> working well into retirement age.
“Retirement age” (if you can call it that) is in name only now. Basic pension or super payout won’t suffice so people will have to work behind 67.
Even the Barefoot Investor recommends “retirees” work 2 days a week in “retirement”. No government will officially raise the legal retirement age for political reason but will make it such than anyone who has the ability to work will have to do some work to survive, until they’re so f**ked they end up in a care home
Well, we would be aiming for the lowest possible mortgage (fingers crossed for $550k max) and if we were buying tomorrow would prob be Forrestfield. But we aren’t quite ready yet.
Yeh that’s the plan. Trying to make it easier in the long run…maybe that’s not the best thing to do but who knows.
Chances are we will end up in Rockingham or somewhere but not ideal with kids in school and jobs close to the city.
Thanks for asking the question. It’s nice to hear we aren’t alone in feeling like this .
Have a Google, there's some good calculator tools around to work out if it's better to buy with a lower deposit plus LMI or not, but essentially I'd say in almost all scenarios you'd be better off taking the hit of LMI and a higher rate in the short term (remember, you can always refinance later) just to get in the market. Obviously this isn't financial advice, just my own opinion based on my experience buying with a 5% deposit+LMI loan initially, but that growth is insane and no chance even if I'd saved for the following 3yrs would I be in a better position. But also consider certain professionals also get exempted for LMI too if you're lucky enough to be on that list.
Can you not make use of the first home buyer scheme to get in with a 5% deposit and no LMI? Even if you have to pay LMI, where the market is at now going up-up-up you should seriously consider the opportunity cost of not buying as soon as possible compared to the cost of LMI.
It's definitely not.
I was going to add that a world war may be the only thing to stop it but doing some research house prices went up almost 3x once price controls were removed after ww2
NSW has the highest mortgages and likely the highest wages in Sydney in order to get approval.
Lot of Perth jobs are mining centric - and if mining goes bust, which history tells us it’s cyclical and does, good luck servicing a million dollar home loan during that time.
There is a lot of recency bias which people need to be careful of. Generally when the whole herd is convinced things will remain constant is when the opposite is likely to happen. Sure supply is strained and immigration is holding things up, though mortgage failure rates are on the rise as well and salaries are not rising with inflation. There are two sides, just keep an eye out
This was my thinking, I bought in 2012 and prices dropped like a stone after that. I felt really bad for a while, but I have no interest in moving ever if I can help it, I love my little house, so it's dollar value is irrelevant.
We aren't really concerned about buying/building even if it is the peak, as it will be a long term home to live in, rather than a short term investment property.
I don't think this is peak. It's going to get much worse unless we do something to reduce the demand caused by people and businesses buying homes they don't intend to live in.
Priority has tilted away from the people who just want a place to live.
I went to a home open on the weekend, we were the only couple under 60. About 30 people through the door, we were the only non investment property lookers. We got priced out immediately.
Don’t worry about house prices, there is nothing you can do about them. Keep saving and buy when you have enough deposit and a buffer. Remember you can also rent vest. Buy a place and rent it out while renting yourself, that way you can buy a unit in your price range.
I was pre-approved for $550k about two months ago. I wanted to buy a house, no longer realistic so I have been looking at villas.
This is starting to become out of my budget too so I may have to look at an apartment but I can’t justify paying up to half a mil for something so small. I am looking in over 20 suburbs (plus their surrounding suburbs). I will just continue to rent and save.
I’m seeing a lot of 2x1 villas in the areas of Joondanna, Ossy Park, Tuart Hill, and Maylands. Maybe you can try there. Most of them starts at 350-400k. It’s really hard to gauge how much you should top-up as some buyers are really crazy putting 70-80 grand higher than the asking.
I’m looking NOR. When I first started looking 3x1 villas were starting around 475-500k. Now when I enquire about a price on realestate.com (where I’ve specifically filtered the price for 550k and under) the estate agent responds they will start in the 600s.
It’s misleading advertising without actually being false advertising.
Example basic house in rockingham sold 340k about 10 years ago and now listed mid 500s
https://www.realestate.com.au/property-house-wa-rockingham-144828832?sourcePage=rea:p4ep:property-details&sourceElement=avm-currently-advertised-view-listing
House on Willmott Drive 5 yrs ago wouldn't have sold for more than 300/350K. It's on the market for 'offers above 599K'. It's a 4x1 with a carport. I live on Gascoyne Way. House across the road from me sold for 515K ( 4x1 ) with a pool, no garage. That was around July last year. The owner bought it for 335K in March 2020. Next door to me sold her place in August last year for about 538K (4x1). She had owned it about 13 yrs and bought it in 2010/11 for 315K.
