Is Credit Card Debt Destroying Your Home Owner Dreams

The data that is evolving regarding credit cards is that people are applying for them at a younger and younger age.

One of the greatest flaws in this reporting is comparing the Generation Y’s with older folk of 65 years of age. It has been reported that the average 65 year old applied for their first credit card when they were 34.

This is a direct contrast with the gen Y’s who are usually applying at the age of 20!

This should not be surprising data. In this day and age you can apply for a credit card online. In the “old days” you had to jump through many hoops and wait weeks to get a credit card. Twenty five years ago, the United Kingdom would not even give you a key card until you had banked with your banking institution for six months, let alone a credit card.

Thirty years ago a credit card was considered a luxury. In the now, a credit card, whilst not essentially a necessity is definitely marketed as a way to get what we want immediately, instead of the scrimping and saving of our grandparent’s era.

The alarming data though is the fact that most twenty-somethings have credit card debt of between $10,000 and $30,000! THAT could have been a mortgage for our 65-somethings!

What most twenty-somethings don’t realise is – their credit card debt may exempt them from getting a mortgage and actually creating their own little piece of paradise. The place they can call home and escape the hustle and bustle of today’s modern living.

Fountain Property Group are interested in helping people achieve their housing and investment dreams. We offer some tips to those who really want to own their own home.

Stop Spending!

The first tip is clearly obvious and that is to stop spending or more importantly stop frivolous spending. It is so easy to rack up a hefty debt and have little to show for it. Try cooking and entertaining at home instead of eating out and paying the outrageous drinks prices you do at clubs, pubs, and restaurants.

Ask Whether You Really Need This

Often you can convince yourself that you need the latest mod con. Whatever item it is you are considering going into debt over ask whether you really need it? Could the old one work just as well even though it does not have the latest bells and whistles?

Buy Quality

If you must spend your hard earned cash (sorry run up your credit card debt) do it by buying quality items. Buying cheap usually gives you what you bought – something that will break down faster!

The Melbourne Property Boom Is Just Getting Started

The previous high for Melbourne’s median price was at $505,000. The city is predicted to soar above than in coming property sales.

More than 1000 homes will be sold under the hammer today, and experts expect the median price record to be shattered if this month will perform as well as September, when home values experienced a 2.6% increase. The most number of auctions was in May 2010, and October 2013 is on par to meet this as there are 4500 scheduled auctions for this month. Real estate agents are optimistic that this record is not going to stand any longer, with the steady trends of auction clearance rates averaging in the high 70% for the past several months.

Read more about this on The Australian website.

Property Value Exceeds Record Set During The 2010 Property Boom

Property values for the month of September shattered the record set during the 2010 property boom, according to RP Data Rismark. Housing values for 2010 were at its highest at 141.45. As of 2013 year to date, capital city values are at 124.11.

Growing concern over the property price increase has caused analysts to speculate that this trend might result to a property bubble.

RP Data director Tim Lawless thinks otherwise. He calls the property value increase as a “technical” recovery, as there are other factors that keep the property value in check. Housing values are increasing, but in turn, there are shortages because of a rapid increase in population, low interest rate and strict lending standards.

Read more about this on the Age website.