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First home buyers collapse - now represent just 5 per cent of the market
Topic Started: 6 Oct 2013, 09:03 AM (2,200 Views)
Dr Kinetoscope
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The latest paid-for Fairfax spiel - Oct 5, 2013

The prize was an ‘‘unliveable’’ terrace with a dirt backyard under the flight path – but for the first home buyers in the crowd it may as well have been solid gold.

Despite intense investor bidding for 54 George Street, Sydenham, first home buyer Ashley Spratt won the day, but she had to spend big to do so.

The dilapidated three-bedroom home sold under the hammer for $695,000, $95,000 above reserve.

‘‘I’ve been looking for six months and I’ve probably chosen the worst six months to look because prices have increased significantly.’’

Of the six registered bidders three were active on the day.

Sydney recorded another strong clearance rate of 82.5 per cent on Saturday. Due to the long weekend there were just 265 properties listed for auction.

Selling agent Tony Iskandar from First National Marrickville said first timers had largely disappeared from the market, but properties like this were the exception.

‘‘This is what they can afford - unliveable properties,’’ he said.

An ‘‘unliveable’’ terrace with a dirt backyard under the flight path.

‘‘They’ve got no choice.’’

First home buyers now represent just 5 per cent of the market, figures from the Australian Bureau of Statistics show. In July there were only 1,192 home loans to first timers - 51 per cent less than the same time last year.

The peak of first home buyer activity was in December 2011 when 4256 first timers took out loans to buy property. That was the final month before the stamp duty exemption on existing homes was axed. Government assistance is now only given to those who buy new properties.

http://smh.domain.com.au/real-estate-news/winning-the-battle-losing-the-war-20131005-2v0pg.html
Architecture Porn
ShadBerg's torrid Macrobusiness love affair
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goldbug
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‘‘They’ve got no choice.’’

Of course they have a choice, wait. Wait and save their money.
$600,000 for a 2 bed unit. Buy that and sign up for a total lifetime of servitude repaying the $1.2 Million plus with your compound interest total. Then see the property never achieve that price, EVER! FHB with FA deposit can barely afford that now at the lowerest rates in history.

With wages falling people expect the value of the unit to double in 10 years, even 20 years? Not a hope in hell. The only reason the prices rose as far as they did was by the population going into hock for a trillion dollars. Now they have to pay off a fair bit of that and wages have to double before we could ever see a doubling in property prices. And interest rates will have to stay at emergency lows for a decade or two. As if :lol

Party will end soon, already has in many states.
Shadow was hopelessly wrong about the Gold Bull Market.
What else is he wrong about?
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zaph
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‘‘They’ve got no choice.’’

They couldn't possibly live a little further out?
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Timo
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Investor activity is usually a good sign things are about to fall over
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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themoops
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Ruby Member
Yes it's all very sus isn't it. Units in decent but average areas are now around $600k. Plus about $4-$6k in strata per year.

Everyone thought the carbon tax was like adding thousands a year on the cost of living, so they must be seriously retarded.

Oh well, let em burn.
stinkbug omosessuale


Frank Castle is a liar and a criminal. He will often deliberately take people out of context and use straw man arguments.
Frank finally and unintentionally gives it up and admits he got where he is, primarily via dumb luck!
See here
Property will be 50-70% off by 2016.
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barns
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Just more evidence of the market transmutation.
“You Keep Using That Word, I Do Not Think It Means What You Think It Means” - Inigo Montoya
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John Frum
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barns
6 Oct 2013, 03:15 PM
Just more evidence of the market transmutation.
Indeed, transmuting into a pack of lemmings. Mr Darwin should take care of them pretty quickly.
"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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herbie
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It's just all part of the new paradigm chaps - A home market with no first home buyers in it.

Nothing to see here folk ... Move right along! (Jeez, Shady'll be proud of me!!! :D )
A Professional Demographer to an amateur demographer: "negative natural increase will never outweigh the positive net migration"
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Ex BP Golly
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herbie
6 Oct 2013, 03:53 PM
It's just all part of the new paradigm chaps - A home market with no first home buyers in it.

Nothing to see here folk ... Move right along! (Jeez, Shady'll be proud of me!!! :D )
:D

Maybe you should hold onto that cash for a bit longer herbs.

Or get all charitable and take B.P.s ' investments' off his hands.
WHAT WOULD EDDIE DO? MAAAATE!
Share a cot with Milton?
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stinkbug
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Ex BP Golly
6 Oct 2013, 08:12 PM


Maybe you should hold onto that cash for a bit longer herbs.

Just park it in an offset account and improve your cashflow.
---------------------------------------------------------------

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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