notpom

Boom-boom-boom

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    Any professional property investor knows of the phenomenon called "an opinion lag".

    If media claims that "market is flat" - this most likely mean market is on the rise.

     

    If media claims market is booming - means bargains have already disappeared.

     

    Interesting one about Morphett Vale.

     

    http://www.adelaidenow.com.au/realestate/news/morphett-vale-real-estate-now-in-hot-demand-corelogic-rp-data-statistics-show/story-fni0ci8n-1227314069515?sv=a6588a6151b8c834284897094fa57466

     

    99% of what is said there is just pointless shaking of the air. The article shall really bear one line:

     

    "Investors got priced out of Sydney and Melbourne and have come to Adelaide to chase rental return."

     

    From myself I would add - that there are two classes of property investors:

     

    1. Worshipping false God of "positive cash flow" - that is - rent to cover all the outgoings.

    2. Worshipping true God of profit - seeking "total return" - from both rental and capital growth.

     

    The difference between the two - the second class is capable of using calculator. "Capital growth dollar" is much heavier than "rental dollar" - because of taxation issues.

     

    Morphett Vale is attacked by "positive cash flow type", and this wave would last until price growth will kill rental return.

     

    For the average Joe Blogg the message is on the wall in 6 foot high letters - "Do not waste time renting. Rush to buy while you still can afford it".

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    Ha Ha Ha, nice one Diane. I'm picturing a very lonely person sitting in a cold deserted realestate office.

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    So why respond to him, why not just let him drop off the board when he realises he's not getting any responses.

     

    Sums this board up when he gets more views/responses than some genuine questions do.

     

    And yes I see the irony.

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    So why respond to him, why not just let him drop off the board when he realises he's not getting any responses.

     

    Sums this board up when he gets more views/responses than some genuine questions do.

     

    And yes I see the irony.

     

    Good point. People get irritated only when they know someone is right and they are wrong. Sour grapes you know.

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    Not irritated Notpom - just very very bored of you repeatedly trying to spruik up the market for your own ends - the forum is for help and support and banter between people living in, who have lived in, or wanting to live in Adelaide, not your own private Real Estate Ad board and a place to vent your bile against real estate agents.

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    Not irritated Notpom - just very very bored of you repeatedly trying to spruik up the market for your own ends - the forum is for help and support and banter between people living in, who have lived in, or wanting to live in Adelaide, not your own private Real Estate Ad board and a place to vent your bile against real estate agents.

     

    Very bored - but coming back every time. Hmmmmmmmm.....

     

    Ok Diane, I am with you. Someone has to take that PMS tablet - I will do it this time to maintain the gender equality.

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    Excuse me but we do seem to be getting off the point here!:smile:

     

    I did read the article about Morphett Vale. I know plenty of people who live and have bought there.

    The article does seem distorted...statistics manipulated the tell the story that you want told. I think that the "property boom" has affected a lot of areas and it stands to reason that the biggest suburb in Adelaide will have plenty of sales!

     

     

    I have been trying to get my two sons to get into the property market. Repayments would be very little difference to what they are paying in rent and properties are getting more expensive. It isn't always that easy to get your foot on the ladder though.

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    Haha!

     

    How disappointing - I saw the thread title and thought, "Oh, boom boom boom, shake the room!"

     

    Sadly not.

     

    :frown: LC

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    I think you might need something a bit stronger notpom.

     

    Thanks. Always good to get an advice from an expert (in taking PMS tablets)

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    Thanks. Always good to get an advice from an expert (in taking PMS tablets)

     

    ha ha.....did I hit a sore point....feeling a bit catty are we?

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    Excuse me but we do seem to be getting off the point here!:smile:

     

    I did read the article about Morphett Vale. I know plenty of people who live and have bought there.

    The article does seem distorted...statistics manipulated the tell the story that you want told. I think that the "property boom" has affected a lot of areas and it stands to reason that the biggest suburb in Adelaide will have plenty of sales!

     

     

    I have been trying to get my two sons to get into the property market. Repayments would be very little difference to what they are paying in rent and properties are getting more expensive. It isn't always that easy to get your foot on the ladder though.

     

    I agree that the article itself is not worth the electrons it is written with.

     

    Personally I would not touch Morphett Vale. I did not even when I could have bought 3 bedder there for $70K, went to Hallett Cove instead, paying $30K more for the house with water views.

     

    Of course, people who have bought for $70K made $210K over a decade, but Hallett Cove house made $380K over the same time.

