Rent v Buy - discussion and views
#16
Forum Regular
Joined: Jan 2005
Location: Brisbane Bayside
Posts: 96
Re: Rent v Buy - discussion and views
Originally Posted by Mercedes
The Australian market has been volantile in the past, probably moreso than UK. In the recession of 92 a number of people lost money on houses and don't forget both the building trade/real estate didn't pick up for approx 10 years. Don't forget also the 92 recession came after property was on an upward climb also. Things are often hunky dory until Banks start putting up interest rates and calling in loans. I personally think prices will be coming down to realistic figures.
The key to all this is of course second guessing what house prices will do, and all I can say is that the circumstantial evidence I have suggests a fall:
1) Share prices of construction (particularly residential) has dropped.
2) The volume of property / land searches has nose dived.
3) Hardware vendor friends of mine report that quantities of nail gun nails is falling.
4) $400,000 houses in my area have been on the market since Jan and haven't sold.
I know that these aren't cast iron proof that a fall is on the way, but remember that a lot more jobs here in Australia rely on the residential construction industry so the impact of changes in the housing market would be greater than in the UK. Add to that, that every man and his dog has an investment property thanks to negative gearing tax brakes and a low threshold for the top tax bracket.
At the very least rent for 6 months.
Cheers
Papa Z
#17
Guest
Posts: n/a
Re: Rent v Buy - discussion and views
Originally Posted by Zentack
Add to that, that every man and his dog has an investment property thanks to negative gearing tax brakes and a low threshold for the top tax bracket.
At the very least rent for 6 months.
Cheers
Papa Z
At the very least rent for 6 months.
Cheers
Papa Z
I agree that renting first can be the best option. It allows a certain amount of time to see if the area is really what you are looking for.
#18
Re: Rent v Buy - discussion and views
And if you rent, take photos of the whole property and give a signed copy to the Real Estate agent, some can be real bastards when you are getting your bond back and will dispute, marks, damages that they weren't there before you moved in.