| Housing Affordability
Posted: 4/2/2008 9:40:59 PM | Has anyone thought of the possibities of 'multiple occupancy'?
One model is for many people to 'pool' their money..., so as to purchase a rural property (assuming that is what your 'ideal' living place is). This is more achievable now with increacingly more 'accessable' land use statutes and by-laws.
The time may indeed be here..., for a new version of the 'hippy' communes. Something like a 'feral yuppy collective' ?
 
Seriously though collectives of almost any kind may be a more viable option ! | |
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| Housing Affordability
Posted: 4/2/2008 9:45:32 PM | Something many dont consider doing is to switch from a P & I loan to Interest only..possibly taking it over a slightly longer perdiod. For some ( most ) this will lower the monthly payments.. even if it doesnt reduce your mortgage ( owed amount ) for that time yo still gain from any increase in equity that the property realises.
I had to do this years ago.. let me keep that house...
Later as circumstances better you can look to change back. | |
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Naamah
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Joined: 11/22/2007
Msg: 53 | |
| Housing Affordability
Posted: 4/2/2008 10:51:16 PM |
The problem for many is they wont lower their sights to get into the market. So many want ready to go houses....no blood sweat or tears for them. Many will have to prioritise their life to get security..and a house IS security.
This is true Shrexy. Many people who say they can't afford to buy, can. But they don't want the sort of house they can afford to buy, so they keep renting the type of home they wish they could afford to buy. I used to be one of 'em. Thankfully I did at least focus my x-gen-want-it-now eyes on the idea of buying a cheap house and renting it out to someone else...while I kept renting the house I wished I could afford to buy. That was the first property I ever bought...a rental. Doing that was a compromise between what I wanted and what I could afford to do. It was far far better than not buying at all.
And although over the years we also bought and sold other properties, that first rental property was later to save our ar$es. When my husband got sick, we sold it, and the money we made enabled us to survive even when going from two incomes to nil incomes during the last months of his illness and the 5 months after he died when I couldn't face working. It's times like those that you realise how much you really do need financial security. We'd never have been able to save enough money from our incomes to make the sort of money we did from investing, and god knows what we'd have done when he got sick if we hadn't been able to cash in that equity.
maybe an older car..maybe a normal telly..no Theatre size ones.. Maybe grow a few veggies..save a couple of bucks.. But no..its all the gov's fault.. life sucks..etc.
Again...so true. It was said earlier that we don't need to own a home to be happy and fulfilled...but I find it amazing how many luxuries people think are necessities to enjoying their life. It also amazes me how many people will happily go into debt to buy things that only depreciate, like cars and computers, and yet can't see the value in borrowing to buy something that will increase in value and make them money. | |
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| Housing Affordability
Posted: 4/2/2008 11:14:22 PM |
Again...so true. It was said earlier that we don't need to own a home to be happy and fulfilled...but I find it amazing how many luxuries people think are necessities to enjoying their life. It also amazes me how many people will happily go into debt to buy things that only depreciate, like cars and computers, and yet can't see the value in borrowing to buy something that will increase in value and make them money.
This brought a little chuckle....this is so much at the core of it. So many people out their chasing their tails..or rather chasing someone elses.. Must keep up with the Jones' etc. Must have that xbox.. must have...must have..must have...etc.
About 90% of "must haves" are really "would likes" ..but its the credit cost of having the 'musts" that invariably brings folks unstuck.
Oh..couldnt live ...THERE !!! ..... Now I grant there is no real requirement for anyone to live where they dont particularly want but a lot of houses are bought through starry and rose coloured outlooks.. Christ Real Estate would be dead as a profession if it werent!!.
Just amazes me how many dont really understand what an Assett is..or conversely what Liabilities are.
Instant consumersim has bred a generation whereby lifestyles are bought on tic as opposed to generated by effort or ability. People go into hock for a holiday.. that always gets me that one. I dont mean just using credit I mean tackig it on to mortgages etc. Which shows how LITTLE they understand the cost of money.
I dont know that housing is really any less or more affordable now than any given time.. I am sure though that as a populace we are less able to intelligently appraise it or cope with it requirements. Money is too easily got !!
CAVEAT EMPTOR | |
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| Housing Affordability
Posted: 4/3/2008 12:45:56 AM | The first house we bought was a small house that we were actually renting at the time.
