Pinned Australian Roll Call / Registry / Deals Thread

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    • New

      Been hanging on as well. It's getting tougher as we are heading into the peak of the pandemic (and perhaps recession)
      Not sure about your workplace but my company have stood down at least 30 employees due to schools and universities closed down. Half of our projects are now put on hold and in limbo state as well. It's tough as I still have another 13 years to pay off mortgage and with the on-going grim news about the virus, it's not likely that the lock down will be lifted off anytime soon.

      On the bright side, whoever are waiting to buy their first house, this is going to be the good time if you can manage to secure your job in the long run, this is a time to buy as interest rate is so low right now.
    • New

      modology wrote:

      On the bright side, whoever are waiting to buy their first house, this is going to be the good time if you can manage to secure your job in the long run, this is a time to buy as interest rate is so low right now.
      I've been studying real estate markets for a while now (~15 years).
      It's complicated to figure out if it's a good time to buy, real estate value isn't tied to interest rates, the real value is how much cost the piece of land then how much is construction cost.
      For my parents' generation real estate was really cheap compared to the average income (an average house was worth 3 or 4 years of the average income at the time) but interest rates were much higher (between 10 and 12%).
      Still if you take into account the cost of the loan and the inflation (~30% over 25 years) you figure out real quick prices have been out of control for nearly 20 years now. In the past 20 years house prices have been multiplied by 3 and in the meantime incomes have only risen by ~30%. The low rates are far for compensating those higher prices.
      People seem to satisfy themselves for prices increase but it's only beneficial if you're leaving the market (but where are you going to live?) or if you're selling to buy smaller.

      Just a quick example, say you bought a flat of 50m2 back in 2005 for 100k. By analogy (and for the sake of simplicity, I know the more the surface the less the per m2 price) a 100m2 flat was worth 200k at that time.

      Scenario 1:
      10 years later prices have doubled, now you have a family and you want to buy a 100m2 flat.
      You sell the old one for 200k (wow 100k capital gain!) but then the 100m2 is now worth 400k. You need 200k more.

      Scenario 2:
      10 years later prices have been divided by 2, now you still have a family and you still want to buy a 100m2 flat.
      You sell the old one for 50k (ouch 50k loss!) but then the 100m2 is now worth only 100k. You need 50k more.

      What must also be considered is during that time you also have saved on the rent (usually not 100% cause as a owner maintenance costs are now on you, same for city coucil tax, etc.).
      Looking for:
      - Champion Wrestler (Taito)



      "I'd 1cc games but I have a real life."
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      The post was edited 1 time, last by Apocalypse ().

    • New

      i meant for first home buyer, this is not a bad time to start thinking about buying your firsr home though. The real estate market price has dropped down slightly since last year and expecting to drop a bit more when economy crashs and people start losing their job and need to sell off their houses. It's not ideal but it's still better than keep renting.
    • New

      hi :

      If anyone is interested in a desert change. Let me know i have a 2 bed house and land 50kms out of a gold mining town.
      I could be persuaded to exchange it for $70,000 in arcade goods.
      On a 1200sqm block. House is sound and fenced. With airconditioning and hot water.
      Good potential for a go getter to get back on their feet.
      Note this is in western australia in a gold mining hub. So you need to know, you may need to get your hands dirty.


      kind regards
      euphoria
      :)