Breaking news, millenials find a way to drive down house prices.

The Reserve Bank has made the banks tighten up their lending, so they are all cutting down. Home approvals are down about 10% I read.
I recommend you go to a broker and get a choice of loans. Last time we used a broker to refinance and saved about 1% interest on each loan, eventually choosing Bank of Queensland. The Big Four are usually not the best choice.
Banks depend on the inertia of their customers not being bothered to compare loans from various sources. A broker can overcome that, for minimal cost to the customer as the winning bank pays the broker.

Home loans in the U.K. are currently running at a rate of about 4%. The affordability assessment is done on a rate of 7% so there is room for rates to go up and not have people turfed out of their home once they are 3 payments down. With the banks then chasing you for the debt over the next 12 years. This came in after the financial crisis before which the standard loan was interest free, no deposit with the borrower self certifying their income. Hard to find a home loan today that does not require a minimum deposit of less than 10%. While this does ensure there is a comfort margin if rates go up it depends on people being adult enough to not use the margin to borrow elsewhere.

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Originally Posted by rocket scientist

We bought our first house in the mid 90's. Can't believe we actually paid 17% interest. Could only do it because we had 2 decent salaries.

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We bought our first one in the early 80's,18% was the going home loan rate for a domestic property.

Commercial loans,second mortgages,and the like were 22%.

There was definitely some money floating around in those days.

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Originally Posted by scarry

We bought our first one in the early 80's,18% was the going home loan rate for a domestic property.

Commercial loans,second mortgages,and the like were 22%.

There was definitely some money floating around in those days.

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When I was a used car dealer the floor plan rate was never less than 18% even when the retail rate was only 8%. In the mid 80's I was selling heavy machinery and the leasing rate crept up to 23% and business just stopped. For some reason the customers could stomach 20-22% but not 23.

The investment culture has made it nearly impossible for young people to buy a home even in the outer suburbs in Melbourne- it's easy to criticise them for driving a new car etc but when they look at the cost of housing and see it is out of their reach, they decide they may as well have a decent lifestyle while they pay rent. The generation who got a start in the 1950s and 1960s have been able to take advantage of the favourable conditions they had and get themselves well established- now they find it easy to point the finger at the youngsters whom they have locked out of the market.
In the UK there is a horrible trend of new housing (especially apartment buildings) being bought up by investors and never rented out, never lived in, it is sold again at a huge profit after sitting vacant for a couple of years- still brand new, no maintenance costs, the inflation that this creates means that the price increase gains much more than the rent would have earned. The greed of the 'haves' puts the 'have nots' on the street. The amount of homelessness we saw there 2 years ago shocked me and we are not far behind.

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Originally Posted by rick130

Geezus fella's, have a read of this Here's a look at the widening gap between wages and house prices | Business Insider


https://edge.alluremedia.com.au/uplo...s-Vs-wages.jpg

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I would be lifetime renter ... EXCEPT due to being extremely fortunate.... Look at this graph. In about 2004 I purchased my first house. newly married ... single wage earner borrowing 100% of the amount I could... If I had waiteded even 3 months. I would have been out of the housing market forever. That little weatherboard house I purchased .... went up in value 250% in 5 years. And about 20 % in the 3months after I purchased it. ie: if I had waited 3months..... I was out of the housing market as there is no way I could have borrowed that amount.... Given the housing market went up EASILY 250% in the next 5 years, I was out of the housing market for good.

To say milenials just want the biggest and best is lunacy. You try to borrow $500,000+ for an average house in the suburbs when the median australian wage is about $53,000 a year gross. ( ignore those that sprout "average" wages... as the fat cats at the top blow the "average" wage out). You need to look at the median.

seeya,
Shane L.

My freind has seven properties six of them payed off in 14 years. He works all day every day and that's how it's done. Harden the **** up Courtney Fisher. Put a needle in my house and see where the next one goes. Communist heathen.

That said it is obviously harder to get into the market nowadays and I'm sure there are some things that should be changed but stealing from the poor to give to the poor is not going to help anyone.

