northernlights

Today, Thursday 11.30 EST

ABCDiamond

In about 20 minutes time, and about 5.9% seasonally adjusted or 94.1% employed Has Mr Druitt said that unemployment is going to fall ?

Retail trade is up, Balance of trade is up... inflation is down... The economy seems to be doing OK at the moment, in the scheme of things, other than unemployment, which is heading back to the 2003 figures of about 6%.

ShoreyM

I had a meeting with a mortgage adviser yesterday to see how much we can borrow and if there'd be much difference from the weekly rent etc. I was pleased (and surprised) by how much we can borrow but was disappointed to find out you now have to have 20% deposit. You also need to prove you've had it for a period of 3 months. I believe, up until 2 weeks ago, you could use your FHOG as a deposit, therefore much easier to buy. How many people can afford to save 20%? I know it'll take us a long time. Therefore I can see the first time buyer market stalling good time. More renting for us now.

IvanM

With the bank having 20% equity in your home they are carrying little risk even if you borrow beyond your means. On the repayments did you work out the affordability if interest rates went back up again.

Perthforme

there may be a drop , but there is still a need for housing here . the rents are very high and i would rather put money into my own place than someone elses .

IvanM

No one knows how far unemployment will go up and the government budget deficit is starting to balloon. Did you see that BHP is shutting a coal mine down in the Bowen Basin for a month and putting down 400 staff for that period?

Do you believe retail sales will carry on rising without $900 cash handouts?

ShoreyM

I can totally understand why they're doing it, it's giving away mortgages to all and sundry that has got us where we are now. We wouldn't be borrowing anywhere near the amount they'd let us and we'd be fine with any repayments. We can afford a mortgage, just not able to get 20k together quickly.

northernlights

This is why I believe the rental market will start to fall. Potential home owners now have to save a 20% deposit. This means many people will start living back with their parents (not ideal, but only way to save deposit) or you'll see more shared accomodation, i.e. 2 families/couples living in one house.

IvanM

Seems like they will lend heaps as long as they have enough of your house to grab if it goes wrong. Good look in getting the 20K together. There are some tax efficient bank accounts for 1st home buyers if you can wait 4 years. Not sure if they are fee efficient.

Hutch

To be honest, I couldn't give a shit one way or the other. We bought a two storey four bedroom house at the bottom of the cycle in an area that sure as shit wasn't a property hotspot. But apart from anything else, we bought a home, not an investment property and, since we aren't planning on going anywhere any time soon, the market can do what the **** it wants.

ShoreyM

Sorry guys, I gave the wrong info- I got slightly confused (easily done) and it's 5% (20k in our case) not 20%. Apologies. Still a lot of money for us though.

Perthforme

I belive there are many countries and cultures they house share or stay at home while they save up deposits.
One of my mates and all the fellow uni mates he had rented a big ole place at sandbanks , He said it would be the only chance he would get to live there ! Fairnuff.

sj oldfield

I believe that anyone NOW entering the market will have to wait DECADES for capital gains (real) in house prices. As I said, when interest rates went up to 17%, I could afford the mortgage repayments beacuse I borrowed less than 3 times my annual salary. Unfortunately, many new mortgaged up house owners will be stuffed if rates go up to even 8%.

I do hope that you're not one of the ' house prices double every 7 years' believers? [/QUOTE]

If you are clever enough then you will take a long fixed rate out, then you know exactly what you;re outgoings are going to be.

The house prices will go up again, and it wont take 7 years!!

La Vida loca

You will ahve to wait at least 10 years for any gains in your home, unfortunately.

But hey we all need a home and a roof over our heads, lets face it the British are as anal as shit about property, far too many Jones's for me in Northern Stepford Wives suburbs.... do any of them women actually work....

IvanM

If history repeats itself prices will drop for 4 years, remain stagnant and then rise.


If you are clever enough then you will take a long fixed rate out, then you know exactly what you;re outgoings are going to be.

The house prices will go up again, and it wont take 7 years!![/QUOTE]