Australia housing bubble

[Bossxr8]

Originally Posted by leesa

That's a nice notion but it probably won't happen like that. Your house will more likely be sold to pay for your stay in a nursing home when you're no longer able to take care of yourself at home.
Unless you die suddenly or maintain your faculties long enough that you won't need someone to care for you, your power of attorney will probably sell your house to pay for your care until your end of life, which usually costs hundreds of thousands of dollars.

That’s ok. The house will probably be worth $3 million by then due to inflation and the rising house prices, so my kids still get a good pay day

[Citroënbender]

I can see irony on both sides of this.

The Refundable Accommodation Deposit (RAD) for aged care is pretty big, I'm looking at 2×300K minimum within the next few (2-3) years, plus another $100K/yr fees. Easy to raise the RAD by selling up the principal dwelling, but it leaves the balance imperilled - will earn SFA in term deposits and I'm not sure whether it could be reinvested in lesser value property to bring a rental return that covered the ongoing care fees.

Personally I'd like to own more property, not heavily geared, and if the market goes belly-up I've got friends who would make good tenants on a "fair cop" basis - totally not profiteering. And they're true friends, so if push came to shove and they were destitute, I'd do my best to wear it.

[Franco Cozzo]

Originally Posted by Bossxr8

That’s ok. The house will probably be worth $3 million by then due to inflation and the rising house prices, so my kids still get a good pay day

Minimum chips at the fish and chip shop would probably be $1750 by then though

[Citroënbender]

They'll be "artisan fries", made from a potato strain genetically traced to the First Fleet, grown in alluvial soils high with trace elements and certified free from pesticides, and the oil will be hand pressings from free range canola seeds. And even at $1750/serve people will be putting them on tick and whining about housing affordability.

[zilo]

Just have the will say if you get dementia the house goes to the kids.

No house no money...you still get into a nursing home....they want money if they can get it...but if it aint there it aint there...

they just take all your pension cheques.....problem solved.

[John 13]

Originally Posted by pottery beige

a crazy cat lady will feed me cat food .?

Check out the supermarkets, often tinned sardines and sandwich tuna (from where ever) are cheaper than tinned cat food. Cat eats them just the same, however we don't !

[hayseed]

Originally Posted by John 13

Check out the supermarkets, often tinned sardines and sandwich tuna (from where ever) are cheaper than tinned cat food. Cat eats them just the same, however we don't !

Anybody selling Anything Pet related is the same as anyone involved in the Wedding or Funeral Industry...

They all charge a Massive Emotional Tax ...

[b0son]

Originally Posted by hayseed

Anybody selling Anything Pet related is the same as anyone involved in the Wedding or Funeral Industry...

They all charge a Massive Emotional Tax ...

Because people are willing to pay.

Look at the explosion in mobile dog-washing businesses. There was a time you'd just hit the mutt with the hose in the backyard....

[MITCHAY]

I went for a drive to get KFC the other day. The last time I drove down that particular stretch of road, there were lights being put in and I thought WTF maybe they will be putting in a parking area around the lake.

Nope there was literally nothing going on there and now fully developed units/townhouses. **** is popping up everywhere which is quite strange.

[b0son]

Originally Posted by MITCHAY

Nope there was literally nothing going on there and now fully developed units/townhouses. **** is popping up everywhere which is quite strange.

Not really. We've had significant population growth, helped largely by an influx of migrants. When you consider how long the development process lasts, from initial land purchase, approval, subdivision, design and build, it may have been two years or more ago the developer originally decided to develop that location. Things were very different then.

You'd hate to be a developer right now sitting on major holdings yet to complete construction. OTOH, if you have job security and a deposit ready to go, in 6-12 months there may be some bargains to be had. About the only issue will be getting a reasonable rental return (that was the only reason we bailed on an OTP build earlier this year).

