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In a rare moment of chivalrous, marital defence (she really doesn't need it believe me !) I'll add a transalation for anyone not up with the bizarre mixture of Yorkie, Scotch and Ozzie that I now have to endure. What I think she was trying to say was that what has happened in the housing market in the past or is going to happen in the future does not have much relevance to US for the here and now. We have a need for a family home now and have to deal with satisfying that need with the funds we have available in the current conditions (that includes the exchange rate, interest rates, house prices and me as the only earner working part time at the moment).
Yes we could gamble on house prices in the area we want to live in falling and the exchange rate increasing. However, the exchange rate could fall further and if the mining and defence boom in the north comes to fruition like everyone says then prices in this area are likely to continue to rise. If we gamble and win great, we will be left still in rented accommodation for the next 2 or 3 years without giving the necessary stability to our to our 3 children. If we gamble and lose then we will be in rented accommodation, not able to afford the sort of house we can now and still not giving the needed stability to our 3 children.
Our decision based on OUR circumstances, has been to take the hit on the exchange rate and buy a block of land and build the best house we can reasonably afford within our own personal means. For us this will enable us as a family to start the process of living the lifestyle we came to Oz for. The decision will be different for everyone and, in my opinion, should be driven by more factors than merely are house prices going up or down!
Granted in 2 or 3 years we may regret this decision but then again I now wish we had done this emigrating lark about 12 years ago when Ali first mentioned it (obviously should listen to her more often ). However we're quite happy to go make to 'make our bed and lie in it'.
I've read this thread with interest... Loads of posts, to be frank are not on topic, but hey ho!
I see what you mean about needing to buy something 'right now' I really do, and if you choose not to wait then it's all academic.
Personally, we're on our way in the next few weeks. The house is sold and for now the money is staying in the bank, I believe that the exchange rate will improve in the next year or so... (So The Economist says) and that the global credit crunch will keep house prices at least at the same level as they are now.... (I can hope that they drop a bit, but so long as they don't rise much I'll be happy)
Nothing is set in stone, and this is just my opinion, but it is shared with a good deal of people who know a whole lot more about how it all works. I've read all I can find on the subject and this is my best guess... nothing more, the Crystal ball is still playing up!!!
It's not the first time that the exchange rates have looked like this. Or the first time recession has hit.
Well, there's my two penneth worth!
I have been following this thread with interest and since it has calmed down a bit now, I will add my views (I don't like it when threads turn, when they do I generally don't post on them!)
Anyway, we are in a similar position to yourselves.
For us to be able to get the house that would suit our family of four, we would need to take on a huge mortgage, we are a temp visa, which means we do not get the financial assistance for the homeowners grant or for the kids. Which means it is salary tested alone. Only one of us is working consistantly at the moment and this in itself is a financial strain, let alone adding a mortgage to it.
We do have savings, but want to use them properly for a deposit on a house when we can afford to pay the mortgage after that, so for us renting is a far better option. It lets us have a right good practice run at organising our finances and finding out what we have extra left at the end of every month, to help determine if we could afford a house of our own. We are looking for a bigger rental at the moment, which comes with an increased payment, although not as much as a mortgage, if we try it for 6 months and feel we can't afford it, we down grade again without all the worry compared to a mortgage we can't afford.
Interest rates at the moment are a worry, there are many areas for discussion on this one, but for us personally we just couldn't take the chance in case they went up again. We want to make a success of our adventure to Australia and feel that a mortgage at this time would finish this.
It comes down to individual circumstances, needs and way of thinking that will determine whether people buy or rent.
Good luck to everybody no matter what you decide to do. At the end of the day you do what is right for you and your family and not anybody elses.
Cornelia (41), Andy (42!!), Ally (16) & Wee Andi (12) x
I have no children, just me 30 and the other half who is 29. We do not qualify for the first home owners grant so this again is a factor to our decision.
Ha ha. A fundamental error on my part.
I am obviously fighting to stay younger. It was pointed out to me that I am 33. Typo honest!!
Thanks to those for being open and giving there opinion on this subject so far. It is very interesting reading.
Some very strong views on its a home not an investment, totally understand that.
Will current market conditions affect your decision to buy or not in Adelaide in your situation?
We rented in Adelaide for 12 months before buying while we were trying to find a house to buy. In the UK we never rented and although renting over here was fine, it never felt like our own home, I suppose its more of a feeling, but it just feels good knowing that the house is ours (well when we finally pay the mortgage off).
We paid a lot more for our house than we thought we would have to. We wanted to live in a good area and close to the city and our mortgage is a lot more than we ever thought it would be (and interest rates are high compared to the UK ours is 9.14%) and are slightly out of our comfort zone, but that is our choice.
We are hoping the house will not only be a 'home' but will also be a good investment in the future and being 10 minutes from the city centre is a bonus to us as my partner works in the city centre, so we only need to run one car.