fed up

Bought a property last week

34 posts in this topic

Despite the fact that I am extremely bearish on all things financial I did buy a property last week. I know you are probably thinking that is completely nuts but I found the perfect apartment for our situation and interestingly I could tell there was not one other buyer. Consequently, I was able to negotiate down as opposed to up and this has never before happened in the last 5 years or so that I have been looking for apartments. We wanted large and for that size you are usually looking at a penthouse but this was less than half the price of a penthouse so I grabbed it. I have well and truly done my homework.

Maybe it is just inner city Melbourne, but I can see the market is definitely falling off a cliff, big time. The opens are not attended and agents are actually treating you like a human being. My mother (super sleuth granny) has been watching the apartment opposite her. She has strategically placed a leaf in the doorway (don't you love it!) and it has not moved in weeks despite the fact that the place has been for sale all that time.

I have been struggling with the decision because I know the market is going down big time, but it was right for us and no mortgage so I can live with it. Also, I was a bit uncomfortable with all that cash sitting in the bank of which I am distrustful. I think we are in for unprecedented times and I am still completely unsure about how things will pan out, despite an economics background and extensive reading on the subject.

Anyway take from this what you will.

cheers

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Despite the fact that I am extremely bearish on all things financial I did buy a property last week. I know you are probably thinking that is completely nuts but I found the perfect apartment for our situation and interestingly I could tell there was not one other buyer. Consequently, I was able to negotiate down as opposed to up and this has never before happened in the last 5 years or so that I have been looking for apartments. We wanted large and for that size you are usually looking at a penthouse but this was less than half the price of a penthouse so I grabbed it. I have well and truly done my homework.

Maybe it is just inner city Melbourne, but I can see the market is definitely falling off a cliff, big time. The opens are not attended and agents are actually treating you like a human being. My mother (super sleuth granny) has been watching the apartment opposite her. She has strategically placed a leaf in the doorway (don't you love it!) and it has not moved in weeks despite the fact that the place has been for sale all that time.

I have been struggling with the decision because I know the market is going down big time, but it was right for us and no mortgage so I can live with it. Also, I was a bit uncomfortable with all that cash sitting in the bank of which I am distrustful. I think we are in for unprecedented times and I am still completely unsure about how things will pan out, despite an economics background and extensive reading on the subject.

Anyway take from this what you will.

cheers

may you and your family enjoy the unit.

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cue the congratulations

We are probably one of the few demographics that has been low debt and saving over the past few years and consequently one of the few that will be buying over the next few.

Hope it works out for you fed up. Love the leaf thing, hilarious.

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Nice one. There's nothing nuts about buying something that you know will fall in value. We all do it all the time: cars, electronics, etc. It's nuts to leverage up to your eyeballs in the hope of that magical capital gains will make you rich in your retirement years, but you are not doing that.

No mortgage and a inner-city Melbourne apartment? That's some good saving!

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No mortgage sounds like a good spot to be in.

If you don't mind me asking... suburb, price, sqm, rooms?

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No mortgage sounds like a good spot to be in.

If you don't mind me asking... suburb, price, sqm, rooms?

you could narrow it down to the actual property with that kind of information.

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You did your homework.

Also your position with no mortgage makes the decision easier. You actually will save compared to rent; i.e. after tax return of 6.5% x 0.62 = 4% nett in a deposit. In units it is likely this would be the nett yield if you buy well about 4%, i.e. you would be saving that much in rent by deploying your capital in such a way.

Certainly different story for those borrowing a large swathe of it though.

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you could narrow it down to the actual property with that kind of information.

I'm not a stalker, just interested in how much of a "bargain" the eventual price was. :)

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Place of your own, debt free. That's the goal.

And yes, there is risk (IMHO) with being all in on cash.

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there is always the saying " stop paying someone elses mortgage "

its right for you and you are happy, what more can someone hope for.

now if you come a complaining expect us to put sh*t on you

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I don't think you're completely nuts fed up. :) Seriously, I hope you and yours are happy there. No mortgage. Inner city Melbourne. I'm envious.

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I'm not a stalker, just interested in how much of a "bargain" the eventual price was. :)

Sorry I know you are not a stalker but if I told you that info you would know my address!

Suffice to say this was a bargain for 'us' not necessarily for everyone. If we were only looking for a standard 3 bed of which there are many I would definitely have been waiting a lot longer to buy. Still, compared with other similar properties I have looked at, it seems cheap compared to a year ago. If I had to put a figure on it I'd say a 10-15% fall, in terms of floor space, car parks, building services, and position.

Anyway the point was mostly about the lack of buyers. The agent admitted it had been extremely quiet.

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there is always the saying " stop paying someone elses mortgage "

its right for you and you are happy, what more can someone hope for.

now if you come a complaining expect us to put sh*t on you

the only way to stop paying someone elses mortgage is to stop paying taxes, or ban negative gearing.

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the only way to stop paying someone elses mortgage is to stop paying taxes, or ban negative gearing.

When you put it that way it is hilarious isn't it.

"Buy a house, safe as houses isn't just a saying"

"Buy a house, rent is just paying someone elses mortgage"

"Buy a house, if you aren't negative gearing you are paying others to"

"Just buy a house okay, please"

"Nice kneecaps you have there, shame to lose them if you didn't buy a house"

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"Nice kneecaps you have there, shame to lose them if you didn't buy a house"

I can see Swan explaining it now.

