The bubble will burst soon in Australia, and half of the population will be broke. Our council here in whoop, whoop, want to double the rates for our $150k homes to $5k plus year in the next 3 years, we wont be here after that, will be in a tent on the river.

-- Edited by Bicyclecamper on Thursday 16th of November 2023 01:40:18 PM

The price of my home is of no concern to me I'm not selling. Unless someone gives me sufficient to buy/build somewhere else that is the same or better. A small place backing onto the beach would be nice perhaps.

But what worries me is rate hikes. Rates in ACT are tied to Unimproved values (land) So if inflation causes values to increase then rates increase. The valuations are done by a government agency, and you really have to jump through hoops to enter an objection to the valuation.

There is also the option of increasing the rate of the increase calculation. (its averaged over 3 yrs) I don't think I would last very long with double rates having to be paid. Into the bargain, with the averaging it will take 3yrs for the full effect of any downward trend to take the full effect. So, even with a fully owned house they could very easily evict me. That is how they will get rid of people who own their residences.

Looking through Wikicamps the changes in fees, the availability of free camps and the increase in Hipcamps (with their fees draining the property owner) is only too evident

Thats what is intended. Widen the gap between the "haves and not haves" Makes for easy land grabs.

Its the only way I can see it going.

dogbox wrote:

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the story sounds like the one we heard when interest rates were in the mid-high teens as far as affordability and rising prices went.

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 I remember 17%, but have heard stories of 20%.

If someone were to have a $500,000 mortgage now, at 20% they'd be paying OVER $1900/week, INTEREST ONLY! Cheers

Yes, I remember 17%, some farmers were copping 22 and 23%.
Of course houses were significantly cheaper then but from my calculations the younger ones are worse off now than we were in relative terms.
At least many could afford a starter house hovel.
It wasn't easy then, but I think the market is far more complicated now and extremely volatile.
Also in the 70's to 90's we didn't have the massive numbers of foreign raiders in our market either.
Said to a mate last night, the Govt and ATO in this computer day and age should withhold property sale funds and impose a tax on these overseas hit and run raiders stuffing up our grandchildren's future and calculate capital gains tax on them at the same rate and laws as we have to cop?
it would not be rocket science and may discourage them from wrecking our house prices and claw back lost capital gains tax revenue when they sell and do a runner.
Surely it would not be difficult to identify those properties in question.

We were renting a 1 bedroom Unit in Mosman Sydney. Wanted to buy a 2 bedroom Unit in same suburb. It was too expensive.

 

We bought on the northern side of the Spit Bridge which was cheaper, & we didn't get a balcony or garage which we wanted... price again!

 

Fortunately the Unit was never touched since the day it was built in the 1950s. We did put in a new kitchen later when we had some cash.

 

The bathroom looked ok even though it was original, so we kept that.

Dick0 wrote:

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As a rental property investor of many years I would love to comment, however, doing so would see this conversation thread closed.

Remember, no politics. Rising real estate is about politics!

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it would appear that political comment (or joke) is not the issue, the issue arises when someone takes offence to comment/joke made, that they do not agree with an lodges a protest.

Dick0 wrote:

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As a rental property investor of many years I would love to comment, however, doing so would see this conversation thread closed.

Remember, no politics. Rising real estate is about politics!

---

 I let a Unit, I own it outright, actually my tenants have better air conditioning 5.0 & 2.5kW Daikin, than me! Better carpet, commercial grade solution died nylon, R3.5 insulation under floor (access from basement), I have painted it numerous times with Dulux, get it steam cleaned every time tenants move. Stainless HWS, new Bosch dishwasher (I haven't bothered fixing our own broken one for years), filtered water. I even scrub the tiles & clean every louvre blade before each new tenants. By the time I pay the annual costs & repair running short & long term costs, it takes a good chunk out of the rent. So the current value in this area, after annual & special levy long term expenses, about 2.8% return.

Blues Man wrote:

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Whenarewethere wrote:

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Dick0 wrote:

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As a rental property investor of many years I would love to comment, however, doing so would see this conversation thread closed.

Remember, no politics. Rising real estate is about politics!

---

 I let a Unit, I own it outright, actually my tenants have better air conditioning 5.0 & 2.5kW Daikin, than me! Better carpet, commercial grade solution died nylon, R3.5 insulation under floor (access from basement), I have painted it numerous times with Dulux, get it steam cleaned every time tenants move. Stainless HWS, new Bosch dishwasher (I haven't bothered fixing our own broken one for years), filtered water. I even scrub the tiles & clean every louvre blade before each new tenants. By the time I pay the annual costs & repair running short & long term costs, it takes a good chunk out of the rent. So the current value in this area, after annual & special levy long term expenses, about 2.8% return.

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You a a good landlord , but not all landlords are like that.

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good landlords are as hard to find as good tenants.

"Ironically the one who was an issue was also trying to be elected for politics. There would be no chance so you are all safe from that one!


What does that tell you!!!!
Think that would ring true for most of us with a distaste for the many that are ego driven only.
I can think of one particular fly buy specialist in that category

This is a hot topic on social media commenced usually by young adults up to 40yo. Their argument is based on how expensive it is to enter the market and they do have some justification for that argument.

 

However, I point out to them that they make their own luck in life. 1/ Never give up 2/ Consider a block of land or cheap house a couple of hours from the city 3/ Consider commuting (we did from Kilmore and Yea (90 minutes one way!) for example 4/ Join the military for 6 years and sign on for another 3 and you get a home loan. 5/ Get a second job.

In 1973 I joined the RAAF at 17yo, by the time I was 20yo I had a home loan (3 years them days).  By the time I had built a house in 1986 the measily $25,000 for the defence loan meant I needed $45,000 second mortgage and yep- 21%... thankyou Mr Keating. That meant after a while if we wanted to start a family we had to sell the house which we did.

 

So, why isnt young adults taking some of my advice?  Moving regional means "what about my friends". Joining the military means "I dont like killing people" and  "can I take my mobile phone"?. Getting a second job means "You shouldnt have to give up your leisure time in the evenings just to get a roof over your head.

 

You make your own luck.

Tony

dogbox wrote:

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Dick0 wrote:

---

 

As a rental property investor of many years I would love to comment, however, doing so would see this conversation thread closed.

Remember, no politics. Rising real estate is about politics!

---

 

it would appear that political comment (or joke) is not the issue, the issue arises when someone takes offence to comment/joke made, that they do not agree with an lodges a protest.

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 It is an issue on this Forum.

What I can say is...

"Back in the day", residential subdivisions popped up all over the place and land prices were cheap in comparison to annual salaries and wages.

Now it can take up to 10 years to get residential subdivision approvals due to Green and Red tape obstacles that increase yearly. Similar with infrastructure approvals.

Until recently building costs were within reach of first home buyers but land costs just kept ballooning beyond reason. Due to political policies.

Enough said.

The biggest elephant in the room re lack of housing stock is the high yearly immigration intake of over 600,000 per year to boost the economy and avoid having to declare a recession, technically. So the gummint hoist interest rates because they only have a hammer in the tool box, so every problem looks like a nail. We also have 775,000 foreign students in country this year, they all have to live somewhere and for decades the gummint has not been addressing infrastructure needs.