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IMPORTANT // Please look after your loved ones, yourself and be kind to others. If you are feeling that the world is too hard to handle there is always help - I implore you not to hesitate in contacting one of these wonderful organisations Lifeline and Beyond Blue ... and I'm sure reaching out to our PRE community we will find a way to help. T.
Melbourne Property Market
- Thread starter martyshire
- Start date
ARCHYBOY said:
of course thats true and we don't know until it happens, but we can make prediction based on history and projection, which is what modelling is. To say 'its all speculation' is a simplistic overstatement. We know what the price of carbon will be, we know who it will directly effect and who it won't we know how much compo people will get for rising power bills.
Your point re the home owners grant is a good one and I think it supports my point, if people think a policy change will have a dramatic effect, good or bad, history shows that it probably won't.
ARCHYBOY said:
That's nice of you Archy. I appreciate that.
Let's make it a hypothetical situation. Mid 20s. Sometimes travelling the world. Sometimes working in Melbourne. Would probably get house mates to share. Around $70-100,000 on hand. Advised 20% deposit would be needed plus stamp duty etc. Advised a house around $400,000 would be a good option.
Would you have any advice for that situation? Things to watch out for? Areas to look at? Likely costs starting out with in the 350-400,000 range?
My thoughts would be to buy a "renovators dream" as they say in the classics. Not falling apart but good location and needing a bit of TLC rather than over spending on something flash that will take forever to pay off. Probably not keen on brand new crowded estate situations.
Also any info about the types of loans would be greatly appreciated. I've seen headlines for shows like ACA announcing upcoming programs on how to save a fortune by paying an extra 10 bucks off a week kind of thing. I've never actually seen the program to know what it was about though.
I'd welcome any comments or suggestions.
Rosy I guess I look at it this way. The Carbon Tax will increase everything we purchase therefore family budgets will need to be adjusted for the increase to everything we purchase therefore leaving less in the bank. Yes the Gillard/Brown government will compensate us with income tax cuts and allowances but do we really think it will balance everything out? No way I think we'll be hearing more of the added costs to consumers and people will be screaming. For example it will add millions of dollars in cost to large industries, it is inevitable this extra cost will be slugged onto the consumer.
At the end of the day the home buyer will need to make further financial sacrifices to save a deposit. Remember 10% deposit is a thing of the past so a 15% or even a 20% deposit will give some breathing space.
Tigersnake, Work choices is irrelevant I don't think it would have impacted on what we purchased hence effecting the household budget. The GST, well that's a good point we all expected a 10% increase in everything and now it's part of our life. I will agree that people back then were screaming about the impact it would have on the consumer's hip pocket but I guess we haven't looked back. As for Native Title I have no idea what you mean tigersnake.
Getting back to the topic of house prices, I think the first home buyer will need to save for that deposit that little bit harder once the Carbon Tax kicks in.
Surely you never thought I meant that the Carbon Tax will make it easier to buy a new home?
At the end of the day the home buyer will need to make further financial sacrifices to save a deposit. Remember 10% deposit is a thing of the past so a 15% or even a 20% deposit will give some breathing space.
Tigersnake, Work choices is irrelevant I don't think it would have impacted on what we purchased hence effecting the household budget. The GST, well that's a good point we all expected a 10% increase in everything and now it's part of our life. I will agree that people back then were screaming about the impact it would have on the consumer's hip pocket but I guess we haven't looked back. As for Native Title I have no idea what you mean tigersnake.
Getting back to the topic of house prices, I think the first home buyer will need to save for that deposit that little bit harder once the Carbon Tax kicks in.
Surely you never thought I meant that the Carbon Tax will make it easier to buy a new home?
rosy23 said:
No probs, happy to help out and try and give something back.
Couple of suggestions would be buy at the bottom of the market (cheap but nice) and not to try and keep up with the Jone's, its their first home. Pay the damn thing off as quick as possible and build as much equity as possible, their 2nd home can be their dream home. I would also look at as big a block as possible but as low maintenance as possible, land appreciates and the home will depreciate so more land the better, I would also keep it low maintenance bacause if they do a lot of travelling, they dont want to spend a month cleaning the place when they get home. If they are handy, then a place that needs some TLC is not to much a concern, if they arent their pockets will empty quick smart trying to get the place fixed.
If they have been advised that a 20% deposit is needed, thats a tough one to work out and it depends who told them that. The main reason is if you burrow less than 80% to buy a property, you escape paying mortgage insurance. If they have a $100,000 deposit and buy for $400,000 plus costs (add 5% of the purchase price for stamps and conveyancers fees) that equates to $400,000 purchase + $20,000 costs - $100,000 deposit = $320,000, right on the border or having to pay mortgage insurance.
