Real Estate, time go get back in the water.

Yep exactly If your single and want to buy a house costing say 400k you would have to save a reasonable 50k deposit snd then get a loan of 350k. To support the 2500 a month payments a nice take home pay of 6000 a month would be about right or over 115k a year pre tax.

Now if your on the average yearly income of say 52k a year your house better not cost you much more then say 200k or those morgege payments could get ugly

And by my (very) basic calculations a monthly payment of $1904 would entitle you to a loan of just under three hundred thousand dollars… Take what you will from that, but don’t tell me that the “affordability crisis” is over. Seems to me that so many of the twenty-somethings still at home will only own a house when their olds kick the bucket.

“Nationally, loan repayments absorbed 27.7 per cent of average income in the December quarter, with the average monthly loan repayment falling to $1902”

So from the above figures the average monthly income is around $7000 or $84,000 a year.

I guess thats about right if you call it household income. The thing is the figures are misleading because that would be before tax.

So if you take off say an average of 30% income tax. The figure would be a more realistic $58,000 or so. That being around $4800 a month taking the “absorbed” income figure to more like 40%

The above back of the envolope calculations do not include cost of living expenses which would bring the “absorbed” income figure much higher

Interesting to note that whilst the market is the cheapest it may have been in a long time… the price of housing is still no where what it was. Me thinks the real estate industry are attempting to drive business.

Remember kiddies interest rates are low at the moment but the Reserve bank may start to jack them up is there is too much of a surge on the housing market.

Bulldog – “I somehow doubt that my rates will go down. Even thought housing is in a (minor) slump, I’m sure we’ll be told that property value is still increasing.”

The value of your property (ie. land) will not necessarily go up, but the way in which rates are calculated may well. A clever little formula will be used to calculate a higher rating system without maintaining a value that should be reasonably attached to the rating system.

Most average households probably saw a drop of 15-20K off their unimproved value, but still saw a rate increase during the last round.

The strange part was that the general population showed no signs of dissatisfaction, but rather rolled over and took it.

If people are in the market for the long term they will make money on housing. Lemezina is also the same Lemezina of Lemezina Homes. Sold my last place for a 250% profit, will sell the current one for at least 100% profit in 5 or 6 years

Im on around 60K and only scrape by on mortgage repayments and living costs because my father in law sold us his house for a fraction of it’s market value.

Indeed, kill all the real estate agents. And lawyers, also politicans. How about you and me and a big red wasteland, how does that sound?

ooh housing property has depreciated about 10 % in the last 3 years, as opposed to going UP 200% in the last 10. The best chance for real depreciation is for bird flu to wipe out significant proportions of the population, starting with real estate agents.

The agents must be feeling the hurt. We looked at a place back in August and got a call from the selling agent earlier this week asking if we were still looking to buy. Guess he can’t shift those properties on his books …

I somehow doubt that my rates will go down. Even thought housing is in a (minor) slump, I’m sure we’ll be told that property value is still increasing.

And where the hell do they get these statistics?
“HIA executive director Caroline Lemezina says average mortgage repayments are still high at almost 30 per cent of household incomes.”

Bullshit – certainly from where I and my friends and relatives who have bought in the last couple of years stand – the average mortgage is between forty and sixty-five percent of a houses income! Granted this is a twenty-five to thirty-five demographic, but first home buyers are finding it increasingly tough if they are a middle income earner. If you are single, or your house-hold income is below seventy-thousand dollars a year, then owning your own place is next to impossible in the current market – especially if your trying to rent in the mean-time.

I’d suggest that players thinking about buying try and ease the pain, so if that means jumping in now (provided you are in a position to afford it), don’t wait too long.