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Put an offer in for my first home yesterday. Fingers crossed!
Vendor likes our offer now it's been formally submitted. Everyone else gets 24 hours to respond (EOI) - but looking good!
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Put an offer in for my first home yesterday. Fingers crossed!
Your buying at the right time as you know it's gonna get worse and it's what you're prepared for.Vendor likes our offer now it's been formally submitted. Everyone else gets 24 hours to respond (EOI) - but looking good!
What sort of money are you looking at.Trying to get into this game.
Not a huge amount around, but looking all the freakin' time.
No thanks.What sort of money are you looking at.
Geelong west has one of the best market/coffee/restaurant streets in Victoria.
5 minute walk to train.
Absolutely unbelievable schools
Easy driving.
25 minutes to bass Strait Beach
5 minutes to Bay Beach and pretty good fishing
Access roads to Ballarat, Melbourne,airports,great ocean road.
Ferry to Mornington peninsula.
Easy traffic.
All ice addicts confined to corio and Nth Geelong.
550.00 will get you in.
IMO it'll be unemployment that busts before housing, I think its happening right in front of us however once again data is lagging. Yes, in many ways they're interlinked however the government has vested interests and won't allow housing to completely collapse. Plenty of QE available to prop up housing with unemployment rising.
- I think interest only loans, even for those who's servicing traditionally wouldn't allow it will be one of the first
- Reducing the rate serviceability buffer from 3% back to 2% or 2.5%. APRA will be more confident doing this when we have a bit more certainty with rates
- repayment holidays during periods of unemployment
etc
Vendor likes our offer now it's been formally submitted. Everyone else gets 24 hours to respond (EOI) - but looking good!
Trying to get into this game.
Not a huge amount around, but looking all the freakin' time.
So do what, enter the rental market where 50% less properties are now below $400 / week in Melbourne?For god sakes wait.......
There's going to be at least another 12 months of rate rises.
If this is your first home, you will have negative equity in anything you buy now in 12 months.
You have the largest unions in Australia's 3 year EBA's currently up for negotiation at the moment, record labour shortages, inflation steaming ahead and wage increases keeping pace with it so people are still spending.
25-40 years are still spending like no tomorrow, wage increases are further feeding inflation as people haven't been put back in the shell yet, only really the low income earners.
The cash rate is going to go well past 4%, which could be another 3-4 rate rises at least.
So do what, enter the rental market where 50% less properties are now below $400 / week in Melbourne?
yep, although you may have even undersold it somewhat. Rates are going skywards.Would you rather pay 20% more rent for 9-12 months?
Or lose 15-20% of the value a 9 x leveraged asset AND pay the increased holding costs for that period?
Will you have have the cash reserves to secure the difference if the bank calls in your loan in 12 months if the reduction in your property price exceeds your initial deposit/equity?
If you are a prospective first home owner, you are in the best position most have been in 15 years in terms of buying property, you are unimpacted by the property market other than rent increases atm, don't be silly and jump on the sinking ship before it's sunk.
Hyperbole much...rfctigerarmy - I hope you are not being compelled to buy through a life situation. Patience is your friend now. Good luck. When this is over, a lot of us will be unemployed and homeless.
Hyperbole ?Hyperbole much...
Inflation isn't this big scary monster...
Prices and growth go up and down, this expectation that people and especially large corporations expect everything should grow linear or exponentially is ludicrous.
Do you think if I wait with everyone else, that I'll just be paying more for a place when everyone else who is waiting is also ready to fire?For god sakes wait.......
There's going to be at least another 12 months of rate rises.
If this is your first home, you will have negative equity in anything you buy now in 12 months.
You have the largest unions in Australia's 3 year EBA's currently up for negotiation at the moment, record labour shortages, inflation steaming ahead and wage increases keeping pace with it so people are still spending.
25-40 year olds are still spending like no tomorrow, wage increases are further feeding inflation as people haven't been put back in the shell yet, only really the low income earners.
The cash rate is going to go well past 4%, which could be another 3-4 rate rises at least.
Do you think if I wait with everyone else, that I'll just be paying more for a place when everyone else who is waiting is also ready to fire?
Hyperbole much...
Inflation isn't this big scary monster...
Prices and growth go up and down, this expectation that people and especially large corporations expect everything should grow linear or exponentially is ludicrous.
For god sakes wait.......
There's going to be at least another 12 months of rate rises.
If this is your first home, you will have negative equity in anything you buy now in 12 months.
You have the largest unions in Australia's 3 year EBA's currently up for negotiation at the moment, record labour shortages, inflation steaming ahead and wage increases keeping pace with it so people are still spending.
25-40 year olds are still spending like no tomorrow, wage increases are further feeding inflation as people haven't been put back in the shell yet, only really the low income earners.
The cash rate is going to go well past 4%, which could be another 3-4 rate rises at least.
Spoken with a whole lot of confidence, are you an economist by chance or it it just an uneducated opinion?
An increase in rates equals a lowering of borrowing capacity.
Everyone predicting further doom and gloom is a good time to buy, no one accurately states 'this is the bottom of the market' as by its nature you don't know the bottom of the market occurred until after it's passed.
I'm looking to buy in the next month or two, as it's a case of being ready. The market does what the market does, if I missed out on an ideal place because I sat around waiting for property to drop another 10% (and my borrowing capacity decreased by 100k) due to further rate rises there's a fair chance I'd never end up buying.
Negative equity is a nil concern for a PPOR.
It's certainly a problem when the bank comes for further security against the property because yours has evaporated and you don't have said cash to provide bank for security.
Also I feel like your vision may be clouded if you've already 'got plenty of skin in the game' for property. Having a PPOR means a lot of security, not having to deal with the current rental crisis, and having a place to call your own. Why bump that out longer than you'd need to hoping that the cards fall your way.
Why does a PPOR give you a lot of security? That's a social perspective, not a financial one. As is the comment on a "place to call home"
If I could get market value for all of my properties, I'd sell them all right now, as the price reductions will definitely outstrip the stamp duty costs of rebuying.
In terms of the rental crisis, it pales in comparison to the interest rate risk exposure at the moment.
A 0.25% interest rate rise on an average Australian mortgage is probably the equivalent to a 7-10% average weekly rental cost increase. Not even factoring in the negative capital gain impact of that rate rise, which is larger than both combined probably.
A 0.25% interest rate rise on an average Australian mortgage is probably the equivalent to a 7-10% average weekly rental cost increase. Not even factoring in the negative capital gain impact of that rate rise, which is larger than both combined probably.
Can you provide any source to substantiate the bank coming knocking on a PPOR owner's door and saying 'hey the property is worth less than what you paid for it, you owe us additional security'?
Financial decisions can be driven by social perspective, we're not robots who only do things optimally otherwise pubs and restaurants wouldn't exist.
I've lived in 20+ houses over the course of my life, it would be nice to have a place that's mine, that means I don't have to update all my contact details.
To have a place that I can get a dog, set up a home office, put up some art and otherwise make the place my own. You can't do that in a rental.
I'd be much happier with a mortgage and having rates jump a couple of percent more than having a rental where any price increase is effectively set by the landlord and if you don't like it there's plenty of other people willing to take your spot.
A 0.5% rate rise on a $550k mortgage is an additional $171/month. For comparison my landlord recently increased my rent by $216/month, and I've got nothing to show for it. And that's before the upcoming lease end in July in which the rent will unquestionably jump again.