Should I buy a house now with inflation and construction costs rising?

R

rexsamdonk1ng

New Member
Hey lads, inflation's up — how're you seeing the economy headed, plus construction costs? Crash coming?

I'm in construction in Melbourne (EBA), missus in insurance. House market's a buyer's market right now — best time to buy? Yeah, in this day and age nobodies job's safe. Stressed out.
 
Headline inflation up. Mostly from the increase in fuel costs in March 4.6%. Thanks to the actions of Washington and Tel Aviv. Trimmed Mean Inflation, also known as 'core inflation', was stable at 3.3% from 12 months ago – that's what the RBA predominantly looks at. Not bad, not good, just fairly neutral. It's unbelievable the amount of doom and gloom you read in the media. I can't speak for regional a reas. But you just need to go into any major capital city in the country to see this talk of 'recession' is absolute bollocks. And there's a bunch of reasons that that i won't get into here.
 
I think this is just how things are now. The days of buying an XR8 and SS for 55k are behind us. It's a bit sad, but that's the new road.
 
When you buy a house now, your mortgage payments remain stable (aside from minor interest rate fluctuations), but rent will keep rising. Within a few years, your mortgage payment will be less than rent and only get CHEAPER and much easier compared to w age growth and inflation. Most people overlook this when weighing a purchase, focusing instead on capital gains. The sooner you buy, the faster your living costs drop freeing up money to either pay off the mortgage quicker or invest elsewhere.
 
Honestly, that's just fear mongering. Some folks are trying to push for a recession, but I doubt it'll come. Shops are fuller than ever, houses are selling off market, and people are splashing cash like there's no tomorrow.
 
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