     

    Just think of this article as of "self fulfilled prophecy". The herd of Joe Bloggs they are not as analytical as yourself, word about Morphett vale will spread quickly through the pubs and drunken parties by armchair real estate professors - and here you go - number of buyers will at least double.

     

    As to your sons - main question is - do they want to get their foot into the property themselves or you want to drag them in there? I am simply terrified of how indifferent the younger generation is. 99% do not care about anything at all. If you feel little or no desire from your kids - you better give up to avoid the disappointment.

    If it is not the case - find hard core mortgage broker (there are few lurking on property forums) and lose no time.

     

    If you ask me - the most economical option is to buy a house on a corner block in medium density zone, knock down and build two or three new ones.

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    Please don't feed the troll anymore. Going over the same old crap ever few weeks just gets him off and gets the rest of us us nowhere.

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    As to your sons - main question is - do they want to get their foot into the property themselves or you want to drag them in there? I am simply terrified of how indifferent the younger generation is. 99% do not care about anything at all. If you feel little or no desire from your kids - you better give up to avoid the disappointment.

    If it is not the case - find hard core mortgage broker (there are few lurking on property forums) and lose no time.

     

    If you ask me - the most economical option is to buy a house on a corner block in medium density zone, knock down and build two or three new ones.

     

    Very interesting that you should mention this. I have to agree and say that they don't have any real desire to purchase property and are being pushed all the time to make the step towards ownership. My daughter was completely different. She wanted a house, secured extra work to qualify for a mortgage and we lent her the deposit. Since then she has paid the deposit back and has owned the home for over 5 years and is ahead on her repayments.

    Young people don't seem that interested. There are lots of younger people at my OH's work and he has started many of them on a saving path with a view to a home deposit goal. Their first priority seems to be consumables and a nice car!

     

    Another very important issue and one that I may raise in a separate thread is that of credit rating...young people don't seem to respect or value it.

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    Very interesting that you should mention this. I have to agree and say that they don't have any real desire to purchase property and are being pushed all the time to make the step towards ownership. My daughter was completely different. She wanted a house, secured extra work to qualify for a mortgage and we lent her the deposit. Since then she has paid the deposit back and has owned the home for over 5 years and is ahead on her repayments.

    Young people don't seem that interested. There are lots of younger people at my OH's work and he has started many of them on a saving path with a view to a home deposit goal. Their first priority seems to be consumables and a nice car!

     

    Another very important issue and one that I may raise in a separate thread is that of credit rating...young people don't seem to respect or value it.

     

    All part of growing up though Tamara is it not, I have not seen any real change in this over the decades, except for maybe parents pushing the home ownership more, wise head on old shoulders, trying to put a wise head on young shoulders, Ltd success, even with the offers of financial help of parents.

    The problem with credit is that it is way too easy to get these days, especially small silly credit, and with the youngsters wanting things 'now' they want the credit 'now' without fully understanding the pros & cons, despite what we as parents (who know nothing of course) try to advise/guide them.

    Though generally, with time, they come good:smile:

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    All part of growing up though Tamara is it not, I have not seen any real change in this over the decades, except for maybe parents pushing the home ownership more, wise head on old shoulders, trying to put a wise head on young shoulders, Ltd success, even with the offers of financial help of parents.

    The problem with credit is that it is way too easy to get these days, especially small silly credit, and with the youngsters wanting things 'now' they want the credit 'now' without fully understanding the pros & cons, despite what we as parents (who know nothing of course) try to advise/guide them.

    Though generally, with time, they come good:smile:

     

    This puts things in a little stronger terms!

     

    Generation Sponge: Why more Australians are forced to mooch off mum and dad

     

    INTEREST rates may be lower than ever, but new figures show that Australians are still struggling to buy their first home and are turning to their parents in droves for financial assistance.

     

    Melbourne builder James Durance, 22, is among those who have been forced to turn to his mum and dad to buy his first home.

    He said he was “keen to get into the game” because he saw property as a wise investment, “But we’re talking hundreds of thousands of dollars, so I’m definitely going to have to borrow off my parents”.

    “So, you’re in the situation where you have your bank loan, but then you have a second loan off your parents,” he told news.com.au.

    Mr Durance said the property market was much tougher to break into now than compared to his parents’ day.

    “They told me that they bought their first home for $63,000. In today’s terms, even factoring in inflation, it’s a whole different game,” he said.

