No relief for first-time buyers as house prices to keep rising

[weg]

I think a person that shows a great example of how 'easy' it is to buy a home is Kim5.

I know she lived at home (or did) but a single person can also live in cheaper share home accommodation while they save for a deposit.

Kim's income is pretty average and she's bought close to the CBD in an expensive city.

Then a short time after buying her first unit she's gone out and bought a second.

So can you imagine how much a couple with 2 incomes could save?

Just a bit of financial literacy, some discipline and being prepared to start at the bottom is all it takes for a FHB to get into their own home.

 

[BV]

...
If you've got 'em, hold 'em...

Good point Michael, world population is predicted to hit 9 billion by 2050
and a lot of those people are coming here.

We're going to need a lot of properties.....

 

[BayView]

A lot of people are rich because of who they KNOW, not what they know. It's WHO YOU KNOW that lands the contracts (e.g. brisbane airport link, 2nd bridge, etc).....let me be more specific ---> its who you PAY OFF who gets you the contract.

And its across the board.....e.g. I don't think Anna Bligh was having dinners at Ken Talbots mansion because they were mates?

Nutall, Mackenroth, Beattie - all scumbags by very definition.

Yes, financial education is good (better than no education).....but financial literacy will only get you so far in this world.

You're talking about some very big player examples there, and not relevent to becoming successful.

From my experience, the different (financial) phases you move through in life introduce you to different and sometimes better connected folk. But not necessarily, and you can get quite well off before you meet the well-connected. They help you to play on the bigger playgrounds, but they don't appear until you are well on the way.

The wealth around it has some influence, but if you concentrate on your financial education and keep building the wealth you get to meet the right people to allow you to prosper.

Some very rich people I know are not connected to anyone famous or influential. They try very hard to avoid the limelight and celebrity and public profile. They don't want it or need it.

 

[craigb]

thanks BV i was thinking the same , and couldn't be bothered in getting in any disagreement , and thought of a reply as a lost cause,

 

[grubar30]

You're talking about some very big player examples there, and not relevent to becoming successful.

From my experience, the different (financial) phases you move through in life introduce you to different and sometimes better connected folk. But not necessarily, and you can get quite well off before you meet the well-connected. They help you to play on the bigger playgrounds, but they don't appear until you are well on the way.

The wealth around it has some influence, but if you concentrate on your financial education and keep building the wealth you get to meet the right people to allow you to prosper.

Some very rich people I know are not connected to anyone famous or influential. They try very hard to avoid the limelight and celebrity and public profile. They don't want it or need it.

About as relevant as needing to be rich to buy a property

 

[Property Meister]

My question might change direction of the thread...

so we're expecting at least one more rate rise before christmas, and possibly a total of another 1.5% or so in 2010, I would think that this would be a very likely scenario,

we've just experienced the lowest interest rates ever or in a long time,

the FHOG is ending/reducing,

we've just experienced 2 rate rises in a few weeks, with another one in the next say 6 weeks

whats everyones feeling on property prices, im completely confused, half of me says that it won't change a thing because investors are in, half of me says, they are all the tell tale signs of a flattening or a crash, although I think a crash say or even a drop is unlikely....

whats everyones take/opinions on this?

 

[craigb]

newbies and in experienced players will be very worried, but the oldies , and those that have already seen 7.5, 9.5 and 10% are laughing their heads off!

 

[Propertunity]

whats everyones feeling on property prices, im completely confused, half of me says that it won't change a thing because investors are in, half of me says, they are all the tell tale signs of a flattening or a crash, although I think a crash say or even a drop is unlikely....

Won't cahnge a thing (as craigb said), investors are in. A crash in the top end of $1M+ has happened and is over now with prices in this area rising again. Prices have been off for 6 years in Sydney. Up 10% or so in the last 6 - 8 months. These are signs of a boom if you ask me.

We were all happily paying (OK not happy but still paying) 9.5+% 2 years ago on very similar house prices. These are the good old days.

 

[Ausprop]

a 400-500bps diff to the USD and every other major economy in the world? we would be swamped with liquidity.

 

[willair]

newbies and in experienced players will be very worried, but the oldies , and those that have already seen 7.5, 9.5 and 10% are laughing their heads off!

After watching Micheal Moore new film-Capitalism A Love Story. early today it makes me think just how lucky we are in this country,when so many property investors in the US can't even get 25 cents in the dollar from the previous values of 4 years ago,the rates can go as high as they want ..willair..

http://www.youtube.com/watch?v=q6voWAKel2o&feature=player_embedded

 

[JulieW]

No Mountains

My opinion is that prices will continue to rise for the next 2 to 3 years and then there will be some sort of correction downward, and then they'll rise again to where they were, go sideways for about 5 years and then I'll be retired and watching the next 'depression'. I will not be climbing to the top of any mountains if this prediction fails.