Of course location is entirely up to them, If you want to PM me and give me an idea of where they are searching, I can see if I have any contacts in the area. I can also point them in the direction of a couple of brokers that are top notch and without want to sound like a know all, that shyt you see on TV about saving on loans is basic stuff, We currently pay about $700 a week on our mortgage and its less than $100,000.
If Ive missed anything, shoot me through a PM as I mentioned and as I wouldnt want to give details out on the main board.
Gee, 20% is tough for first home buyers. We push kids into uni and they don't start earning decent money until they are 25-26 then they have to put together that money together over 5-6 years. If prices go up by 2-3% a year they need to put away even more. It's a tough gig.
Tell me Archyboy in your life an agent what was the mix of first home buyers versus investors in your particular area?
ARCHYBOY said:
Is this what you tell them when you are trying to earn your living from their business ?
Shyt Pads to the ducks hey, nice one Arch. Interesting way to look at the people who put food on your table and clothes on your back. Maybe you meant something else by that description and I completely misunderstood you.
Red Sea Tiger said:
You're probably taking a light hearted throw away line a bit literally RST.
Thanks for the response Archy. I might get back to you later on when a decision to go ahead and purchase has been made. I can't fathom $700 loan repayment a week. It costs us less than that to live for a month.
I agree scoop. It saddens me to see kids paying hundreds a week in rent, plus their living costs, and struggling to see the light at the end of the tunnel as far as saving a deposit goes.
BustinDustin said:
Why wouldn't it, BD?
I take it that you accept that public concern about the carbon tax (if not the tax itself) could affect the economy. TBH I think other factors will hurt the economy more-so than the carbon tax but for argument's sake lets just say that people may end up with less to spend and therefore first home buyers need to work harder to save a bigger deposit.
If this happens renters will also be struggling to pay their rent so rents would presumably have to be reduced. Property investors would then loose income and some may decide their asset is no longer viable and look to sell. Also first home buyers would be staying away from buying for longer while they save harder. Some would probably stay out altogether. If all this happens, surely prices would go down further.
So instead of having to save 45k for a 450k property, a first home buyer might have to save 70k for a 350k property. If I was a first home buyer I'd consider the second option to be 'easier'. Not easier to have a house now, now, now; but in the long run it would be a much smaller burden to take on.
I'm not saying I necessarily think the economy will tank and these sorts of number changes will happen, BUT, if it does happen and first home buyers are collectively forced to save bigger deposits, this would be a massive blessing in disguise for most of them.
rosy23 said:
Maybe so Rosy, maybe so. Still a rather odd thing to say by someone who is offering advice on the subject. Probably one for the ducks to worry about when they choose an agent.
Red Sea Tiger said:
Ever heard the saying "In more shyt than a werribee duck". There is also alot of ducks out there that I'm quite happy not to be their agent.
And yes, you did completely misunderstand me if you havent heard that saying, no harm done.
BustinDustin said:
30% first home buyers, 30% Investors and 40% upgraders
You dont need 20% deposit to buy a property, there are a lot of scenarios that come into play Scoop. If you want to escape paying mortgage insurance on your purchase, you need to burrow less than 80% of the purchase price.SCOOP said:
The repayments are a personal choice Rosy and what I believe the best way to get ahead. Let me know when you need a hand, whether its now or 6 months down the track. In fact I'm happy to answer anyones concerns to the best of my ability so dont be afraid to ask away guys, PM me if you want to keep it confedential.rosy23 said:
BustinDustin said:
So do I beleive you bustin or do I believe the department of treasury, independent analysts, uniprofessors. Sorry to be a smart arse, but fair dinkum. The carbon tax is a policy that is designed to stop us from wasting energy. Currently we probably waste on average 10-30% of the energy we consume. The CT will quickly sharpen our attention in that regard. The net result will actually be we are not out of pocket at all. I don't want to go over it again, I went on and on about it on another thread. Suffice to say the sky will not fall.
As for native title, you don't know what it is? My post speaks for itself. People have short memories, and it was 18 years ago, but as I said, according to the mining industry, the farmers, the Coalition and the murdoch media, (sound familiar?) Aboriginal land rights would destroy the economy. John Howard said our backyards were threatened. Its so ridiculous that those who said so at the time love to forget about it and pretend it didn't happen, and you might think I'm a kook for bringing it up, but it happened.
