Finally, someone telling it as it is....

[Charliewool]

Most young 1st home buyers would be sold 30yr loans.. And at current interest rates (4.9) repayments are well under $400..
Actually $368..
Ok, no doubt 4.9 won't be here forever, but I still maintain 400 into your OWN place makes better sense than throwing the equivalent at a landlord?

[MITCHAY]

When I say I'm looking to buy a home, almost always the first question anyone asks is 'Where are you going to buy?' And my answer is 'Wherever I can afford!'

Of course there are places and homes I would love and loathe to live but at the end of the day I will go where I can afford.

[zipping]

House prices in Oz are out of control and what we do have is an abundance of land. Demand is higher than supply and people forget this. We are restricting land release at the behest of leftist ideology that is in favour of more dense living, which I'm not necessarily against but surely we should be building new suburbs with appropriate infrastructure to accommodate expanding population.

It is crazy that State governments are artificially not releasing land to cater for demand. My father has had farm land on the urban growth boundary of Melbourne that he inherited from his father. Its a huge parcel of land 1.5km from a train station and 23km from the CBD. Absolutely no chance of development because its designated "Green Wedge". Sure it would make the family rich if it were developed and its a political football but every time I go do work there I think what a waste of land this is. It serves no purpose.

So nestled in amongst suburban Melbourne we have 50 cattle and 400 kangaroos on 290 Hectares.

[nstg8a]

If you go for a drive in behind springfield lakes in brisbane youcan see the massive amount of land to be developed, roundabout after roundabout that goes nowhere.

As you say, slowly releasing land to keep the prices up

[ILLaViTaR]

Originally Posted by BENT_8

Two things, why would the HIA commission a report into negative gearing unless it was pre empting such consideration.
They must be feeling uneasy.

And who do they think they are kidding, removing stamp duty would just entice sellers to absorb the extra money potential buyers would have, driven by mongrel RE agents as they did with the FHOG boost.

Haha the HIA are a good laugh the government will never remove stamp duty like ever lol.

If we abolished negative gearing house prices would HAVE to fall as MOST of these investors are the parasite like ones with over 90%+ LVR's borrowing recklessly like pigs. These wreckless maniacs put it all on the line over 90% of their investment having interest owing... they're on the brink one little drop in rent, or oversupply or drop in demand and they are ******. They can't meet the mortgage repayments and are forced to foreclose... Well no they're not actually ******! They declare bankruptcy, instead bankrupt the banks/invoke a GFC, walk away, and merely start again unscathed in 5yrs.

Obviously the ones with their own money would survive the market crash as they can hold unscathed until the cycle goes around again.

Over 1/3 of the market is full of these scumbags offical stats now show. That's 1.3 million people or 1.3 million+ homes reporting a loss. So it's already understood that the housing market would become reasonable if we purged it of these parasites. Not just the 90% LVR+ adrenaline junkies, all negative gearing is highly moral and a disgrace to our cultural values.

[ILLaViTaR]

Originally Posted by BA GT-HO

No ones 'locking' anyone out. Yeah, you might be 'locked out' from buying you first home in your ideal suburb because of high prices, but I feel I am 'locked out' from buying a Lambo. If I want the Lambo I need to save my money, cut back on fast food, new iphones, killa sound systems for my home theater etc etc etc.

You CANNOT tell me it is 'impossible' for a first home owner to afford a house right now. Bollocks. Live where you can afford to. You can't have a first home like your parents current home. That takes time.

Anyone wishing for a 'crash' or a 'bubble bursting' can hurry up and wait. By the time you have waited all this time you may as well have saved up a deposit and entered the market. It's always the same names on here preaching that the sky will fall, but it has seriously been years now, you could have bought that house by now!

But that's apples and oranges. Middle class will always be locked from lambo's only now has it become property as well. Apples and apples since the late 1800's generations were moving a relative 10km out from their childhood suburbs. Then in the 80's we got all this satellite suburb crap with developers in-between robbing all the prime living space to profit off.

