aston man

is it time to bag a bargain?should one hold off buying in these times of turbulence?

has any one any comments on negative gearing?

with thanks.

aston man

julesandco

What are you doing back? Thought you'd brought your ball back.



Always nice to hear from you.

Jules x

Amazulu

If I was a FHB I would be buying one this weekend.

NKSK version 2

I thought you were wary of predicting future house price changes?

Amazulu

I don't get invloved in house price discussions as, like everyone else on here, do not know what is going to happen to the housing market.

My post is based on the fact that if I was a FHB and looking for a house as a home rather than an investment, I would be buying one right now. To me it seems like a great time to buy a home. Prices are down, the feds are giving you $21k and you would not be paying stamp duty. That all looks good to me.

Property should always be seen as a long term option.

NKSK version 2

The worry is that within 6 months property prices could drop by at least $14000.

bridie

so what?
if you're buying a place and plan to live there for the long term then you wont lose money....

NKSK version 2

Maybe not but you might have more money to spend on your family with lower mortgage payments (on the back of lower prices) in a few month's time if you wait.

bridie

true but then we keep hearing this and that about house prices.... who knows what might happen, prices might go up not down and then you've got the above problem anyway.....

bcworld

My personal opinion is that these increased FHB grants and stamp duty exemptions could be setting up the perfect bull trap for property. Prices have fallen a bit, not much, perhaps more so in WA. The ideal situation to allow first home buyers into the market would be for prices to be allowed to fall/stagnate to more sustainable levels versus income. Instead, more money is being pumped into the market and anyone invloved in the industry will be sure to get their cut. If prices do rise sharply in response to this then I think it's just setting up an ever bigger pop for housing in the end.

I understand what Rudd is trying to do, after all other countries where house prices are/were undeniably over the top are suffering grave consequences as a result of rapid house price declines. I just don't see that those rapid declines have happened on an Australia wide basis.....the property market didn't need the incentive it just got.

I think they've made a mistake with this one.

I agree with everyone who's said that if you're buying your own home then it really doesn't matter that much - if you want it, and can afford the repayments, buy it. As an investment, I'd steer clear for now.

NKSK version 2

Over the last few years I've heard so many people on here telling me that Perth prices will never fall.....and look what's happened over the last 18 months.

I don't think even the most bullish of people could now consider that prices are going to up past perhaps a short term blip due to this fiscal input.

carolinephillips

My feeling is that house prices will increase by the $14-21000 dollars that have just been granted. Not really the right incentive methinks, and then they will fall again once the grant stops, so nobody really wins except the real estate agents.
Caroline

Safin

Surely as it's only FHB then its not everyone benefitting from the extra $$? Isn't that a relatively small proportion of market? So the effect will be small? I think BE has a larger sample of 1st buyers than OZ in general so squews our perceptions on here.

carolinephillips

Yes, but I thought the FTBs drove the market, if no FTB buys your home you can't move up the ladder, so things stagnate.
Greedy people will just put up their house prices as they will think- oh they have $14 000 more to spend.
Of course that is only my view, but I am getting cynical in my old age.

bcworld

Correct. The whole thing is being used by real estate agents, property developers and maybe vendors (we'll wait and see) to 'big up' sentiment in the property market. Regardless of who is actually eligible for the cash.

To my mind...rushing out to sign on the dotted line this weekend is the equivalent of having rushed back into the stock market on Monday.