Havent bought a house yet? has the boat sailed away? - Page 3

FGX335 · 23-04-2015, 02:32 PM

We are currently building a house, and I have to say that prices have not really risen since we built last time in 2006. The costs to build do not seem to have increased, and where they have, it's because they now include things as standard that used to cost an arm and a leg.

Where the expense is would be land. Our new block cost $85K more than last time, and is 350m2 smaller, but we do have a flat block and the other was steep as buggery. Not a fair comparison, but in that regard, prices haven't gone stupid in the past decade.

Speaking purely from experience on the Coast, by the way.

**Polyal** · 23-04-2015, 02:57 PM

Thats the catch, if you can get work outside the city then all well and good.

The work needs to move out of our major cities.

Road_Warrior · 23-04-2015, 03:23 PM

Quote:

Originally Posted by Polyal

Thats the catch, if you can get work outside the city then all well and good.

The work needs to move out of our major cities.

Spot on, I'd move out of the city tomorrow if I could, but not much work for me in the bush.

XB GS 351 Coupe · 23-04-2015, 03:26 PM

Quote:

Originally Posted by Road_Warrior

Spot on, I'd move out of the city tomorrow if I could, but not much work for me in the bush.

There is heaps of work for everyone, why would there be no work for you??

The only people that have no work are people to lazy to work.

**GasoLane** · 23-04-2015, 04:06 PM

Quote:

Originally Posted by XB GS 351 Coupe

There is heaps of work for everyone, why would there be no work for you??

The only people that have no work are people to lazy to work.

Not nessesaraly, I know a few people who would love to move here from Syd, but as they are in IT there is nothing here in their field.

What do you do.

Mr Brooksy · 23-04-2015, 03:43 PM

Not sure about the current market, but we bought at the peak of the GFC when GovCo was doing everything humanly possible to stimulate the market. 557sm block just south of Newcastle (to the locals it was an eternity away!) for $220,000 with a 3 bedroom, 2 sunroom, huge lounge, dining and kitchen with 2 sunrooms and a freestanding double garage. Only needed to find 3% deposit as the first home owners grant was doubled, and the greedy lenders required less of an applicant than they do now.

And we have quite a low income! And we are now living overseas with renters in the house.

Financially the bank said we couldn't make it work, until they saw that we buy all our cars with savings, we were putting away at least $500-700 per fortnight in savings with no loans and (back when we were applying) paying rent as well.

From our perspective, you don't need a huge income, you just need to be smart with your money. Sure the market has changed, but as has been said, maybe you need to look further afield than your favorite suburb.

When we move back to Aus in a few years, we are contemplating moving further from cities so my little boy can have the opportunity to experience far more than he can in a city. And he can really see what it means to be part of a community, not just live in some lego suburb.

zilo · 23-04-2015, 07:48 PM

Buy an island and FTW...for less than the price you pay for a 3 bedroom unit in Melbourne or sydney.

I did...

Ruination · 23-04-2015, 08:23 PM

I bought 500sqm block at a new private estate in Wellard, 15-20 minutes south from CBD Perth for $200k in July 2013.
Mate I work with bought a 450sqm block right down the street, he paid $245k in October last year.
House I built cost 196k, after all my trade discounts. (I subbie for the builder)
Now that I've moved in and have finally landscaped the backyard as the front was included in the land package. I've had an appraisal of $510-530k.

It doesn't take long for things to go bonkers.
Especially in Perth.

**Mont5.0** · 23-04-2015, 10:06 PM

Quote:

Originally Posted by Ruination

I bought 500sqm block at a new private estate in Wellard, 15-20 minutes south from CBD Perth for $200k in July 2013.
Mate I work with bought a 450sqm block right down the street, he paid $245k in October last year.
House I built cost 196k, after all my trade discounts. (I subbie for the builder)
Now that I've moved in and have finally landscaped the backyard as the front was included in the land package. I've had an appraisal of $510-530k.

