would you put off purchasing for a little while while rates drop?

[want2bewealthy]

poll, instead of buying now, would you wait until Dec/Jan to purchase?
remembering it can be costly to fix rates if youre floating and they drop, and if they do drop alot, youd be much better off. .

Im actually quite excited to see what will happen with these low rates, sure, investors will be better placed within the market but will a fair chunk of the rental market drop off with first home buyers being able to afford entering the market. .

Even IF rates drop that low, there are still many individulas who never even think about purchasing their own home anyway but it will certainly affect the rental market.

 

[kissfan]

If you think you find a bargain, snap it up.

If you think the price may come down later, then wait.

If you do your figures on todays interest rate and it looks a goer, things will only improve if/when interest rates continue to get cheaper.

Regards
Marty

 

[lizzie]

if i find the right deal then i'll take it thanks on variable ... will cost me around $300 per loan to fix, and missing out on a good deal is not worth $300.

now to break? that would be a different matter, but i ain't fixing until i see at least a low 6 or 5 in front of my percentage point.

 

[Jamie_D]

Why wait?

If you find a suitable property and have the funds then buy. I am sure vendors will be prepared to negotiate and in these tough times cash is king.

Obviously set up your lending facility to take advantage of current rates and ensure you have the flexibility to transfer to a fixed rate in the future if necessary.

I was advised that property values will fall up to 20% in some areas over the next 12 months, however if you purchase property now you should hold for min 5 yrs anyway.

 

[want2bewealthy]

if i find the right deal then i'll take it thanks on variable ... will cost me around $300 per loan to fix, and missing out on a good deal is not worth $300.

now to break? that would be a different matter, but i ain't fixing until i see at least a low 6 or 5 in front of my percentage point.

Is that all it generally costs to fix from variable? wow, maybe it's the fixed loans that can cost 10's of thousands to fix again at the lower rate.

 

[steveadl]

If the deal looks good, I would snap it up. Even if you want to have a fixed rate, it won't kill you to have it variable for a month or three.

 

[chran]

As long as IR is within my comfort level I stay variable and keep looking .

 

[ArJay]

Personally we'll be sitting on the fence for the next year or so.
Not because of rates but because these are strange times in the market and there's potential for significant price drops in the next 12-18 months as things tighten up....

R

 

[craigb]

good point arj, but if we all stop buying then the rba might try and stimulate the market down to 1.5%, or we coul hold off and give the banks a nasty scare,, just a thought?

 

[quoll]

People get greedy and jump in early, so trying to get everyone to wait wouldn't work, too much anarchy here.

 

[Jamie_D]

Is that all it generally costs to fix from variable? wow, maybe it's the fixed loans that can cost 10's of thousands to fix again at the lower rate.

Correct...Very cheap from variable to fixed, however if you were on a package the fee would be waived.

On the other hand, the banks have borrowed the initial money at the fixed rate and it costs them a heap to break...well that's what they say, so they pass on the cost to the borrower.

My client was quoted $9k to break a $140k fixed rate @ 8.4% fixed for a further 29 mnths.
He is not a happy chappy, but at the time it was the logical thing to do....

I sometimes wish I had a crystal ball.

 

[want2bewealthy]

Correct...Very cheap from variable to fixed, however if you were on a package the fee would be waived.

On the other hand, the banks have borrowed the initial money at the fixed rate and it costs them a heap to break...well that's what they say, so they pass on the cost to the borrower.

My client was quoted $9k to break a $140k fixed rate @ 8.4% fixed for a further 29 mnths.
He is not a happy chappy, but at the time it was the logical thing to do....

I sometimes wish I had a crystal ball.

Thanks Jamie!

Seeming your a broker I have another question for you
do you know if the Colonial 3 year variable package can be fixed?
thanks!

 

[Xenia]

settled on another last Friday so NO I ain't waiting for anything

 

[yadreamin]

xenia may l ask what sort of yeilds you are finding?
I will assume the buy is in SA

 

[our obsession]

Kissfan:

If you think you find a bargain, snap it up.

That is the situation for us, looking and listening...here housie housie...have no need/desire to fix any of our rates.

I think the next IP will find me first though, they always seem to find me. In a roundabout sort of way.

 

[BV]

If the economy holds up ( and I expect that it will) I plan to buy around xmas/new year.

If we are looking to buy IP's at a significant discount we should be buying when others are not. (to avoid competition.. )

Also, after Januray/February all the first home buyers will be out shopping so if you are after entry level property forget a discount

 

[want2bewealthy]

Thats what Ive found even now BV, Went shopping over the weekend and all entry level apartments (300k mark) were packed, I didnt even put in an offer though because the ones I inspected were dives. the look on some of the young couples faces were of despair, you could tell they were very dissapointed at thye price they could only afford and it didnt exactly look like they were jumping for joy, I swear they were about to cry actually. . I'll just have to keep looking too,

 

[BV]

Thats what Ive found even now BV, Went shopping over the weekend and all entry level apartments (300k mark) were packed,

Yeah, in some areas it could be too late already.

For example, I am monitoring the number of listings in a few suburbs I am interested in and they are going down. I don't know the reason and I haven't driven there to have a closer look.

I think that unless you are actively looking it's hard to tell what's going on.

cheers

 

[eternit]

Yeah, in some areas it could be too late already.

For example, I am monitoring the number of listings in a few suburbs I am interested in and they are going down. I don't know the reason and I haven't driven there to have a closer look.

I think that unless you are actively looking it's hard to tell what's going on.

cheers

Hi BV,

Which area are you looking at? I noticed your from Sydney. I am currently looking at entry level units in Western Sydney.....

 

[Gee Cee]

Sitting back.
Holding some good stock. Mostly newish. Low gearing.
Waiting to see some real bottom to all of this.
Never been through such uncertain times.
Travelling and studying a lot of areas.

When I can see some positive movement i will look to buy.
I imagine Sydney will be the litmus. If I miss that i will circle out from there.
Then move interstate and repeat.
What you miss somewhere you pick up elsewhere.

Always opportunities.


But not at the cost of lifestyle and sleep factor.

Gee Cee

(Bored laying at the beach & eating Aldi Choc cake)