Buy or rent?
Aug 25th 2008, 6:03 am
#1
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Thread Starter
Joined: Jul 2007
Location: Bli Bli, Sunshine Coast, Queensland, Australia
Posts: 51
Buy or rent?
Here is a recent article I have found:
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
Aug 25th 2008, 8:28 am
#2
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Joined: Mar 2008
Location: Manly, NSW
Posts: 313
Re: Buy or rent?
Here is a recent article I have found:
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
a year on house prices are currently down some 12% ..and still nothing is selling...
Aug 25th 2008, 10:06 am
#3
BE Forum Addict
Joined: Aug 2005
Posts: 2,322
Re: Buy or rent?
Here is a recent article I have found:
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
Rental yields to jump another 10% in 2009
The stage is set for a recovery in the Australia's housing market fuelled by extremely tight rental market and chronic undersupply according to an economist.
Savanth Sebastian, economist with CommSec said any downward pressure on interest rates is likely to a surge in people looking to buy their first home. "The calls for rate cuts as early as September are being voiced, and potential investors and homebuyers would not want to be caught napping," he said.
"In recent times a perfect storm of factors has ensured that the housing sector remains the least favoured asset class despite the high rental yields on offer. The home loan market has experienced its weakest start to a year in 19 years. The rate hikes have clearly done their part in spooking potential home buyers and investors from signing on the dotted line. Clearly rate hikes, rising living costs and high oil price have all adding to the stress on the household budget. The Reserve Bank has put rate cuts on the agenda - a far cry from the possibility of further rate hikes that homebuyers were faced with a couple of months ago."
This optimistic outlook comes despite the housing finance data showing the number of total housing finance commitments falling by 24.8% over the past year the biggest fall in 13 years.
"If Australia's population wasn't rising sharply, the fall in home lending would point to lower home prices. But the rental market remains extremely tight, with rental yields expected to jump a further 10% over the coming year," said Sebastian.
Sorry for the bad news!!!
Good luck
Aug 25th 2008, 10:08 am
#4
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Joined: Aug 2005
Posts: 2,322
Re: Buy or rent?
btw we have just bought our own house here so at least my 'opinion' isn't biased - we just wanted to get out of rented and back into our own home..
Aug 25th 2008, 10:26 am
#5
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Joined: Sep 2002
Location: Ilukapool. WA
Posts: 12,467
Re: Buy or rent?
i know how you feel, I knew we were right at the top of the market when we bought our house and sure enough it's probably worth 100k less that what we paid for it 18 months ago, but I don't care, I'd crawl naked over broken glass rather than be a tennant again. There's no 2 ways about it, renters are second class citizens here in Oz.
Aug 25th 2008, 10:33 am
#6
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Joined: Aug 2005
Posts: 2,322
Re: Buy or rent?
Yep -we are hppy with the price we paid - plus no more dodgy rental agents trying to screw you out of your bond etc. They really are lowlife over here. We had a blown bulb and they were trying to tell us it would cost us $60 call out plus bulb changing fee for an electrician...scumbags
Besides, you could sit waiting for prices to drop and you'll pay $20k in rent approx for the year in the meantime - something to take into consideration
Besides, you could sit waiting for prices to drop and you'll pay $20k in rent approx for the year in the meantime - something to take into consideration
Aug 25th 2008, 11:20 am
#7
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Joined: Feb 2008
Location: Western australia
Posts: 386
Re: Buy or rent?
we arere gonna rent for 6 months then buy i think.....
like everyone lelse has said i hate the fact two that i will be a tenent and its not my own place
like everyone lelse has said i hate the fact two that i will be a tenent and its not my own place
Aug 25th 2008, 12:26 pm
#8
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Buy or rent?
Yep -we are hppy with the price we paid - plus no more dodgy rental agents trying to screw you out of your bond etc. They really are lowlife over here. We had a blown bulb and they were trying to tell us it would cost us $60 call out plus bulb changing fee for an electrician...scumbags
Besides, you could sit waiting for prices to drop and you'll pay $20k in rent approx for the year in the meantime - something to take into consideration
Besides, you could sit waiting for prices to drop and you'll pay $20k in rent approx for the year in the meantime - something to take into consideration
Bit like ordering more loo paper
Aug 25th 2008, 1:01 pm
#9
Account Closed
Joined: Sep 2007
Posts: 5,768
Re: Buy or rent?
We'd love to get back on that ladder, but as it stands we can rent for $400pw or buy the same house for $800pw. Funds really don't give us the latter option at the mo, but we just cross fingers for now and put up with the 'no you can't hang a picture on your wall' mentality! ... :curse:
One day maybe!
Aug 25th 2008, 1:43 pm
#10
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Joined: Jan 2005
Location: with the Carnaby cockatoos
Posts: 526
Re: Buy or rent?
We've been in our rental forr nearly a year now and have managed to keep the rent at the same level, very nice agents and landlord. No complaints from us. Good experience so far!!
Aug 25th 2008, 2:20 pm
#12
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Joined: Jan 2005
Location: with the Carnaby cockatoos
Posts: 526
Re: Buy or rent?
Not yet - but our 2 yr old has drawn on the wall, managed to get most of it off, and then he took a lump out of the wall whilst trying to push his car out through the patio doors (not picked up during the 3 month inspection
) Plan to stay another 6 months at least so any deductions won't seem too bad after 18 months in the same house.
) Plan to stay another 6 months at least so any deductions won't seem too bad after 18 months in the same house.
Aug 25th 2008, 9:00 pm
#13
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Thread Starter
Joined: Jul 2007
Location: Bli Bli, Sunshine Coast, Queensland, Australia
Posts: 51
Re: Buy or rent?
We have been renting while our house has been built and finally move in this weekend!!
Can't wait sooooooo excited!!!
We can finally get our things out of storage and live a normal life again!!
Now we can live our dream!!!
Can't wait sooooooo excited!!!
We can finally get our things out of storage and live a normal life again!!
Now we can live our dream!!!
Aug 25th 2008, 9:11 pm
#14
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Joined: Aug 2005
Posts: 2,322
Re: Buy or rent?
no, the bulb was in a fitting that had 3 in, we just didn't realise it had gone. i had to drive up on my lunch break and change it....
Try not to make assumptions clever clogs
In our experience, the agents were tossers. they expected the garden to be done to a standard which it wasn't before and told us we had to have a pest as it was in the contract, however, there was no pest carried out when we moved in as there was a few too many cockroaches???
We did finally meet the owner who was very nice, but he wasn't who we delt with!!
Aug 25th 2008, 9:36 pm
#15
Has left the building
Joined: Mar 2007
Posts: 4,079
Re: Buy or rent?
I agree whole heartly with all the other issues with agents (who are the bain of all our lives). But fairs fair, and blaming agents for electrical issues where you have not simply checked it needs a new bulb and then expect them to change it?
If the light fitting was more complicated say an inset halogen or florescent tube then fine - but surely you would mention that in the first place (on this thread).
