Geelong Gent

But it won't happen in Oz


so tells me, a 23 yr old EA



on P plates, living at home with mum & dad

The Bournes

So, what do you all advise to do if recently moved to Aus, and sold uk property with equity in bank in UK? Do we wait to see if exchange rate goes up and Aus house prices fall, or buy now and hope that they stay the same or rise, and that the interest rates either stay the same or go down? We really dont know what to do, having spoke to many locals where we are, some say its a buyers market and wont fall anymore, others say wait 12-24months when they really fall, and others say they are not falling, but will start to rise sharply over the next 2 years. We live near Noosa so prices are quite steep, but we are looking at Coolum, which is a lot more reasonable, and they are set to begin an update/refurb of the whole seafront in 2 months time.

Any help, thoughts, suggestions invited. Thanks.

tahititim

Hi Dorothy,
If it is not a secret, let me know what's the bank's name?!

Kapri

I feel reassured now

alipally

Can't give advice, but we're happy to tell you that the plan is to take out the regular savers account with Halifax .... 12% AER with £5000 in the account by 4 weeks after opening and a regular deposit of, I think, £25 or more per month. Only offered for 12 months but, it's a great offer! I can't even find that on an ISA even on the after tax rate!
We're going to let our money sit it out for a bit.... tbh I don't know what the market is going to do, but I'm guessing that it won't rise more than the interest that I'm going to earn on the money I'm depositing here!
I'm bricking it a bit that the exchange rate will become really favourable for us and then drop before my 12 months are up, more than how much our future home is going to cost us!!!
Everything is, at best an educated risk, at worst a complete and utter unqualified risk, but this is our decision at the moment!

Ali

daddyofthree

I think you'r on the ball Ali and good to see Kapri sounding positive.
I'm hoping to move over permanently in Jan 2010 and hopefully by then house prices in Aus will be lower and house prices in the UK will have stabalised. Also, we may be out of a possible depression by then and the £ will be strong again. Perhaps falling house prices in the UK are not too much of a problem if the £ recovers its strength and the $ weakens! My wife wants a newly built 4b house under $400K!! Any comments?

Geelong Gent

Most 4 bed 2 bath homes cost (not marketed) around $250K too build base. Add fittings and you are going to struggle regardless of market. Unless you concede location.

I hope for you I am proved wrong

DownUnderPaddy

and rising all the time apparently.
http://www.news.com.au/business/mone...013951,00.html

"The Master Builders Queensland Cordell Housing Cost Index found a "typical" four-bedroom, 200sq m brick family home in southeast Queensland now costs $271,574 to build, a jump of $11,755 in the past 12 months."

"From November last year until February this year it went up by $2205, mostly due to rises in the price of materials and labour."

"MBQ director of housing Darren Barlow said that in March 2004 the cost of building a new home was only $221,700. "

IvanM

Property nearing once-in-100-year slump
http://www.news.com.au/story/0,23599,24012370-2,00.html

"The only other times this has ever occurred are before we have moved into severe recessions."

crocodileseamus

To aliplay,
Check out the small print on that Halifax deal - if it is like the Alliance and Leicester 10% deal (which I would guess it is) the interest is 12% on the 1st deposit for 12 months, same on the 2nd deposit for 11 months etc and when you work out the compound interest the A+L works out at 4.35%, yours will work out around 5% - not the 12% as stated.
Banks, you gotta love 'em!

Croc

Vash the Stampede

When people choose to live beyond their means, then blame the banks for lending too much when it all turns sour, I find it hard to dredge up any sympathy for them.

It's very simple: don't borrow more than you can afford to repay, and make sure your mortgage is low enough to accommodate future rate rises.

If necessary, downsize. That brand new 4x2 with a swimming pool is a privilege, not a right.