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Location:
Adelaide
Registered:
January 2005
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Housing - who can afford it?
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Sat, 14 May 2005 11:55
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Okay, I've started looking around to buy a place of my own halfway between town and my current house and it's ridiculous. The stuff I can afford I have to pay strata fees or it's tiny as or completely run down. Talk about depressing. My options are -- buy a unit/townhouse and pay strata fees and have someone else dictate how I revamp my own home, buy a dodgy house near town, buy a nice house way outside of town or try and find an affordable piece of land so that I have the option to build later when I earn enough to borrow more. What's really annoying are the real estate agents trying to attract young buyers by saying it's ideal first investment but the properties are $230,000+  I'm sorry but I don't have $230,000 to spend on a first house. Anyone else having this trouble?
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Location:
Melbourne
Registered:
February 2005
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Re: Housing - who can afford it?
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Sat, 14 May 2005 12:10
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yep i recently discovered the same thing.
i reckon my best bet is to keep saving for a larger deposit.
once i have my car sorted thats the next step i'm taking.
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Location:
Land of Oz
Registered:
June 2004
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Re: Housing - who can afford it?
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Sat, 14 May 2005 12:15
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Hi,
Lucky you don't live in Sydney. The house prices are stupidly and unrealistically high.
seeyuzz
river
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Location:
Brisbane
Registered:
February 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 12:20
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a - aim for highest deposit (within reason)
b - conside a legal partnership with several mates/friends to own the house for X years and have clearly defined methods of getting out of the partnership.
get legal advice before heading down this path - but it is one option for several people on average incomes to own a share in an actual house (as opposed to paying a landlord).
c - talk to your bank/credit-union about what kind of money they'll loan (with X, Y & Z deposits) for investment and/or personal home loans.
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Sat, 14 May 2005 13:16
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Hmm well I'm currently trying to be good and pay off my car loan and then put a quarter of the rest of my pay into a savings account but I'm afraid that by the time I save a big enough deposit for a house they'll be even more expensive and I definitely won't be able to afford it.
The idea of living with a group of friends is intriguing but I think (even though I will have crippling debt) that I would prefer to have something to call my own.
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Location:
brisbane
Registered:
May 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 13:50
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its an investment, you have to start at the bottom and work your way up, in whatever you do, buy the house with your friends stay there for 2 - 3 years...so... i dunno 156 weeks.... at i spose...mmm for 2-3 of you... say 140 each per week (a little high) so, 140 x 156 = 21840 plus your deposit of....say..mmm 7 grand first home buyer...mmm make it.. 15 grand deposit? which is realistic, then increased property value, if you choose to work on the house, increase its value a bit more theres more money again.. i dont know what that equals , its decent though, good start to owning your own home
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Location:
Melbourne
Registered:
November 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 14:32
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I dunno how far out of the city you are, but out here, 30 minutes (with no traffic) from the city, $230,000 is a decent price... and I live in a cheap area. Housing prices are stupid at the moment.
Apparently, it's actualy cheaper to own a home close to town in California than it is here. I think that's including all living expenses + repayments too.
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Location:
Sydney/Wollongong
Registered:
October 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 14:34
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| river wrote on Sat, 14 May 2005 22:15 |
Hi,
Lucky you don't live in Sydney. The house prices are stupidly and unrealistically high.
seeyuzz
river
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river is spot on  An average 2br unit in Sydney will set you back 300k+ let alone a house on it's own private block of land  A few years ago I was looking to get into housing (with a sizeable deposit stashed away) but the prices are just f**king stupid around here. If I could find a place for <$250k i'd snap it up straight away...
Check the first home buyers grant in your state and also the applicable capital gains tax implications. Here's the scenario, you can buy your first home (with a $7k grant), live in it for 3-6 months and then rent it out for up to 6 years. As long as you live in the house once every 6 years you still get to keep your main residence exemption.
And when the property rises in value you can keep the difference tax free 
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Location:
Perth
Registered:
August 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 21:33
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buy a shit house, get some roomies in. Pay it off, do it up and then sell sell sell and then get a more decent house.
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Location:
was adelaide now newcastle
Registered:
February 2003
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Re: Housing - who can afford it?