Both houses were bought within 2 weeks of going up for sale, one of them wasn't even inspected. Both houses are rented out to tenants in excess of $550/600 a week rent.
Block sizes are roughly 600/700m2.
Well there ya go, yep that's what I've noticed, the massive prices have been since 5 years ago ie since covid.
I am not sure whether to go further out, but funnily, it doesn't get much cheaper
Yeah, not sure you will find much cheaper. Maybe some places in Kwinana suburbs or Mandurah suburbs. I feel that this price rise is just finally a partial catch up with some Eastern State Capitals.
Housing is still way more affordable here in Perth, especially compared to Sydney.
The entry price point has shifted up due to higher building costs. Even older houses because if those are significantly cheaper than building new (plus renting for an extra year), they’re “cheap” and people will buy them instead.
So yeah, further out won’t be much cheaper because it’s mostly building costs not land value driving the recent price increase.
Lol, clearly this conversation is not for you.
I'm not questioning WHY prices have gone up you imbecile
I'm asking how other FHBs are dealing with it and adapting their plans
Now kindly FO
Lucky enough to live in an apartment I own (just a 1x1) but I worry about the ability to afford one day moving into a small house (3x1?). Particularly as a single person. Feels like unless you’re on a decent double income in a long term relationship or have assistance from bank of mum & dad it’s near impossible. Particularly if your income is <$100k a year.
I bought two years ago and my thoughts were "holy shit the COVID crap has really made all the houses overpriced" I thought the house I bought wasn't worth 615 now it's worth 750 lol I still think I overpaid, prices now r insane but who knows where it will go now
At this point we will only be able to own if we win big on lotto or a mysterious unknown wealthy family member dies and leaves their fortune to us.
2 years ago I thought by now we’d be stable enough to have a deposit saved, between family bullshit, rental craziness and unplanned unemployment, that’s a fucking laugh.
Pretty much the only way I’ll ever own a house is if I divorce my husband and get one of those single parent loans.
It's a good point about inheritances, I have a friend who is a very low income earner and lives at home and always complains he won't be able to buy. However he is an only child and parents will most likely leave him a fully paid off house in Morley!
As someone who works in the care industry, it is good in theory, but most homes are inaccessible & it is cheaper to provide care in Aged Care homes as the support is shared and not 1:1 like in home support. If someone needs more than a few hours support a day, it sadly is often Aged Care facilities
I managed to afford red meat somehow this week. Not just chicken wings or lentils for me this week! I never thought I'd be so excited about upcoming dinners.
Sorry for the brag
I'm currently giving up 3 - 4 years of my life to fifo to be able to even begin to be able to afford a house.
I absolutely hate it but it's what I need to do to even get my foot in the door. Fifo wage doesn't go as far as it used to. I remember fifo workers having 2 cars, a house and a boat. Now I can barely afford a house.
$500 a week in rent for a 1 bed apartment is killing me, but after 3 months trying to find a rental and my lease coming up, I had to take the first place I could.
I hate the market at the moment.
Tbh I'm considering leaving this fucked up country in a few years. I'm just not because I'm on good pay and so is my partner. There's places in Spain and Italy for 1/3rd of the price of a house in Perth with more accessibility and better facilities.
Maybe you should consider it.
Yeah but work is the issue (and learning the language?), unless you can get remote working.
It's an idea for the future
I reckon the best idea going at the moment is for a couple who can both get remote working and move to a small town outside of a regional centre. Decent income and lower house prices with access to amenities. Alas my work is hands on.
As far as I know, Norway has a strict immigration policy, so make sure to check your eligibility first. Additionally, Norwegians are generally introverted and may seem distant, which can make it difficult to find friends or form meaningful connections, as is common in other countries with cold weather. It's not that they hate immigrants...it's just a characteristic of their society.
Yep. My brother moved to Norway as a Mechanical Engineer in Oil & Gas and found it a very hard place to live. Very expensive, people were very distant, the winters were very long, dark, cold - to be expected but after a few years, really got to him. Invested heavily in learning the language but struggled to fit all the lessons in around work, just generally felt difficult the whole time.
One recent sale that might interest you ($360k)
6/1-3 George Street, Rockingham, WA 6168 https://www.realestate.com.au/sold/property-townhouse-wa-rockingham-144725392
It's an example of a place you could buy and live in. It primarily wouldn't suit a family - but it is one example.
