OnTheGo
Registered Users (C)
Sorry, don't want to deflect from the topic of OC selectees in this thread, but found your statements quite interesting...
Then again, of course mortgages would be similar in those cities...but more opportunities and closer to other hubs than Sydney.
A 3% mortgage on say $1.2Mio (minus the 20% cash payment when they bought the place) means $40,000 p.a. in interest alone, add some more to pay it off (say $20,000) and you are looking at couples where both will need to keep working despite having kids and where one salary or more goes completely into the mortgage, hoping the asset will keep going up in value. 1% hike in interest rates would require a 20% increase in that person's salary to make up for it. ($1.2Mio * 1% = $12,000 extra interest p.a. Unless people have started to actually fix interest rates now. But in all honesty, what does that help if there is the crash that's actually needed to bring this Nation back to sustainable levels? The standard shoe box or outer suburban brick home, bought on a $1.2 Mio mortgage might be 'worth' $500k or $600k or even half that down the road despite all media hype to the contrary, so all they will have achieved is massive negative equity, just like their neighbours. Then I want to see them sustaining their incomes to support this dead horse.
ohh, that's some bearish talk ... lol.
When you say offshore you mean investing in stocks listed on overseas exchanges and bought through a local brokerage account or something else? I need ideas for a new place to invest our Aussie Cash...we sold out in 2011 before we had left and I don't trust the ever increasing price bubbles in AU, especially the completely out of this world ratio of house prices-to-income. Add the state of the economy, lower interest rates (only 'helping' further inflate the property market), falling Aussie Dollar, planned GST hike, the latter two will result in further consumer price hikes.I'm fourth generation Sydney. Parents, grandparents, great-grandparents all from the East, Inner-West and North. I actually owned and lived in an apartment in the inner city at one stage, but sold it a couple of years back because I'm so bearish on the future of the place. If I didn't have parental help (the better term is 'inherited bourgeois privilege'), there's no way I could have done it. As it is, my wife and I are share-housing to keep a lid on costs (ha!) and sending all our investment money offshore.
...
Most of my peers from university and high school have moved to NYC, SF or London. Those that stayed in Sydney are servicing gigantic ($1.5M+) mortgages and have popped out a few kids, so they might as well live on Mars. Getting kinda lonely, to be honest.
Then again, of course mortgages would be similar in those cities...but more opportunities and closer to other hubs than Sydney.
A 3% mortgage on say $1.2Mio (minus the 20% cash payment when they bought the place) means $40,000 p.a. in interest alone, add some more to pay it off (say $20,000) and you are looking at couples where both will need to keep working despite having kids and where one salary or more goes completely into the mortgage, hoping the asset will keep going up in value. 1% hike in interest rates would require a 20% increase in that person's salary to make up for it. ($1.2Mio * 1% = $12,000 extra interest p.a. Unless people have started to actually fix interest rates now. But in all honesty, what does that help if there is the crash that's actually needed to bring this Nation back to sustainable levels? The standard shoe box or outer suburban brick home, bought on a $1.2 Mio mortgage might be 'worth' $500k or $600k or even half that down the road despite all media hype to the contrary, so all they will have achieved is massive negative equity, just like their neighbours. Then I want to see them sustaining their incomes to support this dead horse.
ohh, that's some bearish talk ... lol.