By: puyi
19/06/2009
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The concern being that if enough people have not been shrewd enough to anticipate the higher rates, this may lead to higher forced sales and, dare i say it, an american style implosion of property prices.
• Posted by: Tony at June 17, 2009 1:41 AM
Properties don't always rise in value; what is today's treasure might be tomorrows trash; circumstances can change quickly - location included. You need to make sure your gearing is low and equity is high, otherwise you are taking too much risk and a potential loss might result in bad times.
• Posted by: DB at June 17, 2009 4:08 PM
I'm hoping the Rudd government quits "assisting" first home buyers with its ridiculous schemes - which are just driving up property prices and making them more unaffordable to young families trying to buy their first home.
A house(plus land )used to equate to 2 years of an average yearly salary .. not 8 years or whatever it is now !
I hope we get back to sanity and affordability soon.
• Posted by: chris jordan at June 16, 2009 7:10 PM |
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By: puyi
19/06/2009
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The problem is that the FHOG Boost has brought on a bubble in FHBs with maximum LVR loans that will start defaulting if variable rates start rising. This "Ruddprime" loan sector has added significant risk to the Australia housing market that could see a surge in foreclosures putting downward pressure on prices. I think the RBA's well aware of this risk and will likely be forced to cut the OCR should banks keep raising their variable mortgage rates in order to keep the housing bubble from popping.
• Posted by: DadOfSam at June 16, 2009 4:20 PM
I have been watching the price of residential units sky rocket since February. In my opinion, real estate agents are helping to manipulate the market to prevent it dropping (particularly in Sydney). It doesnt help that first home buyers will pay anything for a property, instead of the current valuation. Sydney real estate is over-priced, and is way overdue for a decrease.
• Posted by: Malcolm at June 16, 2009 4:46 PM
As a NON FHO who would like to buy a home in Sydney, I have been disappointed in the government's handling of the FHOG boosts, that have basically just handed the money directly from the government to vendors and real estate agents and forced prices up unnecessarily.
Simon
• Posted by: Simon at June 16, 2009 10:23 PM
Many consider it a great time to enter the market for the first home buyers for the reasons such as FHOB and low interest rate.
Property is a long time game with prohibitive entry and exit costs. Any myopia focus on the current little cash incentive and low interest rate will get caught short when rates rise rapidly and significantly.
• Posted by: Andy at June 16, 2009 10:29 PM |
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By: puyi
19/06/2009
9:59 am Yahoo! Profile:
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The Domain
Alex Brooks
June 15, 2009
When the Commonwealth Bank of Australia raised interest rates on its variable home loans last Friday, home owners went into a frenzy of fear.
Treasurer Wayne Swan and Deputy Prime Minister Julia Gillard called the bank selfish, which makes us cheer, because we like to hate the banks.
This may sound perverse, but banks charging higher interest rates could be a good thing for home owners. It will make residential property start behaving like, well, bricks and mortar, instead an asset class waiting to implode.
The ABS shows more first home buyers have financed themselves into property during 2009 than any other time in recent history. The size of a first-home buyers' mortgage has also increased by $52,000 in the two years to February 2008, to an average $280,600.
A small rise in interest rates could put an end to this madness.
The last thing residential property needs is more volatility, which could make it behave more like commercial property that's had disastrous asset write downs of up to 40 per cent.
A volatile housing market is not a good thing for investors, home owners or those first home buyers that have taken on ever-larger mortgages.
Since residential housing has been the only bright green shoot of economic recovery this year, isn't it time it was given a steadying hand so that shoot can grow steadily rather than like a hothouse flower that could keel over when all this economic madness has played out? |
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By: jaymarcel
19/06/2009
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dishonest if you think property has peaked & will never go above this price again YOU are the fool.
There's nobody rushing to sell property up here in QLD, I've been looking for about 6 months now & there is very little to pick from. If you don't buy property now & fix your rate now you will be buying at much higher interest rates. |
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By: dishonestnzsheilainoz
18/06/2009
10:46 pm |
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By: jaymarcel
17/06/2009
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| BUY, BUY YOUR FIRST HOME NOW WHILE INTEREST RATES ARE LOW & FIX IT. DON'T LISTEN TO THE ONE BELOW WITH MANY ID'S THAT HAS CONVINCED NO ONE OF HIS CRAZY IDEAS BY JUST CHANGING HIS ID & REPEATING HIMSELF. Should be RODNEY THE LOSER. |
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By: rodneythesaviour
17/06/2009
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To ANYONE considering buying their first home now - I urge you to RESIST the temptation to buy your first home now! Instead I suggest you Wait.. The prices are about to fall.