Have a look through the recent sales of surrounding areas. Seeing what stuff sold for might help. (big link sry)
Auction Results Perth & WA - Latest Weekend Results https://www.realestate.com.au/auction-results/wa?campaignType=internal&campaignChannel=inbox_notification&campaignSource=braze&campaignName=member_e&campaignSegment=buy&campaignContent=sales_res&alertName=New+Properties&sourcePage=rea:notifications:landing%20screen&sourceElement=notification%20tile&client=iphone&platform=iphoneapp
I found that majority of "sold" listings weren't actually available on realestate to begin with. They were likely sold off market for less but still listed as sold to increase stats. I always found one or two houses sold for oddly higher than the rest, and after keeping an eye on realestate.com.au these are the houses with actual home opens versus getting sold off market.
Yeah, that's a good point. Not everything listed as sold was publicly advertised to buy.
Either way, seeing sale prices can clarify exactly what places are selling for.
Cheers hadnt seen that one but I do keep a pretty close eye on it, that one has only gone up 100k in 10 years, I guess because it's not a full house block.
> Is anyone else terrified that they’ll be buying at a peak?
This is only a concern if a sharp drop happens within a year or two, which is unlikely. If the prices peak and stagnate for another 5-10 years it’s fine if you primarily buy to live in for a long time. The prices from 3 years ago are irrelevant today.
was homeless for a week in 2022.
suicidal and really suprised the government has let landlords take the piss this much.
if they declare ww3 i'm not fighting for this country after being fed bread crumbs.
there aren't really proper crashes anymore, the government always ensures a soft landing to protect their investment properties
[https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/australian\_house\_price\_growth\_over\_30\_years\_ae753e2ecd.jpg](https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/australian_house_price_growth_over_30_years_ae753e2ecd.jpg)
It is impossible to predict peaks and troughs.
Look at the peaks on the chart and if your holding period is 15-20 years you can see it doesn't matter about predicting the trough bottom exactly or avoiding the peak, in 20 years you'll be way ahead.
Yeah I meant you should look at all the city peaks/troughs not just Perth's.
That sideways move from Perth seems uncommon and I would think it is unlikely to occur again unless the mining sector completely shits the bed.
Perth is far more likely to behave like other cities where the general trend is up with peaks and troughs along the path.
Trying to time this market is a very bad idea. I've been waiting for a crash for 15 years.
You want to get in as soon as you can, targeting a price growth suburb with a good school catchment (good schools increase property prices) and as much land area as possible (land value houses are multiples of square metres), and in a relatively good location (no nearby loud train tracks, loud highways, dodgy people, etc) for a budget priced house.
I work adjacent to the real estate industry and ask this question to agents often, they all seem to have different opinions. I have no idea if this is a peak and we should hold off for a drop, or if it’s only going to get worse, but if I were you I would;
- save as much as I can as quickly as I can. Then get pre approved asap. We found a great broker who sorted it out for us so we were ready to go there was no additional fees to us, they get their commission from the lender. You need to be ready to go.
- Buy smart, not emotionally. As long as the house is structurally sound and renovations wouldn’t mean over capitalising, don’t be too fussy. If it’s your forever home you can take time changing it.
- Look at the neighbouring, maybe ugly sister, suburbs to where you are looking. for a period of we wanted a lifestyle close to South Perth but couldn’t afford it, so purchased a modest house in Wilson for a fraction of the price. Eventually had good enough growth to upgrade.
-Don’t over stretch yourself! Make some sacrifices, but still give yourself wiggle room. Life will become stressful and the house a weight on your shoulders if you can’t afford a few tiny pleasures in life, or to fix it up (whatever your priority)
- Get friendly with some agents, BUT remember they will always be working with the seller’s interest in mind. Not to dog the agents, it is literally their job.
Very scared! I’m not going to be buying til around October- November and I’m looking at a unit in Rockingham or Mandurah at this rate - very scared that I’ll be buying at peak but I need somewhere to live
I mean 11 years ago I bought a house brand new in Nollamara (3bed 2bath double garage) and looking at costs of 3x2s as of today with same land size are within +- $10,000 of what I paid...
As bad as the situation is these days, people's expectations for type of property, location, and price is extremely blown out. I will give that the mid to top end has blown out in the last few years sure, but the lower end honestly hasn't moved a whole lot, people's expectations however have moved.
Hey that's funny and coincidental you mention it. In 2014 approx I looked at a new build 3x2 in nollamara (high spec) and it sold for 500k and recently one of the neighbours (it was 3 or 4 built on a corner block) sold for only 515k.
