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Foxbats new prediction; House prices and all assets to come under pressure
Topic Started: 25 Nov 2015, 06:17 PM (59,391 Views)
Jimbo
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Chris
3 Jan 2016, 06:07 PM
...... it's not a matter of a price point really. What I can afford could buy an extremely nice place 40-50km from the cbd, if would also buy something pretty shit closer to the cbd so it's very much in the middle ground. If I could buy something shit e.g. 2 bedroom house 15-20km from the city I would but 6-700k is just insanity.
If you attend a home open, they will ask you to fill in a registration form. Some will insist you fill it in before you look around (not so much now, but back in 2007, defo).

They want to know how much you have to spend. The maximum you can borrow plus every penny you can get from selling all of your stuff and bludging a few grand from your parents and mates.

They will then milk you for every cent of that plus 10% extra for good measure.

I don't fill out the forms. I had one agent a few weeks ago tell me that registration was complusory for "security purposes".

I showed her my driving licence and told her I had a sprained wrist and couldn't write.

Never, ever, ever tell the person you are buying from, how much you are prepared to pay.

Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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Matthew
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Chris
3 Jan 2016, 06:07 PM
A very good question, I realise it's leading but a good question none the less. It's all a matter of justification Matthew, it's not a matter of a price point really. What I can afford could buy an extremely nice place 40-50km from the cbd, if would also buy something pretty shit closer to the cbd so it's very much in the middle ground. If I could buy something shit e.g. 2 bedroom house 15-20km from the city I would but 6-700k is just insanity.

Something like this: http://reiwa.com.au/74-federal-street-tuart-hill-3708650/ would do me as a first home. Close to the city, plenty of land, in the future you could build a very nice second home for you and your family on it. Tuart Hill, Maylands, St James, Wilson, Carlisle, Redcliffe all have good FHB options for those wanting to live near to the city and can afford around $600k.

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The reality is I am being asked to take on 3 times the debt level than my olds for their first home, either way I go I am fucked before I start something you will never comprehend.
My parents paid $22,500 for the house that me and my siblings were raised in. 23 years later we spent 7.5x that for our first house. I get it mate, I just also got on with it.
My only hope for my three boys is that they turn out nothing at all like Chris.
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Chris
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Matthew
3 Jan 2016, 07:03 PM
Something like this: http://reiwa.com.au/74-federal-street-tuart-hill-3708650/ would do me as a first home. Close to the city, plenty of land, in the future you could build a very nice second home for you and your family on it. Tuart Hill, Maylands, St James, Wilson, Carlisle, Redcliffe all have good FHB options for those wanting to live near to the city and can afford around $600k.


My parents paid $22,500 for the house that me and my siblings were raised in. 23 years later we spent 7.5x that for our first house. I get it mate, I just also got on with it.
I don't live in WA but it appears to be as insane as everywhere else. How do you justify in your mind that a pokey and almost unliveable place like this is worth $600k or over 8 times my wage before tax. Maybe it's the fact you were 23 when you first purchased, I can only assume you were a part of the short mining era earning huge amounts as an adult man child and have no real concept of what life is like without an artificial wealth spike.

Something like this should be $380-450k at most, not that it will be but that's fair value in ordinary wage constraints.
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Foxy
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Zero is coming...

Chris
3 Jan 2016, 06:07 PM
A very good question, I realise it's leading but a good question none the less. It's all a matter of justification Matthew, it's not a matter of a price point really. What I can afford could buy an extremely nice place 40-50km from the cbd, if would also buy something pretty shit closer to the cbd so it's very much in the middle ground. If I could buy something shit e.g. 2 bedroom house 15-20km from the city I would but 6-700k is just insanity.

The reality is I am being asked to take on 3 times the debt level than my olds for their first home, either way I go I am fucked before I start something you will never comprehend.
I do Chris.

My cousin bought his first house at age 18 for $21,000. He paid for it in 3 years.

I paid cash for my first house at age 30 $175,000 plus costs.

I no longer invest into houses, we have about 8 that are for our families use.

I just think it is a fools game, and not one I would engage in.
The only way I would buy another house is to trade one I have for one I want, or get one on the grounds of a property I am buying.

The last 4 house I have gotten for free.

So I am puzzled by people paying for houses.

But as they say, a man has got to do what a man's got to do.
Peter
Edited by Foxy, 4 Jan 2016, 02:15 AM.
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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hidflect
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Chris
3 Jan 2016, 07:34 PM
I don't live in WA but it appears to be as insane as everywhere else. How do you justify in your mind that a pokey and almost unliveable place like this is worth $600k or over 8 times my wage before tax. Maybe it's the fact you were 23 when you first purchased, I can only assume you were a part of the short mining era earning huge amounts as an adult man child and have no real concept of what life is like without an artificial wealth spike.

Something like this should be $380-450k at most, not that it will be but that's fair value in ordinary wage constraints.
Precisely. $450K tops anywhere else. It's the banks' willingness to lend the money that has lowered the bar to entrants and ballooned the demand of people with capacity. As somebody insightfully asked, "How much would houses cost if people couldn't borrow 8x their wages?". The levels of demand and supply would be the same, just the level of price would be massively lower. That would've left more money over to spend on the real economy or even reduce wages but it was not to be. Banks hoover profits on billions in debt and distort the market doing it.
Edited by hidflect, 4 Jan 2016, 02:05 AM.
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Foxy
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Zero is coming...