Now we can't even afford to live in the satellite suburbs, I never thought I'd see Ringwood with a median close to a million dollars. It's full of Chinese ghost homes with locks on the door unleased with no intent other than to better their 4% term deposit, it's absolutely ****** and the need to put an end to it. It's bad, regional towns are around 300k median, 200k won't even get you in a safe area of Ballarat nor close to it's cbd. So find money for a car too. For perspective 200k might get you a liveable home in Adelaide in Elizabeth (while the home may be very liveable the area is not). Why should we be forced to buy in Icy Creek where there's no capital growth for 5000yrs?

Living in them isn't what's making it expensive. People need to live in these undesirable places to work, that's it. And all the parasites have found a way to take advantage of that and turned it into a market. Ringwood is a ******** and no one would pay that much to live there... only to be close to wor, a station or some other nonsense rorted by investors.

[BHDOGS]

I thought id pop back into this thread as i just signed the paperwork to start building my own home this week. I had 20 grand in a deposit and a job just shy of 50grand a year and the regular banks wouldn't touch me said id have to earn another $1100 a fortnight on top to even consider giving a morgage to so i went through homestart got pre approval and am now building in a **** hole area down south called hackam west. All i had to do was sacrifice on the area i want to live size of land i want the size of house and liveable space. So basically everything that matters to get into a home of my own do i regret it not really as ive had a **** life and im doing it for my kids so when i drop dead they got something left instead of what i was left from my parents which was a debt for a funeral no hopes and no dreams. The moral of the story **** happens the systems a joke you either play by its rules or you fall by the way side other people dont give two ***** about your life whether you can afford to buy a house feed your kids or live in the gutter aslong as there golden thats what matters people are selfish ********* and thats why the system will never change its ran by people.

[Lotte]

Originally Posted by Charliewool

Most young 1st home buyers would be sold 30yr loans.. And at current interest rates (4.9) repayments are well under $400..
Actually $368..
Ok, no doubt 4.9 won't be here forever, but I still maintain 400 into your OWN place makes better sense than throwing the equivalent at a landlord?

It sure is.
Problem is, for many people, with when you've had to throw that money at a landlord so you can go to uni etc, when you start working, saving that deposit is actually ******* difficult. You have extra tax coming out of your earnings for hecs. You have rising costs of living, a general lack of job security and low job saturation for the population.

It's very easy for people to say it's better to pay off a loan than pay a landlord, but that's a really simplistic view on it.

[Franco Cozzo]

We are struggling to sell a recently fully renovated deceased estate in Goonawarra, Sunbury, 3 bedroom house on 920m2 for $350K.

One person rocked up to the auction, and offered $320K lol.

Only one person turned up, that was it.

[GASWAGON]

My mum just told me some one very fortunate just sold land for development in the Sunbury area of Melbourne for 70Million......Must be a massive development going to happen.

[Franco Cozzo]

Originally Posted by EF_6

My mum just told me some one very fortunate just sold land for development in the Sunbury area of Melbourne for 70Million......Must be a massive development going to happen.

I'm guessing the new "Villawood" estate, some farm land out there has a housing estate planned to go in. Its out of town heading towards Bulla.

If its not that it'll be on the Western side of Sunbury, the town is undergoing massive expansion.

Same with Gisborne, give it 20 years and they'll become Gisbury as they're both closing the 20km gap between them

[GASWAGON]

Originally Posted by Big Damo

I'm guessing the new "Villawood" estate, some farm land out there has a housing estate planned to go in. Its out of town heading towards Bulla.

If its not that it'll be on the Western side of Sunbury, the town is undergoing massive expansion.

Same with Gisborne, give it 20 years and they'll become Gisbury.

Big Damo my sister inlaw lives in Sunbury. Was at her place only a few weeks ago.

O.k so they're developing near Bulla are they?

I noticed thers a new Masters in Sunbury now too.

Definately the place is growing and developing.

[GASWAGON]

Just found the news article about Sunbury.

http://www.news.com.au/finance/money...-1227079754290

[zilo]

Originally Posted by Big Damo

We are struggling to sell a recently fully renovated deceased estate in Goonawarra, Sunbury, 3 bedroom house on 920m2 for $350K.

One person rocked up to the auction, and offered $320K lol.

Only one person turned up, that was it.

320k sounds about right.
Every auction that fails is overpriced by 10%.

Should have sold it there and then.