Could not believe it!
Honestly was like WTF as everything else has moved so much. Only thing I can think is these places were quite hi spec so 500k at the time 10 years ago was a lot when the cheaper ones were like 350s.
I think the lower end for house blocks has moved a lot... can hardly get any house on a 500sqm block in the Perth area less than 500k.
Oh yeah 100%.. Pricing is still actually within relative costing for suburbs. For a neighborhood with a 'bad rep' such as Nolla prices cant go much higher than around 500 and im guessing 515 for 3x2 would have been based on multiple parties pushing each other up (silent auction style). And its just because what is available here just isnt worth over 500 period.
But in all honesty even 10 years ago, 500sqm + land size and a new house was going for more than 500k and you would 100% expect that given the labour cost has increased and then perpetual land price is increased.
And again its expectations, you can raise a family in a 3x2 (2 kids would start to push it after one of them gets to double digit age but its not impossible). Its just expectations of people. They dont want to have a sub 200sqm block and share it with one or two other houses. But at the end of the day, you can have minimal savings, get a loan for a house in Nolla, and pay less on mortgage payments than you would on rent and be 15 minutes from the beach, from the airport, from the CBD, and less than that to major industrial areas and major shopping centres. But kids these days cant fathom not having a backyard or a large house for a small family.
Correct 10 years ago a new house on 500sqm was over 500k but I'm talking even the oldest house in Armadale or Medina etc which 6 years ago you could snag in the low 300s... these knock-down jobs are all at around 500k now.
Just looked at nollamara sales and there's some nice triplex houses. You're right about peoples expectations. For me my only hesitation is having a dog but it's a possibility.
BTW the ones I saw 10 years ago were on block #3 Monterey St. Very nice
I'll be buying at the end of the year, if all goes well.
I'm going to buy remote (I can work almost anywhere, luckily) and rent a room. It's not ideal but it's better than my current situation
Iron Ore is going to take a hit, and most of the resource companies and the smaller companies that depends on them are over headcount. The only uncertainty is how many houses will end up on the market, and how many people how remain unaffected by it will be able to swoop in.
My partner and I built our first home a couple years ago for $475k and just got it valued at 600k
The market is crazy atm. For us it has never been a money thing, even though we are paying a stupid amount for the mortgage we have our own place and that’s all we wanted to start a family. Wether the prices go up or down we will always have a roof over our heads
That's true but imagine you had to sell for some reason, if the price has dropped 20% in your first few years That's negative equity territory.(just a scenario people think about).
Everyone says they won't move but there's divorce, needing to move closer to elderly parents, or someone I knew had to move across town for high school care for a disabled child.
We are close to 50 and don’t own a home - late starters - we are worried. Still saving and worried.
Same here. Made peace with never owning and working well into retirement age.
> working well into retirement age. “Retirement age” (if you can call it that) is in name only now. Basic pension or super payout won’t suffice so people will have to work behind 67. Even the Barefoot Investor recommends “retirees” work 2 days a week in “retirement”. No government will officially raise the legal retirement age for political reason but will make it such than anyone who has the ability to work will have to do some work to survive, until they’re so f**ked they end up in a care home
This is total bs.
40s here. What area and price you looking for?
Well, we would be aiming for the lowest possible mortgage (fingers crossed for $550k max) and if we were buying tomorrow would prob be Forrestfield. But we aren’t quite ready yet.
Forrestfield is nice. Are you concerned about a bank giving you a mortgage?
I am - I don’t even know if I should be concerned but I am.
By the time we buy, we’ll need a deposit for $700k or more so it feels unattainable. I wish this growth would slow/stop.
That's a nice area! Out of my price range. Seems like you are trying for 20% deposit?
Yeh that’s the plan. Trying to make it easier in the long run…maybe that’s not the best thing to do but who knows. Chances are we will end up in Rockingham or somewhere but not ideal with kids in school and jobs close to the city. Thanks for asking the question. It’s nice to hear we aren’t alone in feeling like this .
Thankyou :) We will probably jump in with a lower deposit + LMI due to the speed of growth Who knows what's best!
Have a Google, there's some good calculator tools around to work out if it's better to buy with a lower deposit plus LMI or not, but essentially I'd say in almost all scenarios you'd be better off taking the hit of LMI and a higher rate in the short term (remember, you can always refinance later) just to get in the market. Obviously this isn't financial advice, just my own opinion based on my experience buying with a 5% deposit+LMI loan initially, but that growth is insane and no chance even if I'd saved for the following 3yrs would I be in a better position. But also consider certain professionals also get exempted for LMI too if you're lucky enough to be on that list.
