I have just saved up enough to cover my deposit, transaction costs, etc and was looking to buy a property. Some people that I talk to are telling me it is the wrong time to buy right now. Is this true? Where is a good place to find unbiased information on the state of the property market?
If you are buying because you want to make a quick buck in a booming market then I agree that it is the wrong time to buy.
If you want to build a portfolio of growth properties then the sooner you start the better. Having said that there is no rush and when you have done your research and are ready to buy the right property will be there!
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Sorry I should have posted this in the help section. But thanks, I was of the same opinion.
Since I am off topic anyway… Do you know how long you are meant to reside at a property (in Perth, Western Australia) within the first 12 months of ownership so as not to violate any FHOG conditions. I’ve searched the relevent .gov sites and the only place where I found any information on this was at
http://www.treasury.tas.gov.au/domino/dtf/dtf.nsf/0/99ff56f98a5d74e3ca25692e0006c79a?OpenDocument
where it says
Is there a time limit placed on how long I have to occupy the property as my principal place of residence?
No, there has been no time set, although the applicants must move into the house within 12 months from settlement or completion of construction. Proof of moving nto the home may be requested by the State Revenue Office.but that is for Tasmania and what constitutes “proof of moving into the home”?
Basically I want to know what the government’s definition of reside is.
Wrong time to buy definately. Wait for the “pain” to increase yr gain. I love mortagee in possesion auctions.
Bring on the rate rises. The market where i live is slowing dramatically with the same houses (central coast area) sitting in the R/E windows for a long time.
The prices on the houses were acheivable 6 months ago near the top but now they are dreaming and the ones selling appear to be some 10% off the over inflated period last year.
This is in the price range of $400 – $650K. The funny thing agents are still “talkin the market up”.
[quote Do you know how long you are meant to reside at a property (in Perth, Western Australia) within the first 12 months of ownership so as not to violate any FHOG conditions.
where it saysQuote:Check out http://www.mortgagehunter.com.au/first-home-owner-grant.html
Links to each states FHOG are on the page.
Whilst they haven’t all been updated the word is that the requirement will be for 6 months occupancy of the home to keep the FHOG. I believe they do consider extenuating circumstances if you move out earlier.
Cheers,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
tjal, zou can find info on the state of the market all over the net. Try the RBA website, or just look up ´real estate australia´ in google.com or in the news section of google…
I believe it is *always* a good time to buy real estate, depending on what you want to pay etc… I´m 37, and if I don´t continue to buy, I´ll run out of time… none of this `wait two years´stuff for me!
kay henry
Hi all
Bring the interest rate rises on. See families in misery. Take advantage of these people and move in for the kill. So you can profit at there expenses.
Why? because they made a mistake of perhaps
borrowing too much
not understanding the full impact of interest rate rises
loss of jobs
or any number of reasons.Why not try and find solutions for these people and let keep there home from and out of the clutches of greedy phiranas.
People that like to take advantage of people in misery really grind my gears.
regards
alfTjal,
No doubt you need to probably target better than ever where and what you buy. Everyone who has had property in the last 4-5 years has made money. You will buy property however for the longer term.Whilst some properties are going to reduce in price, most others growth will simply return to long run averages. That still is growth!!
Is property, is good!!
James
alf,
I agree. I wince at those kind of posts too. Remember though, there´s all kinds of people involved in property investing- not all of us feed off other people´s ´pain´.
kay henry
here here kay
just to add that it’s perenially a good time to buy when it is your first property and it gets you off the rent mill. People who are sitting in the wings renting while waiting for a good time to buy, run the risk of missing the boat.
If you find a reasonable deal on a good property, don’t hesitate. As someone said, the sooner you begin in property, the better off you’ll be. Property is played best by those with time on their side.
Scarecrow7
“In times of crisis, both danger and opportunity are present”Scarecrow, I agree! But it would be different if one was working and living in Ipswich- then one could get off the rental mill. But if one lives and works in sydney… it is very difficult to get off the rental mill [
]Anyone wanna sell me a cheap PPOR?? [
]kay henry
Tjal, you ask ‘Where is a good place to find unbiased information on the state of the property market?’
Have a look at this site :
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=8000&sortfield=&sortorder=&whichpage=1Pisces
Originally posted by SuperTed:Wrong time to buy definately. Wait for the “pain” to increase yr gain. I love mortagee in possesion auctions.
Bring on the rate rises. The market where i live is slowing dramatically with the same houses (central coast area) sitting in the R/E windows for a long time.
The prices on the houses were acheivable 6 months ago near the top but now they are dreaming and the ones selling appear to be some 10% off the over inflated period last year.
