papilon

Seriously considering buying our first home in Melbourne after being here for 4 years. The market has cooled off considerably in the last 6 months and it now feels much more cautious at auctions. So what do you guys think, good time to pull the trigger or maybe wait and see what happens in the next 3-6 months? It's tempting to stay renting as we save so much, my wife's entire salary to be exact but it would also be great to have our own place again.

Alfresco

My gut feel is that it still has a way to go (down that is). Although I wouldn't mind buying now or in the next year or so.

Turban Explorer

Time to start watching but not to pounce. I'll eat my wine glass if property prices don't fall here in the next year.

asprilla

Ultimately, no-one knows. But here are my thoughts.

1) if you are buying for the long term (20yrs or more) then it doesn't really matter.
2) there is a 2-speed economy in Australia. I think that this will last for some time. I believe that folks working within the mining industry will continue to experience high growth in wages in coming years... but those in other industries will have little growth in wages. I reckon that this will be reflected in price growth for more desirable/unique properties... and not necessarily ones in the top price bracket.

eddie007

I'm with the above.... If youre planning to buy the house you plan to live in forever (like what we did) its a bit irrelevant.... I'd go ahead... Especially with the hidden stresses and dead money of renting.... But if you're looking to make a fast buck then you'll need to boil the kettle and check out yer tea leaves... Who knows? I dont....

calliope

Real estate prices are not going to go up whatever happens so if you wait you're not going to miss out on anything. They'll stay the same or drop over the next few years. Australian homeowners should count themselves lucky they haven't had the massive drops experienced in America because they deserve it.

Buzzy--Bee

Why do we "deserve it"?

Have we done something wrong we need to be punished for

BB

itigo

It's exactly the heated debate me and my old man had last night. Stay renting in a great house in a great suburb at a great price, or buy in a good suburb (but not as near to town) a less impressive house to get our feet on the ladder.....

An adviser we saw recently said there's no point waiting to buy, if you want to buy, buy as it's all relative over the long term......we just have to wait for the right house now!

calliope

I mean houses seem to be so unaffordable in Australia now that most young people find themselves priced out. I understand people up the ladder now enjoy a high paper value on their houses but when you think about it they have no cash-in value unless they want to sell up and live on a beach. When they pull up this ladder behind them has only one effect and that is stopping first-time buyers from getting a house. Anyone under 30 is really looking at a life of renting if this goes on and as a big believer in karma those whose 300k houses now worth 500k really deserve a little karma! They got to buy them when they were affordable, didn't they? And borrowing against them all the time and ramping up the debt is only making things worse.

calliope

If prices stay as they are I will prbably have to rent for my whole life because it's the only way I can afford to live in a nice suburb.

In Exile

i just recenetly bought. So these are my thoughts on Sydney:

people are talking of house prices stagating and even falling down, but in the Inner-inner west sydney area where I live (rozelle, balmain), this is definitely not the case. Same in the UK. House prices were sprialling down according tt the media, but in places like London and the oribital towns they werent really affected. There will always be demand for places like this, recession or otherwsie. I kind of put Sydney in that category. I'd imagine Melbourne is fairly similar. The outer fringes of both cities will probably suffer a little bit, but the closer you get to the centres, the less noticable this 'fall in house prices'

The observation I have had in the areas I've been looking is that they are increasing at a slightly more controlled rate than they were during the FHOB feeding frenzy of 2008-9, but they are most definitely not going down. We were looking back then, but kept getting outbid so we just gave up bought property in the UK wuith a 1:1.54 exchange rate. This recent purchase came as a surprise, because we were looking to rent up till about 2 weeeks before!

I dont intend to stay here full time, so we've bought a place which I believe could easily be rented out in a year or so, and the rent would largely cover the mortgage. 8ks from the CBD, eastern suburbs (just) 3 bed renovated unit with parking and just over 500k.

jothefw

Correct me if I'm wrong but the difference between renting and buying comes down to deposit and borrowing costs doesn't it? As in, what you pay for rent would be approximately the same as what you'd pay in mortgage? I believe with some focus and dedication you can work towards saving up the necessary amounts, perhaps over a 5 yr plan?

We got our fingers seriously burnt in the UK, lost GBP 30,000 on an investment property that took 2 years to sell so we were very cautious buying here. Now we've done it though, we haven't looked back.

eddie007

You seem to forget that those already on the property ladder have usually done their bit of living in smaller houses in a less nice suburb, have struggled with kids and mortgages, stretched themselves....Been where you are, done that already....

first house I ever brought cost me 32,000 pounds in a quaint and very desirable english village.... Back in the day I Thought the mortgage repayments would kill me.... The village became unbuyable in for first time buyers due to commuters and cashed up second home buyers from london.... When our family expanded we couldnt afford to stay there.... Ie couldne buy bigger in same village inspite of a massive increase in sale price...So we had to move to a "less nice" area... To meet our family needs.... But I was never bitter about it....

We cant always have what we want in life....

Margaret3

We almost bought a couple of years ago, we live in GW, but couldnt afford a house there, so we were aiming for the nearest affordable suburb (but got outbid twice for a house there and gave up), however at a stretch we could now afford a 3bedx1bathroom here, if they continue to fall until this time next year then we will be ok, and will have saved another few grand as a deposit. As above people have said, its a home we're after, not an investment. I just want to hammer a motherflucker nail in a wall somewhere, lol.

However I read (think it was yest in the age), that banks are tightening up lending to people in their late 40's (us), and 50's, so who knows what'll happen.

I appreciate its a crystal ball we all need.

Margaret3

yes, you deserve to be smacked for being such a lucky barsteward