Honestly , in your opinion, what is happening in the market?

[The Fence]

Who needs to save for a deposit when Krudd is giving deposits away...?
....as well as a grand here and there to help with legals etc....

.....never a better time to buy than now....IMHO... FHB's have it so easy it's not funny. No grants for me when I bought 1st property.....

By the sounds of it in Parramatta the market is on the move...and obviously not downwards.....

I didn't vote either...too broad a question....too many markets, but....it seems the low end is moving up all over...another month or two's data will have it tho.

 

[Nathan]

yeah i think when the stats get published and if the FHOG is extended is where the real fun will start....

 

[AStuart88]

It's a hard question to answer, as different areas of the market are going to experience different degrees of growth/reduction. Obviously, we'll have a better idea of where things are after July 1st, as by then, whether the FHBG is removed, reduced or kept as is, the sense of urgency will be removed and people will re-assess where they are, obviously having an effect on the market. Whether this effect will be good, or bad, well we all know the crystal ball saying...

As for banks handing out money like they are, I think that no real good can come of it. I know people who have been given finance with a personal deposit of $1000. Most people can come up with this kind of deposit within a couple of weeks, so it really doesn't give people any real incentive to knuckle down and actually save for a deposit, and it also doesn't show lenders that these people can manage their money, or work and save towards a common goal. I myself, was pre-approved by 2 seperate lenders for just under $300,000 within half an hour. I know myself that that's going to be stretching myself, but other people may not have that luxury, and as said before, once inflation begins to rise again, along with the rates, theres going to be a LOT of people falling behind in repayments.

 

[kathryn d]

Credit card companies are being more conservative, at least in Canada.
A couple of months ago I put 10K payment on my credit card, and planned on using this money for my next property purchase. We close in a couple of weeks.
On Friday I found out, they lowered my credit limit on this cc and now my access to this 10K is gone.

They did a check on my credit report and discovered I had a lot of debt. Yes I do, but it doesn't show I also have a higher asset balance.
They look at my employed income, which is about 15 % of our rental income.They based their decision on this, and will review it in 6 months.
Well in six months, my debt may even be higher, if I have anything to do about it, as we are closing on 2 properties in less than a month.

Now that we have 10k less to use, here we go juggling our finances again......

All is good, either way we are almost to financial freedom.
I just won't pay off any more cc , until it suits me.

 

[HandyAndy888]

It appears, confidence in "business as usual" is diminishing....I am remaining optimistic...

 

[GuytheGuy]

I know people who have been given finance with a personal deposit of $1000. Most people can come up with this kind of deposit within a couple of weeks, so it really doesn't give people any real incentive to knuckle down and actually save for a deposit, and it also doesn't show lenders that these people can manage their money, or work and save towards a common goal.

From what my broker told me, a lot of the lenders at the moment are requesting proof that the deposit has been saved in the account for 3 months..

Guy

 

[steveadl]

As for banks handing out money like they are, I think that no real good can come of it. I know people who have been given finance with a personal deposit of $1000. Most people can come up with this kind of deposit within a couple of weeks, so it really doesn't give people any real incentive to knuckle down and actually save for a deposit, and it also doesn't show lenders that these people can manage their money, or work and save towards a common goal.

From what my broker told me, a lot of the lenders at the moment are requesting proof that the deposit has been saved in the account for 3 months..

Guy

True, CBA have just brought in new policy, even FHB's using the FHBG will need to show 3 months saving pattern and 3% of the purchase price in their own cash, regardless of whether the FHBG covers the deposit needed.

 

[David E-Noosa]

Long time no visit, so what made me make the time today? Concern about what's happening out there.

We are on the sunshine coast Qld, steady sales but nothing to jump up and down about. Mainly 400-550,00 range for us as nothing here under 350k with a home.

Listings are hard to get as we unfortunately have at least one agent buying listings, over pricing to get the listing which effectively takes what could have been a salable property off the market. The old thing of "is it on the market or for sale"

Very few FHB here.

 

[daniellee]

Hi

Voted for minimal growth.

Been checking out the inner-middle SE melbourne. Plenty of demand for the <$500K market. Many agencies actually looking for new listings.

Not much action above that.