There is much truth in what has been posted here below concerning the forecasting of a pending economic disaster.
Indeed, we should all rally round steve_b_wilson and cry -
AUSTRALIA - ECONOMIC DISASTER LOOMS.
Indeed we should make every effort to support his CRUSADE to awaken the populace to the crisis at hand and seek to encourage each and every member of the population to take action now which shall secure their financial security in the difficult times to come.
Be cautious and maintain financial flexibility.
A positive outlook and confidence are not enough. |
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By: dishonestnzsheilainoz
17/06/2009
7:11 am |
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By: jaymarcel
16/06/2009
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| fystie4ever, You are just an ENVIOUS IDIOT! You should never generalise, I am a tradie & have never been paid cash! |
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By: almurrie1@y7mail.com
15/06/2009
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A recent report stated that there is only 10 years broadacre supply for housing in all capital cities. We have exhausted our best green arable land in Australia, and have nearly no coastal agricultural crop growing land left. All the rivers and lakes only have houses next to them.
If only we had the sense to limit new building to deserts and mountains, but who then wants to live there - very few. We are victims of our own stupidity. No land left to grow food, no land left to build houses. Running out of water to drink. The madmen are in control and the population is also insane enough to think it is OK.
New housing will very soon only be available as high rise apartments in the big cities. Grab some land as soon as you can, it won't be available in a few years time, regardless of how big this country is, there a very few choices of where you can live city wise.
Al |
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By: lasty49
15/06/2009
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"The council says the move would support 16,000 construction-sector jobs, ease pressure on rents, extend the benefits beyond the first home buyer market and ease future upward pressure on home prices."
You can look at that two ways.
By reducing the stamp duty on new homes, it makes housing affordable which then puts more pressure on demand.
NSW govt want as much money as they can get their greedy little hands on. |
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By: puyi
15/06/2009
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NSW govt rejects new home stamp duty cut
AAP Sunday June 14, 2009
The NSW Government is not considering slashing stamp duty on new homes, despite Property Council claims the move would kick-start the state's housing construction, employment and economic activity.
The council's proposal would see stamp duty abolished for all newly constructed dwellings valued below $1 million for the 2009/2010 financial year.
Economic forecasters BIS Shrapnel backed the idea, saying such a "bold fiscal stimulus measure" would bring multiple benefits.
The scheme would come at a budgetary cost of $54 million to the government, but would stimulate the construction of 8,000 new homes and generate $1.77 billion in construction activity, BIS Shrapnel said.
The council says the move would support 16,000 construction-sector jobs, ease pressure on rents, extend the benefits beyond the first home buyer market and ease future upward pressure on home prices. |
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By: dr.xingli
14/06/2009
7:26 am |
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By: copynpaste@rocketmail.com
14/06/2009
4:08 am |
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By: fystie4ever
13/06/2009
11:19 am Yahoo! Profile:
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| hey mr proud don't hide behind a pen name john williamson....is that the singer? yeh right. It's no wonder you tradespeople don't have to bother with unions. How many of you WITHOUT INTESTINES tax AVOIDERS WITH A D FOR DODGE try to con decent tax payers into giving you cash in hand....$1400. CASH IN HAND. OH - GEE - TRADIES ARE SO LUCKY...THE DUDD IS MAKING IT SOOO MUCH EASIER FOR THEM TO RIP OFF THE TAX SYSTEM. Lookout trusting older people for anything calling itself a TRADIE you can trust........LIARS AND CHEATS |
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By: sly_guy_nsw
13/06/2009
8:12 am |
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By: copynpaste@rocketmail.com
12/06/2009
1:43 pm |
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By: jkueh
12/06/2009
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| Interest is gonna increase and job is not safe , why rush?? |
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By: almurrie1@y7mail.com
12/06/2009
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| First home buyers were disadvantaged badly by the GST. They were forced to pay 10% more than before. This flowed on to all new homes and in the boom, State governments cashed in on the rising prices with stamp duties etc. Houses got unaffordable very quickly because developers had to get this tax money back as well as a profit. The FHG was necessary to counter the unfair tax. Everyone else had to pay the tax, investors etc, so it made the Liberals look like they were doing very well managing the economy. Now houses are moving towards $400,000 the FHG should actually be $40,000 to counter that unfair GST. So stop whinging about the Govt propping up house prices, they aren't, just covering half the inflationary debacle of GST for young people who should never have been a target for the tax grab in the first place. In fact income tax breaks for first home buyers on mortgage payments would make even more sense, like they have in US. We can't even claim the costs of getting to work in Aus, which affects every worker, except those who own their own business. |
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By: johnwilliamson@y7mail.com
12/06/2009
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Really south5beach you know sweeet Fanny Adams ... you said "But to keep the building unions happy (Labor supporters) and their members in work."