 

[BV]

My opinion is that prices will continue to rise for the next 2 to 3 years and then there will be some sort of correction downward, and then they'll rise again to where they were, go sideways for about 5 years and then I'll be retired and watching the next 'depression'.

Julie

Strange prediction, I bet that as soon as you sell and retire
property prices will double simply because it's part of the cycle.

We've had the peak, we've had the correction, we've been going sideways for a while and in the mean time wages and rents are increasing so one of these days mortgages will be affordable again and rents will be high so it will make sense for people to buy.

In fact the time to buy in some property markets is right now
If you can get 7 & 8 % yields in one of our cities why wouldn't you buy?

 

[buzzlightyear]

whats everyones feeling on property prices, im completely confused, half of me says that it won't change a thing because investors are in, half of me says, they are all the tell tale signs of a flattening or a crash, although I think a crash say or even a drop is unlikely....

whats everyones take/opinions on this?

Its not investor's that are causing the rapid rise in prices IMO, its OO'ers primarily. No investor is paying 10% above reserve with yields comparable to bank deposit rates.

Higher interest rates will temper the market but it will be next year before they wash through and make some inpact. The other factor will be greater supply of property will come onto the market. This will also assist in calming the market down.

As an aside, earlier this year and last year, there were many posters who were making the comment of flat, or negligible growth for the next few years (so take my view with a grain of salt)

 

[JulieW]

BV my 'prediction' is based upon a number of things; instinct, belief that there is actually a ceiling to how far prices in cities can go relative to incomes, belief that peaks and corrections continue forever in markets, comparison with overseas experience, belief that we'll collectively have to pay the piper eventually, etc etc.

I agree entirely that whilst you see the market working the way it is it's a good time to buy, but possibly at some point in the future, when all these satellite cities near broad acres take off, then some areas will taper off in favour of cheaper in different locations.

And I suspect you're right in that the moment I liquidate there'll be a 12 month 25% growth and a boom for another 10 years. But again, I'm not walking to the top of a mountain if these thoughts don't come true.

 

[Lil Skater]

Boo, $320k, ever thought of moving like 15km out of the city..
Geez people are stupid sometimes..
I'm soon to be a first home owner, and there's no complaints here, it's still easy to buy a cheap house, ust got to look in the right places people, get off your high horse..blah!

 

[blaster]

The thing is , your in an investors forum . Investings not about buying the cheapest property to live in, it's about the property that will go somewhere for you for whatever reason.
It's different things and you have to be careful of some of the outer or cheaper newish suburbs with investing, they make nice homes but as an investment may go nowhere for yrs and yrs unless you jump into the right one.
One example , My brother , yep another brother , got 5 , bought a place in Williamstown for 250 13 yrs back , it's valued at 850 now and he'd get it in a second. It's old, it's big , it's 1/2 reno'd but it's prime steak in an area that took off and just the sort of thing they'll pay 850 for now.
But his mate built a brand new house out in Werribee for 250 at that same time. He got all the mods and it was all nice and new but guess what , he'd be struggling to get even 300 for it even after all this time.

Cheers

 

[natedog]

A $250k house in werribee in 1996 would have bought you a big house big block, i would have thought house and land packages out there would have been round the $120k-$150k mark...these are the ones which would be round the $$250-300k value today....but i do agree that buying in Williamstown 13 years ago would have been better for $$$ gain, if you had a $250k budget back then,
Cheers,
Nathan

 

[Lil Skater]

The thing is , your in an investors forum . Investings not about buying the cheapest property to live in, it's about the property that will go somewhere for you for whatever reason.
It's different things and you have to be careful of some of the outer or cheaper newish suburbs with investing, they make nice homes but as an investment may go nowhere for yrs and yrs unless you jump into the right one.

Yep, i understand that part.

Although what i was primarily meaning was the fact the 20 something woman wasn't talking about an investment, so i hope that makes more sense.?

 

[tess85]

Geez people are stupid sometimes..

I think this is a bit of a generalisation and comes off as a bit abrasive.

Am I stupid because, as a FHB, I bought within 7 kms of Sydney CBD?

Everyone does what fits their circumstances best. It's just that less people can afford to do so now compared to 10 or 20 years ago.

 

[Lil Skater]

Am I stupid because, as a FHB, I bought within 7 kms of Sydney CBD?

Everyone does what fits their circumstances best. It's just that less people can afford to do so now compared to 10 or 20 years ago.

Sorry, i didn't mean it like that, i meant moreso in the matter that she was complaining about not finding one under $320k, if you can't afford over $320k and that's the cheapest you can find, in that case move further out..?

Hell, if you can afford it, can i move in..?