All I hear is waaaa waaaa waaaa me me me special snowflake alert.

Need to go after the top percentiles not the baby boomer or hard working smart saving millennial who decided to work extra hard in an extra hard Job ( if you are stacking shelves at Myers you do not deserve the same wage as my Plumber).

Recieved a phone call from a good freind of mine three days ago a single bloke who is a fitter and turner at a local shop to tell me after saving hard for the last 18 months he has been pre approved for a loan. He won't be able to afford a McMansion but he will be able to afford a two bedroom townhouse close to his work in Coburg. So it can be done.

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Originally Posted by DiscoMick

Our son, whose work is in Sydney, has given up on trying to buy there and has instead bought an investor on the Gold Coast.
His investor mate, who owns about 20 properties, says the numbers don't stack up for buying in Sydney any more and he finds the right properties in other parts of the country.

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A friend who is clued up on this stuff has been saying the same for years.
She owns a lot around Canberra but it's getting just as bad.

Rental stress is very real, and I recently read an article that some regions are doing it just as tough as the capital's as the wages are so much lower than the capital's but rents aren't that much lower.

The Byron Bay area has the worst rental stress in the country, regional wages with city rents as a lot of housing properties have been snapped up by city investors who are Air BnB'ing them.
This reduces the long term rental market pool and inflates rental prices.

I'm paying almost Canberra rent on a two bedroom unit 1/2 HR from Byron, my wage is over 20% lower than I was on in Canberra, but it's top $ for a region.
My choice, its a lifestyle decision

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Originally Posted by auslizard

My freind has seven properties six of them payed off in 14 years. He works all day every day and that's how it's done. Harden the **** up Courtney Fisher. Put a needle in my house and see where the next one goes. Communist heathen.

That said it is obviously harder to get into the market nowadays and I'm sure there are some things that should be changed but stealing from the poor to give to the poor is not going to help anyone.

All I hear is waaaa waaaa waaaa me me me special snowflake alert.

Need to go after the top percentiles not the baby boomer or hard working smart saving millennial who decided to work extra hard in an extra hard Job ( if you are stacking shelves at Myers you do not deserve the same wage as my Plumber).

Recieved a phone call from a good freind of mine three days ago a single bloke who is a fitter and turner at a local shop to tell me after saving hard for the last 18 months he has been pre approved for a loan. He won't be able to afford a McMansion but he will be able to afford a two bedroom townhouse close to his work in Coburg. So it can be done.

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The big problem is that wages haven't kept up with the cost of living and iis so much bloody harder to get into the market than it was during the 90's "recession we had to have"

It isn't just limited to Oz, the same cry is going up all over the world.
The top 1% income earners wealth has grown exponentially greater than the middle classes over the last twenty years and the disparity is getting greater.

Small/medium size business is doing it tougher too.
I started working for myself at 25 in 1991, by 1993 I was charging $50/hour.
It's now 2018 for a company in the same industry who's casual callout rate is $105/hour, with the contract rate substantially less.
Costs have gone up many times greater than double over that time period so employees wages stagnate, but we're working longer and with greater stress.

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Originally Posted by rick130

The big problem is that wages haven't kept up with the cost of living and iis so much bloody harder to get into the market than it was during the 90's "recession we had to have"

It isn't just limited to Oz, the same cry is going up all over the world.
The top 1% income earners wealth has grown exponentially greater than the middle classes over the last twenty years and the disparity is getting greater.

Small/medium size business is doing it tougher too.
I started working for myself at 25 in 1991, by 1993 I was charging $50/hour.
It's now 2018 for a company in the same industry who's casual callout rate is $105/hour, with the contract rate substantially less.
Costs have gone up many times greater than double over that time period so employees wages stagnate, but we're working longer and with greater stress.

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Very true. My fear is that we all are being turned against each other rather than directing our attention toward the real problems. Truth is I woke up late thought of her sticking needles into hardworking people's houses and diagnosed it as a bullying tactic and got stuck in :)