View Poll Results: What best describes your housing affordability position ?

Voters
70. You may not vote on this poll
  • Rent - Comfortably paying rent

    9 12.86%
  • Rent - Feeling the pinch

    9 12.86%
  • Buying - Own Outright

    18 25.71%
  • Buying - Comfortably paying a mortgage

    20 28.57%
  • Buying - Feeling the pinch and struggling to pay mortgage

    9 12.86%
  • Boarding - Just paying one amount per week

    5 7.14%
Page 1 of 2 12 LastLast
Results 1 to 20 of 39

Thread: Housing affordability poll

  1. #1
    Administrator
    admin's Avatar
    Join Date
    Jan 2008
    Location
    Victoria
    Age
    56
    Posts
    31,150
    Thanks
    2,238
    Thanked 13,731 Times in 5,823 Posts
    Rep Power
    4552
    Reputation
    165805

    Default Housing affordability poll

    What best describes your situation ?



Look Here ->
  • #2
    Senior Member global88's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    60
    Posts
    1,157
    Thanks
    4
    Thanked 7 Times in 3 Posts
    Rep Power
    237
    Reputation
    53

    Default

    Lucky for me i purchased what i could afford, paid it off, all on one shitty wage, while bringing up a family.

    Boy was it hard.

    A tip for everyone.....live within your means.

    I use to go to work with holes in my shoes and drive an old bomb.

  • #3
    Junior Member
    Join Date
    Jan 2008
    Posts
    133
    Thanks
    1
    Thanked 5 Times in 4 Posts
    Rep Power
    202
    Reputation
    35

    Default

    Quote Originally Posted by global88 View Post
    Lucky for me i purchased what i could afford, paid it off, all on one shitty wage, while bringing up a family.

    Boy was it hard.

    A tip for everyone.....live within your means.

    I use to go to work with holes in my shoes and drive an old bomb.
    Sounds like my uncle. Are you sure we're not related?

  • #4
    Senior Member global88's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    60
    Posts
    1,157
    Thanks
    4
    Thanked 7 Times in 3 Posts
    Rep Power
    237
    Reputation
    53

    Default

    Quote Originally Posted by ruben View Post
    Sounds like my uncle. Are you sure we're not related?
    My brother did get around

    Then again you could be my son
    Just kidding

  • #5
    Super Moderator shagga66's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    53
    Posts
    1,085
    Thanks
    237
    Thanked 127 Times in 80 Posts
    Rep Power
    254
    Reputation
    1014

    Default

    I am paying rent while saving about $2500 a month, so yeah doing well.
    I will be buying very soon, just waiting for the second release of a new estate that I want to live in and its miles from the city so prices are very good.
    I am looking at building a 30 to 32sq home on a 1000sq block for around $280,000....not bad at all as for me the further away from the city, the better...

  • #6
    Senior Member z80's Avatar
    Join Date
    Jan 2008
    Posts
    5,840
    Thanks
    112
    Thanked 77 Times in 48 Posts
    Rep Power
    0
    Reputation
    708

    Default

    I picked owned outright, I have the parchment title document in the desk drawer, I owe no-one nothing.

    My last mortgage was paid off in 1992 and I paid 17.5% interest rates.

    Since then i pay cash for evrything.

    My advice?

    Buy a tiny house to top paying rent and save for a larger home.

    Then pay CASH.

  • #7
    Super Moderator shagga66's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    53
    Posts
    1,085
    Thanks
    237
    Thanked 127 Times in 80 Posts
    Rep Power
    254
    Reputation
    1014

    Default

    Quote Originally Posted by z80 View Post
    I picked owned outright, I have the parchment title document in the desk drawer, I owe no-one nothing.

    My last mortgage was paid off in 1992 and I paid 17.5% interest rates.

    Since then i pay cash for evrything.

    My advice?

    Buy a tiny house to top paying rent and save for a larger home.