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Sat, 14 May 2005 23:17
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wait a year or two till the housing marke slumps, in this time save up more deposit and then buy. (dont forget stamp duty and coveyencing fees) good luck with the house hunting, my last tip would be if you settle for a shitty place in need of renovating/bulldozer, get one with the biggest land size possible.
matty.
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Location:
Brisbane, QLD
Registered:
February 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 00:47
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| JDM hachi wrote on Sun, 15 May 2005 09:17 |
wait a year or two till the housing marke slumps, in this time save up more deposit and then buy.
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That can also backfire, a few of my older friends decided to take this path a few years ago and are still waiting for a "slump". They're starting to come to the conclusion that real estate never really goes down, only up. I think i'd beleive them.
My mums current house is worth nearly double what she paid for it 3 years ago. Even though the "boom" is over for the most part, i still wouldnt expect land prices to decrease.
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Location:
Campbelltown
Registered:
November 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 01:14
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meh i'll just live at home for a long time and waste my money on cars.
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I supported Toymods
Location:
Epping, Sydney
Registered:
May 2002
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Re: Housing - who can afford it?
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Sun, 15 May 2005 02:36
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hehehe, I'm with conquest. $230k? that won't get you anything in a decent suburb within 20 minutes of sydney. the place across the road from mine went for $960k the other day, and it wasn't even anything amazing. 
so I can never afford a house in sydney
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Location:
Brisbane, QLD, Australia
Registered:
May 2002
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Re: Housing - who can afford it?
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Sun, 15 May 2005 04:40
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| jackel wrote on Sun, 15 May 2005 07:33 |
buy a shit house, get some roomies in. Pay it off, do it up and then sell sell sell and then get a more decent house.
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No, if you can afford the first house to begin with and the repayments, (have renters), you want to draw on the equity in the house and buy another house. Soon you'll have a whole heap of them as long as you keep it all within your means (have constant renters, or/and be able to pay repayments on your own), you're set. But you have to afford the bloody things in the first place, which only lotto winners these days can do.
I guess that would be my answer to the topic question. Who can afford it? Lotto winners can.
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Location:
Newcastle
Registered:
April 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 05:13
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You should never sell the first home as Apollo says.Use it to get the next one etc.
You should budget 25% of pay for repayments and rent it out to help pay it off.If your parents have enough equity/own thier home then you could use that to get you started if they will let you.
And remember that it doesn't really matter if it's in the outer suburbs as such.Remember when Parramatta was the outer suburbs?
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Location:
was adelaide now newcastle
Registered:
February 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 05:51
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| Quote: |
JDM hachi wrote on Sun, 15 May 2005 09:17
wait a year or two till the housing marke slumps, in this time save up more deposit and then buy.
That can also backfire, a few of my older friends decided to take this path a few years ago and are still waiting for a "slump". They're starting to come to the conclusion that real estate never really goes down, only up. I think i'd beleive them.
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but a few years ago the market was on the way up, sure the general trend has house prices increasing but the prices do fluxuate, all im saying is that now possibly is not the best time to buy.
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Sun, 15 May 2005 10:59
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Wow compared to Sydney I have nothing to complain about. I'm just glad I don't live there!! My other alternative is to work my ass off and get a better paying job. Or find a filthy rich boy 
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Sun, 15 May 2005 11:00
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Wow compared to Sydney I have nothing to complain about. I'm just glad I don't live there!! My other alternative is to get a better paying job. Or find a filthy rich boy
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Location:
Potts Point, Sydney
Registered:
October 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 12:05
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i sure as hell can't afford it (only 19 tho), but i don't see how i'll manage to afford one considering that they're going up so often. There are slumps, but they dont' affect many places. Place about 30mmin from me was valued around $1.5million, sold for $1.01million
You gotta start at the bottom, and work your way up (trying to explain that to my gf  ). The apartments next to our block were built and sold for around $500000 around 2 years ago, now they're valued around $950000 for a tiny 2br shoe box 
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Location:
Kita-Ku, Sapporo, Japan
Registered:
January 2003
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Re: Housing - who can afford it?
