[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 11, 2009 - 7:18 am

At least you found out before you bought it.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 9, 2009 - 11:56 am

Assuming that the FHBG additions arent continued in June, prices will definitely be much cheaper at the lower end of the market, simply due to reduced demand. This probably wont be realised by sellers till Aug/Sept though and won't start to appear in statistics till Oct / Nov. The cost reductions will more than outweigh the FHBG benefits, unless you were relying on the additional grants to get your deposit together.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 9, 2009 - 8:24 am

I recently went to bid at an auction for a property which needed a total renovation, hadnt been touched since built 40-50 years ago. It was a deceased estate and I was expecting it to sell for a price that would have allowed the 50k renovation required and a profit margin for the time and effort, as well as the time it couldnt be lived in while the work is carried out.

I was surprised that the property still went for $680k (I was expecting the renovated apartment to go for low 700s). There was no margin in it at all, even if you hadn't had to pay the stamp duty and other closing costs.

There are some price brackets where it is much easier to sell unrenovated due to crazy government grants. If it would be worth $550k to $600k renovated and the renovations would cost $50k, it is worth more to a first home buyer unrenovated as it will save approx $11k in stamp duty.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 9, 2009 - 6:49 am

Great thanks Steve, appreciate it.

Have a great Easter!
Matt

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 8, 2009 - 9:37 pm

*bump*

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 8, 2009 - 8:18 am

I am sure that the book is still in print, I'm re-reading it at the moment.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 7, 2009 - 12:47 pm

Thanks for responding Terry, I will try to get a copy from someone else, if I have no luck in the next couple of months I will come back to you.

Cheers,
Matt

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 7, 2009 - 8:56 am

Judging by today's lack of movement from NAB and CBA, don't count on interest rates going much lower.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 3, 2009 - 11:55 am

Expect conditions to continue to tighten over the next few years and not let up for decades. (until the next generation that forgot the mess we are in now thinks it would be a great idea to lower lending standards again).

Greater regulation and stricter lending controls will become the norm internationally. It will be the price we pay for the current crisis.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

April 2, 2009 - 12:18 pm

Hi Shanematt,

I would recommend that you try to live off positive cashflow from rentals, rather than relying on equity increases to fund your living expenses.

There are many people that get this wrong and in the current environment could really come unstuck ending up owing more than they have in assets.

Cheers,
Matt

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 30, 2009 - 8:50 pm

I should have added that with significant FHBGs available for new home buyers, a 5 year old home appears significantly less attractive than a new build to a first home buyer. It will be a trap for many who lose equity on new homes. Why buy an older one when you can get the max grants for a brand new one. Until they stop building new houses, new build resales will always be difficult in Australia due to inequitable government policies that discourage "recent builds" being bought.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 30, 2009 - 8:45 pm

A new house won't be new in 20 years, but the other house will still be 100m from the beach.

It may depend on your investment timeframe and the views of each. A big difference between:
1. 100m from the beach and
2. 100m from the beach and views over the beach and water

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 30, 2009 - 11:08 am

Any other comments / questions from those who attended the sessions in other centres?

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 26, 2009 - 7:15 am

Can anyone tell me why Westpac's fixed rates dropped in Australia while going up in NZ at the same time?

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 26, 2009 - 7:13 am

Wow, people will now actually have to demonstrate they can save money to be able to purchase houses for hundreds of thousands of dollars.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 26, 2009 - 6:24 am

I just found a great article which supports my theory on the impact of the FHBG on the Sydney market.

http://www.debtdeflation.com/blogs/wp-content/uploads/2009/03/IMG0015_23249406.PNG

You will clearly see the impact of the FHBG from 2000 and the bottom of the cycle where FHBs are exiting the market was the peak in Sydney in 2004. It seems to be a great indicator of future market strength.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 25, 2009 - 10:27 am

I was at a property auction this evening in Sydney's lower North Shore. There were 5 properties for sale.

3-4 bidders on the properties which sold for under $700k, not one bid on the other 3 which would have been over $1 million and were passed in.

Seems to reflect what I am hearing, bottom end of the market is booming, top end isn't selling.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 24, 2009 - 9:19 am

Yes, all costs to get your net return, gross means nothing.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 24, 2009 - 7:56 am

I work at the head office of a major bank in Sydney. My department is currently restructuring and for my role 9 of us have had to reapply for 7 jobs. Should hear at the end of the month if it affects me personally.

On the plus side I am waiting for property prices to drop and interest rates dropping have helped too. I wasnt even thinking of possibly owning property 3 months ago.

[mattnzParticipant@mattnzJoin Date: 2007Post Count: 574]

March 24, 2009 - 7:43 am

I'm pretty sure Steve prefaced the 1% rule by saying "when its time to buy, this is the rule you should use in a low interest rate environment".