[Silver Ghia]

Reason is that for many years auctions haven't worked much at all in Sunbury.

Unsure why some estate agents still want to try. Commission?

[Franco Cozzo]

Originally Posted by zilo

320k sounds about right.
Every auction that fails is overpriced by 10%.

Should have sold it there and then.

Yeah, it seems other houses in the same street have been changing hands for more though, REA reckons they can get the $350K they want through private sale so we'll see.

Originally Posted by Silver Ghia

Reason is that for many years auctions haven't worked much at all in Sunbury.

Unsure why some estate agents still want to try. Commission?

No idea why, I think it was some legal requirement on behalf of the solicitors? I'm not sure, its a deceased estate so I've got no idea why it went to auction.

Its going to private sale now rather than another auction.

Originally Posted by EF_6

Just found the news article about Sunbury.

http://www.news.com.au/finance/money...-1227079754290

Thats the other end of Sunbury, but I know exactly where this is, someone has some camels on that land lol.

This is the Villawood one I was talking about just out of Sunbury on the way to Bulla.

http://villawoodproperties.com.au/si...for_web_fa.pdf

Its got a massive "Villawood" sign and massive steel cockatoos around it.

[csv8]

Mt Morgan houses from $150k !!!

[csv8]

iPhone went silly!! Sorry!!

[ford man xf]

Well what an insane year in real estate, can't believe how much prices have gone up:

THE housing market took to 2014 with gusto spurred on by serious growth around Sydney and Melbourne while the rest of the market, including Brisbane, kept a more sustainable pace.

CoreLogic RP Data’s Best of the Best report for 2014 found combined capital city home values rose 8.5 per cent in the 12 months to November and by 7.0 per cent over 2014’s first 11 months.

Investors and upgraders drove demand over the year, the report said, but that was changing now.

”The upgrader segment has slowed while investor activity continues to escalate and is currently at its highest ever proportion of lending,” it said.

An area of concern for some investors was that rental growth was at its lowest level in more than a decade, pushing yields lower.

“Despite low interest rates, which may potentially go lower next year after 2.5 years of growth, the market seems to be running out of steam. We still expect values to grow in 2015 albeit at a slower pace than what we have seen through 2013 and 2014. “

There was good news for homeowners looking to sell in Brisbane, with higher prices down south set to push some buyers north.

“As buyers find it more difficult to enter the Sydney and Melbourne market we may see an increase in demand in New South Wales and Victorian regional markets as well as Brisbane and potentially Adelaide.”

Data for 2014 to the end of November saw combined capital city home values up 8.5 per cent with house values up 8.9 per cent and unit values up by 5.9 per cent.

Teneriffe had Brisbane’s highest median house price of $1,519,948, followed by New Farm ($1,258,989) and Ascot ($1,234,582).

Brisbane’s most affordable or lowest median house value was in Leichhardt ($221,790) followed by Russell Island ($223,434) and Basin Pocket ($223,667).

Inala had the nation’s lowest unit median of $106,735.

AUSTRALIA’S BEST OF THE BEST:

Most affordable house*:

Fairymead, Wide Bay-Burnett $70,443

Most expensive house*:

Centennial Park, Randwick $5,494,116

Biggest riser in 2014:

Mays Hill, Holroyd 48.8%

Biggest rise in 5 years:

Yalyalup, Busselton 224.9%

Highest rental yield:

Coleraine, southern Grampians 13.1%

Most affordable rent:

Zeehan, West Coast $145pw

Most expensive rent*:

Dover Heights, Waverley $1,988pw

Biggest sales value:

Mosman $1,109,932,656

http://www.heraldsun.com.au/realesta...-1227158466804

[zilo]

I had a call from an agent last week, several calls actually.....

A chinese businessman wants to buy a special property of mine for 3 times what I paid for it....12 months ago!

Not gunner happen no foreigner will ever own it on my watch.

[Franco Cozzo]

Originally Posted by zilo

320k sounds about right.
Every auction that fails is overpriced by 10%.

Should have sold it there and then.

We ended up selling it a few weeks later for $349,500

[ILLaViTaR]

Originally Posted by zilo

I had a call from an agent last week, several calls actually.....

A chinese businessman wants to buy a special property of mine for 3 times what I paid for it....12 months ago!

