the housing situation in australia

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this is a very good read on the housing situation, i call it a crisis, in australia. http://www.abc.net.au/news/stories/2009/07/30/2641253.htm I am an engineer, on a single income with family, yet cannot afford a three bedroom house. I have resigned myself to renting forever. I'd rather have my kids raised properly with my wife at home than have her work and let my kids have a parent-less upbringing (like i had)
 
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From people I know. The first two are the most risky, hard to manage. From then on, the properties pay "for themselves". One had an offer he couldn't refuse, then had to panic buy another 4. And You, I, and the tenants are paying for their "wealth"
 
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The majority of mortgagee sales here are from people who did that - rents aren't covering the repayments. I stepped out sideways - buying a run down house in the bad part of a bad town.We didn't want to buy a house for more than it was worth.My daughter and partner came here at the same time,buying 2 adjoining sections,and putting on a cheap 3 bdrm housing....and have a mortgage they can do on one income,pretty rare for a young couple these days. These days it will be pretty hard to get into your first house here.We got our first house with no money on a Government loan scheme....with many fibs and not told details.We have been on a single income for nearly 30 years,the kids have always had their mother at home.Bones of our arse is a permanent situation for us....it's tough,but we have fun anyway.
 
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 Originally Posted By: crinkles
this is a very good read on the housing situation, i call it a crisis, in australia. http://www.abc.net.au/news/stories/2009/07/30/2641253.htm I have resigned myself to renting forever. I'd rather have my kids raised properly with my wife at home than have her work and let my kids have a parent-less upbringing (like i had)
Don't be so hard on yourself. I believe there are plenty of reasons to rent. Little to no maintenance costs, you can move anytime without a problem, you can move up or down in house size with ease. If the economy gets bad, you don't have to worry about selling etc. Peter Schiff on renting: http://peterschiffblog.blogspot.com/2009/03/buy-house-or-rent-one.html
 
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So you don't have land tax in australia? Ours varies by municipality but residential is 1.55% of assessed value for me. It also doesn't matter if its vacant land, same rate applies. So you can't really sit on residential land for years and expect to come out way ahead.
 
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 Originally Posted By: crinkles
this is a very good read on the housing situation, i call it a crisis, in australia. http://www.abc.net.au/news/stories/2009/07/30/2641253.htm I am an engineer, on a single income with family, yet cannot afford a three bedroom house. I have resigned myself to renting forever. I'd rather have my kids raised properly with my wife at home than have her work and let my kids have a parent-less upbringing (like i had)
Out here you cannot have 2 working engineer afford a 3 bedroom houses that aren't in the ghetto.
 
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I have been a homeowner since 2001, after this recent move I have decided to forgo ownership and rent. Too much risk and renting is much less expensive than a mortage. The only advantage of owning the place is you get to do all the work...
 
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 Originally Posted By: Bryanccfshr
I have been a homeowner since 2001, after this recent move I have decided to forgo ownership and rent. Too much risk and renting is much less expensive than a mortage. The only advantage of owning the place is you get to do all the work...
Most of the people I know own a home due to the tax deduction (if they are high income and don't want to pay federal tax, but they still have to pay property tax), and are somewhat speculating the market. Purely financially speaking, you get some tax deduction on your mortgage which after property tax and home owner insurance, would put you a little ahead of the game compare to if you just rent and stash the savings in a CD or low risk / low return investment. If home value does not go up with or above inflation, then you probably won't be able to come out ahead. That's how most people who buy a rental property think: losing a bit or break even in the short term, and cash out the profit when the market is good, then buy it back when the market is depressed.
 
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 Originally Posted By: IndyIan
So you don't have land tax in australia? Ours varies by municipality but residential is 1.55% of assessed value for me.
We don't technically have land tax, but the local council charges "rates". Just got my bill yesterday. 0.5211c/$ of assessed value...$446.06 Residential "Base rate".......$235.00 Sewage "access"...............$339.00 Sewage "usage"................$143.00 Stormwater....................$ 25.00 Water "access"................$236.00 Garbage.......................$287.00 Water useage is user pays, and a couple hundred
 
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So your assesed value is ~$86,000? and you pay about $1800/year? That seems to be about the same taxes+fees as here but it is about $150,000 US for a 3 bedroom house in my area. We have no qualms about adding sprawl to most towns here though, so price of buying a home doesn't get too far away from the price of building one.
 
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Only reason that the assessed value is $86,000 is that it's a 32'x32' fibro cement place....good location 'though, and we paid it off in 3 years.
 
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 Originally Posted By: PandaBear
Out here you cannot have 2 working engineer afford a 3 bedroom houses that aren't in the ghetto.
Are you saying that East-Palo Alto is the ghetto? You make it sound like being able to unload a 30 round clip into your neighbors car is not worth the extra cost of the house.
 
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 Originally Posted By: Loobed
 Originally Posted By: PandaBear
Out here you cannot have 2 working engineer afford a 3 bedroom houses that aren't in the ghetto.
Are you saying that East-Palo Alto is the ghetto? You make it sound like being able to unload a 30 round clip into your neighbors car is not worth the extra cost of the house.
The price you pay for a target rich environment...
 
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