By: mentawaisurf
18/05/2009
1:54 pm Yahoo! Profile:
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As more people lose their jobs, due to the economic contraction now unfolding, they won't be able to pay their mortgage and they won't be able to pay their rent.
Just as we've seen in the US, UK, Europe, China, India, Ja pan, NZ and our other fellow OECD nations their housing bubbles are deflating and rental returns are following. Given Australia is still in the very stages of our housing deflation we can expect our housing values and rents to follow the same global trend over coming years. |
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By: bigus1im
18/05/2009
1:50 pm Yahoo! Profile:
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| So where are all these people living now? |
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By: almurrie1@y7mail.com
18/05/2009
1:40 pm Yahoo! Profile:
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| Listen to yourself bigus. If people could get a place cheaper they would. If landlords had no enquiries they would drop the rent. This is NOT happening, so it can't be a myth that there are lots more people looking for a place to rent than are available. Rents are going up because there are not enough places to rent. ie low supply. How can this be a myth? Your pearls of wisdom are eagerly anticipated. |
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By: bigus1im
18/05/2009
9:39 am Yahoo! Profile:
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| Cashing-in on the myth, of course |
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By: lasty49
18/05/2009
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"By the way, the housing shortage myth is being propagated by the RE and building industries."
Please explain why rents are still rising? |
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By: bigus1im
18/05/2009
9:30 am Yahoo! Profile:
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| Ask any real estate agent anywhere, anytime and they'll tell you that the time to buy is now. They'd be a pretty cruddy agent if they didn't. The market bubble burst, the mining bubble burst, so what do you reckon will be next? By the way, the housing shortage myth is being propagated by the RE and building industries. Millions aren't homeless. |
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By: jaymarcel
18/05/2009
7:37 am Yahoo! Profile:
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| Takes a very sad individual to waste that much time to keep repeating themselves. But thanks tseliot70 I did have my suspicions. |
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By: tseliot70
18/05/2009
7:27 am |
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By: jaymarcel
18/05/2009
6:47 am Yahoo! Profile:
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Just wondering why dr.xingli was saying hi to himself, obviously not worth reading his entrees as he has to reply to his own messages & pat himself on the back to try & convince others what he is saying is right.
I am one the buy property now people, I am in the process of buying now in QLD, I noticed this weekends courier-mail had one of its biggest job sections for months, so much for the doomers & gloomers predicting job losses australia wide.
To me it's obvious if your job is secure definately buy now & definately get a fixed rate. But remember property prices definately won't go up for at least another year possibly 2 years, so don't put yourself in a position where you may have to panic sell in that time, don't overextend your borrowing or take on debt if your job is not secure (but these are rules that should be followed even when not in recession). |
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By: wealthforlife@ymail.com
18/05/2009
2:14 am |
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By: rickyrollings
18/05/2009
1:39 am Yahoo! Profile:
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Nice post dr.xingli!
I may not always agree with what you post.
Yet in this case I absolutely agree with you.
Also, may I add that I especially enjoy reading your responses to my own comments since they are always polite and well mannered whether I am in agreement with you or not. |
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By: dr.xingli
18/05/2009
1:36 am |
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By: dr.xingli
18/05/2009
1:31 am |
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By: wealthforlife@ymail.com
17/05/2009
10:22 pm |
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By: dr.xingli
17/05/2009
5:54 pm |
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By: sly_guy_nsw
17/05/2009
5:53 pm Yahoo! Profile:
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"FIRST TIME BUYERS" STIMULUS.
A stimulus measure to help the average bloke..
..Really?
NO WAY! NO HOW!
Indeed, the reason for the first time home buyers "grant" being offered at all had nothing whatsoever to do with helping the average bloke.
Instead, the one and only reason for the introduction of this stimulus measure was to get money moving at the expense of the average bloke. That is to say, at the expense of the individual the fluidity of the states economy shall be better maintained than would otherwise be the case.
Keeping money flowing being a main objective of the government.
Many of those who paid rent previously, (read lived within their means) but who now own property as a result of entering the property market as a result of this stimulus measure shall be left with the prospect of having to stay in the property for years to come unless they want to sell it for far less than what they paid for it recently.
And add to that, (in most cases) the fact that mortgae payments shall rise as the economy recovers, (which it shall surely do within the next few years) and interests rates rise also.
All in all, a clever scheme to keep money moving and so support the economy.... Yet at significant risk to the citizens. |
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By: mentawaisurf
17/05/2009
5:23 pm Yahoo! Profile:
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jt, you don't even have to go pass this very website to find reasons why the FHOG boost is a danger. Read;
http://au.pfinance.yahoo.com/b/peter-boehm/100/bew are-the-boost
"Why would any first home buyer in their right mind not take up a CASH HANDOUT of $14,000?"
When marginal buyers enter the housing market it usually signals the last phase before the bubble bursts, as we have already seen with the sub-prime market in the US.
Australian first-home buyers now have the biggest share of the home-buying market on record, enticed by the governments boost to the First Home Owners Grant. Many have brought forward their purchase before the 'boost' ends and most have financed their home purchase with over 90% loan-to-value ratio's. With the least deposit and assets and a staggering 92% of these on variable loans, and a growing number of these marginal buyers now at risk of losing their job, we are creating our very own sub-prime market at the worst possible time.
