After the House Price Boom: Is this the end of the Australian dream? (read more)
Thirty years ago, land made up about 20% of the total selling price of a new house, but today it is closer to 60%. Housing developers claim that the failure of planning agencies to match the increasing demand for land by increasing supply has raised the cost of development land, and hence the price of new housing.
House prices to jump 40pc (read more)House prices to jump 40pc | The Daily Telegraph
Compared to the above frightening scenarios the world of 20 or 30 years ago seems like another place. A very nice place to live in.
But what can we do? Start looking in the right places for a start. Watching the present news images of mortgage foreclosures makes you realise how important it is not to have one of the damn things (mortgage that is). Having somewhere to call our own, is really not too much to ask after years of working hard to achieve our goals. The frightening reality is that for many after the hard work is done, the goal posts have been shifted.
Rising interest rates, Economic downturns, Unstable employment markets and inflation are all eating away at our future prosperity.
Let me tell you an inspiring story about a mother of five, Caroline who took control of her life. Caroline was in a marriage that had been going backwards for a long time. Realising that something must be done, both for herself and the children she decided on a course of action that was somewhat out of character for a suburban housewife. But not lacking in courage, she set about giving her family a new positive start in life.
Having spent most of her married life raising a family, she had very little in the way of capitol and current work experience to fall back on.
What she did have was a determination to make a change. The first thing that was needed was an affordable place for her and the children to live, and she chose a fringe rural area that was less than 1 hour commuting time from the city, where there was a local school and some creative like minded neighbours.
What she did next was the bit that made the difference. Taking the youngest of the children with her, she went to all the real estate agents that sold land in the area she had chosen, and asked each of them to give her a list of the three cheapest homes that they had for sale in that area. To be affordable it had to be what’s called in the trade ” an improver ” and not worth much more than the price of the land.
The one that she could afford was weatherboard, old and very basic with an outside loo and had been built in the 1940’s.
Having made her choice the whole family worked hard, made mudbricks from the soil on the property and added an extension as well as many other improvements to make a comfortable family home. The practical skills that they needed to learn were as much fun as they were challenging and is now reflected in a positive outlook family group that has achieved enormously over the years. Special work skills, university education and all round nice people are the direct outcome of those choices that were made at a crucial and difficult time.
What can I do? Well you could take a leaf out of Carolines book, making the decision to do something is probably the most important step you can take. Life has a habit of opening doors just when you need it to, and that first step down your road to financial security and independance is the really important one.