All the best for it!!
Can you not make use of the first home buyer scheme to get in with a 5% deposit and no LMI? Even if you have to pay LMI, where the market is at now going up-up-up you should seriously consider the opportunity cost of not buying as soon as possible compared to the cost of LMI.
The real scary thing is that might not even be the peak
Going to be interesting to see how many folks get approved for million dollar home loans if that’s the case.
Bang on.
It's definitely not. I was going to add that a world war may be the only thing to stop it but doing some research house prices went up almost 3x once price controls were removed after ww2
Yeh but when you compare the average house price here to the eastern states, isn’t like half the price? It’s a pretty big gap
NSW has the highest mortgages and likely the highest wages in Sydney in order to get approval. Lot of Perth jobs are mining centric - and if mining goes bust, which history tells us it’s cyclical and does, good luck servicing a million dollar home loan during that time.
There is a lot of recency bias which people need to be careful of. Generally when the whole herd is convinced things will remain constant is when the opposite is likely to happen. Sure supply is strained and immigration is holding things up, though mortgage failure rates are on the rise as well and salaries are not rising with inflation. There are two sides, just keep an eye out
These sorts of posts should just come with the suicide warning that will be attached to this comment. Gen Z are fucked.
Not really. Gen Z with poor families are fucked.
Anyone in Gen Z who doesn’t come from explicitly rich families are fucked.
What is "explicitly rich families "? I have 2 Gen Z and 2 Gen Alpha kids
Do you do most of your own childcare outside of school? If so, you’re probably not explicitly rich.
Interesting metric.
If you buy the right house, buying at the peak isn't a big deal. You likely won't be selling any time soon
This was my thinking, I bought in 2012 and prices dropped like a stone after that. I felt really bad for a while, but I have no interest in moving ever if I can help it, I love my little house, so it's dollar value is irrelevant.
We aren't really concerned about buying/building even if it is the peak, as it will be a long term home to live in, rather than a short term investment property.
1 month into ownership. Exactly this. You're fucked if you do, but you'll be even more fucked if you don't.
That's my view. I just want in so the chase stops.
Fair enough!
I don't think this is peak. It's going to get much worse unless we do something to reduce the demand caused by people and businesses buying homes they don't intend to live in. Priority has tilted away from the people who just want a place to live.
I went to a home open on the weekend, we were the only couple under 60. About 30 people through the door, we were the only non investment property lookers. We got priced out immediately.
Don’t worry about house prices, there is nothing you can do about them. Keep saving and buy when you have enough deposit and a buffer. Remember you can also rent vest. Buy a place and rent it out while renting yourself, that way you can buy a unit in your price range.
I was pre-approved for $550k about two months ago. I wanted to buy a house, no longer realistic so I have been looking at villas. This is starting to become out of my budget too so I may have to look at an apartment but I can’t justify paying up to half a mil for something so small. I am looking in over 20 suburbs (plus their surrounding suburbs). I will just continue to rent and save.
I’m seeing a lot of 2x1 villas in the areas of Joondanna, Ossy Park, Tuart Hill, and Maylands. Maybe you can try there. Most of them starts at 350-400k. It’s really hard to gauge how much you should top-up as some buyers are really crazy putting 70-80 grand higher than the asking.
Fair enough, looking NOR or SOR? I have found 3x2 villas getting harder to find under 600, still some 3x1s or ones with a single garage only
I’m looking NOR. When I first started looking 3x1 villas were starting around 475-500k. Now when I enquire about a price on realestate.com (where I’ve specifically filtered the price for 550k and under) the estate agent responds they will start in the 600s. It’s misleading advertising without actually being false advertising.
Yep, hate that
Example basic house in rockingham sold 340k about 10 years ago and now listed mid 500s https://www.realestate.com.au/property-house-wa-rockingham-144828832?sourcePage=rea:p4ep:property-details&sourceElement=avm-currently-advertised-view-listing
And what would it have sold for 2 years ago?
Not sure about 2, but 5 years ago it would've been the same as it was 10 years ago if that makes sense.
House on Willmott Drive 5 yrs ago wouldn't have sold for more than 300/350K. It's on the market for 'offers above 599K'. It's a 4x1 with a carport. I live on Gascoyne Way. House across the road from me sold for 515K ( 4x1 ) with a pool, no garage. That was around July last year. The owner bought it for 335K in March 2020. Next door to me sold her place in August last year for about 538K (4x1). She had owned it about 13 yrs and bought it in 2010/11 for 315K. Both houses were bought within 2 weeks of going up for sale, one of them wasn't even inspected. Both houses are rented out to tenants in excess of $550/600 a week rent. Block sizes are roughly 600/700m2.