Regards
Daniel

 

[BoatBoy]

True, CBA have just brought in new policy, even FHB's using the FHBG will need to show 3 months saving pattern and 3% of the purchase price in their own cash, regardless of whether the FHBG covers the deposit needed.

Bloody hell, 3 and 3, I'd hardly call that a hurdle, not for anyone who is actually serious about purchasing.

Dave

 

[Aaron Sice]

I'm no perma bull - but the opportunities are looking too good to be true atm.

while the Perth median has corrected hard, it seems it's come from the top end of things.

all of West Coast Drive is under offer.

Armadale / Rockingham H/L packages are off about 10% - what WAS selling for $360k complete are now about $325k complete. values have dropped no doubt. with FHOG a little deposit these are sub $300k complete, new homes. even reasonably new units in CBDs like Cannington, Vic Park etc are turning into VERY juicy deals after depreciation.

considering these homes cost 150-190k finished to build, + land componenet - i just can't see a 50% value correction unless the cost of building follows that - which it won't - so existing stock will be cheaper then building which means a nation of homebuilders will be out of work and we will see a shortage of new dwellings and rental increase beyond any investor's wildest dreams.

rents haven't dropped ANYWHERE that i'm aware of in the Metro area. so that 6% yield on those H/L packages is now 7% with solid depreciation extra. finance is 5% - that's a CF+ scenario right there in very reasonable potential CG resi areas.

NFI on comm at present as far as what the market is doing - i see a lot of stuff coming up (thanks to the lead-in time) so i may pick something up for my trust if prices stumble - and use my pty ltd to rent back off the trust for the depreciation, outgoings AND rent all as a deduction.....opportunities opportunities opportunities. left hand pays the right so to speak.

will be an interesting few months.

 

[blaster]

Honestly , well I'm sorry about this but I think well go way into recession starting late 09 and early 2010 and worse from there until very ugly for 4 or 5 yrs.

I'm not a D & G'er , I just think that's where we're headed , we're just last in the Q and people are getting false security in that.

I think this because 1, our house prices are ridiculous , 2 - we've had a massive boom and what goes up as they say well and 3 , if we Aussies think we could possibly be better than the rest of the world at this crap then we really are a very sheltered country and naive .

But on a good news front , we have firstly 2 or 3 mths before the home grant possibly ends to tidy up and get back on that fence.
If grant continues then we have 8 to 12 mths instead, bar micro areas .
These could go on for 15 mths yet so plenty of time there to cash in the chips.

The cheapies will become the place to be if any but they will be cheaper than now after a spike , it'll just take longer so if you can still make money on that figure you'll be right .
The 4 and 500 k stuff , what so called average burb price these days, it's gonna be nasty.


How's that for a run down , remember it doesn't mean much it's just one mans opinion .

Cheers

 

[Aaron Sice]

it's a thought out, balanced review of what might happen.

i also think there will be minimal difference between a 4x2 in the burbs and a inner-metro villa/townhouse - which sees either a sharp jump in the prices of inner metro stuff or a sharp fall in outer burbs stuff.

i know which one i'd like, but i also realise which is more likely to occur.

 

[bruxism]

I reckon i'm looking at a 25% drop in houses around my area in brisbane in the next 12 months or so. I'm saving up my pennies and looking forward to picking up some bargains.

 

[HandyAndy888]

I was just reviewing these figures...surely there would be some change to the distribution now...

 

[craigb]

In sunny down town canberra , i notice the FHB stuff almost gone as they hit the sites, sighn goes up, sticker goes on , sighn comes down, must be hard work to sell a home {not}

The 500k<900k life goes on a s usual some are sold to upgraders, others sit around waiting , i am not around these auctions so much these days so......

Top end market is moving a bit in the inner burbs but the 1mill + is the rolling average around there, its like toorak pricing and the older homes are pushed over at a 700k buy in price, so it becomes rather easy for them to get 1.4 ish, these used to be selling for 1.7m or so.
Around me literaly in this burb there is 9 listings at the moment and 5 are over the 1m price from 1.3< 1.7 ish, they are on for longer , although next door was on for 1.35+ and accepted an offer for 1.32m .

 

[HandyAndy888]

although next door was on for 1.35+ and accepted an offer for 1.32m .

I would say that's a pretty good result considering...