Not gunner happen no foreigner will ever own it on my watch.

God bless this man.

Because of him Australians might actually be able to live in Balwyn one day and receive a top school education instead of it going overseas to fuel an economic war.

[ILLaViTaR]

This is how you make a free 100k in potentially less than 3 months you buy below market value, and more again if you renovate it, and more again if you use the equity from the renovation to subdivide and develop a second dwelling, so you don't actually need any money to make money. Then you sell the old house front block for 300k+, and the new unit at the back for 350k (in this particular area). Since you live in it while you renovate it is classified as your primary residence and you can dodge full CGT provided the second dwelling is sold after construction and not tenanted.

http://house.ksou.cn/p.php?q=Frankst...=vic&id=513532

[2011G6E]

That "flip it fora quick profit" rubbish is what led to the collapse in the USA, combined with people who should never have been allowed anywhere near a home loan in the first place. House prices were skyrocketing, people could buy a house, sit on it for a few months, and sell it for way more than they paid. Maybe take a home equity loan and improve it and sell it for even more.

Doesn't work now, except in a tiny amount of select and exclusive areas.

When we bought our house in Gracemere just on two years ago, they were asking $325.000. We had a real estate guy our daughter worked for at the time look around at the market in Rocky and Gracemere, and he gruffly advised us to "Offer 'em $250,000, who cares if you offend them...unless you are really in love with that home and desperately want it, the market is flooded in that area". I was hesitant, but put in a written offer of $250K. The came back with a counter offer of $305,000...a drop of twenty grand in one hit! The real estate guy said "Offer $265K", so we did, and they dropped to $295K, another ten grand off. Then we were advised to offer $275K and not a penny more. They dropped another ten grand to $285 which was what was owed on the house apparently. The real estate guy said to go for it if we wanted it, that was a more realistic price for the region. So we did.
A little nasty bargaining and forty grand off the asking price...I'm hopeless at haggling and was, before the advice, going to offer $315,000! If I had done so, I probably would have wondered why the sellers were dancing a jig as I signed the papers...

And even today in Rocky and Gracemere, every street has several houses for sale...some streets have more for sale and agent signs than flower beds. The market is still flooded, yet people are still asking ludicrous prices, sometimes for houses that need renovating. No idea where they are getting their advice, but prices are, probably at an absolute minimum, about forty to fifty grand or more over what they should be for this region. Houses sit unsold for a couple of years sometimes.
People could of course be trapped...bought when prices were up, and now stuck with a house worth two thirds of what it was. If they truly want to sell, they will have to take a big hit and accept it.

And real estate agents are still in the papers here saying the market is "booming" and it's a "sellers market" and crap like that. No, it's not. It's a buyers market and predators are circling...if they really want to sell their houses they're going to have to be prepared for some (a lot actually) pain...


A lot of problems as well are caused by real estate agents selling to people from areas well away from where the houses are, targeting investors...people who should really have done some sums and a bit of research.
For instance, just over two years ago in Bundaberg (a very depressed house market), we sold our three bedroom, corner block lowset house which needed only a little tidy up here and there, near schools and shops, for $169,000. It was advertised as "The cheapest three bedroom house in Bundaberg". Mind you, in that good area of town even fully renovated houses with beautiful gardens were selling for only two hundred grand or so...exceptional big brick places were maybe 220K. Our house sold, amazingly, in two days, to someone from way out at Emerald, sight unseen. They renovated the place beautifully, and put it up to auction for a quick turnaround.
It passed in with no interest. I think it has since sold, but it took a while and I'm betting they didn't get anywhere near what they had put into it.

In mining areas out our way here it's very noticeable...places that were over half a million to three quarters of a million bucks for a small three bedder in towns and which were rented out for over a grand a week (in some towns it was at one stage up to two grand a week or more! One memorable news item from a couple of years back told amazingly of some houses at the little town of Moranbah being rented for $4000 a week...), are now down to normal levels more or less, and rents have dropped to ordinary levels of maybe 300 a week. I can only imagine the people who hurriedly took the advice of the many real estate advisers out here that were telling people to take massive loans as they would be getting stupid levels of rent, and are now stuck with half million dollar loans on houses in depressed towns and areas which no one wants to rent for any price. That's the gamble you take...
http://www.propertyobserver.com.au/f...-morandah.html

Buy a house if you want to live in it...anything else is a huge gamble, and be prepared to do your dough big time if things take a twitch for the worse...
We are realistic enough to know that our house in Gracemere probably hasn't appreciated at allover the $285K we paid...maybe it's worth a little less...but it doesn't matter as it's not for a rental and it's our house to live in, the last one we'll buy.