Jimbo
3 Jan 2016, 06:27 PM
If you attend a home open, they will ask you to fill in a registration form. Some will insist you fill it in before you look around (not so much now, but back in 2007, defo).

They want to know how much you have to spend. The maximum you can borrow plus every penny you can get from selling all of your stuff and bludging a few grand from your parents and mates.

They will then milk you for every cent of that plus 10% extra for good measure.

I don't fill out the forms. I had one agent a few weeks ago tell me that registration was complusory for "security purposes".

I showed her my driving licence and told her I had a sprained wrist and couldn't write.

Never, ever, ever tell the person you are buying from, how much you are prepared to pay.
Or if you have got two good kidneys :D :D :D
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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Rufus
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Jimbo
3 Jan 2016, 06:27 PM
If you attend a home open, they will ask you to fill in a registration form. Some will insist you fill it in before you look around (not so much now, but back in 2007, defo).

They want to know how much you have to spend. The maximum you can borrow plus every penny you can get from selling all of your stuff and bludging a few grand from your parents and mates.

They will then milk you for every cent of that plus 10% extra for good measure.

I don't fill out the forms. I had one agent a few weeks ago tell me that registration was complusory for "security purposes".

I showed her my driving licence and told her I had a sprained wrist and couldn't write.

Never, ever, ever tell the person you are buying from, how much you are prepared to pay.
I've never given an agent more than my name and mobile number.
Never shown anyone a drivers licence.

Maybe someone who looks like Homer Simpson is a concern for them.
Take risks - if you win you will become wealthy, if you lose you will become wise
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zaph
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Jimbo
3 Jan 2016, 06:27 PM
If you attend a home open, they will ask you to fill in a registration form. Some will insist you fill it in before you look around (not so much now, but back in 2007, defo).

They want to know how much you have to spend. The maximum you can borrow plus every penny you can get from selling all of your stuff and bludging a few grand from your parents and mates.

They will then milk you for every cent of that plus 10% extra for good measure.

I don't fill out the forms. I had one agent a few weeks ago tell me that registration was complusory for "security purposes".

I showed her my driving licence and told her I had a sprained wrist and couldn't write.

Never, ever, ever tell the person you are buying from, how much you are prepared to pay.
I suspect the local agents are starting to identify you as a tyre kicker.
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Matthew
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Chris
3 Jan 2016, 07:34 PM
I don't live in WA but it appears to be as insane as everywhere else.
Sorry Chris my mistake. Most of your whinging appears on the Perth threads so I assumed you were from Perth. Same logic can apply to any city though

Quote:
 
How do you justify in your mind that a pokey and almost unliveable place like this is worth $600k
The house is worthless. The land is the attraction. As I said you can build your second home on that block in the future. I would take small and dated in Tuart Hill over a 199sqm 4x2 in Alkimos any day of any week. People are paying $350k in Alkimos for house and land 45km from the CBD. Do the math - New in Alkimos for $1,800/sqm or old with twice the land 9km from the city for $1,150/sqm? It is a no brainer.

Quote:
 
or over 8 times my wage before tax.
Our first house was 6.2x my sole wage. But with my now wife buying with me it was about 3.5x our combined. Like most FHB's in the market we did it together, not alone. Did it without whinging as well.

Quote:
 
Maybe it's the fact you were 23 when you first purchased, I can only assume you were a part of the short mining era earning huge amounts as an adult man child and have no real concept of what life is like without an artificial wealth spike.
Maybe it is the fact that my wife and I both made a decision to buy, bought and paid it off at the prices of the day without bitching and moaning like you Chris. I was 30 years old before my personal salary broke $100k Chris. By that time we were on the way to paying off our second home. Not because of my wage, because we did it without whinging.

Quote:
 
Something like this should be $380-450k at most, not that it will be but that's fair value in ordinary wage constraints.
Something like it in Gosnells, Armadale, Midland, Kwinana or Warnbro would go for $380k Chris. But Tuart Hill is 9km from the CBD. The land is the value.
zaph
4 Jan 2016, 10:11 AM
I suspect the local agents are starting to identify you as a tyre kicker.
Spot on. Probably 4 agents selling in Methbro. They would be on first name basis now.
Rufus
4 Jan 2016, 09:56 AM
I've never given an agent more than my name and mobile number.
Never shown anyone a drivers licence.

Maybe someone who looks like Homer Simpson is a concern for them.
If I have an interest in a house I would fill in the registration as a sign I would like some follow up.

If like Dimbo I was just whiling away the hours of my pointless life without any intention to buy I would just walk in and out.
hidflect
4 Jan 2016, 02:04 AM
Precisely. $450K tops anywhere else.
What precisely do you base that assertion on?
Edited by Matthew, 4 Jan 2016, 10:46 AM.
My only hope for my three boys is that they turn out nothing at all like Chris.
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Foxy
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Zero is coming...

It's all over now baby blue.

http://www.zerohedge.com/news/2016-01-06/sell-1973-and-go-away

https://youtu.be/VSBDlsTyT60
http://www.afr.com/content/dam/images/g/n/2/1/u/8/image.imgtype.afrArticleInline.620x0.png/1456285515560.png
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