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Sun, 15 May 2005 15:22
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thats what you get for living around potts pt
inner west/east = 350-400K for a small to medium 2 bed apartment. townhouses... 600-700K+ (in newtown etc)
some mates are paying $900 a week for a 4 bedroom place in Enmore... even randwick, maroubra, coogee.... 6-700K is pretty normal for anything that doesn't suck, and we are not even talking waterviews yet
a house with a backyard?? tipping over a mil or so...
yeah, find a filthy rich boy in sydney, convince him to move to the hills (adelaide that is ) and spend up
or just be reborn with rich parents
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Mon, 16 May 2005 01:35
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| Quote: |
yeah, find a filthy rich boy in sydney, convince him to move to the hills (adelaide that is ) and spend up
or just be reborn with rich parents
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Alright -- know any filthy rich boys??
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I Supported Toymods
Location:
Sydney
Registered:
December 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 03:22
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Start your own superannuation trust and invest in whatever you want... house, stock market, high interest savings etc.
With the new super laws they are bringing out I'm pretty sure your employer has to deposit your super to whatever super account you nominate... if that just so happens to be a super trust you and a bunch of good friends or relatives started then your range of investment options are unlimited!
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Location:
Camden, NSW
Registered:
June 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 04:44
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with this supertrust, how do you get access to the money etc from buying and selling, if you go in with friends and sum1 is say 10yrs older, what happens when they reach 65, do they get all the cash, percentage of total in relation to how much they invested to begin or wat?
Sounds a reasonable theory, but does it work?
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I Supported Toymods
Location:
Sydney
Registered:
December 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 06:13
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You just set up a trust similar to how you would set up a new business.
You would then issue all your members a number of shares equal to the percentage of their investment into the trust.
Then you and your shareholders can decide how to invest the money.
When a shareholder gets to retirement you just cash in the investment and pay them out.
You could even allocate totally seperate investments to each shareholder... e.g. you buy a house, someone else invests in the stockmarket etc. and just because the other guy lost all his super in the stockmarket doesn't have any effect on your super.
If you're seriously considering it go speak to a decent solicitor and accountant.
PS I highly doubt you would get away with buying a house and then living in it without paying rent if thats what any of you are thinking... you could probably rent it to yourself for a reasonable market value though which essentially means you are paying off your own house faster.
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Toymods Social Secretary
Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 06:45
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Interesting theories toooooobs. It seems very similar in nature to what smart (young) investers have been doing for ages, but far better controlled such that risks are minimised when multiple parties invest into said fund.
I like it. It gives young people like us the opportunity to really do something substantial with our incomes and build ourselves up to a point that makes buying a house on your own easy or part of your super investment plan.
- Using your 9% of income (super) as part of loan repayments
- Putting extra money in from your own pocket, to which the government is supposed to BACK up $ for $ (up to some amount)
- Building capitol with 5-10 other people, makes large investments easy.
- you could plan to retire at 40-45 with a decent plan and set goals!!
But what has me thinking is.... what happens when you want to buy a place of your own BEFORE you retire?
All your investment is locked up in this super trust, and you would still have to BORROW money again to buy the house... and it wouldnt be as good as you want cos you on your own cant afford it - your money is in the super trust remember, and is NOT liquid.
So could you live in your investment properties? Would you have to pay rent to the super trust as toobs suggested?
This is something to talk to an good accountant about. Im liking it up until the living in part 
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I Supported Toymods
Location:
Sydney
Registered:
December 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 07:27
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I can't see why you wouldn't be able to live in the house... so long as you paid market value for the "rent" then everything would be above board...
trust is making money...
you're not getting anything for free...
everythings above board...
all's good.
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Location:
Sydney/Wollongong
Registered:
October 2003
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Re: Housing - who can afford it?
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Mon, 16 May 2005 07:44
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No, if you've got your own self-managed super fund you are not allowed to invest in assets for your own personal use, regardless of how they are used. You can use the fund to invest in other investment properties, just not your own.
The problem with superannuation is that it is locked away until you are 55, and the balance of the super fund cannot be used as security for a home mortgage or something similar...
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I Supported Toymods
Location:
melbourne.vic.au
Registered:
May 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 07:51
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I just did a Macroeconomic's Assignment on Housing Prices and I can't remember what I wrote about it... All I know is that I want the housing market boom to bust and for the interest rates to go through the roof as then the market will have an over supply of houses were I can buy one cheap
* Anyone please correct me if I'm wrong
Cheers.