    Then pay CASH.
    z80, it is well known that in 1992 the average house price was 4 times the average yearly wage.
    Now the average house price is 7 times the average yearly wage.
    Please don't patronize people by giving the impression you did it hard with 17.5% interest rates and then saying to save and pay cash for a house.

    Edit: just out of curiosity how much was your house you paid off in 1992, price you paid for it, ball park will do..?
    Last edited by shagga66; 03-03-08 at 11:46 PM. Reason: Spelling

  • #8
    Senior Member Biggun's Avatar
    Join Date
    Jan 2008
    Location
    Blue Mountains
    Posts
    573
    Thanks
    7
    Thanked 2 Times in 2 Posts
    Rep Power
    217
    Reputation
    29

    Default

    I am very suprised as to how many people own outright. I have only ever met 3 people who have admitted to owning outright, but there is obviously more than I thought. which is a great thing. I am in the Feeling the pinch and struggling to pay mortgage bracket, but am very jealous and happy for those who now own there own home.

  • #9
    Senior Member roguefan99's Avatar
    Join Date
    Jan 2008
    Posts
    1,459
    Thanks
    1
    Thanked 148 Times in 109 Posts
    Rep Power
    258
    Reputation
    633

    Default

    My concerns are more job related at the moment. If I loose my job it will be tight on payments in this house, but at the moment with two incomes its okay. However this was the plan, we always wanted to be well ahead of the loan and were never going to pay more than we were comfortable with even with rate increases. We knew that rates would never stay low and we also knew it didn't matter who we voted for because banks control the rate not the government (as can be seen at the moment where commerical banks lift rates when ever they like). Like Global88 said we have decided to live within our means.

    I know a few retirees that own outright, but they are generally the only ones.
    Coding in C is like sending a 3 year old to do groceries. You gotta tell them exactly what you want or you'll end up with a cupboard full of pop tarts and pancake mix.

  • #10
    Senior Member z80's Avatar
    Join Date
    Jan 2008
    Posts
    5,840
    Thanks
    112
    Thanked 77 Times in 48 Posts
    Rep Power
    0
    Reputation
    708

    Default

    Quote Originally Posted by shagga66 View Post
    z80, it is well known that in 1992 the average house price was 4 times the average yearly wage...
    Sorry young man, but not only did we have high interest rates we had wonderful taxes with a top tax rate of 60% plus medicare .
    So your margin of argument quickly diminishes.
    Yes we did it tough... a 100k mortgage was huge.

    Quote Originally Posted by shagga66 View Post
    Now the average house price is 7 times the average yearly wage.
    Please don't patronize people by giving the impression you did it hard with 17.5% interest rates and then saying to save and pay cash for a house.
    ..?
    I can get you a 3 bedroom house, whithin an hour of Melb for $270k and that is about 5 times average earnings.

    Cranbourne,Berwick,Narre Warren,Lara,Hoppers Crossing.

    I don't care what average prices are, averages are distorted by Southbank penthouse anomalies.

    I am talking about houses that people can buy comfortably to enter the market.

    As I said earlier, if you want all the status symbols before you've earned the right to live in them then be prepared to lose the lot when things go sour.



    Quote Originally Posted by shagga66 View Post
    Edit: just out of curiosity how much was your house you paid off in 1992, price you paid for it, ball park will do..?
    I have no idea, we lived in it for another 9 years and in that time saved 300k and bought a much bigger place.......cash.

    How can anyone expect to better their worth when a huge portion of their after tax income is going in a mortgage?
    This generation has fallen for the capital gain hype that it will always be worth more later.


    here:---



    more




    if you look hard enough you will find one for $260-280.


    And here are average weekly earnings:-




    $56k a year i make it to be as the average earnings 5x56k=$280k

    plenty more here:-



    If the house is $260-280k
    A couple on average weekly earnings will pay it off in 3-4 years if careful.