[usernametaken]

I was in a large regional town in Vic on Friday, sussing out property as part of a potential move there for work.

Beautiful Victorian on large block on main drag.

Passed in on vendor bid at 550k last month.

Advertised for 499

Was told they would prob take 420 if offered.

That's a big chuck of change being taken off...

[Yellow_Festiva]

Originally Posted by usernametaken

I was in a large regional town in Vic on Friday, sussing out property as part of a potential move there for work.

Beautiful Victorian on large block on main drag.

Passed in on vendor bid at 550k last month.

Advertised for 499

Was told they would prob take 420 if offered.

That's a big chuck of change being taken off...

Yes. The vendor bid! That is another crok.

When I used to read the papers, the real estate section would have results of recent sales. Places that went to auction and passed in would have been passed in on the vendor bid.

So, house worth 420 as above, gets recorded as passed in at 550 and then you have people 2 streets away that weren't at the auction thinking their house is now all of a sudden worth more because they think bidding went that high.

The vendor bid is a fraud, put a reserve on a place and that's it. It gets passed in low than that's the reflection of the market value, not what an owner with an inflated ego thinks it's worth.

[GASWAGON]

Will be interesting to see if the RBA drop interest rates once or twice next year to keep the housing market and the economy alive.....Money will be dirt cheap to borrow if they do.

[blueoval]

Originally Posted by Yellow_Festiva

Yes. The vendor bid! That is another crok.

When I used to read the papers, the real estate section would have results of recent sales. Places that went to auction and passed in would have been passed in on the vendor bid.

So, house worth 420 as above, gets recorded as passed in at 550 and then you have people 2 streets away that weren't at the auction thinking their house is now all of a sudden worth more because they think bidding went that high.

The vendor bid is a fraud, put a reserve on a place and that's it. It gets passed in low than that's the reflection of the market value, not what an owner with an inflated ego thinks it's worth.

Agreed. I am amazed at what is considered gospel in the real estate market these days. I feel for the new mum and dads wanting to get into the market and read this garbage, then expect everyone else to abide by the same garbage later on in life.

The Vendor bid to me is like a dummy bid by an agent dressed in disguise at the auction. Thank god that practise was canned. I only knew this as I was privy to a lot of real estate agents for work in my early years. Went to a few auctions to see what the process is. Opened my eyes to an openly dodgy practise at the time.

[2011G6E]

Before it was banned (or at least done more subtly) it was even visible on those TV shows about selling houses at auction. They would laugh and say "Bids were coming from everywhere...that couple there, those people up the back, the mailbox, the trees across the road..."
The auctioneer would quite visibly point towards the back of the crowd and "take a bid", and you could see people looking around to see who had made the bid...no one, that's who...

You even see it sometimes now in auctions I've walked by and had a look at out of curiosity. There will be no bids at all, and the auctioneer will say something like "Well I'll get the bidding started at X dollars...any increase on X dollars!?". He's obviously hoping people will think he's starting very low just to get things rolling, but I rather think he's trying to inflate the price, as well as get things rolling.
Sorry people, but if your house is in a depressed area, then that's life, as harsh as it is.

Frankly criminal action that artificially inflates prices for the poor schmucks that have to try and buy houses in the area or nearby later on when "average sale prices" are looked at.

[Yellow_Festiva]

I have tried to buy from an auction several times and the behaviour of the agents was totally disgusting.

Last month my sister auctioned her place and one of the prospective buyers stood up and totally berated the auctioneer calling him and his gang of cronies out for wasting their time.

I could have stood up and clapped. She really tore him a new sphincter and I bet he couldn't wait for the auction to be over...

Made me sick to watch how they act. Knowing both sides of the story my sister had no clue of their behaviour.