Entering the Housing Market

[Punk Rooster]

How many others out there are frustrated at how tough it is to buy even basic accomodation?

In my early 30's, single (Ie 1 income), some savings, on a good salary, yet the more I look, the more frustrated I get- even 2 bedroom units are commanding 250K+.

I realise it won't get easier, but isn't it time the Government addressed this issue?
Then again, why would they- investors making a killing on property pay CGT, home-owners don't.

I'm speaking through my frustration, but surely there needs to be a point where the government works to take the heat out of the property boom, & enable (not help) people to achieve the "Australian Dream".

[Dissident]

How many others out there are frustrated at how tough it is to buy even basic accomodation?

In my early 30's, single (Ie 1 income), some savings, on a good salary, yet the more I look, the more frustrated I get- even 2 bedroom units are commanding 250K+.

I realise it won't get easier, but isn't it time the Government addressed this issue?
Then again, why would they- investors making a killing on property pay CGT, home-owners don't.

I'm speaking through my frustration, but surely there needs to be a point where the government works to take the heat out of the property boom, & enable (not help) people to achieve the "Australian Dream".

Maybe you need to look a little further out of the city? It's a small price to pay if you get something that won't mean you're living on peanuts for the next half dozen years.

Around my area you could get a unit, quite nice, for around $200.

Christ, my house in June last year was $235k (and you've been there).

[Brad]

What suburbs you talking DIS?

[Dissident]

North East, Modbury et al..

[BigDaddy]

Tend to agree with you Punk.
There are some pretty innovative loans out there that could also be worth a look. Adelaide bank has released an Equity Finance Mortgage (EFM), where you can reduce the upfront and ongoing costs of buying a home by up to 25% or more, reduce your monthly repayments by up to 25% or more buy up to a 25% or more valuable home.

Basically, the EFM lets you borrow an additional 20% of the propertys value interest free. This part of the loan sits next to your original loan amount, not as one lump sum.

It can be great for first home buyers on a strong income but without a massive deposit. It can save you a heap in Lenders Mortgage Insurance too because your LVR (loan to value ratio) goes down.

When you sell the house, the bank then takes the amount that they lent you interest free, plus a 40% share in any increase of the property. This doesn't include any renovations that you have done to the property, just teh capital increase in the home.

They're still a new concept in the market, and have their supporters and their knockers, but could be worth a look. Go to http://www.efm.info to have a look.

And no, I don't work for Adelaide Bank!!!

[smac]

I haven't put too much thought into this Punky, but have you the option of buying with an investor? Perhaps a friend or relative who is looking at an investment property who could team up with you?

Draw up a contract to be certain of each others rights - for example any rents payable by you as the 'half tenant' etc would need to be properly clarified prior to commencing.

Would give you a leg into the market, potentially building sufficient equity to go it alone in 5-7 years time.

[FlyingHigh]

I realise it won't get easier, but isn't it time the Government addressed this issue?
Then again, why would they- investors making a killing on property pay CGT, home-owners don't.

True, PR, but they also give a heap of it back to those investors (ie who already have money) through tax incentives.

Until housing is thought of a social issue rather than a source of wealth "generation" nothing will change, except for social issues for those being increasingly marginalised.

The real estate industry won't want change because they know investors can offer more $$'s, and the increasing cycle increases their commissions. For some reason the industry is viewed as a reputable industry, esteemd by society, yet we are continuously bombarded with their propaganda in the media, such as spiralling property prices are a good thing, but which is really aimed at what will be good for their industry.

Similarly that interstate and overseas investors buying in SA is a good thing, which adds to demand and therefore property prices. What good will the mining boom be to SA if this trend continues? The closest similarity I can think of overseas companies buying out Australian companies.

[Psyber]

I stayed with friends at Davoren Park back in September. I noticed houses there advertised from $115,000 up.

My father bought a house in West Croydon for 5400 Pounds when his wage was about 900 Pounds per annum. If you double that and call it dollars and than multiply up to compare it with current wage levels it doesn't seem to look much different as a ratio. Of course inner suburbs go up disproportially especially in larger cities.