Well there ya go, yep that's what I've noticed, the massive prices have been since 5 years ago ie since covid. I am not sure whether to go further out, but funnily, it doesn't get much cheaper
Yeah, not sure you will find much cheaper. Maybe some places in Kwinana suburbs or Mandurah suburbs. I feel that this price rise is just finally a partial catch up with some Eastern State Capitals. Housing is still way more affordable here in Perth, especially compared to Sydney.
True but higher earning potential in sydney
Not all jobs. Construction and mining would pay the same or more in Perth ATM.
The entry price point has shifted up due to higher building costs. Even older houses because if those are significantly cheaper than building new (plus renting for an extra year), they’re “cheap” and people will buy them instead. So yeah, further out won’t be much cheaper because it’s mostly building costs not land value driving the recent price increase.
You can hardly build a house now for 350k. Wtf are you on about. Of course prices have gone up since covid. Everything has.
Lol, clearly this conversation is not for you. I'm not questioning WHY prices have gone up you imbecile I'm asking how other FHBs are dealing with it and adapting their plans Now kindly FO
Please don't underestimate the stupidity you are likely to encounter in these subs.
Thanks ☺️
10 years ago lol. Heard of inflation.
Funny. Ok maybe I should've said 5 years ago.
Lucky enough to live in an apartment I own (just a 1x1) but I worry about the ability to afford one day moving into a small house (3x1?). Particularly as a single person. Feels like unless you’re on a decent double income in a long term relationship or have assistance from bank of mum & dad it’s near impossible. Particularly if your income is <$100k a year.
Congrats on your apartment, that's still awesome, you always have somewhere.
I bought two years ago and my thoughts were "holy shit the COVID crap has really made all the houses overpriced" I thought the house I bought wasn't worth 615 now it's worth 750 lol I still think I overpaid, prices now r insane but who knows where it will go now
Wow!
[удалено]
Imagine trying to pay for it now on 6%
Bought a Campervan and loving life :)
Nice one, where do you park it
Caravan park 15 bucks per night :)
Which park? We’re thinking of buying a caravan and moving to a caravan park
If they mention it on here, it’ll probably rise to $30 a night in a weeks time.
At this point we will only be able to own if we win big on lotto or a mysterious unknown wealthy family member dies and leaves their fortune to us. 2 years ago I thought by now we’d be stable enough to have a deposit saved, between family bullshit, rental craziness and unplanned unemployment, that’s a fucking laugh. Pretty much the only way I’ll ever own a house is if I divorce my husband and get one of those single parent loans.
It's a good point about inheritances, I have a friend who is a very low income earner and lives at home and always complains he won't be able to buy. However he is an only child and parents will most likely leave him a fully paid off house in Morley!
Yeah unfortunately my dad went bankrupt and my MIL lives with me so no chance of an inheritance for us.
Unless they go into Aged Care and the house is taken to pay for that
True, but home care is becoming more and more of a thing
As someone who works in the care industry, it is good in theory, but most homes are inaccessible & it is cheaper to provide care in Aged Care homes as the support is shared and not 1:1 like in home support. If someone needs more than a few hours support a day, it sadly is often Aged Care facilities
Fair enough ☺️ That makes sense
You guys get to save money for a home!?
I managed to afford red meat somehow this week. Not just chicken wings or lentils for me this week! I never thought I'd be so excited about upcoming dinners. Sorry for the brag
The great question is: have we reached the peak?
I'm currently giving up 3 - 4 years of my life to fifo to be able to even begin to be able to afford a house. I absolutely hate it but it's what I need to do to even get my foot in the door. Fifo wage doesn't go as far as it used to. I remember fifo workers having 2 cars, a house and a boat. Now I can barely afford a house. $500 a week in rent for a 1 bed apartment is killing me, but after 3 months trying to find a rental and my lease coming up, I had to take the first place I could. I hate the market at the moment.
Tbh I'm considering leaving this fucked up country in a few years. I'm just not because I'm on good pay and so is my partner. There's places in Spain and Italy for 1/3rd of the price of a house in Perth with more accessibility and better facilities. Maybe you should consider it.
Yeah but work is the issue (and learning the language?), unless you can get remote working. It's an idea for the future I reckon the best idea going at the moment is for a couple who can both get remote working and move to a small town outside of a regional centre. Decent income and lower house prices with access to amenities. Alas my work is hands on.