  • #11
    Super Moderator shagga66's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    53
    Posts
    1,085
    Thanks
    237
    Thanked 127 Times in 80 Posts
    Rep Power
    254
    Reputation
    1014

    Default

    z80, thanks for the long drawn out post, I think I got most of it...

    You seem to be hesitant to say how much you paid for your house, back well before 1992 if so thats fine, just say so. I'm sure you would know as I don't know anyone that wouldn't know how much their first home cost them. I bet it wasn't $280k.

    Have a look at my post a few up, I am one of those that intends on building an hour from Melbourne so I can pay it off quickly and without much fuss. I cant see why anyone would tie themselves into a loan for 30 years...

    I am not saying buying a house is impossible, just 17% on $75k, I dont see that as being the hard road, even back in 1992.

    Its almost impossible to compare the cost of owning a house from 1992 to 2008 as the cost of everything has gone up, rates, petrol, food, public transport, so many daily costs have gone up, the list goes on.

    You see so many people just bring out the " I lived through the 17.5% days" when they had a $75 to 85k mortgage.



    edit: and No I am not going to pay for your premium upgrade...

  • #12
    Senior Member

    Join Date
    Jan 2008
    Posts
    1,856
    Thanks
    1,061
    Thanked 904 Times in 511 Posts
    Rep Power
    502
    Reputation
    12237

    Default

    Just one clarification - the interest rates were 17.5% in 1989 - not 1992....

    So comparing a 1989 real case scenario to today (for the sake of the 17.5% comparison).......

    This is a 20 year loan and this was (and is) the absolute cheapest unit you can buy anywhere around Sydney...

    Cheapest Unit in Sydney 1989.....$45,000 no deposit, 17.5% interest. First year weekly repayments in 1989.....$197 per week
    Cheapest Unit in Sydney 2007.....$175,000 no deposit, 8.3% interest***. First year weekly repayments in 2007.....$479 per week

    ***actual interest is now 8.95%

    Those "weekly" numbers are what the bank charged on the bank statements as of 1989 and last week.

    I bought this unit in 1989 and sold it last year.
    I'm helping my mate out who bought it with his paperwork & I have his permission to post this info.
    -------------------------------------------------
    in 1989 the body corporate rates were $172 per year
    Water rates & sewrage : $196 per year
    council rates $266 per year

    all up about $12 per week plus the repayments = $209 per week in 1989
    -------------------------------------------------
    in 2006 the body corporate rates were $1400 per year
    Water rates & sewrage : $432 per year
    council rates $1136 per year

    all up about $57 per week plus the repayments = $536 per week in 2006
    -------------------------------------------------

    So for the cheapest "shoebox in the middle of the road" you are paying around $320 more per week than in 1989.

    The higher the price of the unit or house the wider that gap becomes.....

    If you look at the average weekly wage figures before tax it was $660 in 1989 and $1070 today (before tax OK?)

    equate the repayments into the wages:

    -------------------------------------------------------------------
    This does not take into account the deductions such as income tax nor does it cover the increased cost of food, petrol etc.
    1989 repayments were 32% of average single weekly income
    2007 repayments are now 50% of average single weekly income
    --------------------------------------------------------------------
    In this particular area the average income for a storeman is about $18 per hour ($685 before tax)

    This is not a good situation to be in but thats the reality of today versus 1989 for a first home buyer, and it aint pretty.

  • #13
    Super Moderator shagga66's Avatar
    Join Date
    Jan 2008
    Location
    Melbourne
    Age
    53
    Posts
    1,085
    Thanks
    237
    Thanked 127 Times in 80 Posts
    Rep Power
    254
    Reputation
    1014

    Default

    Thanks for going to the trouble and posting that info POWERZONE. Helps get an understanding of cost...

    z80 stated that he paid off his house in 1992, so I dare say he purchased a lot earlier than that and at allot less than the 1992 average house price.

    Shagga

    Quote Originally Posted by POWERZONE View Post
    Cheapest Unit in Sydney 1989.....$45,000 no deposit,
    I could only imagine the price of a cheap house within an hour of Sydney or Melbourne back then or earlier.