This is in the price range of $400 – $650K. The funny thing agents are still “talkin the market up”.
I think 365 days of the year the agent will alway talking the market up.
Warm Regards
ChanDollars
[Keep going, you’re on your way to Frolic Freedom!]Originally posted by alf:Hi all
Bring the interest rate rises on. See families in misery. Take advantage of these people and move in for the kill. So you can profit at there expenses.
Why? because they made a mistake of perhaps
borrowing too much
not understanding the full impact of interest rate rises
loss of jobs
or any number of reasons.Why not try and find solutions for these people and let keep there home from and out of the clutches of greedy phiranas.
People that like to take advantage of people in misery really grind my gears.
regards
alfWelcome to the real world. A lot of people have jumped into an overheated market because of greed. But its always someone leses fault hey??
This same greed, combined with a lack of diligence for their financal positions will definately cause them pain. If these people thought 6% was here for ever and didnt atleast factor in a pottential 8-10% in the early years of their new mortgages then they shouldnt have even borrowed the money in such a hot market.
There was also a big example to look back on in the early nineties of a similar situation that is unfolding slowly now albeit with lower interest rates but way larger income to loan ratios.
To think the people that are sitting back ready and waiting are vultures because they will ultimately benefit from the market slowdown is so nieve.
The same with any MARKET it is controlled by emotions off “fear and greed”. The people that apply a logic will always benefit over a person that has used emotion to make a decision. Is it really the person fault that waits for being a tad wiser and opportunistic?
Your argument could be applied to the person that sold the defaulting mortagee the house at an inflated price in the first place, hey or even the banks for lending them the money, or the mortgage insurer that doesnt come to the party.
there was never a truer comment than in the latest Money magazine – investors try to time the market and whilst waiting for a bargain prices continue to rise up and up. Property consistently grows… the best time to buy was yesterday. If you missed out yesterday don’t wait till tomorrow. Well priced and well located property is always the way to go. Buy and hold for the long term and you wont be disappointed, just don’t expect to buy, then sell 12 months later for a 50% return!
Extensive list of new Perth property available for sale.
Alternatively, become a joint venture partner in one of our property development partnerships – contact me to find out why our developments are unique. John – 0419 198 856
tjal, there was a post made by Grizzly Bear (Steve’s business partner Dave) stating that as of 1 Jan 2004, the requirement is that you must live in your property for 6 months to retain eligibility for the FHOG – commencing within the first 12 months.
https://www.propertyinvesting.com/forum/topic.asp?TOPIC_ID=7793&SearchTerms=fhog
Cheers
MelWhen is the right time to buy, that’s a good question. But can I just throw another question thats been boiling my potatoes for a while now…
What’s better? to build or buy an established home??
I’ve spoken to so many people and everyone seems to be biased to what they’ve done. If they’ve built, they say “build build build!” but if they’ve purchased an established house they say thats the best way to go.
Does anyone have an unbiased opinion for me? and any good reasons to back up their suggestion? Thanks.
I’m 25 this year still living at home. I remember when I was 18 and I had so much money in the bank I didn’t know what to do with it and my older sister said “why don’t you buy some land?”, being 18, I thought “Land? pfft! what do i need land for?” so i bought a car. And am i kicking myself now! Land used to be $60,000 in the area taht i was looking at now i’ve checked its $135,000+.
Can anyone provide any suggestions for me as to whether its better to build or buy an established house? Or perhaps a time machine so I can go back to when I was 18 and buy as much land as I could possibly afford!
amlc_79, it depends on your tolerance I guess. If you do the research, and could buy a house and land, or be an owner builder for quite a bit cheaper than buying new/established (to allow for contingencies of course) then maybe that’s a good way to go.
If you have little experience, then perhaps buy a house that you can comfortably afford, and start out with that. I’ve bought off the plan, but I’m very wary of that at the moment. I’ve also bought established, which is what I’d be looking at now, unless it’s a new housing estate where there is heaps of demand.
Depends on what’s available in the area I guess too.
Cheers
MelTiming the market or time in the market?
If you buy at very high historical valuations, you run the risk of REDUCING your equity, and net worth, when things ultimately correct.
In the long run this will be temporary….but how long is temporary? 1 year, 2 years, 5 years?Is it not better to buy at historically neutral or lower valuations?
If you can find good value now, and I don’t mean relative to todays market, I mean relative to historical valuations, then go for it.
But that is not a common thing at present.I see nothing wrong with sitting back and waiting for value. The most successful investor in the world (as much as I hate trotting out this arguement) Warren Buffet, practises this and I dare say it works quite well.
The man has s***loads of cash sitting there waiting for value investments. The important point to note is that he is STILL waiting.
Cheers
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