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Location:
Potts Point, Sydney
Registered:
October 2003
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Re: Housing - who can afford it?
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Mon, 16 May 2005 09:13
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| ZZT231 wrote on Mon, 16 May 2005 17:51 |
I just did a Macroeconomic's Assignment on Housing Prices and I can't remember what I wrote about it... All I know is that I want the housing market boom to bust and for the interest rates to go through the roof as then the market will have an over supply of houses were I can buy one cheap
* Anyone please correct me if I'm wrong
Cheers.
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that's what im waiting for Im assuming it'll be a few years tho (probably around 5years), unless something unexpected happens overseas and sends the economies to the shit...
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Registered:
May 2003
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Re: Housing - who can afford it?
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Mon, 16 May 2005 12:54
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I very doubt the prices of home will drop.. maybe a very little bit but nothing major.
I remember when I use to live in Circular Quay someone bought an apartment next door to me for 3.4 million dollars and he was only 24 years old or something... Must be drugs.
In my opinion.. just save money and place it in term deposit accounts for a few months each time and keep adding to this amount. Speak to a finiancial advisor in the bank and they will help you out heaps.
Good luck in finding a home thought buddy!
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I Supported Toymods
Location:
melbourne.vic.au
Registered:
May 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 13:09
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Yep Term Deposits are good to the point the ATO try and track you down because you forgot to mention about money which is still waiting to be matured and having un beknown circumstances having forgot about it and not declaring it as it's just recently transfered into your name
Oh well... I'll just pay attention to the housing market in my area and watch as I have no money to speak of
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I Supported Toymods
Location:
Sydney
Registered:
December 2002
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Re: Housing - who can afford it?
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Mon, 16 May 2005 13:10
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| Conquest wrote on Mon, 16 May 2005 17:44 |
No, if you've got your own self-managed super fund you are not allowed to invest in assets for your own personal use, regardless of how they are used. You can use the fund to invest in other investment properties, just not your own.
The problem with superannuation is that it is locked away until you are 55, and the balance of the super fund cannot be used as security for a home mortgage or something similar...
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I don't see how they could argue it... if you are "investing" in a property and then you also rent it out, to yourself, then essentially you are investing in your own property twice... you're not just scamming your superannuation.
The idea is that the govt doesn't have to pay for your retirement... what better way could their be?
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Location:
Kita-Ku, Sapporo, Japan
Registered:
January 2003
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Re: Housing - who can afford it?
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Mon, 16 May 2005 13:21
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| soarerchic wrote on Mon, 16 May 2005 11:35 |
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yeah, find a filthy rich boy in sydney, convince him to move to the hills (adelaide that is ) and spend up
or just be reborn with rich parents
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Alright -- know any filthy rich boys??
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well i can be filthy... just need the rich part.... and i won't be in sydney very long
ahh well, could be worse..
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Location:
Sydney/Wollongong
Registered:
October 2003
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Re: Housing - who can afford it?
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Mon, 16 May 2005 13:51
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| Toobs wrote on Mon, 16 May 2005 23:10 |
| Conquest wrote on Mon, 16 May 2005 17:44 |
No, if you've got your own self-managed super fund you are not allowed to invest in assets for your own personal use, regardless of how they are used. You can use the fund to invest in other investment properties, just not your own.
The problem with superannuation is that it is locked away until you are 55, and the balance of the super fund cannot be used as security for a home mortgage or something similar...
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I don't see how they could argue it... if you are "investing" in a property and then you also rent it out, to yourself, then essentially you are investing in your own property twice... you're not just scamming your superannuation.
The idea is that the govt doesn't have to pay for your retirement... what better way could their be?
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These are the rules regarding 'in house' assets;
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'In-house assets' are loans to, investments in, and assets subject to a lease or lease arrangement with a related party of the superannuation fund. In general, SMSFs are restricted from lending or leasing more than 5% of the superannuation fund's total assets to a related party of the superannuation fund and are generally restricted from investing more than 5% of the superannuation fund's assets in a related party of the superannuation fund [SISA s66 (2A)].
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More details here http://www.ato.gov.au/super/content.asp?doc=/conte nt/19109.htm
[Updated on: Mon, 16 May 2005 13:52]
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Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:18
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Facts (as I see them):
Don't think that saving for a deposit is the end of it.
