When will OZ residential property prices reach its next peak?

[Big Tone]

How about in January 2010 when the FHOG drops to $7k for any purchase and it is far harder to come up with a deposit?

Tim

You gotta live some where...............so if you can't buy you gotta rent, whats the downside for investors? Either property prices going up or more renters!
For me anyway, 6 of 1, half dozen of the other!

Big Tone

 

[steveadl]

The FHOG is very important however to keep prices moving up, because there always needs to be new buyers entering the market. If they need to wait too long to get into the market, then the market itself can stagnate while wages catch up with prices.

Tim

Debatable. I'd say whilst it may bring some purchase times forwards - with or without a FHOG, new home buyers will still be entering the market at a similar pace.

Take a $300k house and assume the banks require a 10% deposit now (probably not even that much, but you get the idea).

$30k needed, using the $14k FHOG+Boost get's you half way there. You still need $16k of your own savings.

Boost goes you need $23k of your own money. Yes it may delay a couples first house purchase, but they're still going to buy - perhaps now just 6 months later. People who want to buy a house in the near future will be saving for it, the grant may just bring forward their purchase by a quarter or two.

Same goes if you remove the original $7k FHOG entirely.

I believe people give way more credit than is due to the FHOG. Whether it's there or not, there will still be thousands of people every year buying their first house - same way there was before the grant existed. Same way there would be if the grant was killed completely next month.

 

[Spectre]

This was out yesterday but tweeted today...

Australian Property News

Median house prices rise
Posted on Monday, September 14 2009 at 3:00 PM

Median house prices in every Australian capital city rose over the June quarter but in Darwin they increased by a record amount, according to the Real Estate Institute of Australia (REIA).... [link to article below]


http://www.apimagazine.com.au/api-online/news/2009/09/median-house-prices-rise

 

[Peter 14.7]

How about in January 2010 when the FHOG drops to $7k for any purchase and it is far harder to come up with a deposit?

Tim

BY then there will be no FHO left to buy.

Peter

 

[Peter 14.7]

You just knew I'd chime in here with... I LOVE IT!

Sarcasm is my hidden strength, and being "bogan bred' I can think like them.

Peter

 

[Peter 14.7]

http://www.apimagazine.com.au/api-online/news/2009/09/investors-prefer-property-over-shares

Another interesting link as to where spare $$$ will go with recent changes in Super limiting it to $50 in year. 100 surveyed, 71% into Houses, 40% PPOR and 31% IP.

Swings and roundabouts, supply and demand.

Peter

 

[blaster]

Sunday October 13th 2013

At 9.35 am