Investors keep first-timers out of market

MsAli

MsAli

Interesting article. Is Potts Point the ONLY place in Sydney to buy?? There is life further from inner west/city

On Monday, would-be first home buyer Nick Gunn received a call advising him that his $431,000 offer on a Potts Point apartment had been beaten. The 41-square-metre bolt-hole without parking went for $447,000. ''An aggressive investor just came over the top - a few of them actually,'' said selling agent Nuri Shik of Laing+Simmons Potts Point.
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The 28-year-old procurement officer at the University of Sydney had been looking for four months but is now considering throwing in the towel.

''It's pretty unpleasant,'' said Mr Gunn. ''I am just finding it extremely depressing and I've kind of pulled back a bit because I don't think that I am likely to find anywhere that I can actually afford.''
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Mr Gunn said with prices surging and investors snapping up entry-level properties his friends faced the same problem. ''There are a lot of us. Basically we all sit around moaning about the same thing,'' he said.
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http://smh.domain.com.au/real-estat...of-market-as-prices-surge-20131112-2xd5o.html
 
He isn't complaining about not being able to afford it per se - clearly he has around 440k to spend. Rather that he is being pipped at the post time and time again.

Is happening to me time and time again. But it's part of the process. Someone beats you, deal with it. When you secure the place it will be because you have beaten someone else.

That said, I have noticed that a lot of properties around me that are in first home buyer territory are only been looked at by investors.
 
Disappointing that there's no comments section for that story. Was looking forward to reading that over my coffee, always good for a bit of a chuckle.
 
Well to be fair, it does seem like it was within his price range. It's not like he made a 430k offer on say a 600k property. It can get disheartening to keep missing out on properties you really like due to 10k. I experienced it many times when we were looking for our PPOR in pretty standard suburbs earlier this year and I had people making the same accusations towards me. I must want some amazing heritage mansion with 3 tennis courts when that was not the case at all. We finally managed to get a place at just $500 under our limit but it can be a tough process.
 
MsAli said:
Interesting article. Is Potts Point the ONLY place in Sydney to buy?? There is life further from inner west/city








http://smh.domain.com.au/real-estat...of-market-as-prices-surge-20131112-2xd5o.html
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Did anyone else read it as 41sqm Butt-hole!?!?!?!!?!?

oh and I recently got piped on these two, life is so unfair!!!
I offered $335million on the second one and I missed out,

http://www.realestate.com.au/property-house-vic-toorak-107399430
http://www.realestate.com.au/property-house-vic-wallan-115337567

missing out is all part of the process, the rising prices are the new market levels, if you cant afford it, go to a cheaper suburb that is getting overpriced so you can afford it,

or stop buying in a booming area/time

if you follow the herd you will come off second best, as compared to someone who is leading the herd
 
Ideo said:
Did anyone actually bother to read the article, or just make assumptions based on their own prejudice?
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I read it:

The 28-year-old procurement officer at the University of Sydney had been looking for four months but is now considering throwing in the towel.

''It's pretty unpleasant,'' said Mr Gunn. ''I am just finding it extremely depressing and I've kind of pulled back a bit because I don't think that I am likely to find anywhere that I can actually afford.''
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With his budget there are plenty of places he could afford, he's just choosing not to buy because he wants to live in a highly desireable suburb straight up. That's fine, but don't go blaming investors and saying everything is so unaffordable for the "poor first home buyer".
 
It's the same old scenario; the FBH who wants to live where it's all happening - same as everyone else on the planet - and of course; it's not cheap in those areas.

Or, you can be like many generations of FHB's before him; buy something you can afford - which is always further out in the boondocks than you'd like.

I remember my Auntie and her husband lived out in Belrose when it was still in the middle of the bush.
 
I read on the weekend that the number of first home buyers was the lowest its been, since records started being kept, during October, from memory it was just over 12% of total sales.

Your right cimbom probably not the best forum for support to the article.

From my point of view it will be a sad day when and average person on an average wage cannot afford to buy into the housing market unless they move to the sticks.
 
Biggles said:
I read it:



With his budget there are plenty of places he could afford, he's just choosing not to buy because he wants to live in a highly desireable suburb straight up. That's fine, but don't go blaming investors and saying everything is so unaffordable for the "poor first home buyer".
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He clearly has at least 440k to spend. Meaning the suburb is affordable to him.

The criticism is that investors can come in over and above the first home buyer. It doesn't matter what budget.

Hell, my budget is 300-550k. I have been pipped at the post twice by investors both times who were able to offer what both me, and the valuers, thought, was 15-20k over the price it should have been.

It can be read as a whinge piece. But it is not someone complaining that Potts Point should be more affordable.
 
kurnol said:
I read on the weekend that the number of first home buyers was the lowest its been, since records started being kept, during October, from memory it was just over 12% of total sales.

Your right cimbom probably not the best forum for support to the article.

From my point of view it will be a sad day when and average person on an average wage cannot afford to buy into the housing market unless they move to the sticks.
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Yeah, an agent friend in Newcastle is reporting the same. Very few FHB are out and about anymore, particularly in inner ring suburbs. It's not a question of affordability. It's a question of continually having higher offers placed as equity can be looked upon more favorably than a first time borrower. Pre-existing relationships with banks etc can also help established investors.

An observation rather than a whinge.
 
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kurnol said:
From my point of view it will be a sad day when and average person on an average wage cannot afford to buy into the housing market unless they move to the sticks.
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Whats wrong with the sticks?

Plenty on average wages here still cant afford a house, but they can afford nice new utes and world travel every quarter.

yes this will go the same way as other threads because it's the same ole same ole whinge.

oh...& we just settled (this minute) with a FHBuyer on an IP in Wamberal so it's not all doom and gloom.
 
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Ideo said:
He clearly has at least 440k to spend. Meaning the suburb is affordable to him.
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If he's missing, out clearly it's on the move and perhaps is no longer affordable to him.

The criticism is that investors can come in over and above the first home buyer. It doesn't matter what budget.
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Last time I checked, investors were in property to make money. I don't think they're coming in to the market, paying way over market value just to gazzump the first home buyer who wants to live there.
 
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