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Bulls, would you buy now?
Topic Started: 21 Oct 2014, 04:09 PM (4,372 Views)
Foxy
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Zero is coming...

I have offers in on 4 properties.

Peter

Very select part of the market.

Peter
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peter fraser
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Mustapha Mond
21 Oct 2014, 11:33 PM
I have offers in on 4 properties.

Peter

Very select part of the market.

Peter
Then I guess we can expect yet another change in direction from you after you buy.

Any expressed market opinion is my own and is not to be taken as financial advice
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Foxy
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Zero is coming...

peter fraser
21 Oct 2014, 11:36 PM
Then I guess we can expect yet another change in direction from you after you buy.
Change of direction??
I am continuing to buy in Margaret River.
I sold out of 3 villas in Perth?
Please explain?
Peter
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Blondie girl
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Allan Chan
21 Oct 2014, 04:09 PM
Question for the bulls please:

Knowing what you know, would you buy a ppr in your area right now if you woke up tomorrow to find yourself almost broke, with your entire wealth being the money for a low deposit? What would be your strategy?

For the sake of keeping on point, we can assume there are no family considerations.
Find a new sugar daddy.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$
It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged
Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do.
Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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Bardon
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It depends a little on your appetite for risk and mental disposition, if you woke up feeling pretty anxious about the whole thing then its probably not a good idea to buy until you feel a bit more confident about it.

I would always recommend that folk buy their first PPR as early in their life as they could. If you can afford the mortgage repayments today then it will only get easier after time so in the big picture it is a definite yes.

When I bought my first PPR I done it with no deposit, got a 97% loan, mortgage insurance was capitalised, the in-laws lent me the balance and I used my credit card for the rest of the settlement costs. Things were tight for a while and I paid back my in laws quickly (don't want that hanging over your head) and it proved in time to be a a great move.

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Bardon
22 Oct 2014, 07:25 AM
It depends a little on your appetite for risk and mental disposition, if you woke up feeling pretty anxious about the whole thing then its probably not a good idea to buy until you feel a bit more confident about it.

I would always recommend that folk buy their first PPR as early in their life as they could. If you can afford the mortgage repayments today then it will only get easier after time so in the big picture it is a definite yes.

When I bought my first PPR I done it with no deposit, got a 97% loan, mortgage insurance was capitalised, the in-laws lent me the balance and I used my credit card for the rest of the settlement costs. Things were tight for a while and I paid back my in laws quickly (don't want that hanging over your head) and it proved in time to be a a great move.

But what was the cost then,how long ago, 3.5 times your wage, one wage or two wages ?
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peter fraser
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Bardon
22 Oct 2014, 07:25 AM
It depends a little on your appetite for risk and mental disposition, if you woke up feeling pretty anxious about the whole thing then its probably not a good idea to buy until you feel a bit more confident about it.

I would always recommend that folk buy their first PPR as early in their life as they could. If you can afford the mortgage repayments today then it will only get easier after time so in the big picture it is a definite yes.

When I bought my first PPR I done it with no deposit, got a 97% loan, mortgage insurance was capitalised, the in-laws lent me the balance and I used my credit card for the rest of the settlement costs. Things were tight for a while and I paid back my in laws quickly (don't want that hanging over your head) and it proved in time to be a a great move.

Buying young with almost no deposit is considered high risk by many economists, and yet the data doesn't support that because those FTB's buy the lowest priced homes. Two incomes to repay a modest loan amount isn't that difficult with a little planning and basic money management.

Mortgage insurers love these loans because they are profitable for them and the default rate is low.

It's interesting that a number of journos and economists here are pushing hard for macroprudential tools which would probably rule out 95% plus LMI loans whilst in the USA they have been working hard to get banks back lending at 97% plus LMI loans.

Yet in the USA they have cheap markets and high priced markets, just as we do.
Any expressed market opinion is my own and is not to be taken as financial advice
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stinkbug
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22 Oct 2014, 07:38 AM
But what was the cost then,how long ago, 3.5 times your wage, one wage or two wages ?
The first house I bought in my mid 20s cost 4 times our combined incomes (wife and I). The house we live in now is triple the size in a better location and cost 2.5 times our combined incomes, because now we earn more.

Yes, things were a bit tight when we started out, but as our incomes increased (as they should when you are young) it became steadily more manageable. If we had stayed there we would (easily) own it outright by now.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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Bardon
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22 Oct 2014, 07:38 AM
But what was the cost then,how long ago, 3.5 times your wage, one wage or two wages ?
From memory it was approximately 3 times me and the wife's joint income. Although shortly after buying it I changed job which also included a company car and bonus schemes which effectively doubled my salary.

I remember when i bought I was working with the Main Roads at the time and all my workmates were chastising me for starting too high and saying that I could have paid half the price in outer suburbs and they didn't hold high hopes for my success on this one. Turned out to be a great house it started of as two bedroom workers cottage and we renovated it to a 5 bedroom two level house, started our family in there and also sold it many years later for a tidy tax free gain.
peter fraser
22 Oct 2014, 07:49 AM
Buying young with almost no deposit is considered high risk by many economists, and yet the data doesn't support that because those FTB's buy the lowest priced homes. Two incomes to repay a modest loan amount isn't that difficult with a little planning and basic money management.

Mortgage insurers love these loans because they are profitable for them and the default rate is low.

It's interesting that a number of journos and economists here are pushing hard for macroprudential tools which would probably rule out 95% plus LMI loans whilst in the USA they have been working hard to get banks back lending at 97% plus LMI loans.

Yet in the USA they have cheap markets and high priced markets, just as we do.
Actually thinking about now I may have capitalised the stamp duty as well back then in 93, do you know if that was possible?

It was with the Heritage Building Society.
Edited by Bardon, 22 Oct 2014, 08:52 AM.
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stinkbug
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I've capitalised stamp duty on every property I have ever bought except for the first one.
---------------------------------------------------------------

While it's true that those who win never quit, and those who quit never win, those who never win and never quit are idiots.

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