[323Turbo]

Mortgage question - sorry if its a dumb question but I'm no financial whizz at all.

ok, I have only 1 mortgage & no other loans, house is worth $870,000. I owe $204,000 but I also have $195,000 in redraw (extra cash Ive paid in over the 9 years).
my mortgage rate is 3.1% variable.
Should I refinance at a slightly lower rate & lose most of the redraw or just keep things as I am and have most of the $200k paid off in about 4 years? Currently paying $650 a week but putting a grand on extra every month or 2.

thanks

[.:4:.]

Originally Posted by 323Turbo

Mortgage question - sorry if its a dumb question but I'm no financial whizz at all.

ok, I have only 1 mortgage & no other loans, house is worth $870,000. I owe $204,000 but I also have $195,000 in redraw (extra cash Ive paid in over the 9 years).
my mortgage rate is 3.1% variable.
Should I refinance at a slightly lower rate & lose most of the redraw or just keep things as I am and have most of the $200k paid off in about 4 years? Currently paying $650 a week but putting a grand on extra every month or 2.

thanks

Advice on that kind of stuff, speak to your mortgage broker.

[MITCHAY]

Originally Posted by .:4:.

Advice on that kind of stuff, speak to your mortgage broker.

Exactly what they are paid for, let them do what they are paid to do.

Ask for a rate with a 2 in front. No way I would be paying 3+% now.

Considering they have heaps of people on holiday too paying nothing.

[323Turbo]

nah i wont bother with a broker. i think mortgages of $200k are harder to get with the very low rates but i could be wrong.
I will have a play with a mort calculator later & see what I can work out.
thanks

[Gambit]

Originally Posted by 323Turbo

Mortgage question - sorry if its a dumb question but I'm no financial whizz at all.

ok, I have only 1 mortgage & no other loans, house is worth $870,000. I owe $204,000 but I also have $195,000 in redraw (extra cash Ive paid in over the 9 years).
my mortgage rate is 3.1% variable.
Should I refinance at a slightly lower rate & lose most of the redraw or just keep things as I am and have most of the $200k paid off in about 4 years? Currently paying $650 a week but putting a grand on extra every month or 2.

thanks

Why not ring your bank & ask them for a lower rate? We’re in no where near as good a position as you are & I got it dropped from 3.17 to 2.97 in a 10 min phone call. I just said whatever bank has this rate going can you match it or get close to it. Didn’t quite match it but it’s still better than what we were on.

[MITCHAY]

I just checked and they are offering 2.59 new business rate while I'm paying 2.89 on the same package.

Normally it would be easy to get it knocked down but my broker got the **** from that company for BS reasons and now apparently my business has been outsourced to another company which I have heard nothing from. ****ing pathetic.

I'm gonna call up a bloke from my work because my former broker is his father in law and see how it works with getting him back on my team if he is still in the business.

Always got me reductions in rates and way prefer to give him my business if I can. He'd get me the 2.59 guarenteed.

[Bossxr8]

Even 2.5% is overs. Most banks are offering in the 2.2 range now.

[Peter B - CV8]

Originally Posted by Bossxr8

Even 2.5% is overs. Most banks are offering in the 2.2 range now.

For fixed rates maybe - not for variable. OP should contact his existing Lender & tell them he is prepared to leave them for a lower rate. This usually triggers them to do something to retain your business.

[Yellow_Festiva]

Originally Posted by 323Turbo

Mortgage question - sorry if its a dumb question but I'm no financial whizz at all.

ok, I have only 1 mortgage & no other loans, house is worth $870,000. I owe $204,000 but I also have $195,000 in redraw (extra cash Ive paid in over the 9 years).
my mortgage rate is 3.1% variable.
Should I refinance at a slightly lower rate & lose most of the redraw or just keep things as I am and have most of the $200k paid off in about 4 years? Currently paying $650 a week but putting a grand on extra every month or 2.

thanks

You can retain the redraw if the numbers work for the bank.

