I have given up buying a house

[noirua]

... and here's your house. It's an Australian Steel Frame Kit House and for just $105,000 you get a 4 bedroom ensuite with bay windows. They go down to just $30,000.

 

[Happy]

http://news.ninemsn.com.au/article.aspx?id=143258

Borrowers lose homes at record rates
Sunday Sep 10 08:08 AEST
In 2002, there were 2,189 home repossessions in NSW following default by the borrower, said a report. (Getty Images)

Borrowers are losing their homes at record rates because of climbing petrol prices and high personal debt, according to the latest NSW Supreme Court figures.

Fairfax quoted figures from the 12 months to March showing repossessions by financial institutions climbed to 4,873 - more than double the number of three years ago.

In 2002, there were 2,189 repossessions in NSW following default by the borrower, it said.

Real estate agents told Fairfax the trend in mortgage repossession sales was gaining pace alarmingly.

Big problem is to stick to commitment of budgeting, eEspecially for people who never had any financial commitment and spent money whenever they felt like it.

Another problem is people fail to have 3 to 5 years buffer against forced sale and also mentioned rising fuel and general cost of living.

One of quickest crutches, besides tightening expenditure and or picking up another part time job is to rent part or all of the property.

I know, for some anything is too hard, but on the other hand if trend continues and glut accelerates, there will be some nice properties budget priced to pick up on the market, and if industrial boom doesn’t absorb all the spare builders there will be some room for negotiating of good price for house erection.

 

[juddy]

... and here's your house. It's an Australian Steel Frame Kit House and for just $105,000 you get a 4 bedroom ensuite with bay windows. They go down to just $30,000.

not bad to live in either.

In Perth, there are builders of these homes screaming for business, but development restrictions in metroploitan areas mean people must build with double brick. These houses would be ideal, but they're not permitted.

 

[lancedefrance]

So when would be a good time to bu an investment property? Now or wait till the anticipated rate rise in Nov?

 

[Happy]

This is balancing act and only later, that we can say for sure that we bought at the very bottom.

In my opinion we did not see anything yet, and recession or correction is yet to come.
At the moment only overcommitted and not serious and some unlucky investors that have to sell.
Of course my opinion, I can be right-wrong and only time will tell.

Having said that, you can always try.

Best shot to see if somebody is desperate, give them ridiculously low price, price that you know you cannot lose.

Be ready to make the next move, as sometimes ease of negotiation can overwhelm you to the point of smelling the rat.

Having money pre-arranged is a must and not have money available subject to approval inspection.

Make sure you have good lawyer, who can write contract that you can recoup your time and expenses should person selling property have change of heart.

 

[ggumpshots]

I have decided on not having children, as I do not want to have children, I have no need, no yearning, and not interested. So there is one equation to be factored out of my life

Me too. except things changed and now I have 2 great kids........so the motto is............. uhmmmmm

 

[Happy]

Originally Posted by Stop_the_clock
I have decided on not having children, as I do not want to have children, I have no need, no yearning, and not interested. So there is one equation to be factored out of my life

This will sound ridiculous, but we also have added dimension of direct competition with many families who have almost addictive drive to have 6 or more children, which in time will definitely change balances in Australia.

 

[Realist]

So when would be a good time to bu an investment property? Now or wait till the anticipated rate rise in Nov?

In 2011 maybe. 2012 Probably.

 

[juddy]

This will sound ridiculous, but we also have added dimension of direct competition with many families who have almost addictive drive to have 6 or more children, which in time will definitely change balances in Australia.

I've got 4, have done my part.

 

[krisbarry]

Those that bought b4 the property boom, will always say that property has served them well...They have made X amount and their properties are worth Y amount.

Then they go on to say, anyone can do it...in this current climate I say Bulldust!

The current dwelling count in Australia is around 9 to 10 million for a population of 20 million. If we all wanted to own 3 or more properties then we would need another 30+ million dwellings, a massive population growth and plenty of trades people to build them.

Remember we have just witnessed the biggest boom in property for 30 years and many people will be 6ft under b4 they see the next!

Its a slippery slope from here on in...

Did someone call a crash!

 

[Realist]

STC you need to be more patient man, you are getting caught up in this hype like I was 5 years ago. Chill out dude.