What a load of bollocks! By far the vast majority of tradespeople who build houses and villas etc are self employed, sub contractors who don't belong to any union.
I don't hide behind a pen name like you.
Get your facts before mouthing off about unions. |
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By: jaymarcel
12/06/2009
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| Hi vinnboy1976, I did some searches on your question about Lehman Brothers collapse & most info was on people with offset mortgages. The news is not good, before a new bank took over any cash in the offset account was automatically used to payoff part of the debt leaving nothing in the account then a new mortgage was set-up with the new debt with the new bank. |
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By: jaymarcel
12/06/2009
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| Property is no more overpriced or unaffordable than it was 3 generations ago, my great grandma bought her first house for 800 pounds & had an empty house for nearly 2 years as they couldn't afford furniture as they struggled with mortgage repayments. |
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By: communists.are_evil
11/06/2009
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Yes! The WORST is yet to come.
And why?
It is because we failed to see the truth.
And what is the truth?
The truth is that the P. R. of China has been and continues to work towards obtaining control of this nation.
The corrupt and evil communist Chinese no longer satisfied with taking some of what we have now seeks to acquire all that we have.
We must defend what is ours and say NO to those who would steal our natural resources, corrupt our oficials and bribe our leaders.
Say no to the communist Chinese before it is too late and all that is left is debt. |
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By: ancientsong
11/06/2009
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hi south5beach,
while I do believe house prices will fall here in OZ, as they did in Ja-pan in the 90's and the UK, both countries who thought they were safe because of the "shortage of land" and "tight supply"..
I can see from a goverment POV why they are trying to stop the enevitable collapse..
most aussies, particulary baby boomers have most their wealth tied up in their property, Baby boomers are the most politically active as well, and we all know goverments love to win the popularity contest..
also, people who sell real estate would be out of a job if it collapsed, banks don't like lending against falling asset, the newspapers and other media make huge revenue from real estate advertising, etc..
so as you can see the whole nation has kind out "put all its eggs in one basket" the basket being Property..
but the problem is you can only prop it for so long, we 1st had the 7k FHOG, to offset stamp duty, then we had no stamp duty for houses under 500k (here in WA at least)
then shared equity where you could go partners with the goverment... and now 21k/ 14k FHOG..
so now the average FHB in WA at least, can get 21k with no stamp duty to build their first home plus go partners with the WA goverment splitting it 70% 30%..
as you can see, they are trying to get new buyers in, because you need new money to keep this housing "ponzi scheme" going, but at the same time not allowing prices to fall..
free markets are suppose to function by supply and demand, but the goverment is interfering with the supply side through all these grants, which is funded by our tax dollars, which should be used as savings for more productive ventures..
I know its gonna hurt alot of people when it does collapse, but unfortunately its only an illusion of wealth funded by excessive debt, which we will have to all pay back whether we like it of not..
houses shouldnt be an investment tool, they are a basic human need, like food and water.. |
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By: south5beach
11/06/2009
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| Why is the Govt granting First Home buyers $14k to $21K to get them into the market? - Not to help First Home Buyers that is for sure who are saddlying themselves with debt. Happy Banks. But to keep the building unions happy (Labor supporters) and their members in work. Consider the last real downturn when a number of home builders went under - the Govt are trying to avoid a repeat of this and the lost revenue which will come with it. Note how land prices have been reduced by the developers to stay afloat. It is like an iceberg - there is a lot hidden under the surface. |
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