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Re: Way To Go Fred, and other Norway residents...

Posted: October 14, 2009 • 7:26 pm
by Cubase
lestat666 wrote:Does everyone have a ridiculous salary to accommodate housing prices??

How does anyone buy a house without a huge salary?
I know I don't! HAHA! I have a friend who lives in the area of Vaucluse (not even in the city, but in the eastern suburbs which are insanely excpensive)... and the average property price there is about $3,750,000. These aren't mansions, they are just decent sized nice homes. It's a bit of a joke here, but it's always been pretty bad. A city penthouse will start at about $7mil (for something small) if you are willing.

Aussie salaries aren't that flash (compared to many other places in the world, especially the UK), and in terms of property acquisition; everyone ends up with a mortgage at some stage when they go to buy a house. It's part of our way, especially here in Sydney. You get whatever mortgage you can afford with your salary and find the best place you can get with it. The more you earn, the greater you can borrow, and you get used to the fact that you will probably spend the rest of your life paying off your property.

The big difference between how we do it and how it is done in the US is (as Baf said): if it appears as if you might struggle to maintain loan repayments, you won't get the loan... period. And even if you can at first and then go bust, you will be chased up for the rest of your life until you can make up for the money you lost the bank. Whereas in the US (and correct me if I am wrong) people were allowed to just hand over the keys if they could no longer afford repayments home and that's that... they are not chased.

-Cub. =o)

Re: Way To Go Fred, and other Norway residents...

Posted: October 14, 2009 • 7:39 pm
by Bafitis
There's some truth to that Cub... It isn't as easy as just handing over the keys though... The last thing banks want are the properties, they want the money... In some cases it takes people being behind for almost a year before the bank will finally issue an Eviction Notice... They'll chase you, but they don't chase you very hard... I see what you're saying and it would be a lot better in most cases if they did it like you're describing...