Dead Money

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Everything posted by Dead Money

  1. My experience is that my perspective changed after having a child - their cost became secondary in importance, along with most of my original goals in life. A caring parent probably spends what they have on the child, simply because they care. Of course, our family buys more important things, like my wife working less so she can spend more time with the child - much more important than a label on clothes! But your material well being takes a back seat in importance. Like I said - a change in perspective can occur....
  2. “This country has seen the GFC (global financial crisis), nearly double-digit interest rates, low rental returns and high unemployment come and go and the property market hasn’t dipped through any of that. Why should it now?” Then later: “But look at other markets such as Brisbane, where those prices are still cheaper than post GFC, so there is still room for growth even if its not right in your own backyard. " So prices are cheaper than they were 7 years ago, but the market hasn't dipped hmm?
  3. Well, I probably did exaggerate a little We purchased in an outer suburb of Melbourne. The property (Property A) was listed at $X +, and in my opinion should have fetched around $X + $45,000 based on comparable properties in the area. There are more than 100 listings in that suburb, so determining value is pretty easy. Realas estimated $X + $49,000. We settled on $X + $10,000 So in my view, we purchased around $35,000 - $39,000 under current market value. So I'm no property genius, but still - $35,000 is a big chunk of change on our budget! It's a bit of a funny story actually, we were juggling up between buying one of two properties, each through different agents. The second property (Property B ) was around $50,000 cheaper than the one we went with, better build quality but a fair bit smaller. It unfolded like this: Day 1. We see Property B on Saturday, and like it. We start to fish around for what the Vendors would realistically accept. The property is in our price range. We take a Section 32, with the probable intent of placing an offer on Monday. Day 3. On Sunday night we decide to do a last minute shop around on realestate.com to see if anything else catches our fancy. Property A had caught our eye before, but we had dismissed it as outside our realistic price range. But this time I checked the listing date on http://www.suburbview.com/, and found it was around 100 days old. We decide that if they would accept X + $10,000 - we'd be interested. Day 4. The next day I call the Property A agent, and say "We are interested in Property A, but can only offer X + $10,000 maximum. Would the vendors consider such an offer, or are we wasting everyone's time?" The agent confers with the vendors, calls back, and says the vendors would consider such an offer. So we book a private inspection that night. We see Property A, and like it. We take a section 32. We tell the agent straight out that we are tossing up between this property, and another cheaper one in the area. (I didn't say the address, but I did mention one somewhat distinctive feature) We take a second look (private inspection) at Property B the same night. We tell the agent straight out that we are tossing up between this property, and another more expensive one in the area. He asks what the list price is, we tell him $X+. He says based on that list price there's no chance we would get it within our budget. Day 5. We ask for and receive a second private inspection on Property A. We make an offer of $X + $10,000 - with a firm statement that if the offer is rejected, we plan to buy the other house instead. That night, after a few hours of waiting, the PROPERTY B agent SMS's us, to congratulate us on purchasing a house! About an hour later, the Property A agent calls to confirm the offer has been grudgingly accepted. Keep in mind that the two agents work for different companies, so I can only presume that Property A agent looked through other local listings, figured out which house was the other contender, and called the Property B agent to ask him what he thought our limit was! In hindsight we're glad we were telling both agents the same story. I guess it made our "this is our final offer" claim more believable...... And yes, we had pre-approval to go higher, but who the hell wants to spend to the max the bank will lend? Dead Money
  4. Based on my recent experience house shopping, Realas was pretty close most of the time. For the 5-6 properties we missed out on/almost bought, it was within around $5,000 - $10,000 of the actual sold price each time. Naturally it way overpriced the particular property we bought however, because we lowballed the crap out of a stale listing Dead Money
