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First home buyers flee market; Down 40% this year.
Topic Started: 5 Nov 2016, 01:06 AM (3,248 Views)
Rastus2
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Rufus
8 Nov 2016, 04:11 PM
Not many would be aware that in the seventies the federal government had a savings scheme where they matched dollar for dollar up to $1500 in savings that were built up over 3 years in an normal savings account.

That probably doesn't seem much now, but with some homes in Brisbane selling for less than $20,000 and Sydney maybe $35,000 it was quite a lot.
For some buyers it was more than 10% of the purchase price of a house.

It was far more generous than the current FHOG Scheme, although only good savers ever received it.

I didn't know that. Quite generous, and encouraged people to save for a period, a great habit.

Did you know that in the 1980's and 90's, the Qld Gov. housing commission had a FHB loan setup that somewhat locked your repayments to 25% of your gross wage, no matter how high interest rates went, with the clause that if this was lower than the interest, that gap was not to be added to the principal, but simply ignored.naturally, you could pay more to get the princal down, but the smart thing to do was ride out the hih interest rates, and switch lenders arterwards.

It was the only way I could get a home loan at the time as a young employee on low wages... loaned me ~ 80k, and when the interest rates spiked, so did ours, except the repayments did not.. Naturally, as the rates finally went down, the gov. rates were slow to do so... I kept that loan for a number of years until I finally sold the property.

It was, by far, the most generous FHB scheme I have ever heard of... by the early 90's, they removed it, obviously.
Edited by Rastus2, 9 Nov 2016, 08:14 AM.
Shadow - Defrauded his Bank ? 2015 I have 9 different loans and my bank had no idea which ones were personal and which were investment. They had half of them classed incorrectly. When this change came in they asked me to tell them if any personal loans were incorrectly classed as investment, which I did, and they switched them to personal for the lower rate. They also had a couple of investment loans incorrectly classed as personal. They didn't ask me about those. So they stay on the lower rate too. Worked out pretty well. :)
Shadow - 2008 Sydney Median House Price 1.25M by 2014-2015

Shadow : I think this boom has already begun in several cities. My prediction :
Peak of boom: 2014-2015. Sydney Median Price: $1,250,000 Bottom of bust: 2017-2018. Sydney Median Price: $1,100,000

Shadow's Original 2010 House Boom and Crash prediction http://s836.photobucket.com/user/rastus22/media/shady-orig-2010-chart.png.html?sort=3&o=0

Shadow's attempt to edit his 2010 chart in 2015 and replace it with one that does not show a crash in 2013 http://s836.photobucket.com/user/rastus22/media/Screen%20Shot%202015-06-06%20at%207.12.52%20pm_1.png.html
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zaph
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Rufus
8 Nov 2016, 04:11 PM
Not many would be aware that in the seventies the federal government had a savings scheme where they matched dollar for dollar up to $1500 in savings that were built up over 3 years in an normal savings account.
A bit like the unpopular first home saver accounts. Was it a popular program?
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Rufus
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zaph
8 Nov 2016, 10:17 PM
A bit like the unpopular first home saver accounts. Was it a popular program?
It was very popular. Loans were rationed then. Banks would only lend to long term clients who held savings with them over a few years. Borrowers needed at least $3000 saved over 3 years with minimum monthly balances of $3000 over the last 12 months. That's not average balances, but minimum monthly balances.

If you didn't have the required deposit, and you weren't a long term customer, or your family wasn't a wealthy family connection, you couldn't get a loan from a bank.

The HSG helped a lot of buyers.
Take risks - if you win you will become wealthy, if you lose you will become wise
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Ex BP Golly
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zaph
8 Nov 2016, 10:17 PM
A bit like the unpopular first home saver accounts. Was it a popular program?
the only reason it was unpopular was because you had to save.

DO WHAT?

SAVE!

Different times hey lol.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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Matthew
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Ex BP Golly
8 Nov 2016, 11:39 PM
the only reason it was unpopular was because you had to save.

DO WHAT?

SAVE!

Different times hey lol.
My parents went guarantor on our first loan. We had the deposit saved, but that deposit was best used furnishing our house given we had capacity to service the loan.

The big difference between FHB's when I bought and today is that we shared houses, but only furnished a single room with 2 sets of sheets and 2 sets of towels.

Today FHB's (many, not all) are coming from renting the entire house so they are set.

I couldn't have furnished a full home and saved the deposit. But we could service the mortgage at 10%

This is also why we have a kept / acquired a house for each of the boys - I get the burden, and it is only growing. I just hope they get their parents, grand parents and great grand parents work ethic and pass it to my grand kids.

The big issue I see though is the lack of appetite to take on more work instead of more debt. I walked around The Como, Left Bank, Steves and Arcadia with a sticky tray in my hand collecting empty glasses from $2.50 middies or $2 Bourban & Cokes for several years before I turned 26 to supplement our family income. Kids the same age today prefer to drop a plastic Espresso Martini "glass" from their $14 drink on the table and move onto a $12 Hendricks G&T instead.

Different priorities, different appetite for success.
Edited by Matthew, 9 Nov 2016, 12:31 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...

Matthew
9 Nov 2016, 12:21 AM
My parents went guarantor on our first loan. We had the deposit saved, but that deposit was best used furnishing our house given we had capacity to service the loan.

The big difference between FHB's when I bought and today is that we shared houses, but only furnished a single room with 2 sets of sheets and 2 sets of towels.

Today FHB's (many, not all) are coming from renting the entire house so they are set.

I couldn't have furnished a full home and saved the deposit. But we could service the mortgage at 10%

This is also why we have a kept / acquired a house for each of the boys - I get the burden, and it is only growing. I just hope they get their parents, grand parents and great grand parents work ethic and pass it to my grand kids.

The big issue I see though is the lack of appetite to take on more work instead of more debt. I walked around The Como, Left Bank, Steves and Arcadia with a sticky tray in my hand collecting empty glasses from $2.50 middies or $2 Bourban & Cokes for several years before I turned 26 to supplement our family income. Kids the same age today prefer to drop a plastic Espresso Martini "glass" from their $14 drink on the table and move onto a $12 Hendricks G&T instead.

Different priorities, different appetite for success.
Now you are talking straight, now tell me the truth, what is the Perth market like??

How is the rental market??

Perth i am talking about, and with so many units coming on the market...


Peter
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