[Squawk]

PR

there is a state govt policy now that land releases/new housing developments must make provision for affordable housing. Its a means of integrating the people who can afford places themselves with those who are closer to struggle street. I know this is the case for the Cheltenham Racecourse Development and the anticipated sell off of Yatala Labour Prison and surrounding land. Would suggest you ring Jay Weatherill's Ministerial Office to find out where to get further info. If you can get on board you will be on gravy train to the next station - Kerching station - because you will pay less than your neighbour for the same result if you qualify for the program.

[Psyber]

I realise it won't get easier, but isn't it time the Government addressed this issue?
Then again, why would they- investors making a killing on property pay CGT, home-owners don't.

True, PR, but they also give a heap of it back to those investors (ie who already have money) through tax incentives.

Until housing is thought of a social issue rather than a source of wealth "generation" nothing will change, except for social issues for those being increasingly marginalised.

The real estate industry won't want change because they know investors can offer more $$'s, and the increasing cycle increases their commissions. For some reason the industry is viewed as a reputable industry, esteemd by society, yet we are continuously bombarded with their propaganda in the media, such as spiralling property prices are a good thing, but which is really aimed at what will be good for their industry.

Similarly that interstate and overseas investors buying in SA is a good thing, which adds to demand and therefore property prices. What good will the mining boom be to SA if this trend continues? The closest similarity I can think of overseas companies buying out Australian companies.

If you pay tax on the sale, you get deductions on the expenses, that's only fair. It is like running a company car. The problem is we all want to live in the cities rather than the small towns where housing is cheaper, but that is partly because that is where the jobs are. But if you try to forcibly relocate the industry you get problems too.

I agree Real Estate agents always talk the market up, and it is in their own interest to do so, but when you are selling you are glad they do! I have bought five properties in the last 4 years through local agents but I always sell through another agent I wouldn't normally try to buy through, because he is too good at getting the best price for when I am the buyer.

I did buy an empty block through him recently, but he knew I was going to let him resell it after I had transferred some land from my neighbouring property and enlarged it next year, and I didn't mind overpaying slightly to ensure I got it as the size increase will increase its value by about 30% without decreasing the value of my adjacent property.

[Squawk]

ere ya go PR

http://www.housing.sa.gov.au/affordable/Default.aspx?tabid=283

Affordable Housing Innovations Program - Working Together
________________________________________
Affordable housing is a basic right, and we want to make sure that all South Australians have access to it. Affordable housing is housing that is well built, located close to transport, shops, hospitals, and community services, as well as housing that is suited to its residents.
This program is about working across agencies – partnering with local government, developers and builders, financiers and investors and non-government organisations to implement ways to increase supply of housing as well as allow those on low to moderate incomes to access housing for rent or to purchase.
We are exploring and implementing a range of initiatives, which involve increasing housing outcomes for both rental and home ownership. Communities that include a mix of tenures for their residents are more diverse, and therefore healthier places to live and work – for this reason, we are working on a Public and Community rental program, an affordable home ownership initiative, affordable private rental program, and on integrating affordable housing within our land use, or planning for affordable housing.
Contact details:
If you are enquiring about purchasing an Affordable Home from the Affordable Homes Program please contact the Housing SA call centre on 131 299.
Affordable Housing Innovations Unit
Department for Families and Communities
GPO Box 292 Adelaide 5001
L8 Terrace Towers
178 North Terrace
Adelaide SA 5000
Ph: 8124 4073
Fax: 8124 4099
Email: ahiu@dfc.sa.gov.au

[Psyber]

PR

there is a state govt policy now that land releases/new housing developments must make provision for affordable housing. Its a means of integrating the people who can afford places themselves with those who are closer to struggle street. I know this is the case for the Cheltenham Racecourse Development and the anticipated sell off of Yatala Labour Prison and surrounding land. Would suggest you ring Jay Weatherill's Ministerial Office to find out where to get further info. If you can get on board you will be on gravy train to the next station - Kerching station - because you will pay less than your neighbour for the same result if you qualify for the program.

Although I grew up in the inner west of Adelaide, if I moved back to Adelaide I guess I'd be looking at Tusmore, Leabrook, or perhaps Aldgate to ensure peace and tranquility, and avoid the social engineering.... I found Delfin Island a bit "rough" and rather noisy when I lived there, and only stayed 12 months.

