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.
It's not possible to add the stamp duty to the loan at 97%, but some states had zero or almost zero stamp duty for first time buyers. For modestly priced homes the stamp duty can be quite affordable in some states, but not all states.
Any expressed market opinion is my own and is not to be taken as financial advice
Stinkbug, the op is a thought provoking, hypothetical question which is pretty damn confronting. I believe giving it some thought might offer people a different angle of perspective on how they view their local market at the moment.
Stinkbug, the op is a thought provoking, hypothetical question which is pretty damn confronting. I believe giving it some thought might offer people a different angle of perspective on how they view their local market at the moment.
But not good posts Stinkbug...?
It's definitely thought provoking, but buying property requires careful thinking and potential long term committment. Encouraging FHBs to think through these things instead of just following the crowd is a good thing, I'd say. Their local markets are a key factor, but the other bigh thing that gets overlooked is their own personal circumstances.
2011-2012 was a great time to buy in Sydney, but it's getting a bit late in the current boom to jump in now. There were a quite a few panicked sellers around in 2011/2012 (people who had been sucked in by all the bubble/crash gloom peddling from the likes of Macrobusiness and Steve Keen). There were plenty of bargains to be picked up at that time, and prices have subsequently experienced over 30% growth since then.
We could see another $100K added to the price of a Sydney median house over the next year or so, but after that I think there will be a lengthy period of prices doing nothing, or even declining by 5-10%. So while Sydney prices do have a bit further to run, the best of the gains are over.
Although if the RBA cuts interest rates again then prices could keep growing past 2015.
Personally I wouldn't buy an IP in Sydney right now, but I would consider buying a PPOR if planning to hold it for the long term (if I didn't already have one).
It's one thing for someone to look at the market with personal equity on tap, and another thing entirely when buying at the wrong time in the cycle could damage the purchaser. Maybe the op could have been put forward a different way. Another way could have been a hypothetical 'would you advise your employed and single child to buy in your market right now if they only had a minimum deposit, which took them 4 years to save.
If I knew what I know about property, but if I was still single, not in a serious relationship.. (Didn't have property mad parents! That my Father had always told me was be careful with any $ I earned , that prop in the long term was solid. That's something I've always took to heart.)
Why not?
It's a strategy that's provens its worth. Would I try & be selective? Yes, but it's sometimes a situation that the wife knows & it's tolerated. So Noones being hurt but it involves TLC mixed with lust.
Always going to be men with more $ than sense. Ha ha That Alex likes to check up on me ...
I'm still a good girl... Still immensely grateful for everything in my life, because the truth is that it could of gone all pear shaped.
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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