    “I’ve got friends who are still relying on their parents just for rent. Without their parents, they’d be stuffed.”

    While Mr Durance is thankful for his parents’ help, he said he would much prefer to be able to buy the house without their assistance.

    “I’m a big believer in the idea that you appreciate and value things more if you pay for it yourself,” he said.

     

     

    824110-1845880e-f387-11e4-9134-cf9443e7fd03.jpg

    James Durance, 22, is among the Aussies turning to his parents to help buy his first home. Source: NewsComAu

     

     

     

    Mr Durance is in favour of the controversial proposal of allowing first-home buyers to dip into their superannuation to pay for their first homes.

    He said the market was so tough that younger Australians needed to “pull every string you can” to break in.

    “You’re walking a tight rope to find what you can afford and what you can get off the banks and off your parents, without diving into the deep end too early — and still have a life.”

    A study of more than 1700 Australians, commissioned by comparison website finder.com.au, has found that 86 per cent of parents provide financial assistance to their adult children.

    Loans and cash handouts are among the most popular ways that parents help out, but they are also relied upon to provide free or low rent, pay bills and buy significant purchases, such as holidays, whitegoods and even houses.

    While four out of five parents said they had given their kids loans or handouts, only two in five of the adult children surveyed admitted to receiving financial help from their mum or dad.

    The research confirmed that young adults were struggling to afford to live in our capital cities — especially close to central business districts, where most people work.

    The survey found that one in six Australians sought financial help from their parents for their home loan deposit. Generation Y (those aged 18 to 34) were most likely to accept money from their parents to buy their first home, with 26 per cent putting their hands out.

     

    761295-f19262da-f387-11e4-9134-cf9443e7fd03.jpg

    Young couples continue to struggle to break into the property market. Source: News Limited

     

     

     

    The survey also suggests that today’s Australians have developed poor money habits, with 29 per cent of parents saying their children struggled to manage their own finances.

    While more than half of young adults had received help as a “once-off”, almost 19 per cent admitted to being given cash several times a year. Seven per cent received handouts weekly and a further 6 per cent received them daily.

    While 70 per cent of young adults said they were grateful for the financial help from their parents, almost one in five young adults said they were embarrassed by it.

    Finder.com.au money expert Michelle Hutchison said parents offering too much help to their children could end up being detrimental to their financial wellbeing.

    “Giving adult children wads of cash, paying their bills or letting them live rent-free is creating a sponge society where people may not learn how to live within their means, understand the value of money, budgeting and saving,” Mrs Hutchison said.

    “Here’s where the problem lies: When young adults were quizzed on why their parents help them out financially, over half — 53 per cent — said their parents offer.

    “Fifteen per cent admit it’s because they struggle to manage their money, while 9 per cent admit it’s because they’re in debt.

    “We need to teach our kids the value of living within their means otherwise they won’t have a sustainable future.”

     

    762059-d05ff3ca-f387-11e4-9134-cf9443e7fd03.jpg

    Are parents doing their children a disservice by helping their children with regular cash handouts? Source: Getty Images

     

     

     

    STATE BY STATE

    ● Victoria: The biggest sponge state is Victoria, with 45 per cent of people counting on parents for financial help.

    ● NSW: NSW respondents count on their parents for housing more than any other state, with 19 per cent receiving free or low rent.

    ● Tasmania: Tasmanians are the most independent with 67 per cent not receiving any financial help from the older generation

    ● Queensland: Queenslanders are most likely to receive a once-off helping hand from their parents

    ● South Australia: SA residents are the most grateful for the financial assistance from their parents (78 per cent)

    Western Australia: WA parents appear to be the most generous, with 43 per cent offering to help their adult children without being asked.

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    Some of us are not lucky enough to have had hand outs from parents. Hard graft and patience! I was 21 when I bought my home in the UK. Not all youngsters are ****e with money

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    Some of us are not lucky enough to have had hand outs from parents. Hard graft and patience! I was 21 when I bought my home in the UK. Not all youngsters are ****e with money

     

    I concur Kenny ken!

     

    My first house purchase was on a council estate miles out of town. Meanwhile my mates are living it up in the city in rented accommodation, for a while I felt a bit left out of it but deep down knew it was for the long term good. short term pain long term gain and all that.

     

    In hindsight its paid off big time, but took time and sacrifice [old man smiley]

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    I concur Kenny ken!