Until now the FHOG 'boost' has been propping up home prices of the lower-end market. With the 'boost' now confirmed to soon phase out the rush to buy from this large housing market will soon be over, and with it a decline in demand and the value of the very homes they all rushed in to buy.
If too many of these marginal borrowers become unemployed over the next year or so then we may have created our own generation of sub-prime mortgage defaulters. |
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By: newmilleniumangel
17/05/2009
4:43 pm |
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By: newmilleniumangel
17/05/2009
11:06 am |
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By: rickyrollings
17/05/2009
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Oh my goodness. Show some sense fella`s.
DO NOT BUY ANY PROPERTY. You will lose more than just a few bucks if you do!
There is indeed much bad news at present.
Why! Only last week, two good friends of mine lost their jobs. Both are now worried about how to find the funds to enable them to keep up payments on the mortgages on their homes.
With little prospect for gaining employment in the town where they are currently residing, one of these friends of mine is faced with the prospect of selling his home at a great loss, (due to the glut of property now on the market and the fall in real value) and moving his whole family elswhere.
Who is not concerned now for their own financial future?
Are not each of us now seeing that the situation is becoming more and more desperate each and evry day?
An extension of the government property purchase stimulus measures is a BIG mistake. People who would otherwise not be drawn so deeply into the economic disaster which is so rapidly unfolding shall now find themselves deeply in debt, ownin properties which shall have a value far less than the purchase price which they paid.
It is nothing less than irresponsible to encourage people to purchase property at a time such as this.
The BLOG: AUSTRALIA - ECONOMIC DISASTER LOOMS & steve_b_wilson`s efforts to stimulate a CRUSADE which shall serve to get the word out to each and every citizen of this country so that they may be better prepared and able to take action which shall result in their securing their financial future is to be applauded. |
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By: lamkinkah
17/05/2009
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| Hahah cant believe im seeing this taking grant for the country. how about not taking grant for your children. When you are not ready (financially), it is best not to take the grant. A 14K over average price (400 to 500k) is nothing and get yourself into debt when there is a high chance (10%) that you will lose your job is not wise and cause stress to your family. It is even a higher chance that the house price will drop by at least 5 to 10% in the next 1 to 2 year due to unemployment rate reaching 8 to 10%. Even if it is only 5% reduction in house price, it would be 20K off the purchase price. It is only logical thing to do is not to get the grant and wait unless one needs the grant to make up the initial deposit. If so, the person is not financially ready, and should not rush into the market for the greedy for this grant. Be patient.. reduction is coming. |
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By: newmilleniumangel
17/05/2009
3:30 am |
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By: jtleeoz
17/05/2009
1:27 am Yahoo! Profile:
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Actually I would agree that $14,000 might artificially inflate prices in some instances but not in all which is why I think it is important to do one's homework and also a bit of good-old bargaining if it's possible.
And also good point about interest rates. If you are going to buy a house make sure you can afford interest rate rises, in other words factor it in when you go for the loan. But at the end of the day I would rather get a mortgage and pay my loan off when rates are low and enjoy the low rates for as long as I can rather than wait and then get a loan when rates are already on the rise (I cringe at the thought of my brother's interest of 8.something percent that he locked in for a couple years when he could be enjoying 5.something percent if he hadn't locked in). |
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By: jtleeoz
17/05/2009
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Just one more thing for you to think about. While impossibly unlikely, lets just entertain the thought that house prices do drop 40~50% or that they at least drop about $14,000 to $21,000 when the FOHG Bonuses end. If you know anything about property, they will eventually rise again over and above the original prices. And there won't be anyone handing you an extra $14,000 to $21,000 for buying a house then either.
If you wait until prices drop and try to buy a house then you will probably miss out on getting a house you are happy with because all those people who waited for prices to drop will start buying again and guess what? YES, PRICES WILL BE DRIVEN UP AGAIN DUE TO COMPETITION IN THE MARKET PLACE.
I think a lot of people seem to forget that while countries like the US have an oversupply of houses, we in Australia have an UNDERSUPPLY of houses. That is of course why rents keep rising. So do you want to buy a house that you like now AND get cash from the government or wait and risk not only missing out on a house you like but also miss out on the grant and maybe even have to pay more than what you could have bought for less if you bought earlier.
Also please remember that the government has increased the handout to stimulate the economy. If you are a true Australian and care for your country than you will make use of the handouts (if you are in a position to do so of course - no point in trying to buy a house if you can't actually afford one) and by doing so you will be stimulating the economy and keeping a lot of people in the property and contruction industries in a job, especially if you buy a new or yet-to-be-built or "off-the-plan" property.
Finally, it's worth mentioning that the more people believe doom & gloom the more likihood there is of it occuring but the more people think and act positively the higher probability that doom can be avoided. So at the end of the day who's fault is it if things get bad? THOSE THAT PROMOTE OR BELIEVE NEGATIVIY |
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By: plato830
17/05/2009
1:07 am Yahoo! Profile:
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"Why would any first home buyer in their right mind not take up a CASH HANDOUT of $14,000?"
Good point but that 14,000 artificially raises prices by more than that amount. It is fine though for those that can service their loans. Interest rates are not going to stay at these historic lows. |
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