"Due to collapsing demand around housing and retail spending we are introducing a new form of fiscal stimulous for these unprecedented times. We tried the carrot approach in 2008 - 09 and that did not flush all the potential home buyers out so tonight we announce a housing stmulous program where every non homeowner must own a house before June 2013 or will be kneecapped. Importantly this stimulous program still allows us to meet our forecast budget surplus in 2013 a win win for the economy and Australias fiscal position."

"We want to give first home buyers an incentive to buy a house and we think we have the balance right between fiscal conservatism and stimulous for our falling housing market."

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The tables have turned. The media is actively spruiking a crash. The doomsayers are getting most airtime. The RBA will not rescue anybody because mining is its pet project. The government has moved on to the next big subject matter with the surplus. The only people who think there will be some bailout action or stimulus are the ones who haven't recognised that time have moved on. The government is probably busy blowing another bubble somewhere else.

Edited by sydney3000

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I can see Swan explaining it now.

"Due to collapsing demand around housing and retail spending we are introducing a new form of fiscal stimulous for these unprecedented times. We tried the carrot approach in 2008 - 09 and that did not flush all the potential home buyers out so tonight we announce a housing stmulous program where every non homeowner must own a house before June 2013 or will be kneecapped. Importantly this stimulous program still allows us to meet our forecast budget surplus in 2013 a win win for the economy and Australias fiscal position."

"We want to give first home buyers an incentive to buy a house and we think we have the balance right between fiscal conservatism and stimulous for our falling housing market."

I think you forgot how it is only right, proper and decent to also give current investment property owners perpetual compensation for the potential loss in rental income this necessary stimulus will induce through shifting renters into owners.

Edited by Ugg

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The government is probably busy blowing another bubble somewhere else.

I hope you are right but I still predict ahead another "unprecedented event" that people here have been predicting in some cases for over 5 years...

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I think you forgot how it is only right, proper and decent to also give current investment property owners perpetual compensation for the potential loss in rental income this necessary stimulus will induce through shifting renters into owners.

won't someone think of the property investors?

perhaps swan will accompany this with a change from a tax deduction for losses to a tax offset.

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won't someone think of the property investors?

perhaps swan will accompany this with a change from a tax deduction for losses to a tax offset.

That's right, why not? They should get their costs back dollar for dollar. If not for the long-suffering PIs, the scummy renters would have nowhere to live and would sleep in bus stops and on park benches, ruining the classy atmosphere for real citizens.

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Congratulations man, well done and mortgage free as well. A great position to be in. Sure prices may go down a bit, they may go down a lot, but does it really matter ? If you have bought yourself a home rather than a speculative investment I'd say it doesn't. When the time comes to move on you will be selling and buying into the same market so, apart from a few bob either way, the difference will be minimal.

Up until last year I had been a property owner (read debt owner) for 25 years. Even at the peak of the boom, with all my money tied up in my house, I was hoping for a price crash...why? Because I have kids, and I could see that the world they are about to inherit was not going to offer them the luxury of home ownership as it did me, my mum and dad... and theirs...

Now I have sold my house and the money is sitting in the bank. I lie awake at night thinking that everything we have worked for our whole lives is just a string of zeros and ones sitting on some bank's computer, at the mercy of whatever the next financial catastrophe happens to be. I cant wait to turn those ones and zeros back into something tangible for myself and my family.

You have bought you and yours a home, something that no one can take away from you, something that suits your needs well. If prices continue to decline it can only be better for all of us.

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Congratulations man, well done and mortgage free as well. A great position to be in. Sure prices may go down a bit, they may go down a lot, but does it really matter ? If you have bought yourself a home rather than a speculative investment I'd say it doesn't. When the time comes to move on you will be selling and buying into the same market so, apart from a few bob either way, the difference will be minimal.

Up until last year I had been a property owner (read debt owner) for 25 years. Even at the peak of the boom, with all my money tied up in my house, I was hoping for a price crash...why? Because I have kids, and I could see that the world they are about to inherit was not going to offer them the luxury of home ownership as it did me, my mum and dad... and theirs...

Now I have sold my house and the money is sitting in the bank. I lie awake at night thinking that everything we have worked for our whole lives is just a string of zeros and ones sitting on some bank's computer, at the mercy of whatever the next financial catastrophe happens to be. I cant wait to turn those ones and zeros back into something tangible for myself and my family.

You have bought you and yours a home, something that no one can take away from you, something that suits your needs well. If prices continue to decline it can only be better for all of us.

Itchy, I can definitely relate to that feeling of 'everything I have accumulated is in a bank'. It is slightly scary given the exposure the banks have, and we must hope that the property market will correct before the financial markets implode. I think that is starting to happen and you should be ok, but keep an eye on events overseas. Best of luck.

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Yeah, and housing and the banks seem to have such a complex symbiotic relationship that anything could happen.

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You have bought you and yours a home, something that no one can take away from you

I think this is not the right conclusion.

The worst case scenario is that currencies become worthless. A currency holder loses everything but one has to also consider the alternative under this scenario. The reality is if the currencies become worthless then a little piece of paper specifying "ownership" over a property isn't going to stop the crowd from ransacking your place trying to secure food and shelter for themselves. Your ownership of any physical asset is directly dependent on the survival of currencies because only trusted currencies keep the peace within the current human society. If currencies die all bets are off in regards to any wealth.

Edited by sydney3000

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