If you think property prices won't keep rising...

[Hooray]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

So you can't afford what your parents could afford 30 years ago. Boo freaking hoo. After you're done feeling sorry for yourself, knuckle down, buy something that isn't perfect, pay off as much of the mortgage as you can, and upgrade in the future.

As someone who owns property, I don't care either. Because the market will always be supported by first home buyers like you, who will, eventually, enter the market buying what you can afford, providing more grist for the mill.

Get into the game, or you'll just get trampled.

 

[pieman]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

There is stacks of houses available at a resonable price...see thread on Frankston, thats where the smart $$ is going.
Dont expect 5 br, 3 Bt, pool etc but there is some great buying.

I just dont get this, its all too hard to buy property stuff????
cheers

 

[hobo-jo]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

I would just keep saving your pennies WI. There will be a time in the near future where the market slows and it becomes a lot easier for those wanting to enter the market for the first time. Some people will have you believe that you better get in now before multi-generational loans become the norm and no one can afford housing, does that sound like a sustainable market you want to be a part of?

So you can't afford what your parents could afford 30 years ago. Boo freaking hoo.
Get into the game, or you'll just get trampled.

Wow what an attitude. If there's a trampling to occur in the near term it won't be to get into the game.

 

[BV]

WalletInspector

The Melbourne market had a very good run this year but it is known to back off a bit after a big run, it did it in the past and can do it again.

Don't be too concerned about current prices.
Stop inspecting your wallet and take a drive out to the outer suburbs.
You'll see that there is a lot of empty land out there.

This should tell you that property prices are not going anywhere very fast.
They could go up and down and sideways following inflation but they certainly can't be going up by 20% every year.

IMHO

 

[mystery]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

WI, ..... Don't get too despondant.The majority of older investors on SS would have struggled to buy there first property in the outer suburb of a major city. It was not easy and the banks were not as structured or accommodating with lending money for multiple home loans as they are today. We bought and sold until we could afford a better home in a more desirable location.... It's the way it was done and it probably still applies today.

You will find that older investors don't have much time for people who complain about how hard it is to buy a home. Trust me when I tell you that it was no different back in the day. We made sacrifices and went without in order to buy the first property.

Today people seem to want the dream home in the ideal location from day one .... Just get in the market anyway you can and keep getting in the market ... it get's easier over time, but trust me ...... the first one is/was not easy for anyone.

Martin

 

[Ausprop]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

all i can suggest is you get into something asap. There are some fundamentals flaws with australia that wont make getting in any easier for you. These include:

- a boys club of 4 banks that monopolise the market and have decided they will charge superprofits for being merely zombie banks. they are killing supply and ask any high school student what that will do. Govt too gutless to do anythign about it
- immigration is runing high
- we are on the verge of a huge resources boom... could fill a book about the implications of that
- red tape is getting worse as this country becomes more litigious and socialist
- new cities are not being developed. we continue to cram everyone into a handful of cities

 

[josko]

To add to above-

I lived in Sydney and couldn't afford the house or even unit I wanted either. We bought a really dodgy house by must people's standards 1hr 20mins north of Sydney and rented it out.

It has been one of the best investment decisions we ever made.

Walletinspector, you need to think outside the square and past your pockets.

Regards JO

 

[josko]

Completely off topic..... but I think Tony Abbot is rather sexy and there is a photo of him in togs in today's paper. He has a great body for someone in his 40s.

Back to topic now......

LOL - Well that hunky body must have got him through. (Gulp)

Regards JO

 

[josko]

i was looking for an article on the developer, keith johnson, but can't find it online.

there was a big write up in the newcastle hearld this weekend from him coming clean about the financial situation he recently went thru and exactly what happened and when.

he is currently holding sites with over 6000 block potential plus a marina tourist development site.

his problems were two fold - council iffing and ahhing for years and unable to make a decision, listening to every joe blog with a beef while the housing shortage grows more and more critical. all this for the privilege of paying fees of $70,000 per block in government charges.

then the banks have started calling in loans that were being serviced (wasn't behind in repayments), or won't lend to develop the approved and presold sites. he's a fortunately one whose managed to raise the capital required from a private source and stay afloat long enough to move forward - but i'd hate to think how many sunk, and what interest rate he is paying.

so - it's a double pronged blade - between the levels of government and the banks, there is no hope for any major development (or even many minor ones) for a long time.

and then ... last night the real estate institude (yes, i know they have an agenda) were predicting rents to go up around 20% in sydney over the next 2-3 years due to cronic lack of supply.

glad i'm already holding ...

Hi Lizzie,

I don't suppose you tracked down the article, we would love to have been able to read it.

I have a developer friend/business associate who had the banks reval his whole development- at a guess maybe 4mil at 20% under original val back when the GFC hit 18 mths ago.

The bank then cut his LOC and called back 10% of his loan. On top of that- the two pre-sales he had were knocked back on finance by the same bank. He sold his home for less than what he paid for it and is still living day to day on credit cards.

I spoke to him a few months ago and it seems he is keeping his head barely above water.

On another note, the Government is throwing mountains of money into Public Housing and Schools. It would be arguable that Councils are also clogged with DA Applications from the top which are a higher priority.


Regards JO

 

[WalletInspector]

Thanks everybody for your comments.

Hooray, I appreciate what your trying to say. But:

So you can't afford what your parents could afford 30 years ago. Boo freaking hoo.
Get into the game, or you'll just get trampled.

Short, but pointless..

 

[Perp]

I don't suppose you tracked down the article, we would love to have been able to read it.

This might be it.

 

[Witzl]

I care Ausprop, as a first home buyer, entry into the market is becoming exponentially difficult.

Im going to echo what everyone else has said.... lower your expectations to match what you can afford.
Remember that 98% of first home buyers cannot afford they home that they initially "expect" to buy.

Our first home was a teeny weeny little 2bd townhouse. We just lived in it long enough for the first home buyers grant, then rented it out and rented in the area we wanted to live in.
After buying another investment property and gaining a little equity, we could finally afford a PPOR in the suburb we wanted a few months ago.

We were lucky that it only took 4 years.... but they were a HARD 4 years, and the next 4 years are also going to be pretty tight as well.

 

[Ausprop]

I have a developer friend/business associate who had the banks reval his whole development- at a guess maybe 4mil at 20% under original val back when the GFC hit 18 mths ago.

The bank then cut his LOC and called back 10% of his loan. On top of that- the two pre-sales he had were knocked back on finance by the same bank. He sold his home for less than what he paid for it and is still living day to day on credit cards.

I spoke to him a few months ago and it seems he is keeping his head barely above water.

a very common scenario for anyone caught holding dev sites when the banks decided they no longer wanted to be banks.

on a slight tangent, i bought an apartment off the plan (yeh stupid idea in hindsight). macquarie being the great financial legends they are, approved my loan at the time i signed up a few years back and contract went unconditional. anyway the apartment is due for settlement soon and now macquarie have decided that its a big scary world and perhaps banking isnt the right career choice for them. leaves me up the creek without a paddle.

 

[Aaron Sice]

wtf? is it eqiuus?