I am just so glad I did not buy t5 years ago. Not that buying a house is a bad thing, but mortgaging yourself to the hilt to buy into an overvalued market when interest rates are gonna rise is not wise.

Over time it will even out. Perth went from clearly undervalued to now where it is clearly overpriced. No offence to WA people but Perth is the middle of nowhere has hardly any people and its economy is laughable - just a few mining companies and government departments.

Perth will crash or at least heavily correct itself. That I have absolutely no doubt about. When though is the question - between next year and 2010 I say.

 

[juddy]

Perth will crash or at least heavily correct itself. That I have absolutely no doubt about.

yes, we are seeing much more negative sentiment over here lately. Some economists are starting to make comparisons with the peak and subsequent slide in Sydney.

I believe we may see it come off 15-20% in the next 2-3 years.

 

[krisbarry]

LOL Realist,

I was telling you the very same thing just a couple of weeks ago, calm down! I remember you were hashing out the very same issues when you were going off in a little tangent about housing affordablibility.

Off course the property experts who have bought up squillions of investment properties and said anyone can do it, were taking a good swipe at you.

By the way I live in Adelaide, not Perth as you keep mentioning!

 

[krisbarry]

Anyway I am glad you (Realist) and I are on the same page...this chorus is getting louder and louder.

I reckon I could add a few more members this this list...Smurf and Wayne maybe. They both seem very bearish about the housing market.

 

[Realist]

Woops sorry, dunno why I keep thinking you live in Perth. Adelaide is the same, it will correct itself like Perth.

I am of the opinion property investment negatively geared works extremely well for 30% of the years and 70% of the years you lose money.

So if you hold for 30 years you get 9 great years and 21 years where you actually lose money. You'll be ahead over all, of course, as the 9 great years are so good adn the 21 years are not so bad.

But my point is I believe those 30% of years have just passed, the other 70% of losing years started in sydney 3 years ago and are about to start in the West.

 

[tech/a]

Why would you negatively gear.

And dont give me that old line about tax write offs!!

If you can't positively gear a deal dont do it.
Negative gearing is not for those who have only a rudimentary understanding of property investment.

Love your figures Realist you must me a Professor in Economics.
Where do you get these figures from?

 

[Realist]

Why would you negatively gear.

And dont give me that old line about tax write offs!!

If you can't positively gear a deal dont do it.
Negative gearing is not for those who have only a rudimentary understanding of property investment.

Love your figures Realist you must me a Professor in Economics.
Where do you get these figures from?

Show me one property in Eastern or Northern Sydney that you can positively gear? Are you saying you should never buy in Sydney?

Funnily enough if you say yes then you are probably right.

However you negatively gear for one reason and one reason alone - Capital gains.

Forget tax write offs, captial gains are what counts, and if you can get in while the property is cheap and sell after it has risen alot you are laughing. Leverage works wonders as you always harp on about.

Where do you get these figures from?

A book, a few books infact, the most recent one is 130 properties in 3.5 years. the author like yourself and like me does not agree with negative gearing, however if there is an almost certain capital gain I think we'd all agree it is worth it.

The author like you does not buy in major cities though. There are advantages to living outside of Sydney and Melbourne for sure.

 

[nioka]

STC you need to be more patient man, you are getting caught up in this hype like I was 5 years ago. Chill out dude.

I am just so glad I did not buy t5 years ago. Not that buying a house is a bad thing, but mortgaging yourself to the hilt to buy into an overvalued market when interest rates are gonna rise is not wise.

Over time it will even out. Perth went from clearly undervalued to now where it is clearly overpriced. No offence to WA people but Perth is the middle of nowhere has hardly any people and its economy is laughable - just a few mining companies and government departments.

Perth will crash or at least heavily correct itself. That I have absolutely no doubt about. When though is the question - between next year and 2010 I say.

Have you been there? I doubt if you eould make those remarks if you had. If I was 30 or 40 years younger I would be there in a flash.

 

[krisbarry]

Poor Realist, he has put his foot in it again and is copping it from the head-strong property bulls!

The trick is to not get too personal, and try and avoid replying.

 

[Bronte]

During a property seminar held in Sydney last week....
It was stated that 1000 to 1500 people a week are presently leaving Sydney / Melbourne, and moving to Perth / Queensland