     

    My first house purchase was on a council estate miles out of town. Meanwhile my mates are living it up in the city in rented accommodation, for a while I felt a bit left out of it but deep down knew it was for the long term good. short term pain long term gain and all that.

     

    In hindsight its paid off big time, but took time and sacrifice [old man smiley]

     

    This is called "wisdom" my friend.

     

    Say there is a high fence on your way. What you did - you took time and built the ladder and step by step climbed over the fence.

    Your friends left on the other side loudly complained that the fence too high to jump over it.

     

    There are no rational reasons for youngsters to ask mum and dad for help these days. There are plenty of lenders around who would give them a loan with 5% deposit. And if you look at the bank statements of these young - they have credit card debt several times larger than their deposit.

     

    It is mind thing - nobody told them primitive basics. That there is a good debt (when you borrow to buy appreciating asset) and bad debt (when you borrow to buy rapidly depreciating things - cars, designer clothing, iPhones, etc). Worse still - borrowing for entertainment (travelling to Bali, restaurants, pubs, drugs).

     

    I do not have to go too far for examples. There is one renting few houses down the street. Every second week he carts out 2 (two!!!) recycling bins overfilled with empty beer bottles. Annually it amounts to couple of house deposits which (would normally) went down the toilet. Luckily, not all is lost. When he is drunk - he loves to urinate from his balcony - so some of the nitrogen is not lost as goes back to nature.

     

    For some reason it has become too hard for the new generation to do what all previous generations were doing - buying what you can afford where you can afford, build equity through capital growth and renovation, move to something better, build equity through capital growth and renovation and so on and so on.

     

    If it is not the very best, not everything they want, and not at once - blame baby boomers.

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    This is called "wisdom" my friend.

     

    Say there is a high fence on your way. What you did - you took time and built the ladder and step by step climbed over the fence.

    Your friends left on the other side loudly complained that the fence too high to jump over it.

     

    There are no rational reasons for youngsters to ask mum and dad for help these days. There are plenty of lenders around who would give them a loan with 5% deposit. And if you look at the bank statements of these young - they have credit card debt several times larger than their deposit.

     

    It is mind thing - nobody told them primitive basics. That there is a good debt (when you borrow to buy appreciating asset) and bad debt (when you borrow to buy rapidly depreciating things - cars, designer clothing, iPhones, etc). Worse still - borrowing for entertainment (travelling to Bali, restaurants, pubs, drugs).

     

    I do not have to go too far for examples. There is one renting few houses down the street. Every second week he carts out 2 (two!!!) recycling bins overfilled with empty beer bottles. Annually it amounts to couple of house deposits which (would normally) went down the toilet. Luckily, not all is lost. When he is drunk - he loves to urinate from his balcony - so some of the nitrogen is not lost as goes back to nature.

     

    For some reason it has become too hard for the new generation to do what all previous generations were doing - buying what you can afford where you can afford, build equity through capital growth and renovation, move to something better, build equity through capital growth and renovation and so on and so on.

     

    If it is not the very best, not everything they want, and not at once - blame baby boomers.

     

    I agree, well maybe apart from your neighbours habit for 'water sports' :huh:

     

    For todays' Yootz looking to buy property its hard with the deposit requirements but guess what, this has always been the case. ! Mate of mine the same age tried to tell me I 'got lucky' and 'landed on my feet' buying when I did (2000). I gently had to remind him I sold my car for the deposit and travelled by bus for about 3 years whilst he was buzzing around in his flash motor and living in the centre of Edinburgh.

     

    He's now living with his mum and dad at the age of 39. (which incidentally has now become socially acceptable and perhaps even the norm).

     

    So todays' yootz are continuing to live rent free at the folks way into middle age yet blame their parents' generation for the fact they cant go straight into a nice semi/detached in a nice area with a garden without doing the hard yards.

     

    Ironic

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    anyone on this forum fancy setting up a trust fund? It go to a good cause... Let's say buy me a house and in return I shall urinate from a balcony over NotPom's fauna. It's a bit chilly so don't expect big things! I will also provide every member a signed tony abbot singlet. Maybe even throw in some thongs and a bum bag!

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    anyone on this forum fancy setting up a trust fund? It go to a good cause... Let's say buy me a house and in return I shall urinate from a balcony over NotPom's fauna. It's a bit chilly so don't expect big things! I will also provide every member a signed tony abbot singlet. Maybe even throw in some thongs and a bum bag!

     

    sounds like scientology. Count me in

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