Home ownership

liaoyu03 · Joined: 09 Sep 2007 Posts: 198 7.29 Dollars($)

Here in Australia the dream of home ownership is getting beyond the reach of average everyday people due to overinflated prices driven up by investors and real estate agents along with government taxes.IS home ownership still a reality in your country for the "average joe"?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Liaoyu,

Over here in U.S. there are many government and private institutions that offer loans even to average and lower income earners. Government institutions like FHA, Fannie Mae and NACA have set up specific guidelines so that borrowers with average/low income and even with low credit score can avail loans from such government approved lenders. Such government institutions provide insurance facilities to borrowers and in case a borrower defaults on the loan, the insurance policy will cover their payments.

So, I can say that home ownership is still a reality in this country.

domainforsale · Joined: 10 Sep 2007 Posts: 7 0.00 Dollars($)

Hi Liaoyu
i think it's almost impossible, unless you feel suicidal, and that coming from the fact that we are in a financial position to do so, but it would be ludicrous.

The first time buyer doesn't stand a chance. Young married couples will really feel the brunt. As for single young people it will for years to come only be a pipe dream.

Because of the political situation here, there is a very skeptical attitude, when it comes to buying land, in case of distribution, and where to buy. All these factors have got to be considerate, and for the average joe it is better to rent, at phenomenal rates than to buy. It is better to loose every month than to loose your whole life savings on the wrong plot of land.

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

In the UK house prices are still rising at an alarming rate. When I bought my house I was lucky enough to be in a financial position to buy immediately, my house value has doubled in the past five years. If I was to try and buy this house now I wouldn't be able to afford it. These days it is almost impossible for people to get a foot onto the property ladder as more and more properties are being priced out of their reach.
A good example of this is my friends in London. They can only just afford a one bedroom flat (little more than a fancy large room) yet they both work and have saved up for a few years.

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

In the UK house prices are still rising at an alarming rate. When I bought my house I was lucky enough to be in a financial position to buy immediately, my house value has doubled in the past five years. If I was to try and buy this house now I wouldn't be able to afford it. These days it is almost impossible for people to get a foot onto the property ladder as more and more properties are being priced out of their reach.
A good example of this is my friends in London. They can only just afford a one bedroom flat (little more than a fancy large room) yet they both work and have saved up for a few years.

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

why was my respond repeated two times?

miller_st · Joined: 17 Jan 2007 Posts: 917 168.82 Dollars($)

Niicss · Joined: 03 Oct 2005 Posts: 1047 156.17 Dollars($)

shiguzhen · Joined: 10 Sep 2007 Posts: 11 0.00 Dollars($)

ok ,i know.
by the way, It is getting hard here in the Uk to now
People are struggling to keep their Homes because of the Mortgages going up so much over the last couple of years
Some are paying nearly twice as much now to what they where paying 2 years ago and my Son is one of them.

liaoyu03 · Joined: 09 Sep 2007 Posts: 198 7.29 Dollars($)

In the eighties our interest rates soared to 18% and many people hade to foreclose, those that with stood the high interest rates benefited and unfortunately they were the people that had the money to start with such as investors

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liaoyu03 · Joined: 09 Sep 2007 Posts: 198 7.29 Dollars($)

thank you for everyone's respondence.

mytompk · Joined: 12 Sep 2007 Posts: 1 1.47 Dollars($)

Most people just starting out in their adult life here cannot afford to start off on the house ownership ladder.
Building societies make it easier to borrow by allowing larger multiples of a persons wages than ever before. Terms of mortgages can go beyond the length of time that they used to and still people cannot afford it.
Rental of a houe or flat is so high,that a person renting is unlikely to have anything left to save for a downpayment on a house.
The government make rules about some of all new houses must be cheap affordable housing but ofcourse the moment the affordable housing is sold by the first time buyers,it is no longer affordable to the newbies.

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi Liaoyu,

It's our pleasure to help you. If you have any further query, please feel free to ask.

liaoyu03 · Joined: 09 Sep 2007 Posts: 198 7.29 Dollars($)

thanks larry, i am also learning knowledge about mortgage. i think i must have many problems to ask you.