Will the market take a back seat?

[want2bewealthy]

Talking with my Broker this afternoon he thinks we might see a decline in the market starting about now within the next few months at least as lenders policies have changed restricting LVR's and first home owners have 'now missed the boat' or at least it will make it much harder unless they have a larger deposit.

What do you think?

 

[josko]

Hi W2BW,

I agree. In fact i think it has already started. I'm hoping rents will start going up again.

Rolf mentioned something in another thread about FHOB being only a small percentage of his clients. Propertunity has also said the same thing.

I was thinking recently that if this is the case, then why are realestate agents saying the only market is the FHOB'rs one.

Most of us see proof in the market that the bottom end is the only one withstanding the turndown in prices.

By your comments, is your broker saying the majority of his clients are FHOB's?

Regards, JO

 

[sash]

Well after much deliberation and being in the low end of the market....my feeling is that more bad news for the market.

Currently things are travelling well in FHB territory....but the next couple of months will reveal a different story.

Josko.....the unwary are jumping on the FHB in a irrational way....this could be a bad thing if they need to dump theor property if they are unable maintain repayments.

I am following through an deleveraging now of the non-performing assets to take up the bargains about to come on. I see bargains in the current 650-1.2m category as unemployment and confidence plumets in the next 6-12 mths.

I have got my solicitor preparing a contract of sale...I want get this property on the market and sold by end of May!

 

[josko]

Well after much deliberation and being in the low end of the market....my feeling is that more bad news for the market.

Currently things are travelling well in FHB territory....but the next couple of months will reveal a different story.

Josko.....the unwary are jumping on the FHB in a irrational way....this could be a bad thing if they need to dump theor property if they are unable maintain repayments.

I am following through an deleveraging now of the non-performing assets to take up the bargains about to come on. I see bargains in the current 650-1.2m category as unemployment and confidence plumets in the next 6-12 mths.

I have got my solicitor preparing a contract of sale...I want get this property on the market and sold by end of May!

Good luck Sash, is it a FHOB's property? Hope you didn't miss the boat. I will hear today whether my dud is unconditional. Although, they have had three extensions for finance.

Regards JO

 

[sash]

Yes....Josko. I bought it for 171k in 2003....and will get about 200k conservatively. After costs I am walking away with a small very profit. If it look at it...I put about 40k into the deal and got about 38% return over 6 years...so not great! I am increasingly focused on the opportunity cost of my funds!

It is a 2 brm unit in Punchbowl...return is 7-8% potential....but due to a strict rule I have of everything in my portfolio needs to support itself and have a growth of 7% per annum....I now need to sell and move on.

The good news the sale further increases my cashflow....another 5K on top of the 52k and lets me target the better end of the market in the next couple of months. CG is no biggie...probably less than 2k.

Good luck Sash, is it a FHOB's property? Hope you didn't miss the boat. I will hear today whether my dud is unconditional. Although, they have had three extensions for finance.

Regards JO

 

[josko]

Ah good one. 2k is better than a loss and you will no doubt make more with a better investment as you say. Good Luck with your sale.

Regards Jo

 

[sparky23]

One of my sales has fallen over today and it is a FHB unable to get the finance, good job I only had one other FHB and they have exchanged!

 

[GIDDO]

Hi W2BW,

I agree. In fact i think it has already started. I'm hoping rents will start going up again.

Rolf mentioned something in another thread about FHOB being only a small percentage of his clients. Propertunity has also said the same thing.

I was thinking recently that if this is the case, then why are realestate agents saying the only market is the FHOB'rs one.

Most of us see proof in the market that the bottom end is the only one withstanding the turndown in prices.

By your comments, is your broker saying the majority of his clients are FHOB's?

Regards, JO

Maybe Rolf specialises in PIers.
Or perhaps the number of refinances would skew the figures.

 

[BayView]

Talking with my Broker this afternoon he thinks we might see a decline in the market starting about now within the next few months at least as lenders policies have changed restricting LVR's and first home owners have 'now missed the boat' or at least it will make it much harder unless they have a larger deposit.

What do you think?

Yes, my MB has said much the same.

He is predicting more rate cuts until around the middle of the year, and has said to me to look at fixing rates around then probably.

The Banks are tightening up their lending criteria across the board it seems as well, so even though the rates are getting wonderfully low, not a lot of people will qualify for loans with the LVR's required by the Banks.

This means bigger deposits - something that many won't be able to raise I suspect.

These are the latest rates for our mob:
http://www.commbank.com.au/personal/apply-online/download-printed-forms/home-loan-update-002842.pdf

Not bad on the 5 year fixed even now.

 

[BV]

One of my sales has fallen over today and it is a FHB unable to get the finance

Now you can increase your asking price

 

[sparky23]

Can't do that it is one of the sales for work not one of mine and they are set prices!