You just ask for the money for personal use (new car, renovation etc) then pop it back in there.

[hayseed]

Originally Posted by b0son

Not really. We've had significant population growth, helped largely by an influx of migrants. When you consider how long the development process lasts, from initial land purchase, approval, subdivision, design and build, it may have been two years or more ago the developer originally decided to develop that location. Things were very different then.

You'd hate to be a developer right now sitting on major holdings yet to complete construction. OTOH, if you have job security and a deposit ready to go, in 6-12 months there may be some bargains to be had. About the only issue will be getting a reasonable rental return (that was the only reason we bailed on an OTP build earlier this year).

I'd leave It alone, that $195k is saving you 3.1% nearly double what'd it earn in a Term deposit...

Just My thoughts, & I'm no Financial whizz..

[zilo]

Unbefeckleviable...near to me is "Soweto by the sea" slumsville Tasmania 7178....

House goes on the market and 3 days later...sold...seen it 3 times now.

WTF? where in the hell do people get $250k from?

(just cause it' waterfront...)

[Franco Cozzo]

Originally Posted by zilo

Unbefeckleviable...near to me is "Soweto by the sea" slumsville Tasmania 7178....

House goes on the market and 3 days later...sold...seen it 3 times now.

WTF? where in the hell do people get $250k from?

(just cause it' waterfront...)

Gee there's cheap realestate around there, and its close to Hobart

From the sounds of it I'll fit in like a glove with the Lebonator, might be a stretch to get reffo food though I think in the region

[zilo]

Originally Posted by Franco Cozzo

Gee there's cheap realestate around there, and its close to Hobart

From the sounds of it I'll fit in like a glove with the Lebonator, might be a stretch to get reffo food though I think in the region

Nah...they won't let you in...you're a Covic....

Unless you can bribe someone with 50 bucks....or a pack of kebabs.

[Franco Cozzo]

Originally Posted by zilo

Nah...they won't let you in...you're a Covic....

Unless you can bribe someone with 50 bucks....or a pack of kebabs.

Bribe is my middle name!

[zilo]

Originally Posted by Franco Cozzo

Bribe is my middle name!

Also tell border force you are an essential worker in the wood chipping industry....you are badly needed to keep the economy running..

[MITCHAY]

I went back to my original broker but unfortunately because that loan is on his former employers book, he is barred from representing me which sucks.

But I was able to sort out my broker situation and once again got it knocked down in full from 2.89 to 2.59

I'm on variable P&I, 100% offset, redraw and with option for multiple loan splits for relevance.

I have seen a few low 2 and even sub 2s but I bet there are some strings attached to that.

Funnily enough I even got cold called from an agent today. I also unsubscribed again from agent mailing lists. Must be getting a bit desperate out there.

[MITCHAY]

A bit of a dig but **** me the market is hot around here at the moment. Just hit 900k+ median with it predicted to go over 1m soon!

I said a while a back one unit sold under $100k what the rest of the units were going for in my complex which didn't make any sense at all.

Well the same place was listed for $579k+ and sold for $615k the same weekend. Insane just a little bit of cosmetic upgrades but still keeping pretty much all the same fittings. I don't know what they put in but surely <$50k.

My house is extended off the plan unlike all these other units and I have a huge yard for a townhouse but with parking space for 4 cars so considering I paid $430k in 2017 it's looking ****ing good

[Mulva]

It's running here in Adelaide too, which sucks for me as have been planning to slightly upgrade over last 12 months but so far done nothing about it as what I make extra on selling here I pay extra plus-some on the next.

Like 12 months back my place worth roughly $450k and suitable places in area I'm looking to buy were roughly $550k...now my current is probably closer to $500k, but the suitables in that area are $630-650k

[Syndrome]

All that cheap credit needs to go somewhere.

[MITCHAY]

The combination of less immigration due to Covid, cheap money, FHB incentives has really got the long term renters and FHB in the market. Going nuts.