If you want a house, then move cities…

Thumper 30 January 2008 42

ABC online is reporting that Canberra is set to overtake Perth as Australia’s second most expensive city to buy property.

Guess that’s it kiddies. You will only ever own a house now if your daddy is rich and your mummy is good looking.

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42 Responses to If you want a house, then move cities…
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josh josh 8:34 pm 30 Jan 08

it’s still affordable for many imo. i’m comparing that to melbourne, which perhaps isn’t a good comparison. lesson: don’t buy in melbourne

Growling Ferret Growling Ferret 8:46 pm 30 Jan 08

Affordable? Depends if you want a McMansion or not.

Bring back suburbs full of extendable/knockdownable govvies.

And then nobody would want to live there…

The Jas The Jas 8:57 pm 30 Jan 08

It’s all relative I think. I hate to admit it, but later this year when I buy, it will most probably be in qbyn and there are some nice apts there that are about 40-50 grand cheaper than the equivalent in Canberra.

My daddy aint that rich, all I am doing is taking a second job on top of my already busy job, working 60-70 hours a week for 6-9 months to pay off a debt and save my cash and I will have my own place by the end of the year. I’ve been there and done that with the renting thing, it was great having an apt in Kingston but I’m fucked if I’m paying some other persons mortgage off at 28.

It may be in qbyn, but it will be mine and after a couple of years with some equity in the mortgage and the value going up I will use it to finance a better place and keep it as a investment property. It’s all about getting in the market kids.

For the record, out of my 6 best mates, I’m the only one who doesn’t own their place, so I think they are expensive, but Canberra has a fairly high average income also off memory compared to most cities thanks to our underworked and over paid public service.

ant ant 9:00 pm 30 Jan 08

You’d think there’d be a market for small 1 and 2 bedroom houses with a bit of garden, but there doesn’t seem to be.

emd emd 9:04 pm 30 Jan 08

good point ant, I suspect Generation Y has higher standards of minimum acceptable housing than previous generations had.

Fluges Fluges 9:34 pm 30 Jan 08

Funny thing: when I lived in Perth in 1979-1982, they had the cheapest houses in Australia.

swissbignose swissbignose 9:42 pm 30 Jan 08

You just wait when the mining boom crashes – houses in Perth will become affordable again.

Gungahlin Al Gungahlin Al 10:12 pm 30 Jan 08

Fly in – fly out miners Fluges. They set their families up in the city, work 2 weeks on, 2 weeks off back home. They destroy the balance in any property market. Mackay’s a classic example.

barney barney 10:40 pm 30 Jan 08

I’m just waiting for a “ABC online is reporting that the-riotact.com is reporting everything we say” topic. :->

caf caf 10:50 pm 30 Jan 08

So hush, little baby, don’t you cry.

Pandy Pandy 11:33 pm 30 Jan 08

Why would the mummy have to be a MILF to be able to get a home?

Davo111 Davo111 12:05 am 31 Jan 08

You’d think there’d be a market for small 1 and 2 bedroom houses with a bit of garden, but there doesn’t seem to be.

good point, I’m an ANU student and from what i’ve seen, it’s quite hard to find a large share house that is well priced close to ANU.

Thumper Thumper 8:43 am 31 Jan 08

your mummy is good looking.

I just wrote that for the hell of it.

Although caf seemed to picked it up…

p1 p1 9:34 am 31 Jan 08

You’d think there’d be a market for small 1 and 2 bedroom houses with a bit of garden, but there doesn’t seem to be.

Actually there is, and it is the market that the property investors buy in, cause it is ideal to rent out to a young professional couple, get the best rent relative to your investment, and price people like me out of the market. So now its save till I can by a larger house that I don’t really need yet so that I feel I’m getting value for money.

Mælinar Mælinar 9:50 am 31 Jan 08

barney – JB once quoted that the ABC just seemed to be the first to publish stuff online, hence why they got referred to so often. Seems likely that this is still the case.

S4anta S4anta 10:16 am 31 Jan 08

Maybe its time for a riotACT commune?

Ingeegoodbee Ingeegoodbee 10:49 am 31 Jan 08

P1 is on to somthing. You can pay $300k’ish for a house in Charney that you can rent for say $300-350/week … or upwards of $1m for a fancy waterfront in Kingston that you might be lucky to get $1000/week for.

wishuwell wishuwell 12:02 pm 31 Jan 08

Always has been better/cheaper/easier to rent a millioners life style than purchase it. Less stress and just walk away when you want to play poor again.

VYBerlinaV8 VYBerlinaV8 12:48 pm 31 Jan 08

Although housing is getting more expensive, by definition what supply is there is affordable, because people buying is what sets the market level (ie price). The biggest problem that I see amongst friends and colleagues is the attitude of “I’m not living all the way out there, it’s not convenient for my work”, and “that’s not a nice neighbourhood, I can do better than that”. To me it’s more of an aspirational issue.

There are properties in the 300-400k mark that still seem to me to represent value (which is why I play in that space as an investor). Many such properties can be shared, either by a couple or by housemates. Of course, not all of these are in ideal locations, but a surprising number are.

People like ‘The Jas’ have the right idea here. Get into the market somehow then move up from there. The reality is that within another generation (25 years or so), Australia is likely to move to a housing market situation much like that in Europe and major US cities, where most of the property is owned by investors (due to its high price), and most people rent.

So what to do? Forget nice cars, bling, holidays and expensive entertaining – get into a property anyway you can, and within a few years other costs and income will have risen enough to cover you. Then you can get on with your life, knowing you have an appreciating asset. Or don’t, and enjoy life now, knowing it will only get harder to buy as time goes on.

Sands Sands 12:54 pm 31 Jan 08

The Jas – well done! What a great attitude. When I was at school I heard what could be an urban myth but immigrants used to pile multiple families into one house, they’d all work their arses off for a couple of years, pay it off, buy another one etc. Pretty soon they all have their own modest little house! I just wish I had a family to do that with!

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