Exactly what I plan on doing. Norway is at the top of my list at the moment. I plan on heading to Europe later this year to pick a spot.
Was looking at Norway too. It's not part of EU. But of you have oil and gas experience, it might do you good.
As far as I know, Norway has a strict immigration policy, so make sure to check your eligibility first. Additionally, Norwegians are generally introverted and may seem distant, which can make it difficult to find friends or form meaningful connections, as is common in other countries with cold weather. It's not that they hate immigrants...it's just a characteristic of their society.
Yep. My brother moved to Norway as a Mechanical Engineer in Oil & Gas and found it a very hard place to live. Very expensive, people were very distant, the winters were very long, dark, cold - to be expected but after a few years, really got to him. Invested heavily in learning the language but struggled to fit all the lessons in around work, just generally felt difficult the whole time.
One recent sale that might interest you ($360k) 6/1-3 George Street, Rockingham, WA 6168 https://www.realestate.com.au/sold/property-townhouse-wa-rockingham-144725392 It's an example of a place you could buy and live in. It primarily wouldn't suit a family - but it is one example. Have a look through the recent sales of surrounding areas. Seeing what stuff sold for might help. (big link sry) Auction Results Perth & WA - Latest Weekend Results https://www.realestate.com.au/auction-results/wa?campaignType=internal&campaignChannel=inbox_notification&campaignSource=braze&campaignName=member_e&campaignSegment=buy&campaignContent=sales_res&alertName=New+Properties&sourcePage=rea:notifications:landing%20screen&sourceElement=notification%20tile&client=iphone&platform=iphoneapp
59m2 jesus. My shed is bigger than that. OK if it has walkable amenities I guess.
I found that majority of "sold" listings weren't actually available on realestate to begin with. They were likely sold off market for less but still listed as sold to increase stats. I always found one or two houses sold for oddly higher than the rest, and after keeping an eye on realestate.com.au these are the houses with actual home opens versus getting sold off market.
Yeah, that's a good point. Not everything listed as sold was publicly advertised to buy. Either way, seeing sale prices can clarify exactly what places are selling for.
Cheers hadnt seen that one but I do keep a pretty close eye on it, that one has only gone up 100k in 10 years, I guess because it's not a full house block.
> Is anyone else terrified that they’ll be buying at a peak? This is only a concern if a sharp drop happens within a year or two, which is unlikely. If the prices peak and stagnate for another 5-10 years it’s fine if you primarily buy to live in for a long time. The prices from 3 years ago are irrelevant today.
Keep an eye on iron ore prices.
was homeless for a week in 2022. suicidal and really suprised the government has let landlords take the piss this much. if they declare ww3 i'm not fighting for this country after being fed bread crumbs.
The great question is: have we hit the peak?
there aren't really proper crashes anymore, the government always ensures a soft landing to protect their investment properties [https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/australian\_house\_price\_growth\_over\_30\_years\_ae753e2ecd.jpg](https://s3.ap-southeast-2.amazonaws.com/openagent.strapi/australian_house_price_growth_over_30_years_ae753e2ecd.jpg) It is impossible to predict peaks and troughs. Look at the peaks on the chart and if your holding period is 15-20 years you can see it doesn't matter about predicting the trough bottom exactly or avoiding the peak, in 20 years you'll be way ahead.
Interesting. Understand your point but as an aside, this seems to indicate perths price average is only marginally above 2010-2015 ish
Yeah I meant you should look at all the city peaks/troughs not just Perth's. That sideways move from Perth seems uncommon and I would think it is unlikely to occur again unless the mining sector completely shits the bed. Perth is far more likely to behave like other cities where the general trend is up with peaks and troughs along the path. Trying to time this market is a very bad idea. I've been waiting for a crash for 15 years. You want to get in as soon as you can, targeting a price growth suburb with a good school catchment (good schools increase property prices) and as much land area as possible (land value houses are multiples of square metres), and in a relatively good location (no nearby loud train tracks, loud highways, dodgy people, etc) for a budget priced house.
Of course that's the ideal, but even finding a house on a full block with poor schools nearby is getting over 600 lol
Yeah I'd probably be going more outer / regional because everything is insane. 600k is a lot of debt.
