If I'm cynical, it sound like this property cycle is designed to hook people into debt for life.
In Western Sydney, about an hour from the CBD, for $800K a young couple would be lucky to find a small 560m2 block with an old but liveable 110m2 house on it. With average income of some $50K before tax, both partners better be working or else they won't be able to eat, or bathe, or have their lights on.
How are they suppose to start a family? It'd have to be accidental to have a kid with all that mortgage over your head.
Imagine when interest rate rise a percent or two. Or some emergency, some repair to the house; or that accident starting school...
When all your earnings goes towards the bank, how will that affect other sectors in the economy? Beside alcohol and anti-depression, divorce lawyers, most aren't going to do well either.
But there are plenty of buyers rushing in... and it's not just for that average $800K either. It's $1M to $1.5M for a bigger block ready to be knocked down or sub-divided (STCA, as the agent will tell you). Seems every dick and harry want to be a developer nowadays.
Man, when this hits the fan, it'll wiped clean a lot of people's life's savings. Sensible, and poor, people like myself who've been saving and investing will also be collateral damage.. .and that's just unfair seeing how I don't even have the feel-good feeling one get bragging about "owning" this or that property at BBQs.
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If I'm cynical, it sound like this property cycle is designed to...
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