We found it hard to borrow at the time as we always paid cash for things we owned. No credit history would you believe. And the banks don't like cash in the bank and no credit histroy.
So we eventually got the house, moved out, rented it out and then when the market made a jump, we realised a 50% increase on the intial purchase price in 18 months...that was nice.
We went back to paying for everything we owned and having money in the bank while we rented for a while. Being able to have enough money in the bank that nothing is an issue is nice...Even when our car was written off we went and wrote a cheque for a new one...then saved again till we had oney in the bank.
Went to buy a second house, and again we had poor credit as we paid cahs for everything, but eventually got it OK....You can have $40,000 in the bank, brand new stuff and they are still concerned you have no credit rating...amazing
Today, I still like to pay cash...I own what I have personally and some of it isn't as good as Mr and Mrs Jones, but I don't care what they have so it's all good. And I'm still putting cash in the bank for a rainey day.... | |
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| Housing Affordability
Posted: 4/3/2008 1:24:06 AM | Banks would rather loan money to someone up to their eyeballs in debt than someone with n0 mortgage..and no credit card... but has equity..
I know !! | |
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| Housing Affordability
Posted: 4/3/2008 3:04:50 AM |
a mortgage of $250.00 per week just does not have the sums adding up to me being able to live any kind of life
I disagree. I'd rather be paying this kind of money, paying off my asset, than to someone else paying off theirs. And chances are, in the current housing/rental climate, you'll end up paying more, not only in the short term but also in the long run. Realistically, there's no peace of mind when you're paying rent, especially at the moment, since landlords can pretty much dictate the price of rent, terms/conditions etc. Area I live in, rent is typically $200-400+ for a house or even a unit.
If your place is big enough, I'd be looking at renting out any spare rooms you might have (if you can stand having others living there). Or move out, rent a cheaper place, if you can find it, and rent out the place your paying off. Least that way, there's possible tax benefits to be had.
Getting into debt is only ever smart if you use it to your advantage; such as paying off a money making/generating asset (ie house/shares, typically). And selling out is only ever smart, again if it's to your advantage.
It's hard to imagine though really, as much land as this country has, that prices are the way they are. Society is just greedy. | |
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| Housing Affordability
Posted: 4/3/2008 8:26:07 PM | to Msg 44 & 45:
There is no argument about owning your own home - we all agree on that i am sure.
The point i was making referred to a sustainable size of land every Australian should be able to afford and sustain.
Australia has a population density of 2.6 people per square kilometer.
Which means that - to be silly - every Australian man, woman and child could have their own 40 acre block of land. Which is why Europeans are in awe of us - well, we couldnt afford it, even if the land was for free we couldnt afford it because of the cost of the infrastucure.
To 'sustain' a block of occupied land it needs directly connected electricity, water, sewerage, phone, road access, garbage removal. Lets not worry about growing food, hospitals, schools, police etc. etc and all the other infrastructure for the moment.
If every Brisbane-ite would own and live on only one acre, Brisbane would be over 600 km in diameter !
We couldnt travel to work, school, shopping, no public transport - unless we all owned helicopters.
So the suburban- and city dwellers need and rely on people on farms to grow food crops, cattle, sheep and the occasional pet duck, but people on larger properties need the population density of metropolitan areas to finance built and maintain their phones, roads, computers, houses, schools, hospitals, dairytrucks, slaughterhouses, cars and helicopters.
So there obviously must be a balance.
I myself own land in suburbia outright, while i am still renting myself. But it suits my lifestyle and just to offer another option to 'accumulating wealth':
I am one of those 'idiots' that rents even though i could have borrowed 80k fifteen years ago to build a 4br house (and be paying the interest - not the house - off still today !!!) or just sit tight for those years as i did, and after all costs (rent, rates etc) still have just under 10k net growth per year over the last 17 years.
So today debt free, i could get capital to put 4 townhouses on same land, sell one as soon as its finished and be close to debt free again and having the rental return of 3 townhouses.
People that rent arent always the idiots.
Our biggest asset is not our car, boat, house or even land - its our ability to think (and make money).
When it comes to real estate strategies, i believe in the 'roman catholic method':
Go to a new place, claim the hill, put your house on it and never sell. Simple. | |
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| Housing Affordability
Posted: 4/4/2008 1:58:12 AM | There was a report on the news today that rentals are expected to go up by 50% over the next 3 years!