  5. Hi all, Well, this bear has decided to capitulate. After waiting out house prices to return to reason for more than 8 years, Mr & Mrs Money have decided "screw it" and bought anyway. I suspect "nesting chemicals" may have played a part in our decision, an impending baby on the way caused a sudden disregard for wage/price ratios! So the pessimist in me says that this must therefore signal the start of the crash....... Either way we can bring up our daughter in a home that we can call "ours", and unless interest rates more than double, we should be able to hold on financially. So I suppose value decreases here on will be largely academic for me. I regret I can no longer play pirate with my gold investments - the house safe is incredibly barren now. For anyone interested, we've picked up a recent build 4 bedroom house in the far outer suburbs of Melbourne - so feck all Capital Growth prospects. Honestly I'll be happy if it matches wage inflation by the time we sell it (Hopefully in the quite distant future). Being a shade under 600 square meters the block is a bit smaller than we would prefer, but all of the 1/4 acre blocks are in established suburbs - hence way outside our price range. Fortunately a nearby park will provide outside play options. Mrs Money already wants to buy a brand new hammer to start hanging pictures on all the walls when we move in Cheers, Dead Money
  6. Thanks all, We were able to get together a 30% deposit, so we can avoid LMI, and have a little re-draw room as a safety net if needed. Equity maaaaaate! Having said that, we're definitely planning on paying down the loan ASAP - this is the first time either of us have held debt for 10+ years (Not counting Uni debt), and I'd just as soon return to the feeling of freedom which accompanies such. Can't wait to set up the nursery Dead Money
  7. Congrats Sydney. It must take a lot of self confidence to leave a job without another lined up?
  8. Homeowner dreams an aged underclass nightmare Okay I'm sorry, next time I'll just quote the whole damn thing. I couldn't pick less quotes than I did - so much truth in one article! Dead Money
  9. I find this a rather odd thing for an Australian Senate candidate to be saying. My understanding is that unlike in the US, it's not possible to "build up" an Australian credit rating - only to damage one. That is - there are two types of credit ratings in Australia: - Unblemished. (No loan rejections or late payments on record) - Blemished. (Has loan rejections or late payments on record) Unless you're currently a bankrupt, I can't see that there's anything one can do to change your 'rating' in order to access more debt? :blink:/> Dead Money
  10. No worries SC, I agree totally. I only used the figures I did because they were the only ones I found. You're probably right that those are some sort of aggregate figure rather than an annual figure, the 2012 figures from the Asylum Trends pdf is probably a better measure to use for this discussion. Cheers, Dead Money
  11. To which my response would be: 1. Does Norway have a right to decide how many refugees apply for asylum in Norway? 2. If yes, how should Norway implement that right? (Note, I don't think there are easy or simple answers to these Questions personally.....) Actually I could get on board for that - so long as said trained migrants (who happened to be refugees) were classified as skilled migration not refugees on the statistics. Otherwise it could become an easy way for Australia to shirk its humanitarian obligations.... Cheers, Dead Money
  12. Heya, I was using the "figures at a glance" statistical snapshot from the UNHCR website. Happy to be corrected if I was using the figures incorrectly: Australia http://www.unhcr.org/cgi-bin/texis/vtx/page?page=49e487af6&submit=GO US http://www.unhcr.org/cgi-bin/texis/vtx/page?page=49e492086&submit=GO Norway http://www.unhcr.org/cgi-bin/texis/vtx/page?page=49e48ed26&submit=GO Thanks for the PDF link - that was actually the sort of information I was looking for, but for some reason overlooked. Cheers! Dead Money
  13. I agree that multiculturalism has brought great benefit to Australia. I agree that bringing in a "sensible" number of young go-getters each year to offset the issues of aging population is a good idea. Hand me the nailgun and a decent alibi - I'll get started. But even with competent leaders, I still believe that there is an immigration number (say x), which is likely between null and infinite, and which is better for Australia in the long term than either null or infinite. I want x. And that's a different want to wanting competent politicians - I'm greedy and wont both thanks all the same! Dead Money