  • #14
    Senior Member

    Join Date
    Jan 2008
    Posts
    1,856
    Thanks
    1,061
    Thanked 904 Times in 511 Posts
    Rep Power
    502
    Reputation
    12237

    Default

    Quote Originally Posted by shagga66 View Post
    I could only imagine the price of a cheap house within an hour of Sydney or Melbourne back then or earlier.
    I remember in 1992 some new estates were set up in South West Sydney near Liverpool, 4 bedroom houses with double garage, landscaping, average 500m2 block were between $180k - $220k, and interest (cash) rates about 9% or probably about 12% for home loan rates...

    And maybe from today, we might just get another 0.25% closer to that figure in 1992. House prices however, chalk 'n' cheese.

  • #15
    Senior Member z80's Avatar
    Join Date
    Jan 2008
    Posts
    5,840
    Thanks
    112
    Thanked 77 Times in 48 Posts
    Rep Power
    0
    Reputation
    708

    Default

    @powerzone- the take home pay on 50k is much higher now than when it was in 1989 in my case a large portion of my income was at 60%.

    So mortgage payments that needed to be met from after tax income that had 60% tax deducted took a lot of overtime.

    If you earned 50k in 1989 you took home about 23k
    If you earned 50k in 2008 you took home about 32k

    It's all about the ability in disposable income to make extra repayments.

    I reckon i did it tough..

  • #16
    Senior Member

    Join Date
    Jan 2008
    Posts
    1,856
    Thanks
    1,061
    Thanked 904 Times in 511 Posts
    Rep Power
    502
    Reputation
    12237

    Default

    Quote Originally Posted by z80 View Post
    @powerzone- the take home pay on 50k is much higher now than when it was in 1989 in my case a large portion of my income was at 60%.

    So mortgage payments that needed to be met from after tax income that had 60% tax deducted took a lot of overtime.

    If you earned 50k in 1989 you took home about 23k
    If you earned 50k in 2008 you took home about 32k
    I don't see how you could ever have been taxed @ 60% to bring $1000 a week down to $460 a week after tax......

    from the ATO......1991-1992

    Taxable income / Tax on this income

    $1–$5,400 / Nil
    $5,401–$20,700 / 20 cents for each $1 over $5,400
    $20,701–$36,000 / $3,060 + 38 cents for each $1 over $20,700
    $36,001–$50,000 / $8,874 + 46 cents for each $1 over $36,000
    $50,001 and over / $15,314 + 47 cents for each $1 over $50,000
    As you can see the highest tax rate was 47% and that only applies to every dollar you earn beyond $50K. Anything you earned below $50K was taxed at an even lesser rate in 1992.

    From the ATO....2006-2007
    Taxable income / Tax on this income

    $0 – $6,000 / Nil
    $6,001 – $25,000 / 15c for each $1 over $6,000
    $25,001 – $75,000 / $2,850 plus 30c for each $1 over $25,000
    $75,001 – $150,000 / $17,850 plus 40c for each $1 over $75,000
    $150,001 and over / $47,850 plus 45c for each $1 over $150,000
    So lets go with $52K going off the above tables.....

    1992 $52k - tax = $16254.... take home pay is $35746, or $687 per week.
    2007 $52k - tax = $10950.... take home pay is $41050, or $789 per week.

    So the difference is $100 per week,
    and that's not including the medicare levy, GST, or any other price increases.......
    Last edited by exited; 04-03-08 at 02:58 PM. Reason: added info

  • #17
    Senior Member z80's Avatar
    Join Date
    Jan 2008
    Posts
    5,840
    Thanks
    112
    Thanked 77 Times in 48 Posts
    Rep Power
    0
    Reputation
    708

    Default

    What exactly would you like to talk about Powerzone?

    (one minute its 1989, then 1992)

    My FINAL mortgage payment on 20th April 1992 or the 150 payments BEFORE it...a lot of them at the prevailing 60% tax rate?

    we can talk about that payment or the 150 before that date...

