In 3 weeks, i will be going to Singapore to put forth my proposal to buy another house. My parents are often conservative and would rather keep the money in the bank then to invest in property or shares.
I hope this time round, I can persuade them to invest together with me. Is the time right to invest. Interest rate has dropped, so the agent has told me that prices will start to rise. Unfortunately, the global climate has been causing much turmoil in the Australian economy. Job cuts, uncertainty and slowing economy, all these are the signs of a property market being at least stagnant for awhile
I think though Australia house prices are still a little high. The house price and wage ratio is comparable to the US. The unfortunate problem now is that i still think the interest rate in Australia is still too high.
Taking Singapore into account...with 350 K you could buy a HDB flat, and here in Australia you need that amount to get a old 3 x 1 house. Assuming exchange rate of 1 to 1 then the key is the interest rate and tax rate.
The problem is Australia tax rate are much higher than Singapore .. my friend pay less than a $1000 tax while poor me have to pay almost 20K ..why you might ask.. well to support people on welfare... people who are too lazy to work. In aisa, Family are responsible for one another while in Australia the government are responsible for the people. ....
Then there is the interest rate... singapore rate is 3% ... while Australia is still around 6-7%
My hope is the house price can fall a little more... so i can buy it abit cheaper... i really hope my parents will take my suggestions.
I hope this time round, I can persuade them to invest together with me. Is the time right to invest. Interest rate has dropped, so the agent has told me that prices will start to rise. Unfortunately, the global climate has been causing much turmoil in the Australian economy. Job cuts, uncertainty and slowing economy, all these are the signs of a property market being at least stagnant for awhile
I think though Australia house prices are still a little high. The house price and wage ratio is comparable to the US. The unfortunate problem now is that i still think the interest rate in Australia is still too high.
Taking Singapore into account...with 350 K you could buy a HDB flat, and here in Australia you need that amount to get a old 3 x 1 house. Assuming exchange rate of 1 to 1 then the key is the interest rate and tax rate.
The problem is Australia tax rate are much higher than Singapore .. my friend pay less than a $1000 tax while poor me have to pay almost 20K ..why you might ask.. well to support people on welfare... people who are too lazy to work. In aisa, Family are responsible for one another while in Australia the government are responsible for the people. ....
Then there is the interest rate... singapore rate is 3% ... while Australia is still around 6-7%
My hope is the house price can fall a little more... so i can buy it abit cheaper... i really hope my parents will take my suggestions.