It doesn't take long for things to go bonkers.
Especially in Perth.

I moved into my new house 12 months ago. If I was to build the same house on same block size today would cost me $120k extra.

HULK_I6T · 23-04-2015, 10:42 PM

For people who bought/built homes yesteryear its all about how much money they have made, for new entrants its almost like trying to leap across the grand canyon.

But the issue is if they dont make the leap now the gap only gets wider (more expensive)

Havoc · 23-04-2015, 09:54 PM

yup and **** all our children and grand children in future its an excellent housing market.

mr smith · 23-04-2015, 09:59 PM

Once Labour get in and crunch negative gearing, house prices will drop like victorian taxi licences.

Franco Cozzo · 23-04-2015, 10:02 PM

Quote:

Originally Posted by mr smith

Once Labour get in and crunch negative gearing, house prices will drop like victorian taxi licences.

I'm an ALP supporter but I doubt they would do much on NG because politicians themselves also have a lot of property investments etc.

It would hurt them and we can't have that happening now can we?

**buggerlugs** · 24-04-2015, 08:02 AM

Quote:

Originally Posted by mr smith

Once Labour get in and crunch negative gearing, house prices will drop like victorian taxi licences.

That didn't take long.......How to close a thread real quick..............

HULK_I6T · 24-04-2015, 08:09 AM

Property prices are like attending a big sporting event. The best seats cost the most and there wont be much room to move. the seats further away are often giveaway tickets.

Supply and demand. Everyone wants to live in capital city

Cranky243 · 24-04-2015, 11:38 AM

Quote:

Originally Posted by HULK_I6T

Property prices are like attending a big sporting event. The best seats cost the most and there wont be much room to move. the seats further away are often giveaway tickets.

Supply and demand. Everyone wants to live in capital city

I suggest you go and get a dictionary and look up the meaning of everyone lad ;)

HULK_I6T · 24-04-2015, 02:47 PM

Quote:

Originally Posted by Cranky243

I suggest you go and get a dictionary and look up the meaning of everyone lad ;)

If price wasnt a barrier are you telling me people would chose against the premium spots in a capital city???

The truth is everyone wants to live in the capital city, but the demand ensures the top spots command the highest price and those willing and able to pay up get to enjoy it. The rest are pushed out further and further.

mr smith · 24-04-2015, 09:15 AM

Quote:

Originally Posted by buggerlugs

That didn't take long.......How to close a thread real quick..............

Yup, dont question the cult of housing...

**GasoLane** · 24-04-2015, 10:21 AM

Quote:

Originally Posted by mr smith

Yup, dont question the cult of housing...

I think he meant bringing politics into the thread, which you wont do will you ?

GT0132 · 24-04-2015, 11:17 AM

Quote:

Originally Posted by mr smith

Once Labour get in and crunch negative gearing, house prices will drop like victorian taxi licences.

I think you'll find that most property investors get into it because of the potential for capital growth and income rather than the tax benefits.

In this climate its pretty hard to be making loses on resi property anyway given that

- you can generally only borrow 80%
- interest rates are low
- rents are rising

If NG is abolished most investors won't be too adversely affected I'd say. Most would hold onto their properties and just wear the tax loss.

**ebxr8240** · 24-04-2015, 06:01 PM

Quote:

Originally Posted by mr smith

Once Labour get in and crunch negative gearing, house prices will drop like victorian taxi licences.

They tried that way back . The rents went up the public housing couldn't keep up.. It came back in no time .. Remember NG is the expenses from running a business .. It's a claim on income tax like anything else. You would be crazy to keep it in negative gearing for long though ..

mr smith · 24-04-2015, 09:12 AM

Nothing to do with supply and demand. Govt policy keeps prices high, NG, low interest rates, fear around super changes and easy lending all equal an unbalanced market. Problem is there is too much money involved and its a lazy way for the govt to make money. As the pool of owners gets smaller, (investment buyers = PPOR) there will be more pressure on the govt to act from those left out. Only 1 mil out of 23 mil have a NG property. Good place to start some tax cuts.