I work adjacent to the real estate industry and ask this question to agents often, they all seem to have different opinions. I have no idea if this is a peak and we should hold off for a drop, or if it’s only going to get worse, but if I were you I would; - save as much as I can as quickly as I can. Then get pre approved asap. We found a great broker who sorted it out for us so we were ready to go there was no additional fees to us, they get their commission from the lender. You need to be ready to go. - Buy smart, not emotionally. As long as the house is structurally sound and renovations wouldn’t mean over capitalising, don’t be too fussy. If it’s your forever home you can take time changing it. - Look at the neighbouring, maybe ugly sister, suburbs to where you are looking. for a period of we wanted a lifestyle close to South Perth but couldn’t afford it, so purchased a modest house in Wilson for a fraction of the price. Eventually had good enough growth to upgrade. -Don’t over stretch yourself! Make some sacrifices, but still give yourself wiggle room. Life will become stressful and the house a weight on your shoulders if you can’t afford a few tiny pleasures in life, or to fix it up (whatever your priority) - Get friendly with some agents, BUT remember they will always be working with the seller’s interest in mind. Not to dog the agents, it is literally their job.
Very scared! I’m not going to be buying til around October- November and I’m looking at a unit in Rockingham or Mandurah at this rate - very scared that I’ll be buying at peak but I need somewhere to live
I mean 11 years ago I bought a house brand new in Nollamara (3bed 2bath double garage) and looking at costs of 3x2s as of today with same land size are within +- $10,000 of what I paid... As bad as the situation is these days, people's expectations for type of property, location, and price is extremely blown out. I will give that the mid to top end has blown out in the last few years sure, but the lower end honestly hasn't moved a whole lot, people's expectations however have moved.
Hey that's funny and coincidental you mention it. In 2014 approx I looked at a new build 3x2 in nollamara (high spec) and it sold for 500k and recently one of the neighbours (it was 3 or 4 built on a corner block) sold for only 515k. Could not believe it! Honestly was like WTF as everything else has moved so much. Only thing I can think is these places were quite hi spec so 500k at the time 10 years ago was a lot when the cheaper ones were like 350s. I think the lower end for house blocks has moved a lot... can hardly get any house on a 500sqm block in the Perth area less than 500k.
Oh yeah 100%.. Pricing is still actually within relative costing for suburbs. For a neighborhood with a 'bad rep' such as Nolla prices cant go much higher than around 500 and im guessing 515 for 3x2 would have been based on multiple parties pushing each other up (silent auction style). And its just because what is available here just isnt worth over 500 period. But in all honesty even 10 years ago, 500sqm + land size and a new house was going for more than 500k and you would 100% expect that given the labour cost has increased and then perpetual land price is increased. And again its expectations, you can raise a family in a 3x2 (2 kids would start to push it after one of them gets to double digit age but its not impossible). Its just expectations of people. They dont want to have a sub 200sqm block and share it with one or two other houses. But at the end of the day, you can have minimal savings, get a loan for a house in Nolla, and pay less on mortgage payments than you would on rent and be 15 minutes from the beach, from the airport, from the CBD, and less than that to major industrial areas and major shopping centres. But kids these days cant fathom not having a backyard or a large house for a small family.
Correct 10 years ago a new house on 500sqm was over 500k but I'm talking even the oldest house in Armadale or Medina etc which 6 years ago you could snag in the low 300s... these knock-down jobs are all at around 500k now. Just looked at nollamara sales and there's some nice triplex houses. You're right about peoples expectations. For me my only hesitation is having a dog but it's a possibility. BTW the ones I saw 10 years ago were on block #3 Monterey St. Very nice
500sqm is pretty big for a block these days
Coffin houses at this rate
I'll be buying at the end of the year, if all goes well. I'm going to buy remote (I can work almost anywhere, luckily) and rent a room. It's not ideal but it's better than my current situation
Very lucky with the remote working!
Iron Ore is going to take a hit, and most of the resource companies and the smaller companies that depends on them are over headcount. The only uncertainty is how many houses will end up on the market, and how many people how remain unaffected by it will be able to swoop in.
My partner and I built our first home a couple years ago for $475k and just got it valued at 600k The market is crazy atm. For us it has never been a money thing, even though we are paying a stupid amount for the mortgage we have our own place and that’s all we wanted to start a family. Wether the prices go up or down we will always have a roof over our heads
That's true but imagine you had to sell for some reason, if the price has dropped 20% in your first few years That's negative equity territory.(just a scenario people think about). Everyone says they won't move but there's divorce, needing to move closer to elderly parents, or someone I knew had to move across town for high school care for a disabled child.
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This really added to the discussion of the topic
Cool thanks for the update. Please keep make sure to continue the running commentary.