Thread: The rich get richer.... Poor get...

Our place was $41000 in 2005.Not the Ritz by any means,but it aint a dump either.
Andrew

Mum and Dads first house cost $9800.00 in a new development.

3 br, dbl brick... 1/4 acre block.
20 minutes from Adelaide CBD

This was 1971

My first car cost more than the house!

Let's face it... Property values are completely out of control, and not realistic.

Originally Posted by Tombie

Mum and Dads first house cost $9800.00 in a new development.

3 br, dbl brick... 1/4 acre block.
20 minutes from Adelaide CBD

This was 1971

My first car cost more than the house!

yeah, my grandmothers place was 4k. not sure what year though.

Originally Posted by Tombie

Mum and Dads first house cost $9800.00 in a new development.

3 br, dbl brick... 1/4 acre block.
20 minutes from Adelaide CBD

This was 1971

My first car cost more than the house!

At the end of 1970 I remember that a Ford Falcon 500 XW cost $3500.00, so more than 1/3 of the cost of your parents house.

Originally Posted by Tombie

Let's face it... Property values are completely out of control, and not realistic.

too many "investment" properties.

need to do what singapore has done.

first house, no stamp duty
second house (aka investment property), 50% stamp duty

basically makes it very easy to get a house (as it should be)
makes it very expensive to buy a second house..

In 1980 we paid $32,000 for our 3x1 house. Petrol was about 37 cents/litre and I'd sold my 'new' Holden HX/Z a year before. Cost $6,189

Interest rates -capped at 11% for me - reached 15%+ during the loan which we'd paid off about 1995, when petrol was about 70 cents/litre (When my Classic was priced at $95k....)

In 2000 we lashed out $78,000 to extend and double the living space, and now it's a 4x2. I was on $55k.

Today, the median price for same/smaller houses in this area, 30 mins from the Perth CBD, is $370,000 and petrol is $1.47/litre.
Now I'm eating into my dwindling savings, driving busses and sweepers..and wondering how my sons will ever afford an old house, never mind a new one!

But lots of 'refugees' from the world's trouble - spots seem to be driving around my area in, 'not cheap & cheerful' cars. Dunno how they do it...

Originally Posted by Eevo

too many "investment" properties.

need to do what singapore has done.

first house, no stamp duty
second house (aka investment property), 50% stamp duty

basically makes it very easy to get a house (as it should be)
makes it very expensive to buy a second house..

I like the concept - how do they prevent a couple from not owning two properties, one in each name (or more properties held under corporate structures, or in kids names)? I imagine that would fly like a lead balloon with the voting public.

Should at least phase out negative gearing over 5 or so years before taking more drastic steps. All it does is push house prices out of reach of those who can least afford them. The bill to the taxpayer? Around $13 billion for the last financial year! Hawke & Keating tried in 1985 but had to reinstate following the '87 stock crash.