House buying - victoria
#1
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House buying - victoria
We are seriously thinking of buying in the nxt couple of months and are happy with the area which we can afford. Believe me its took two years of research, please anyone coming , do not buy in haste.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
Last edited by Margaret3; Jun 6th 2009 at 9:01 am.
#2
Joined: Dec 2007
Posts: 2,838
Re: House buying - victoria
We are seriously thinking of buying in the nxt couple of months and are happy with the area which we can afford. Believe me its took two years of research, please anyone coming , do not buy in haste.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
#3
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Re: House buying - victoria
This means that a First Home Buyer, can get a grant $14,000 for an existing property, or $21,000 for a New build property, towards the cost of the property.
From 1 October 2009 to 31 December 2009 this extra grant will be reduced and the total grant will become $10,500 for established homes and $14,000 for new homes.
From 1 January 2010 the grant will revert to just $7,000 again.
#4
Re: House buying - victoria
It really depends on the area you are buying in. Anywhere striking distance to the city I think will hold its price, mainly because vendors will not sell they will wait also. Reduces the stock.
Good property in good position always sells no matter what.
New housing in new estates is a problem because if they have to sell they are competing with the builders who are still building on spec and they can offer reduced stamp duty and other incentives which are not available to home owners.
Auctions are always going to go for more money that is the way the agents play the game, they are not supposed to there are laws against it but for some reason they get around it.
If there is a good school in the area then there is a lot of competition for the housing.
Buy the cheapest house in the best street I was told was the best approach.
Good property in good position always sells no matter what.
New housing in new estates is a problem because if they have to sell they are competing with the builders who are still building on spec and they can offer reduced stamp duty and other incentives which are not available to home owners.
Auctions are always going to go for more money that is the way the agents play the game, they are not supposed to there are laws against it but for some reason they get around it.
If there is a good school in the area then there is a lot of competition for the housing.
Buy the cheapest house in the best street I was told was the best approach.
#5
Re: House buying - victoria
Looks like we ARE in the same boat Margaret
We're looking to buy but anything around the figures you mention seem to go as soon as they go onto the market.
I was praying that the first time buyers grant would be binned but instead they bloody increased it This is deffo inflating the prices IMO and people seem to be rushing to buy....typical,real estate around the world is in freefall except for the market i'm looking to buy in !
As for awaiting to buy versus buying now...well i havent got a bloody clue
ATB
Lee
We're looking to buy but anything around the figures you mention seem to go as soon as they go onto the market.
I was praying that the first time buyers grant would be binned but instead they bloody increased it This is deffo inflating the prices IMO and people seem to be rushing to buy....typical,real estate around the world is in freefall except for the market i'm looking to buy in !
As for awaiting to buy versus buying now...well i havent got a bloody clue
ATB
Lee
#6
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Re: House buying - victoria
As for awaiting to buy versus buying now...well i havent got a bloody clue
ATB
Lee [/QUOTE]
Me too lee, i dont know what the **** to do also hubby wanting to buy in a different area from me, and i think he is TOTALLY WRONG!!! i can understand his feelings, we would rather stay around an area we now know, as the thought of another move, to another area, makes me feel quite sick!!, but we gotta be sensible, so am sticking my heels in, i wanna make money on our nxt property and thats that!! then we may have a choice in the future, and i know it will probs be without our girls , who now love it here, but my ultimate long term plan is ....... to go home.
ATB
Lee [/QUOTE]
Me too lee, i dont know what the **** to do also hubby wanting to buy in a different area from me, and i think he is TOTALLY WRONG!!! i can understand his feelings, we would rather stay around an area we now know, as the thought of another move, to another area, makes me feel quite sick!!, but we gotta be sensible, so am sticking my heels in, i wanna make money on our nxt property and thats that!! then we may have a choice in the future, and i know it will probs be without our girls , who now love it here, but my ultimate long term plan is ....... to go home.
Last edited by Margaret3; Jun 6th 2009 at 1:12 pm.
#7
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Re: House buying - victoria
From 14 Oct 2008 until 30 September 2009, the FHOG will be doubled to $14,000, with an Extra $7,000 for new home buyers
This means that a First Home Buyer, can get a grant $14,000 for an existing property, or $21,000 for a New build property, towards the cost of the property.
From 1 October 2009 to 31 December 2009 this extra grant will be reduced and the total grant will become $10,500 for established homes and $14,000 for new homes.
From 1 January 2010 the grant will revert to just $7,000 again.
This means that a First Home Buyer, can get a grant $14,000 for an existing property, or $21,000 for a New build property, towards the cost of the property.
From 1 October 2009 to 31 December 2009 this extra grant will be reduced and the total grant will become $10,500 for established homes and $14,000 for new homes.
From 1 January 2010 the grant will revert to just $7,000 again.
#8
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Joined: Apr 2007
Location: Brisbane
Posts: 199
Re: House buying - victoria
Then the s**t started. For various reasons, missed out on the 2.7 exchange rate last year (beat myself up over it every day). Interest rates in UK fell to the floor, so on our amount getting virtually nothing. The only time we have a bit of cash in the bank and rates drop to 0.5% !!!!!
Exchange rates so awful, not worth transferring, but losing out on better Oz interest rates. Oz housing market not falling by much if at all.
For the amount we want to spend, houses are not that great live in (Doncaster East, SE 'burb). But wife works and son in school locally, so don't really want to change area for better value house, as commutes become a pain.
