cobran20

SMH: Time to increase housing grant, broker says

15 posts in this topic

Said with no vested interest in the matter! dry.gif

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Nearly 11 years on since it was first introduced the federal grant for first home owners still stands at $7000, even though the average house price has more than doubled in that time.

That's led one leading mortgage broker to suggest it is time the scheme was upgraded.

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Considering it just pushes house prices up we should be asking why its still around at all furious.gif

And here we do newcomer - but across Australia more people have a mortgage than those who do not, so the country wide concensus is a desire for houseprices to increase.

Never fear - breaking point will be reached (could possibly be reached ATM but pronouncing that is a bad omen for long time Aussie housing bears:)).

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Never fear - breaking point will be reached (could possibly be reached ATM but pronouncing that is a bad omen for long time Aussie housing bears:)).

Nah we hit it a few months back when max posted some numbers and it was pretty obvious it had started and no one has done anything to stop it. Given the "realtime" data is by people that have slightly interesting error bars I think we are well into it now.

I am supported in this by the observations of my local area, next door which is asking 700 odd is on the market over 2 months now. I told them I would buy it if I could rent it to cover long term interest rates and am expecting a call any day now :) I feel sorry for them as they are old and everything but if no one else will buy it then I at least offer a place to come for cash. They leave it too long and I will not be interested.

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Calling in to say hello...been busy with being a mum...and have some news.

On the house buying front -- a relative of mine decided to buy a house simply because they wanted to. They took their plethora of kids and moved into their parents' house for five months, probably drove the oldies stark raving mad (their kids fight like you wouldn't believe and are never disciplined) they didn't save enough money, had to sponge off whoever they could (one has a gambling problem, the other is a shopaholic - and no they didn't get money from me), have continued to sponge and once they settled and moved in to their new house, promptly lost their job and now expect other people to pay their mortgage. They said they were glad they bought before the main breadwinner lost his job. :shocking: It's crazy. Oh yeah, and they hate their house because they're used to the best and they couldn't get a big enough loan for that. Interest rate rises will kill them. Hell, having a budget will kill them. I have to wonder how many other people there are like this.

We are still have the 20% but still can't find anything worth the money. We don't HAVE to move right now. Our rent is ridiculously cheap. Talked to a broker/bank manager who told me there are no buyers, they were all flushed out with the previous vendor's boost and I could take about 20k from a listed price of a house easily. Vendors are still delusional, although there have been big price falls. I've noticed there aren't many houses on the market in the areas I'm looking, probably because they are coming down in price and vendors want to wait it out.

Relatives are encouraging us to buy all the time and can't understand why we're taking our time when others have just plunged in. Well, for one, we don't want to make pensioners in our family pay for our mistakes, and two, there are other factors to consider like job security, having enough of a buffer for emergencies etc. In the meantime, I'm taking it as a challenge to see how much money I can save.

Carly

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Greedy snot ball. . . .

Really, how on earth does the RE industry get away with all these free kicks. Its %$#@ insane that they can come out with this crap and not be challenged and questioned in depth about their motives, when its widely accepted now that the FHVB made homes unaffordable (more so).

This is one fo the problems with this country which is fast going down the toilet. Lazy bogans who want a free handout for everythng. Someone teach these DB wearing hicks something about the concept of saving money.

OK, . . said my bit.

Edited by gospeljohn

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Greedy snot ball. . . .

Really, how on earth does the RE industry get away with all these free kicks. Its %$#@ insane that they can come out with this crap and not be challenged and questioned in depth about their motives, when its widely accepted now that the FHVB made homes unaffordable (more so).

This is one fo the problems with this country which is fast going down the toilet. Lazy bogans who want a free handout for everythng. Someone teach these DB wearing hicks something about the concept of saving money.

OK, . . said my bit.

its funny how logically all of his arguments point to needed a correction than an increased vendor boost:) If tor and max's data are right - let him rave all he wants.

I saw this spruiker talking on the 730 report the other night about how its a great buyers market and you can easilly get away with shaving 5-10% of the asking cost - time to buy now. Then the spruiker said I wouldn't want to be selling in the future if IRs go up. Logically, wouldn't the future be a better buyers market than now if it is going to be harder on sellers?

Absolutely no rush now - the worm has definately turned. It's stagnant or down so saving is the best way forward.

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told mortgage broker when i was looking at how much i could get i have a $5k limit on credit with a zero balance and he promptly said i could pull that and use it as a deposit!

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Calling in to say hello...been busy with being a mum...and have some news.

Hi! I have some news too.

Some time ago (~February) I mentioned that a house near me was for sale and that the current owners had already bought elsewhere. The house was originally listed at $1.1 million and the last I heard was that they were willing to take $950k. As of last week it is under offer. I don't know what price was offered or accepted. I did see the buyer drive up in a brand spanking new dual cab ute (not that there is anything wrong with that). So there is a 10-15% drop in house price in a Perth suburb.

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I did see the buyer drive up in a brand spanking new dual cab ute (not that there is anything wrong with that).

Was it a Toyota? IF so he can probably afford the 950k price tag.

On 10-15% drops, I reckon those places trading are already trading 10-15% less than what they were getting 18months ago even in the burbs. Median does not pick up quality, only size. The Case Shiller in the USA does pick up quality because it only picks up repeat sales.

Quality homes are still selling at a 15% discount on what they would have got during boom times, and bottom end stuff (worst house best street material) is not selling much at all leadinng to our 8% fall in Perth prices thus far. That is how I am reading it for my local anyway.

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I am supported in this by the observations of my local area, next door which is asking 700 odd is on the market over 2 months now. I told them I would buy it if I could rent it to cover long term interest rates and am expecting a call any day now :) I feel sorry for them as they are old and everything but if no one else will buy it then I at least offer a place to come for cash. They leave it too long and I will not be interested.

I would be interested. I would love to live next door to you.

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I would be interested. I would love to live next door to you.

I will pass your details on to RE agent as soon as they drop to a price which meets your criteria ;)

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Was it a Toyota? IF so he can probably afford the 950k price tag.

Nissan Navara I think. The single guy looked like a miner ~35-45 year old. I did consider rushing out from behind the bushes to warn him of catching falling swords and all that, but I figured that he looked a bit like a cliched property investor type -- so he obviously knew what he was doing. Anyway my wife, who was watching me from the front verandah while combing knits out of my sons' hair, said it wasn't our place, as renters, to give financial advice to strangers.

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I will pass your details on to RE agent as soon as they drop to a price which meets your criteria ;)

Are you another one of those hoarders who keeps personal copies of everyone else's posts?

Also, what would be the main benefits of having you are a neighbour? That might increase my offer.

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Are you another one of those hoarders who keeps personal copies of everyone else's posts?

Well I mostly read the forum via email and I keep all my email so I guess so.

Also, what would be the main benefits of having you are a neighbour? That might increase my offer.

Can't think of any.

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