Now HALF my wage (after tax) goes into the homeloan!
Make sure you have enough money coming in that you can pay the loan if the interest rates go up to 10%.
Now onto speculation:
I wouldn't reccomend buying an investment property at all at the moment unless its outside any town/city. Interest rates are too high (and will go up another 2% before long) to make money from renting, and the prices aren't going to go up fast enough to realise your loss from rent < repayments.
Super fund is very interesting. I'll have to do some research into it.
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Location:
Campbelltown
Registered:
November 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:26
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stuff term deposits just get an ING account, the interest is compounded daily whereas for term deposits its only monthly generally depending on the deposit and the rate is only marginally lower, plus if you need the money its a lot easier to get access to it than in a term deposit, trust me i know. When i bought the rona my fundds were in the credit union term deposit they were great, but i had to ring then write a letter which my dad sent thru internal mail which sped up the process. (the credit union was once owned by CBA), from there the letter was processed and then you have to wait for them to transfer the money into your accoun. This didn't take long for me but it has for others i know, all up it probably took one to two weeks to get the money in terms of writing the letter etc.
Whereas with an online investment account you request the funds and they are available in 3-5 days.
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Location:
Campbelltown
Registered:
November 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:30
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interest rates are not high, and they will not go up by 2% that would require pretty much 8 successive months atleast of the RBA raising them hardly likely in the current economic circumctances where the only thing casuing inflation is oil prices as it has taken a chunk out of ppl wages to spend on other goods. Retail is in a slump so i don't think rates will be rising. IN saying that though in terms of investment 5.4% in an ING account isn't a bad return.
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Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:35
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Bad economic circumstances yet it went up what .5% this year?
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Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:36
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Should have said in the last year (last 12 months).
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Location:
Melbourne
Registered:
November 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:36
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Didn't Howard win the election by saying interest rates would stay low?
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Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:38
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Anyone got interest rate figures for last 20 or even 100 years?
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Location:
Campbelltown
Registered:
November 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 03:39
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yeah but it ain;t going up any further is what i'm saying, that was becasue of high christmas spending, but i can't really see rates rising too much more one because of retail figures being realised and two cos the government already stopped a rate rise last month although if the tax cuts do get approved as they will eventually anyway towards the end of the year there will be an increase i consumer spending again which may result in a rise in inflation and hence another rate rise to quell it. But really its not gonna rise 2% and heck i wouldn't be complaing myself as i am saving atm and have no loans, though i may get one next year when i get a new car.
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Location:
Adelaide, SA
Registered:
May 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 05:27
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You could just go the lumpy way and buy a little "character home" in Prospect and then spend the next few months fixing salt damp, re-wiring, re-plumbing, re-flooring, re-painting etc etc and still not be living in it because every time you touch something it falls apart! 
Keep in mind that whatever you buy you need to afford the repayments and also have some money spare to fix it up, pay the bills etc. Don't spend your max limit on the house.
Strata fees aren't so bad, it shares the costs if something major f**ks up and if you have a reasonable group then you're set. Check the strata info before buying a place though, often owners sell when there is a major expenses (levy) on the way.
I can't see interest rates rising too high (like early nineties) because a lot of people are leveraged pretty high on their loan and a small rate increase makes a big difference to the economy.
The chuckster has a great idea, my mates brother and two firends are doing this - buying houses between them, fixing them up, renting them out and buying another one. They've figured by the end of it they'll each have a house of their own.
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Location:
Newcastle, Australia
Registered:
March 2005
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Re: Housing - who can afford it?
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Tue, 17 May 2005 09:56
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I bought a property in Warnervale (NSW Central Coast) at age 23 or 24 (I'm 26 now) using my first home owners grant (14k). My parents chipped in 28k so we bought the place using a 2/3 and 1/3 share system. The place is in my name though.
We loaned 200k, and bought the property for 253k. Probably worth about 300-350k now, the area is taking off!
I'd be looking at buying a place on the central coast, newcastle, nelson bay etc.
One thing I was looking at doing was buying a second place at Gunnedah, you can get a place there for around 80-90k, and get around 160 a week rent for it, so that covers your mortgage repayments plus gives you some left over.
