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FHB Strike: Australia's first home buyers - where have they gone?; Pull forward due to FHB grant changes will subdue FHB demand into 2014
Topic Started: 23 Aug 2013, 03:33 PM (8,187 Views)
Sydneyite
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Alex Barton
23 Aug 2013, 05:51 PM
This comment is from the APF Facebook Page
That is very interesting, and given the FHB incentives and stamp duty concessions etc targeted at new builds for FHBs, may well go some way to explaining the current FHB trends in NSW/Sydney in particular.
For Aussie property bears, "denial", is not just a long river in North Africa.....
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Timo
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You'd be a fool to buy now. Period.
After a bubble has burst, no one denies that it existed. But before it does, the popular refrain is that though bubbles existed elsewhere in the world, “there’s no bubble here”. So housing bubbles are admitted to have existed in Japan, the USA, Spain and Ireland – because they’ve already burst.
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stinkbug
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Timo
25 Aug 2013, 09:23 PM
You'd be a fool to buy now. Period.
Why would you buy a period?
---------------------------------------------------------------

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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Rach
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Negative gearing is responsible for concentrating property in the hands of the few at the expense of housing affordability for the many, and it needs to be phased out.

It's not the only problem though. When my parents bought their house in the 1970s, it was a basic box on stilts, with minimal furniture, one bathroom and very basic fittings.

They still live in it, and over the past 40 years they have gradually upgraded and added to increase space and comfort. Home buyers/builders today want the end product straight away. Maybe a return to basic houses, without all the extras, could be helpful for first home buyers, if only they would lower their standards.
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miw
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Rach
29 Aug 2013, 10:08 AM
Negative gearing is responsible for concentrating property in the hands of the few at the expense of housing affordability for the many, and it needs to be phased out.
Nope. If anything, negative gearing encourages mum+dad investors and spreads the approx. 30% of homes that are rental stock amongst the widest possible population.
The truth will set you free. But first, it will piss you off.
--Gloria Steinem
AREPS™
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Pig Iron
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Bogan scum

Rach
29 Aug 2013, 10:08 AM
Negative gearing is responsible for concentrating property in the hands of the few at the expense of housing affordability for the many, and it needs to be phased out.

It's not the only problem though. When my parents bought their house in the 1970s, it was a basic box on stilts, with minimal furniture, one bathroom and very basic fittings.

They still live in it, and over the past 40 years they have gradually upgraded and added to increase space and comfort. Home buyers/builders today want the end product straight away. Maybe a return to basic houses, without all the extras, could be helpful for first home buyers, if only they would lower their standards.
you try to blame NG then proceed to explain the main reason houses are much expensive - your own expectations.
I am the love child of Tony Abbott and Pauline Hanson
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mel
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Rach
29 Aug 2013, 10:08 AM
Negative gearing is responsible for concentrating property in the hands of the few at the expense of housing affordability for the many, and it needs to be phased out.

It's not the only problem though. When my parents bought their house in the 1970s, it was a basic box on stilts, with minimal furniture, one bathroom and very basic fittings.

They still live in it, and over the past 40 years they have gradually upgraded and added to increase space and comfort. Home buyers/builders today want the end product straight away. Maybe a return to basic houses, without all the extras, could be helpful for first home buyers, if only they would lower their standards.
housing construction can be cheaper today in real terms so it makes sense to take advantage of it.
APF - a place where serious people don't take themselves too seriously. There's nothing else like it.
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Admin
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Quote:
 
First-home buyers should not fear the property market: Michelle Hutchison

By Michelle Hutchison
Monday, 16 September 2013

Stats from Australian Property Monitors (APM), a supplier of property pricing information, has revealed that if it hasn’t happened already, by 2014 the median price for a house in Sydney will exceed $700,000.

This secures the city as the world’s second most unaffordable housing market when compared to the likes of the USA, Canada, Ireland, New Zealand, the UK and China.

For other states, the numbers are much easier to digest.

But if you’re a prospective first-home buyer wanting to purchase a house in Sydney, these stats mean a $140,000 deposit if you don’t want to incur Lender’s Mortgage Insurance (LMI), which is generally exempt when your deposit is at least 20% of the value of the property. And add about $50,000 for upfront costs such as stamp duty, application and valuation fees and removalist services - the list goes on.

While investors and owner-occupiers are clearly the winners, confidence isn’t strong in the first-home buyer corner. But that doesn’t necessarily mean that young Aussies should fear the property market. The trick is that you will need to look at your situation and create a strategy to enter the property market.

The first-home owners grant (FHOG) can be useful if the conditions favour your situation, that is, if you’re buying a ‘new home’. Considering that Sydney is suffering a housing shortage and new dwellings are below the government target, some may not be able to take advantage of these grants.

One way to go about this is to take a shortcut and have your parents go guarantor (but only if your folks are willing to help). This means that your parents’ property will be used as security for your home loan, allowing you to get a home loan with a 5% deposit, plus you can save on LMI. However, you have added pressure to avoid defaulting on the loan because your parents will be liable for your debt.

If you don’t have the luxury a guarantor, then you will have to show the banks evidence of genuine savings. This means that the banks need to see that you’ve made regular savings to reach your current deposit for a property. The good news is you can add the LMI to your principal, which means that you can borrow up to 95% of the property’s value. The bad news is paying back your LMI throughout the life of your home loan means you essentially pay back double the amount. But whether this is worth getting a home loan early or not is entirely up to you.

Another option that is increasingly popular among first-home buyers is to skip the whole process altogether and go straight into investing. Many Gen Y’ers are renting while their primary place of residence has been rented out for cash flow and an investment. By taking advantage of interest-only loans, they buy time and capital gains. Better yet, some even expand their property portfolio further, paving the way to financial independence.

Regardless of what your decision is, it all comes down to having a savings plan in place, even if you only need to save a 5-10% deposit. If you want greater returns from your savings plan, then you will need to cut back on other living costs.

A deposit is like getting your foot through the door, it’s the first step. Everything gets easier after that, especially with online tools and resources to help you compare, find better deals, and understand the property and home loan market.

Read more: http://www.propertyobserver.com.au/first-home-buyers/first-home-buyers-should-not-fear-the-property-market-michelle-hutchison
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John Frum
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Alex Barton
17 Sep 2013, 11:39 AM
Another option that is increasingly popular among first-home buyers is to skip the whole process altogether and go straight into investing. Many Gen Y’ers are renting while their primary place of residence has been rented out for cash flow and an investment. By taking advantage of interest-only loans, they buy time and capital gains.
TIIIIIIMBEEEEEEEEER!
"It were not best that we should all think alike; it is difference of opinion that makes horse races." - Mark Twain on why he avoids discussing house prices over at MacroBusiness.
"Buy land, they're not making any more of it." - Georgist Land Tax proponent Mark Twain laughing in his grave at humourless idiots like skamy that continually use this quip to justify housing bubbles.
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Frank Castle
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Business As Usual

Soul Torpor
17 Sep 2013, 12:37 PM
TIIIIIIMBEEEEEEEEER!
Care to explain why?
Ignore posts by The Whole Truth · View Post · End Ignoring
The forum fuckwit goes RRRAAARRRGGHHhhh - But not a fuck was given..................by anyone.
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