The rest here;
http://www.watoday.com.au/wa-news/p...will-be-highest-in-nation-20101217-1909u.html
Even if you were thinking this was a likely turn of events I suspect waiting for stock levels to return to normal would be prudent.
Perth house price growth to be 'highest in nation'
- Thread starter tom32
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The rest here;
http://www.watoday.com.au/wa-news/p...will-be-highest-in-nation-20101217-1909u.html
Even if you were thinking this was a likely turn of events I suspect waiting for stock levels to return to normal would be prudent.
hope so!
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...
seems that's all that resi property investors can do - and hoping isn't much of an investment strategy. Anyway let's all hope for a better year next year, dunno if it's there tho really
Mortgage Arrears in WA double the national average
Mortgage arrears in Perth is double the national average. But the main driver of arrears is unemployment as mentioned by one of the authors. Yet WA has the lowest unemployment level in the nation.
Make of that what you will.
Mortgage arrears in Perth is double the national average. But the main driver of arrears is unemployment as mentioned by one of the authors. Yet WA has the lowest unemployment level in the nation.
Make of that what you will.
Mortgage arrears in Perth is double the national average. But the main driver of arrears is unemployment as mentioned by one of the authors. Yet WA has the lowest unemployment level in the nation.
Make of that what you will.
Possibly because in WA it is quite conceivable to be in negative equity - in these circumstances it is much harder to escape your woes. over east you could just sell.... and probably make some CG
It is counterintuitive but this does appear to be the case.
The direction of house prices appears to have a bigger influence on arrears than even unemployment.
Nelsons Bay in NSW was never an employment mecca and yet prices rose arrears rates were OK and then as the prices fell arrears started to rise.
Arrears while one would expect it to be a leading indicator of price direction it seems to be a lagging one.
South West WA is somewhere in between on prices, falling a bit and arrears are now starting to pick up.
Anyway all that aside and the current issues for Perth real estate perhaps the author of the original article knows what Buswells plans are for the affordable housing plan is...
Do you think this is partly because some people are over confindent.
They think they can always get a job and will always be employed in WA.
And they spend money with that kind of logic?
If I were younger and only started working in the last 7-8 years I will probably be very very confident about my employment future too.
I am not saying the people that are behind on their repayments are all young.
But for my case the high interest rate like what I experienced in the 80's always at the back on my mind. It actually slows me down too much.
They think they can always get a job and will always be employed in WA.
And they spend money with that kind of logic?
If I were younger and only started working in the last 7-8 years I will probably be very very confident about my employment future too.
I am not saying the people that are behind on their repayments are all young.
But for my case the high interest rate like what I experienced in the 80's always at the back on my mind. It actually slows me down too much.
Agree, many Australian workers have never known a recession. I am only just old enough being 33 to know what one feels like.
I think as far as rates go you just don't want to be exposed in the top say 5-10% of people and you individually will be saved by the numbers who fall before you will go under yourself. i.e. rates will fall before you are next in line for repossession.
As a first home buyer unfortunately this is difficult to avoid because you have to save up an awful lot of cash to put yourself in anywhere like this position due to capital appreciation over the last 10 years most home owners have very solid debt / equity positions. Also while renting this is difficult for most anyway. So by default as a first home buyer you land up in a position with more debt than nearly all in the community versus your income. The first domino to fall so to speak.
But then these days as a first home buyer not ever having seen a recession it is easy with doey eyed optimism to take a grant from the government and buy a home with a 25year commitment on it just because you have had steady work for say 2 years.
Seeing the other thread where people say it is not easy I would disagree. I think it is entirely too easy. You cannot complain first of easy finance in one breath and then say it is impossible to buy a house! For now houses are affordable to enough first home buyers otherwise they would not keep growing in price. This does not mean things cannot change but for now this appears to be the case.
Anyway I see it among my fellas who actually earn more than I do at present. When they come and see me for an employer letter for a bank loan to talk about overtime components and the like. I have been known to say to them in the past, the kind of money you are earning may not always be on the table. There is some serious money in construction now but in 5 years, 10 years who knows? They nearly universally want to over extend themselves on the PPOR which is a non income producing asset, sure if you get cg's is a bonus but in Perth you would not be overly certain of this in the short term.
It really is a very ordinary trio if you both lose your job or get a severe haircut on hours or pay then to see your house price fall due to a general fall in activity / GDP drop, and then not even be able to hold onto the thing. If you have just lived through one of the most prosperous times in Australia's history to come out of it with nothing at all would be tragic. I fear this will be the destiny for some of the first home buyers over the last few years in Perth. But I suppose it always has been for some?
Anyway I guess the key is to not overextend on the PPOR so after a few years you have equity to throw at other things whether it be an IP or shares or load up into super. I cannot see this happening for many FHB'rs buying at the moment at the absolute limit of their capacity.
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