the property I own with my sons. They are all mortgaged but I am gradually getting equity in them.
However I have been working for myself for the past 4 years and have earned practically nothing so have been living off my super, which I had hoped would last until I could at least get the age pension.
Thatâs not going to happen.
I was also hoping that the equity in the unit, and the house with my sons would be enough to pay my mortgage.
But it wont be.
Fortunately I have a property plan B and am at the moment going through a process of getting development approval to subdivide my home to build two high end townhouses which will hopefully enable me to make some money so I can live.
But its risky, and the DA stage is so expensive, about $25k so far and that wont include the building approval⌠and I have had to pay for that out of my superâŚagain.
I am not complaining, I will get by, but for me the thought of house prices falling is not what I want to hear.
Its not that I donât feel for those who are on low wages, casual employment⌠etc but I have now got to the stage where I have to look after myself first.
And I think we have been badly let down by governments in allowing our employment situation to get to where it has. Too much casual work, too many women in particular in industries where they donât get sufficient pay to get super and even if they do its a very low amount and they have little hope of building a nest egg. (not me but I do know a lot of women in this position.)
Kids expected to have a double degree and a massive HECS debt to get some menial job that doesnât even require that level of education.
And the politicians continually feeding into the housing affordability crisis in an effort to score cheap points and win votes without providing many solutions.
And many solutions they do come up with involve generational bashing.
Nothing is the same as it used to be.
My father built my parents first house in Dromana. When they moved back to Melbourne into the city, they went to Boronia. Can you imagine how far out Boronia seemed in the 1950âs? My mother grew up in the inner suburbs and dad grew up in North Melbourne. Boronia was like the end of the earth. Two bedrooms and mud roads.
I am not suggesting people need to do that today but I think the constant berating of older people on the age pension in expensive houses is just generation bashing that has been going on for as long as I can remember.
I donât know if the answer is super. I think the answer should be more with the banks. I think expecting people to have 15-20% deposit is completely unrealistic, given the type of work available to many people these days.
There needs to be some way for people to borrow with 5% deposit with some type of mortgage insurance to cover the mortgagor not just the mortgaee.
There needs to be an increase in the basic wags. That we have 50% of working families receiving benefits from the government tells us all that the wages are too low. Its ridiculous.
I think the unions have let us down over the years, and I have been an ardent unionist most of my life. But they have done too many deals to benefit the union itself rather than its members, it has allowed the landscape to become so un-favourable to employees with casualisation of the workforce.
They have been hand in glove with the wretched labour hire companies which are a complete blot on the employment landscape.
I could go on but I have to go out for dinner to my nieces place. Which BTW she rents, but she also has a unit that was their first home that they now have rented out. They needed a bigger place with a yard for their little one and decided to rent a house and rent their unit out. I do think many other younger people need to be just as creative in their thinking to find a solution to suit them.
If there is one person who I have tried to emulate in my life and tell other women to do as well it is Zsa Zsa Gabor.
âI am just a house keeper Darlingâ she said âevery time I get divorced I keep the houseâ.
Not quite what has happened to me but I have tried to keep as many houses as I can for as long as I can and encourage every one else to do the same. They nearly always go up in value. Not always, but thatâs the risk.
Thatâs my rant over.
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It has to be linked to building so supply can meet demand. Then it should not inflate the market
Oct '52 anyhow.
I was in the last call-up (didnât have my birthday come up) before Gough discovered it was time!
Toowoomba, where I am ATM is interesting. The medium house price is 342k and the average rent is 390.
The local building society here have been advertising this
Fixed variable.
In short, you want to own a house, move inland
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I have to assume you didnât watch the ABC news report I linked Ben?
Itâs a super stupid idea. Even Boneless himself said so less than 12 months ago, ⌠which, with it coming from the FkYouJacks now, makes this even stupider on their behalf.
Totally. Lowering house prices knackers people in your position.
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