The rent payments from my current property don't cover the mortgage so I have to top up about $200-300 a month out of my own money. If you are on a high income (I'm not) then if possible, stick as much of your spare cash into paying the mortgage off quicker. Some people like to buy zillions of properties, I believe in buying just one, paying it off ultra fast (less than 10 years), then buying another and doing the same. Then you can just live off the rent payments you get off your tenants, or at least use them to supplement your income. Gotta love passive income, just sit there and wait for the $ to roll in
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Toymods Social Secretary
Location:
Sydney
Registered:
July 2002
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Re: Housing - who can afford it?
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Tue, 17 May 2005 11:15
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you got it in one Ribfest! Finding an area/property where the rent to mortgage repayment ratio is close or above 1:1 and gain capitol that way..... of course taking into account capital gains taxes etc when investing!!
Dont expect to really MAKE money that way either. What you are making is capital wealth for yourself and much greater leverage and borrowing power to get into your next property after a few years. If you are lucky the value of your house has increased significantly and you have a substantial net gain allowing you to buy bigger and better again......
... continue on this path until you are able to buy the house you want to live in, and maybe one other small investment property.
Well at least thats the way i see it.
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Location:
Brisbane
Registered:
February 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 11:24
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The partnership to own a house trick seems to work if the partnership agreement is very business-like, clear and simple.
The dude i knew in brisbane was a printer's sales rep - him and his two mates lived in the house for 3 years before one moved out and they decided to sell and profit.
The partnership agreement covered the basic aspects of owning the house e.g. how to get out of the agreement, how it should end, getting new partners, insurance, rates, etc... but not how the household itself would be run.
i'd say that unless you all live the same way (e.g. slobs only living with other slobs) then it would never last.
The dude did say that the legal costs required to draft the agreement were nothing compared to the joy of no longer paying rent.
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I Supported Toymods
Location:
melbourne.vic.au
Registered:
May 2002
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Location:
Campbelltown
Registered:
November 2003
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Re: Housing - who can afford it?
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Tue, 17 May 2005 23:15
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correct, but the government also put in place the head of the RBA and as seen in last months rate decision, told the RBA they couldn't raise rates.
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Location:
Melbourne
Registered:
November 2003
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Re: Housing - who can afford it?
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Fri, 20 May 2005 09:53
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| ZZT231 wrote on Wed, 18 May 2005 09:09 |
| Shraka wrote on Tue, 17 May 2005 13:36 |
Didn't Howard win the election by saying interest rates would stay low?
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Afraid not... In Macroeconomics, you learn that the Reserve Bank of Australia (RBA) is Independent to the Australian Government since I think the Introduction of the Reserve Bank of Australia Act 1975 I think *Someone correct me on the year...
The fiscal policy of the government looks at unemployment, welfare and taxes whereas the RBA is only concern about keeping the rate of inflation between 2% to 3%... So in reality, Mr. Howard Lied about interest rates as he has nothing to do with it (and can't intervene) being adjusted as the RBA is independent from the government...
We need taxes to encourage Government spending (which will promote general market growth) but spending too much and having alot of disposable income drives up the rate of aggregate demand which in tale will drive up wages which leads to inflation
Cheers.
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I actualy know all this. It was a jab at little Johnny Howard. I did notice that as soon as Howard won the election a whole heap of economists came out and said that rates where gonna go through the roof.
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Sun, 22 May 2005 11:17
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Well I've just heard about some land that might be available soon so fingers crossed it will be good and I can just sit on it once I've bought it and then save up enough to put a house on
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Location:
Brisbane
Registered:
February 2003
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Re: Housing - who can afford it?
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Sun, 22 May 2005 11:34
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shouldn't that read: save up enough to build a house and a fuken huge shed for my soarer and spare parts collection ?
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Sun, 22 May 2005 11:38
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 maybe it should say save up for a HUGE shed for my boyf to put all his toyota bits in.
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Location:
Brisbane
Registered:
February 2003
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Re: Housing - who can afford it?
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Sun, 22 May 2005 12:09
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i think it always sounds better with the adverb infront of the adjective .. but feedback is noted
but where does the soarer go then?
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Location:
Adelaide
Registered:
January 2005
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Re: Housing - who can afford it?
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Fri, 27 May 2005 07:18
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My soarer will probably sit out in the terrible weather being unloved
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