If house prices stay the same or fall, I think we are better off renting for now. If house prices rise, better off buying I suppose. We are in a unit in a block of 6 and would like to try a 'proper' house with its own bit of garden. We know we don't want a unit now. Not sure whether to get new ugly house or older (just as ugly) BV or similar but maybe a bigger plot, so next rental can try that out.
Its great that you may know what you want (been here 9 months, so like you may be more sure after 2 years).
There is still talk of more job losses in Oz which may cause prices to fall. Just can't see how they can afford the houses here. 20% fall in houses or 20% rise in exchange rates (fat chance right now!) might get us to make our decision.
Throw in the mix that I can't find a job and the long term plans start to get hazy. I certainly wouldn't buy if I thought we might go back in a few years.
#9
Re: House buying - victoria
We are seriously thinking of buying in the nxt couple of months and are happy with the area which we can afford. Believe me its took two years of research, please anyone coming , do not buy in haste.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
We didnt come with lots of dosh, and therefore our small deposit is very precious to us, however i am worried we are buying in a 'first home owners frenzy market, due to the increase in the firt home owners grant.' Does anyone think homes in our price range i.e no more than $350.000 are artificially inflated, , and from what ave seen at an auction today, competition is fierce.
So my question to all of you with crystal balls out there (i remember bordy used to have a couple), do you think if we buy we will end up in negative equity in the nxt couple of years or should we hold off untill the govt gets rid of the increase to the first home owners, does anyone know exactly when this is, and is there talk of scrapping it altogether?.
Opinions greatly received.
Whether we paid $10k over the odds for the house or not, is irrelevant to us as we love it and at some point in time ( unknown ) it will be worth more than we paid for it
Cheers
Steve
#10
Re: House buying - victoria
There is still a shortage of housing here in Melbourne so that is going to help keep prices up I think. Not a lot of rentals around and so buying an investment property is attractive to people who have got out of shares and getting no interest at the bank.
Unfortunately if you are looking at the $300 - $400 in a commutable suburb there will be a lot of competition from investors and first home buyers DINKs.
As long as we love the house we buy and want to live there no one knows whether we pay too much or too little in any market. Affordability and position and liking the property are the main things.
Unfortunately if you are looking at the $300 - $400 in a commutable suburb there will be a lot of competition from investors and first home buyers DINKs.
As long as we love the house we buy and want to live there no one knows whether we pay too much or too little in any market. Affordability and position and liking the property are the main things.
#11
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Re: House buying - victoria
Thanks all for the input, looks like we will plod ahead with buying in the nxt few months
#12
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Re: House buying - victoria
Whilst I agree with "buy in the best area", I will add to buy a home rather than an investment based decision; If you don't like your home everything else gets pretty miserable.
Pete
#13
Re: House buying - victoria
I feel for anyone entering the Australian housing market for the first time. If they are used to thinking about a house being a home for living in they are in a minority: the average Joe here treats it as an investment as much as somewhere to live, and the frenzy to buy or sell overrides common sense and basic economics.
All I can say is that "negative equity" actually means nothing unless - a big "unless" admittedly - you are forced to move or sell for some reason such as unemployment.
If you buy a home and are happy there and have budgeted sensibly (ie, allowing for say a 25% increase in interest rates in the medium term) just do it! If your home is "worth" less in a year's time and you like it - so what? Let the punters anguish about their "investment".
All I can say is that "negative equity" actually means nothing unless - a big "unless" admittedly - you are forced to move or sell for some reason such as unemployment.
If you buy a home and are happy there and have budgeted sensibly (ie, allowing for say a 25% increase in interest rates in the medium term) just do it! If your home is "worth" less in a year's time and you like it - so what? Let the punters anguish about their "investment".
#14
Joined: Sep 2005
Posts: 23,400
Re: House buying - victoria
I feel for anyone entering the Australian housing market for the first time. If they are used to thinking about a house being a home for living in they are in a minority: the average Joe here treats it as an investment as much as somewhere to live, and the frenzy to buy or sell overrides common sense and basic economics.
All I can say is that "negative equity" actually means nothing unless - a big "unless" admittedly - you are forced to move or sell for some reason such as unemployment.
If you buy a home and are happy there and have budgeted sensibly (ie, allowing for say a 25% increase in interest rates in the medium term) just do it! If your home is "worth" less in a year's time and you like it - so what? Let the punters anguish about their "investment".
All I can say is that "negative equity" actually means nothing unless - a big "unless" admittedly - you are forced to move or sell for some reason such as unemployment.
If you buy a home and are happy there and have budgeted sensibly (ie, allowing for say a 25% increase in interest rates in the medium term) just do it! If your home is "worth" less in a year's time and you like it - so what? Let the punters anguish about their "investment".
Its nothing special, it needs work doing on it and if (and I dont know) we are or go into negative equity, we dont care, we want to save up and do the house up, but do it up for us and that's it.
You are spot on, this is our home and as we are not looking to move we are more than happy with our situation.
If we wont the lotto, we would make this a little cracker of a house - and still live in it.
#15
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Re: House buying - victoria
for me i am absolutely going in it for the investment, i have been renting in a 70's pad for the last 2 years, so buying somewhere that does not feel like home for the next 2-5yrs does not bother me in the least, its a means to an end.
This is the first time in my life i have ever, ever thought like this, in my town in scotland houses were homes not investments, oh well you live'n'learn,
This is the first time in my life i have ever, ever thought like this, in my town in scotland houses were homes not investments, oh well you live'n'learn,