  14. You might not want to believe the Norweigen vox populi. According to the UNHCR in 2012 the United States accepted more people for resettlement than any other country in the world. 2012 UNHCR figures for refugees and asylum seekers are: US: 280,996 People Norway: 54,489 People Australia: 50,093 People Then again there are about 10.4 Million refugees that the UNHCR is concerned about right now. Most are in the Middle East or Asia, followed by Africa - so why 331,089 travelled all that extra distance to Australia or the United States despite getting such a good deal in Norway I've no idea. On a separate note, I've got a great business idea - "REFUGEE LOANS". As soon as Australia opens up its boarders, I'll sell refugee loans to refugees living in camps over in the Middle East and Asia. About $1,500 is enough for a one way economy ticket. I'll hire workers at cheap rates over in Pakistan to sell one way non-refundable air tickets at a reasonable loan rate - say 25% per annum compounding, calculated daily. Only available to those 10.4 million the UNHCR is worried about . Once the Refugee is here in Australia either on benefits or working they can start to pay me back. If I can make say...... an average of $200 in interest across 10.4 million people.... Well, at that point Mrs Money and I can move somewhere that doesn't have an infrastructure crisis! Dead Money
  15. Agree. Hmmmm. I can see how that might lift the national debate when it comes to taxes. I'm not convinced on the "leads to better money management" idea, but improved national discussion does have value. You may have convinced me - I'll need to ruminate on this some more...... Cheers, Dead Money
  16. I agree with that. But Tor's statement was "Maybe I am being stupid but that seems the way to go for all taxes" - emphasis mine. I have no problem with some specific taxes being used for only a specific purpose - but I think doing this for all taxes is not best practice. Cheers, Dead Money
  17. Would this be your view for all taxes? Ie: Income taxes should only be spent on activities related to income generation? Capital Gains taxes should only be spent on activities related to Capital? GST should only be spent on activities related to Goods and Services? This sort of thinking works great for Business (ie. If a P&L centre can't pay for itself, should we shut down this business unit?) - but it makes less sense for a not for profit entity (ie. This Hospital can't pay for itself, should we shut it down?) I would have thought that it is generally accepted that some Government activities need to be funded from taxes on unrelated activities? If you want your taxes to be specified as to what they go to (ie. 30% of GST goes to Health, 20% to Infrastructure, 15% to Defence, etc) this still creates issues. Keep in mind that tax revenue for any given year can fluctuate a fair bit, but the need for Government services do not fluctuate to the same extent, or the same cycle. Would you be comfortable with being told that a hospital is shutting for 2 months Nov-Dec because GST revenue is down this year? Cheers, Dead Money
  18. Companies have access to the same sort of arrangements. In my experience, the ATO is pretty good about it if: 1. You contact the ATO to discuss before the debt comes due. 2. You offer a reasonable payment plan. They still charge GIC on the lot though! Cheers, Dead Money
  19. Honestly, I'd assume they were trying to scam me. It's just an odd request, especially for a metal that has such a small spread on purchase/sale. I don't own the equipment to determine real from fake. Unless they were offering face value on the old kooks. That'd be cool Dead Money
  20. Thanks Bernie, So assuming every man, woman, and child arriving from China in 2011-2012 purchased one new house each, they would have absorbed about 13% of new builds: http://www.propertyobserver.com.au/economy/australia-is-booming-so-why-are-we-all-so-gloomy/2012032053931Or if we look at transactions across the year, 1 dwelling per Chinese immigrant would have absorbed around 4.3% of Australian Dwelling Transactions: 4.5% turnover x 9 million-ish dwellings. 4.3% would have an impact, but unless they're buying 10 houses each...... Looks like we need to deal with the Kiwi peril before we look at the yellow one! Dead Money
  21. Hmmmm. I can easily believe that immigration of wealthy Chinese has an impact. But before I'd accept correlation as causation for our woes across our whole property market, I'd be interested in seeing the figures underlying the statement "Wealthy Chinese are now among the biggest buyers of real estate in Australia". That's a big claim. Given that Chris Vedelago's attempt to get information of this sort through the freedom of information act turned into a bust - I wonder where they're getting their data? Or is this just post hoc, propter hoc? Cheers, Dead Money
  22. I agree with this article so much... I can't say anything. Dead Money
  23. I'd bet the price of a house in Melbourne that this experience is not reflective of most people in Australia.....
  24. Don't worry Solomon. Those are the ones that (housing) ships hit..... Dead Money
  25. So Stocks..... Or Bonds.... Or Metals.... Are we allowed to diversify? Or is that still out of fashion?