NOI551 · 24-04-2015, 11:09 AM

I'm seeing a stack of speculation, he said-she said.

You're ALWAYS best off, making a call to an experienced and reputable Finance Broker, more specifically a Mortgage Broker.

They workshop deals with clients ALL the time, if the broker you've chosen is worth half what the title on their business cards indicate they are, they'll take the time to discuss the best way to get your plan across the line for you.

Cranky243 · 24-04-2015, 11:36 AM

Got mine 10 years ago when the prices were very good.

Only got about 40% left to pay off

SA FTW!

boss310 · 24-04-2015, 02:53 PM

In Sydney Hulk, I don't think it's a case of being pushed but more so, people not wanting to live in what has become a pretty big ********, you couldn't pay me to move back up the M5 towards the city.

TheSneakiness · 24-04-2015, 03:08 PM

Our plan is to be in the market in the next 2.5 years, so we keep an eye out to what's going on with house pricing.

**nuthin' fancy** · 24-04-2015, 03:31 PM

It is all about expectations.

My first house was a weatherboard fixer-upper in Geelong West. Paid $67.5k in 1989. My next was a much better house on 1300msq for $130k in 1998. Then $415k on my current home in 2004.

See, it tool me 15 years to build up to the house I wanted.

Want a property that a bank can fund for less than $250k? Loans at 4.49%pa, $17k deposit (can be borrowed if you have the income to support it)? 1 hour out of Melbourne? Come to Geelong. Lots of housing stock, easy commuting, great lifestyle.

Job market a bit tough, but where isn't?

Do what you can now to get to where you want to be. It takes time and hard work and sacrifice but anyone who is serious will do what they have to so the process can start.

usernametaken · 24-04-2015, 03:40 PM

Too many 'Charlie Pickerings' in the city.

Great place to visit, but prefer it in my rear view mirror.

NTF6 · 24-04-2015, 05:49 PM

Quote:

Originally Posted by HULK_I6T

Ive been monitoring price of houses in the past 18 months and it appears the property market has really exploded off. Prices are ridiculously high at the moment and houses are selling like hot cakes which can only push the prices further up

I just shake my head when i think of the affordabity.. how can people afford to buy? Unless they are already home owners from many years ago selling and buying in the same relative market or using their existing home equity to buy into another..

But for the new entrant to the market, it looks bleak. i just dont see it as anywhere near affordable. To enter the market at current prices is so tough. By the time they save a 10-20% deposit the price will shift from them another $100-200k+. The kids of next generation wont stand a chance.

I think its even tougher for renters. As property prices shift up so will rents.. as prices go up, less people can afford an investment property (lucky if they can buy one to live) so rental properties will become scarce relative to those looking to rent a place. demand for scarce rental properties will increase (as people cant afford to enter the market). Renters will be trapped forever at the mercy of landlords charging whatever they please.

Has the current state of the property prices officially seen the boat sail away from first time market entrants and renters?

I don't think so, I have been checking prices in Perth and there are some bargains to be had compared to 6 months ago when I was looking for new houses or 3x2 apartments around the Balcatta area. Some of the similar investments are now 80k cheaper and I think there is more to come. I for one will be keeping a close eye on Perth and looking to snap one up when I feel the bottom is close.

Stefan · 24-04-2015, 05:59 PM

Quote:

Originally Posted by NTF6

I don't think so, I have been checking prices in Perth and there are some bargains to be had compared to 6 months ago when I was looking for new houses or 3x2 apartments around the Balcatta area. Some of the similar investments are now 80k cheaper and I think there is more to come. I for one will be keeping a close eye on Perth and looking to snap one up when I feel the bottom is close.

Mining bust...perth would be the hardest capital I guess.

Might be good to get in at the bottom, next boom houses will rise again.