[am Bays]

PR

there is a state govt policy now that land releases/new housing developments must make provision for affordable housing. Its a means of integrating the people who can afford places themselves with those who are closer to struggle street. I know this is the case for the Cheltenham Racecourse Development and the anticipated sell off of Yatala Labour Prison and surrounding land. Would suggest you ring Jay Weatherill's Ministerial Office to find out where to get further info. If you can get on board you will be on gravy train to the next station - Kerching station - because you will pay less than your neighbour for the same result if you qualify for the program.

Although I grew up in the inner west of Adelaide, if I moved back to Adelaide I guess I'd be looking at Tusmore, Leabrook, or perhaps Aldgate to ensure peace and tranquility, and avoid the social engineering.... I found Delfin Island a bit "rough" and rather noisy when I lived there, and only stayed 12 months.

The Glenside master plan has affordable housing built into the sub-division of land too. Roughly half the land of the current Glenside facility is going to be sub-divided for housing development

[Psyber]

PR

there is a state govt policy now that land releases/new housing developments must make provision for affordable housing. Its a means of integrating the people who can afford places themselves with those who are closer to struggle street. I know this is the case for the Cheltenham Racecourse Development and the anticipated sell off of Yatala Labour Prison and surrounding land. Would suggest you ring Jay Weatherill's Ministerial Office to find out where to get further info. If you can get on board you will be on gravy train to the next station - Kerching station - because you will pay less than your neighbour for the same result if you qualify for the program.

Although I grew up in the inner west of Adelaide, if I moved back to Adelaide I guess I'd be looking at Tusmore, Leabrook, or perhaps Aldgate to ensure peace and tranquility, and avoid the social engineering.... I found Delfin Island a bit "rough" and rather noisy when I lived there, and only stayed 12 months.

The Glenside master plan has affordable housing built into the sub-division of land too. Roughly half the land of the current Glenside facility is going to be sub-divided for housing development

Yes SA has had a socialist government for too long, but it started when Hugh Stretton was on the consultant panel for the old SA Housing Trust.
[He wanted and even mix in all suburbs - but I think he lived in St Peters at the time and it wasn't going to happen there.]

[smac]

Another thought punky.

Buy an investment property in a cheaper area (assuming you don't want to live there - if you do, problem sorted) and cash in on that in 5-7 years time. THen you could look at purchasing for residential purposes.

[Leaping Lindner]

Yes SA has had a socialist government for too long, but it started when Hugh Stretton was on the consultant panel for the old SA Housing Trust.
[He wanted and even mix in all suburbs - but I think he lived in St Peters at the time and it wasn't going to happen there.]

SA has a socialist government???? I thought Mike Rann and the Laborals were in power.

[THE MOLE]

Im in my mid 20s, me and the misses bought a house in port noarlunga 6 months ago, that needed a lot of work, but we wanted to live near the beach and we could only afford a house that needed plenty of work. So we sacrificed getting the perfect house, for getting a house in the suburb we wanted.
After many hours working and trying to get the house how we wanted it, we are almost happy with how it is looking.
We decided that the best thing to do was to get started in the property market, and then plan for the future, instead of wanting it all now and getting ourselves in much more debt to the bank, which were offering us loans of over $500k.

[Dissident]

Im in my mid 20s, me and the misses bought a house in port noarlunga 6 months ago, that needed a lot of work, but we wanted to live near the beach and we could only afford a house that needed plenty of work. So we sacrificed getting the perfect house, for getting a house in the suburb we wanted.
After many hours working and trying to get the house how we wanted it, we are almost happy with how it is looking.
We decided that the best thing to do was to get started in the property market, and then plan for the future, instead of wanting it all now and getting ourselves in much more debt to the bank, which were offering us loans of over $500k.

Good way to be
You NEED to compromise if you want a house/property. Renting means you can get what you want, where you want. But getting something that is yours that you can fix up, or can do without some things on is the key. It will STILL go up in value.

[smac]

Spot on Diss - too many looking for the perfect house as their first house.

Like trying to buy a Porsche without going through a few Gemini's and Commodores first.

[silicone skyline]

I'm in the housing market, bought my first house for 130,000 in February, basic half masionette 3 bedroom, double garage, upgraded kitchen and bathroom.
I'm selling it now, it's worth 180,000.
I haven't done a thing to it.
That's alot of money in a short time.
I agree, start small, get bigger.
Look to invest in areas likely to boom, coastal or near mining exploration.