Hi Every one
I just wanted to share some thoughts that I have on a few things and was hoping that everyone would like to comment and question my ideas.
First I think it might be a good time to buy a house even if it isnt quite positivly geared as I believe that rents are overdue to rise and rise a lot.Therefore the property will become positivly geared in a reasonable timeframe.
Second I believe that interest rates are still pretty low by historical terms] so as long as you can fix the rate around 6.5 -7 % for 5 years you should do ok.
Third I believe that wages will have to go up to compensate for the price of rent and buying a property being so high.
Does anyone have a graph that shows how long it takes for rents to go up following such a large price rise in property?
I think that might make interesting veiwing.
Looking forward to reading any comments.
Boo BooI agree about rents being totally out of line with property values, not sure about your assumption of the need for wages to rise to match property values.
You could be right or it might indicate property is way overdue for a serious correction.
Hi Booboo,
This is a little off the topic of your thread, but interesing about how you talk about wages not being enough….(i have to agree here), different jobs, different positions and differnet levels of certification, can throw someones pay in all different levels of award wages and how much pay they should recieve.
One obstacle, that works for me is, the more broader qualifications you have, the more work will increase your pay, but with also saying that, the more broader qualifcations, you have the more jobs and positions are available to you.
Be very careful in getting too many qualifications, that are limited to one job, in doing so, you are only limited to one job, were if you were to lose your job, or your job was superseeded, you are only limited to what qualifications you have.
Getting broader qualifcations, you dont limit yourself to one postion, but also open up a new poition available to yourself, and limit the risk of being only qualified in one position.
cheers,
s.i.sHi
I read an article in the Herald Sun (Melb) and it expects that the average wage will increase this year by $2k (i think 3-4%).
I love it when i read these articles. This means as people get higher wages they can afford to pay more rent. I also love it when the price of goods say bread rolls goes up. That means it costs us more to live and we then ask for higher wages.
Why is this good. Well if you bought a property today as inflation goes up prices go up and the purchase price in 5 yrs seems so small. How many times have you heard someone say ‘Gee if only I kept that house its now worth double’
It also means that i have the possiblility of a higher wage which can be used to finance the same mortgage payment. It also means rent goes up so it will be EASIER to finance the property. This is my long term view.
Also rents are usually as a rule of thumb generally 1-2% below the current interest rate. If interest rates go up, then rents too will go up.
Cheers
Andrew
Rents go up ?? Yay, maybe they’ll match the yearly increase in rates, or other increases!!
We looked back at some of our rates about a year ago, i think they averaged about a 9% increase each year, also State Gov ( WA) has increased stamp duty last two times in a row..
Wages, well they got rid of workplace agreements here, so our company “along with a few others” registered Federal workplace agreements, a wage Rise “I’d like to see that”
Agree with Still in School, in the old days people had a job for life, aimed for the gold watch etc, nowadays i think they say you’ll average 7 different jobs in your career.
Job security is basically- how hard would it be for your company to replace you! The world is constantly evolving, you have to too.
Jobs are becoming more ‘specialised’ and you have to be careful, as with investing not to put all your eggs in one basket. Jack of all trades Master of none comes to mind ( OK Jack of All trades Master of some is better)
Learn many and varied skills, most people are willing to teach, i’ve learnt a lot just from giving friends or family a hand. Or if someone at work does something i don’t know how to do i get them to show me, now others call me for help.
REDWING
Everthing goes up. The trick is to hold things that go up rather htan get old and become worth less. Property is always a up on the long term. unfortunately boats for me have been a down as have cars. Luckly property can be entertaining
I think there will be some correction all round this year. prices fall, rents catch up
I think there will be some correction all round this year. prices fall, rents catch up You must be logged in to reply to this topic. If you don't have an account, you can register here.