How terrifying! I hope I have a healthy deposit by then. As a single person if worse comes to worse, I can down size or, (choke) share. I worry about what will happen to families who rent though?
We already have too many people homeless. Are we going to end up like the US?
I don't believe for a second, that people's incomes will double to cope with this increase. | |
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Naamah
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Joined: 11/22/2007
Msg: 60 | |
| Housing Affordability
Posted: 4/5/2008 1:25:20 AM |
People that rent arent always the idiots.
I don't think of those who rent as idiots. In fact where all this started was that criticism was actually being directed the other way, with statements made clearly implying that those who buy were mindless drones...and so subsequent comments were responses to that. Besides it's the investing side of your story that relates to the accumulation of wealth, rather than the fact that you are renting. And as I said earlier...I did the same at one stage...and the decision to rent and own has been raised previously. It's a good balance at times. | |
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| Housing Affordability
Posted: 4/5/2008 1:59:57 AM | Yep i'm a renter. Or rather i was until quite recently. Was paying $340 for a 3bed room highset house in an average area, i'm single mum who is studying fulltime, and wif rent and elec and gas and kindy fees and petrol and of course food....well the budget used to get very stretched at least once a month.
Thankfully, for me and my daughter, my mum has a 2 bedroom flat under her house which recently became vacant. And yep soon as it was painted and new carpets we was there.
Now i only pay $150 a week. Much much better for me....i chose to study instead of going back to work for many reasons (better career options one of them)
And as for me buying my own home - well not in the forseeable future.
Check the net and my old house is now up for rent at $380 a week.
but hey, can always find something to smile about
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Naamah
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Joined: 11/22/2007
Msg: 62 | |
| Housing Affordability
Posted: 4/5/2008 2:14:31 AM | Also meant to comment on this..
To 'sustain' a block of occupied land it needs directly connected electricity, water, sewerage, phone, road access, garbage removal.
...perhaps a more individualistic approach might work just as well as the infrastructure idea, now that we are collectively trying to tread a slightly different path. My place is not connected to town water or sewerage, nor do I avail myself of garbage collection...there are other environmentally friendly alternatives. | |
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| Housing Affordability
Posted: 4/5/2008 2:15:32 AM | SergeantOz - your message 33
One of the best stories Ive heard all week...lovely story...it must have been terrific when they invited you over to lunch and gave you that cheque for the balance...fabulous. They say that true happiness comes from serving others, in this case you did well my friend.....nice... | |
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| Housing Affordability
Posted: 4/5/2008 2:32:53 AM |
here are other environmentally friendly alternatives
DIY recycled drinking water? DIY recycled waste>fertilizer>food? 
Gives a whole new meaning to the idea of waste not want not
But yeah, some people do do it. Even to the point of producing their own electricity. So it can be done. It's just a matter of convenience for most people I would imagine. | |
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Naamah
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Joined: 11/22/2007
Msg: 65 | |
| Housing Affordability
Posted: 4/6/2008 4:40:50 AM |
recycled waste > fertilizer > food?
Nah...I don't use mine for fertiliser or food...I just post it on the forum. | |
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| Housing Affordability
Posted: 4/7/2008 5:29:13 PM | In the space for 24 hours I have seen 2 FOR SALE signs go up for the apartments behind where I am living. My housemate has also seen the Sheriffs come in and evict people in the street from their rentals because of non-payment / foreclosure by the bank.
Last weekend, I went looking at a few foreclosure auctions a few streets away and the HM and I agreed if a bargain came our way we might make and offer and at this one auction our best and fairest offer was some $180k under the bank's reserve and the highest bidder was telling us they wanted $130k more than his offer for his 1st home. As he said - the house will sit there unsold for 6 months whilst it could be cleared of costs and sold at a slight loss to create a cash flow.
Another bidder was saying how before Easter, he went to 1 auction on a foreclosure and managed to borrow more cash on credit cards to cover the shortage and was prepared to sell his car to cover costs but was $12.5k from the banks reserve. He was disappointed but said the banks will lose the $12.5k in 2 months through stupidity and had agreed for his parents to sell their house, live with him and his family so they could be taken care of as they got older. I think that the days of 2 people buying a house or renting out 1/2 a house is going to be the way of the future, sadly. | |
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