waves are pumping!! surfed padang padang really good yesterday and the sarvo is on again aswell!!
Did you go to mentawai island, bro?
Enjoy bro
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waves are pumping!! surfed padang padang really good yesterday and the sarvo is on again aswell!!
Keep saving, no rush.
Trey. Sounds like you are scared of a little dept.. My parents tried to teach me similar values "buy a house, pay it off as quickly as possible & borrow as little as possible". Do some more reading as everyone has said and you may change your mind.. As you know, your money is doing very little sitting there in your bank account.
I am Gen-Y also (just turned 25). Throughout my apprenticeship I worked often 18+ hour days saving up $90k before I turned 21. At which point I bought my first home. That home is now worth roughly $50k more than what I paid. I now have 2 properties and a total dept of around $720k.. Sounds like alot of money.. But then again the total value is around $950,000 & both properties have good, reliable tenants that pay for the majority of monthly repayments so i'm far from worried
Do your research, invest within your comfort zone and don't be frightened of a little dept! Well done on the savings though, use it wisely!
the way i see it is Perth is 100% fuelled of the mining boom but not only that mainly the fifo construction industry. At the moment there is three big oil and gas construction projects in WA. Gorgon, wheastone and Inpex at Darwin. The thing is these 1000s of jobs which have been created because of these projects arent going to last forever. Gorgon atm has 6 -7000 on site and thousands of jobs in Perth but once its finished within the next 3 years it will only need 300 people to maintain and run the plant.
I think there would be a lot of guys families out there who's mortgage costs and living exspensives are suited to there fifo job and once that is over. things could slide down hill very quickly which will affect the whole of the economy.
im not sure where you pulled this from "I always wonder how young kids on 200k in the mines without any or little qualifications" that is extremely rare.
im going to be a bit controversial, but the general consensus is that good debt is good,
that being said its not for everyone
Well that hardly needs to be said.. I'm not exactly going to be advocating personal loans or pushing ripper finace deals on a new HSV in a property investment forum..
In regards to potential market crash or loss of tenants, I'm happy to take that risk as I'm sure you are also.. I can bet Joe Blow wishes he overcome those fears of investing his hard earned cash into numerous properties 20 years ago rather than sit on a pile of cash or the outright owned PPOR..
Anyway, I'm not one to give advice just yet. I have next to no knowledge or experience in comparison to majority here so prefer to take note of all the valuable info/posts instead
I am Gen-Y also (just turned 25). Throughout my apprenticeship I worked often 18+ hour days saving up $90k before I turned 21. At which point I bought my first home. That home is now worth roughly $50k more than what I paid. I now have 2 properties and a total dept of around $720k..
it doesnt work like that, even in 2000s, the affordability according to your argument wasnt great at all,It amazes me that seasoned property investors (of which I am one) will gladly accept that we have seen tremendous growth over the last decade but then try and deny that this growth has created affordability issues for those starting out.
When I bought my first house in 2000 it cost 3 times my salary at the time.
The same house sold recently for 6 times the salary of the same job that I was doing when I bought it.
This house is now less affordable to a first home buyer.
Some young people were too lazy to buy a house back then just the same as some are now. That's irrelevant.
The underlying factor that cant be disputed is that house price growth has outpaced wages growth considerably so there is obviously a valid argument in regards to housing being less affordable.
RC
Well, no.
The same house may well have jumped up into a higher desirable bracket due to population growth/demand/supply deficit.
Ever so slowly the FHB's have to start a little further out as a city grows.
Can't expect to pick up first home in the same place a decade and half later.
That's the whole point see.
it doesnt work like that, even in 2000s, the affordability according to your argument wasnt great at all,
as population gets bigger, people have to move further and further out, also we need to spend more then 20 years ago, eg tablets, phones, foxtel,
also the mentatlity of keeping up with the jones, with a backyard, 3 bdr for a 3 member family, and within 25 km from the city
its only less affordable if your expectations are too high, people can still get a house in melton for $250k in melbournes west or even or $400k in boronia, at $80k income for example, thats 3-5 years salary before tax, and combine that with double income no kids, you could afford some of these houses in 2 years! (wouldnt that be good converstaions with friends over dinner, "hey we bought our first freestanding PPOR house in 2012, and we've paid it off already, when he earns $80k, and I earn $65k)
btw. what sort of a property could you have boguht for 3 times your salary in 2000, unless you were getting paid very well or if you werent a FHOB
Ahh so property is still affordable as long as you send your wife to work, have no kids, live in a less desirable area and cut back to two meals a day.
You've just proven that property is less affordable and these are the symptoms.
RC
are you serious?!?!?!
where did I say any of that garbage?
it may come as a surprise to you, but people have kids these days as well, and maternity and parental leave is more available today which makes your point even more moot
Youve just proven that your argument was flawed, and now you are exaggerating to try and cover your tracks,
congratulations
btw. what sort of a property could you have boguht for 3 times your salary in 2000, unless you were getting paid very well or if you werent a FHOB
Let me put it another way.
Say 10 years ago x% of my salary in a particular occupation would buy me a new Holden Commodore.
Same occupation today x% of my salary only buys me a secondhand Datsun 180B.
So I can either buy a Datsun 180B or I can send my Wife to work and between us we can get a new Holden Commodore.
Just because we are still able to buy a car (house) today doesn't mean it's as affordable as it was 10 years ago.
RC
BTW this has nothing to do with cars.
Let me put it another way.
Say 10 years ago x% of my salary in a particular occupation would buy me a new Holden Commodore.
Same occupation today x% of my salary only buys me a secondhand Datsun 180B.
So I can either buy a Datsun 180B or I can send my Wife to work and between us we can get a new Holden Commodore.
Just because we are still able to buy a car (house) today doesn't mean it's as affordable as it was 10 years ago.
RC
BTW this has nothing to do with cars.
I was a first home buyer on a low income and the house that cost 3 times my salary was a small but comfortable three bedroom house in a reasonable area.
What does 3 times the median wage get you now in any given area ?
A block of land maybe.
But...but.. they could still afford a tent!
RC
When I bought my first ppor in 2004 it was 7.5 times my gross salary.
When i bought my 2nd ppor in 2012 it was 4.7 times my gross salary and is less km from the cbd.
So by your definition, houses in Perth are getting cheaper?