House Prices

It was in June 2006 that I moved into this place in Springvale, and for the first time in my life had a mortgage instead of a rental agreement.

It is a modest two-bedroom flat, smaller than the one I was renting in Malvern, but I have been able to squeeze everything in - and I am happy here.

Wasn't easy getting the mortgage. My credit union turned me down - they didn't like all my short term contract jobs. ING came to the party.

I inherited some money from mum, I cashed in a life assurance policy which I'd been contributing to for 18 years and with the first home buyers' grant was able to raise just under half the amount I needed.

The place was cheap, $150,000, but it is in good condition, and the location is okay.

My mortgage payments are the same as the rent I was paying - so I know I can budget for it.

In short - I've been very very lucky.

I have crossed the fence and become a home-buyer after being a renter for over twenty years.

How do I feel after making the transition? In a word - "relieved."

(In the last valuation my place was valued at $180,000 or so. This terrifies me. If I'd been house-hunting in 2009 instead of 2006 I'd have needed to borrow an extra $30,000. My mortgage repayments would have been 37.5% bigger. This would be more than I could afford. I'd got a modestly-priced place in the very last year when it would be possible for me!)

There is an ideological battle going on in Melbourne at the moment. A battle between those who are renting and watch as the escalating house prices put the dream of home-ownership seemingly forever out-of-reach - and those who already own a house (or houses) and allegedly rejoice in the escalating value of their assets.

I do not rejoice! I hate these escalating house prices. My flat is a home and not an asset - it only becomes dollars if I sell it. I might (once I've paid off this place) want to move to another slightly bigger place, but with price increases this becomes much harder! Instead of having to loan an extra $30,000 (as an example) I'd have to loan an extra $50,000 or $60,000 or more to get that slightly bigger place. Even a slightly bigger place may be unaffordable.

I don't give a stuff if house prices fall - as long as I can afford my mortgage payments I'll be happy to stay here. (And I'm too sensible to take out huge loans to purchase property assets.)

I want house prices to be lower. I don't want so many people to be under financial stress to rent or buy a roof over their heads. I don't want destitute people living in the streets - I want them to have rooms or apartments where they can be comfortable. (And as a regular reader of "The Big Issue" I don't hold with any of this nonsense about people wanting to be homeless!)

How did a necessity of life (shelter) get to be so damned expensive?  We have the know-how and the technology to make cheap modular housing. There are places where we can build. What's stopping us?