And don"t forget the Barista cappucino on the way to work and...

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Megane

307 Posts.

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12/05/19

18:34

Post #: 38526775
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Originally posted by boatboy: ↑

Lets be honest here...it is a whole lot easier for any kid to buy a house these days...if they really want to. Put aside the "Uber" deliveries every night and the weekly big night out.

When i bought my first house in 1980 it cost me $32,500.00. I had two kids already and had to come up with 10% deposit, (a third of the annual income), and the interest rate was around 10% I also had to take out Lenders Mortgage Insurance to "protect": the Bank, and pay Stamp Duty.
I worked two jobs, a day job and a night job while my wife stayed home and looked after the babies. No Child Care at a huge additional expense required.or necessary!

The average annual wage then was around $10k, so the price of my modest 3 bed 1 bath home on a 640m2 block with just one "lounge" and an "eat in" kitchen with a single car carport was just over 3 times average annual salary.

Annual average salary in 2018 was around $80k, a couple can buy a modest home like my first home for maybe 4 times average salary. Fair enough given all the lefties always want more pay and fewer hours for the same amount of work.

And you know what has really upped the price? The up front charges Councils impose on developers to market a serviced block of land. Developers are paying upwards of $60k per block to the Councils before they put in roads and services.
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The old rule used to be that the house would be at least the same as but no more than double the land price..houses have not gone up at all...it is the flippin land that is all of a sudden covered in gold!

You can easily build a 3 bed 1 bath home for way less than $200k, it is the land price that kills...thanks to local Governments ripping off the purchaser....and the old "location, location, location rule where everybody wants water views.

That aside, why do first home buyers today really need a 5 bedroom, 3 bathroom mcmansion with a TV room, games room and at least a double garage for their first home?

There is an old proverb..."live within your means".

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And don"t forget the Barista cappucino on the way to work and smash avocado for brekky. No wonder avocado became a luxury vege.
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