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Another bear is capitulating and buying a house - ME
Topic Started: 23 Sep 2013, 10:17 AM (2,754 Views)
The_MainIander
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I have been successfully saving oodles for years and have not bought due to the house price frenzies which seem to come around with support from the usual suspects in Australia (Gov, RE Spruik, Banks … RBA).

Problem now is that the RBA have been flat out deflating the cash rate and savings and now I am boxed into a corner by my better half.

Buying now and locking in at HISTORICAL low rates looks good.

We have all debated here so long that at some point there slow grind down and sideways ‘can-kicking’ may come to an end with a Pop!

Problem is the usual “when” may well be 2014… I was sure in 2008 that was it and Rudd added significant consumer bailouts which worked.

So now I am weighing up my options … I will let you know at the end of October how we’re travelling.

But I may well have bought by then … at which point we will be happy home owners.
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hoofarted
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Yep. I have capitulated too. There is no end in sight for this .GOV spending my money to keep this asset class floating. I am in the process of planning and buying.
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Frank Castle
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Business As Usual

hoofarted
23 Sep 2013, 10:22 AM
Yep. I have capitulated too. There is no end in sight for this .GOV spending my money to keep this asset class floating. I am in the process of planning and buying.
Soon it will only be Moops the liar and Timo the retard remaining

they make a lovely couple :lol

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Mike
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The_MainIander
23 Sep 2013, 10:17 AM
I have been successfully saving oodles for years and have not bought due to the house price frenzies which seem to come around with support from the usual suspects in Australia (Gov, RE Spruik, Banks … RBA).

Problem now is that the RBA have been flat out deflating the cash rate and savings and now I am boxed into a corner by my better half.

Buying now and locking in at HISTORICAL low rates looks good.

We have all debated here so long that at some point there slow grind down and sideways ‘can-kicking’ may come to an end with a Pop!

Problem is the usual “when” may well be 2014… I was sure in 2008 that was it and Rudd added significant consumer bailouts which worked.

So now I am weighing up my options … I will let you know at the end of October how we’re travelling.

But I may well have bought by then … at which point we will be happy home owners.
You can buy/build now and lock in some low 5 year rates. Still a chance fixed rates may go lower as the RBA may need to cut rates to help weaken the dollar.

As long as you buy what you can afford and employment is stable why not. If I had my time again and I was a FHB I would be jumping at the chance to buy at low rates, hammer down the mortgage while rates remain low.

From my point of view waiting around years for events which you have no control over is absurd. I would rather work in the current market and do the best I can, turn it to my advantage by any method possible. One day when the market does turn bearish again I will certainly look to expand quickly.

http://mike-globaleconomy.blogspot.com.au/
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peter fraser
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hoofarted
23 Sep 2013, 10:22 AM
Yep. I have capitulated too. There is no end in sight for this .GOV spending my money to keep this asset class floating. I am in the process of planning and buying.
If you don't mind me asking, do you think it has worked for you or against you to wait these five years, taking price rises and rental into consideration?

I do accept that there are times when prices are not moving up and rents are cheap, so on balance what is your view?
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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The_MainIander
23 Sep 2013, 10:17 AM
I have been successfully saving oodles for years and have not bought due to the house price frenzies which seem to come around with support from the usual suspects in Australia (Gov, RE Spruik, Banks … RBA).

Problem now is that the RBA have been flat out deflating the cash rate and savings and now I am boxed into a corner by my better half.

Buying now and locking in at HISTORICAL low rates looks good.

We have all debated here so long that at some point there slow grind down and sideways ‘can-kicking’ may come to an end with a Pop!

Problem is the usual “when” may well be 2014… I was sure in 2008 that was it and Rudd added significant consumer bailouts which worked.

So now I am weighing up my options … I will let you know at the end of October how we’re travelling.

But I may well have bought by then … at which point we will be happy home owners.
Congratulations. Being a home owner is fantastic, and one day you will own it outright (after which one or more real estate cycles will have completed and you'll wonder what the original fuss was about).
---------------------------------------------------------------

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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bobbie
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The_MainIander
23 Sep 2013, 10:17 AM
Problem now is that the RBA have been flat out deflating the cash rate and savings and now I am boxed into a corner by my better half.

Buying now and locking in at HISTORICAL low rates looks good..
Locking in, well that's great for 5 years, but then what? I think it's a good time to buy if you want to live in the home and have a good deposit, a secure job. And if you don't care if it drops in value 20% or 30% in the next 5 years like has happened elsewhere in the world. I mean its a home not an investment hey. We have seen some real declines in prices especailly in Queensland. Good luck and happy home hunting.
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yomamma
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stinkbug
23 Sep 2013, 12:23 PM
Being a home owner is fantastic, and one day you will own it outright
I agree stinkbug, but I could introduce op to a few people who don't believe that anymore because they got cornered by a job loss and then ever higher monthly repayments. Losing a home to forclosure is rare but a lot more common these days I am afraid. Borrowers should be cautions beware and have something up their sleeve in case things go sideways. These are unstable times we live in and people should have a good amount of extra income to fall back on when they are just starting out don't you think? Lets hope the Liberal government can bring some stability. They usually seem to.
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hoofarted
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peter fraser
23 Sep 2013, 11:49 AM
If you don't mind me asking, do you think it has worked for you or against you to wait these five years, taking price rises and rental into consideration?

I do accept that there are times when prices are not moving up and rents are cheap, so on balance what is your view?
Interesting question...

I have done the rough calculations on the house I am currently renting... Been there 3.5 years and rent has gone up 3% per year (pre-agreed). I have been renting a house worth well over a $1.1m for +- $800 p/w for the last 3.5 years and had I bought the house, with all the additional expenses they have had in this time, my initial calculations are that I would have been out of pocket many thousands over the $100K mark. So, on balance, it has been good to rent. It is difficult to equate the two but I think that I am ahead. Over the longer term, I would not be but would be happy to sign a very long lease at 3% per year increase. I would win significantly.

In the meantime, my assets in the UK have sprung back to life thanks to .GOV spending other peoples money... "holding my dick while I piss" so to say, and these have now started to turn positive (only taken 5 years). Not quite the growth over the last decade or two but not bad either. The $AUD has also eased off a bit and every 10c against the Pound puts money in my pocket.

I do not feel that I have been disadvantaged by not buying. I have lined up the banks to fund my shortfall when I am ready to buy... Now all I need is something to buy.
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stinkbug
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yomamma
23 Sep 2013, 01:24 PM
I agree stinkbug, but I could introduce op to a few people who don't believe that anymore because they got cornered by a job loss and then ever higher monthly repayments. Losing a home to forclosure is rare but a lot more common these days I am afraid. Borrowers should be cautions beware and have something up their sleeve in case things go sideways. These are unstable times we live in and people should have a good amount of extra income to fall back on when they are just starting out don't you think? Lets hope the Liberal government can bring some stability. They usually seem to.
Good point, and well said.
---------------------------------------------------------------

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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