    How does that affect your calculations?

    Furthermore there is no point in comparing cost of living between the two periods especially since GST has eliminated a variety of taxes that have caused dramatic price anomalies for the two eras. Some cheaper, some expensive.
    My opinion? Overall it has become cheaper.

    As far as I am concerned if someone can't make it at 9% then they ain't ever going to make it in Australia since it can easily get to 17.5%.

    It may interest you to know that on the same property my wife and I signed the sale note of 90 days at 7.5%, by the time we moved in it was at 10.5%, 3 years later it was 13.5%.

    And that was the Commonwealth bank not some building society.
    (The building societies were 2% more in the 1980's.)

    My contention is that all the people who reckon it is harder now are living in a fantasy, it has always been tough, and it can get much tougher.

    It's all a question of how status orientated your lifestyle is.
    If your ego writes cheques your body can't cash then you will pay dearly.

  • #18
    Administrator
    admin's Avatar
    Join Date
    Jan 2008
    Location
    Victoria
    Age
    56
    Posts
    31,150
    Thanks
    2,238
    Thanked 13,731 Times in 5,823 Posts
    Rep Power
    4552
    Reputation
    165805

    Default

    And another rise.

  • #19
    Otherwise known as VK4XA MaXiLeeCH's Avatar
    Join Date
    Jan 2008
    Location
    East Innisfail, QLD
    Age
    65
    Posts
    548
    Thanks
    270
    Thanked 113 Times in 47 Posts
    Rep Power
    229
    Reputation
    677

    Default

    I own my home outright, I suppose I did it the hard way, I busted my ass for years and made sensible moves when we could profit from the sales of our houses.

    Our last house that the banks had a piece of was purchased for $130,000.00 6 years ago.

    We restored the house over a period of 12 months (it was a 100 year old QLD'er) and it was sold late last year for just on $400,000.00.

    We then purchased a home in Innisfail for $200,000.00 and dont owe the banks a brass razzoo.

    To get us to this point we have moved from Mooroolbark in Victoria to Cairns (several homes in and around the Cairns area) and thence to Atherton, where our old QLD'er was and thence to here in Innisfail.
    Each move meant a better lifestyle and a profit on the sale of the house.

    Where will we be in 5 years?
    Retired and living on an acreage block out west, the home will consist of several 20 and 40 foot containers that we already own and have converted to living quarters and there will be no power or telephones connected.
    (Ham Radio will be definately there though)

    I will be 54 when I retire.
    I am looking forward to it already.
    MaXiLeeCH
    Lord of his ring, keeper of his faith, master of no-one!

  • #20
    Senior Member z80's Avatar
    Join Date
    Jan 2008
    Posts
    5,840
    Thanks
    112
    Thanked 77 Times in 48 Posts
    Rep Power
    0
    Reputation
    708

    Default

    Quote Originally Posted by MaXiLeeCH View Post
    I own my home outright,...
    To get us to this point we have moved from Mooroolbark in Victoria to Cairns (several homes in and around the Cairns area) and thence to Atherton, where our old QLD'er was and thence to here in Innisfail.
    Each move meant a better lifestyle and a profit on the sale of the house.

    .


    yep...have to agree.

    You can make money from housing, provided that you are happy to keep moving further and further out....or into a different market interstate.

    We moved to southern tasmania during the 80's and lost our 13.5% government cap on interest rates and i used my credit card to pay for a property that was a PALACE in Hobart.

    But coming back lost bigtime, and had the deregulated 17.5% mortgage to add insult to injury as well as an average dwelling again.

    So watch out...you will never be able to move to Mooroolbark again though .

    Though driving through there the other day I'd say stay where you are

  • Page 1 of 2 12 LastLast

    Bookmarks

    Posting Permissions

    • You may not post new threads
    • You may not post replies
    • You may not post attachments
    • You may not edit your posts
    •