Anyone else buying a PPOR in a falling Market?

With everyone freaking out cause the east coast is starting to finally turn, I thought it's be nice to shine a light on the other side of the coin.

Up here in Darwin we've already had our crash. T'was a big 'un (30%) but now the dust is starting to settle the locals are buying homes.

And nice ones too. Lovely elevated houses with polished floors, pools and louvers, super cheap townhouses, rural acreages, duplexes in the inner city....all my friends up here are scoring some lovely, lovely stuff.

How about team Perth? NQ, FNQ, Pilbara? Anyone buying their dream homes....because they now can?

 

Still waiting for a nice correction in the luxury markets of NSW but if I were living in Perth and looking for a PPoR....would be such an exciting time for me!

 

Bought one IP is south hedland

 

How did that investment turn out for you?

 

bought 3 mths ago at the bottom (i think) and is listing to rent, but still vacant after a mth, sadly.

 

What made you buy an IP there?

 

Would love to upgrade my PPOR in Sydney but think it's better for me to stay in my current PPOR due to the lower repayments made per month.

 

as i think it's hitting a rock bottom, and i do not mind to wait for few yrs to stablise.

 

OK, wish you best of luck with it.

 

Good thread

I am waiting for Melb to drop, too soon IMO perhaps in 12 months ? Start looking

 

h

How much of a drop are you waiting for?

 

No specific amount, when I see value, not now that is for certain

 

Drop may not be right word in terms of 12 months timeline , may be slowing down or stagnate(at worse). I doubt drop is on cards for syd & melbourne soon, upside is limited but drop is definitely not IMHO.

 

I just bought my new PPOR in Perth. LOVE it and so happy with the price.

 

cong. and where about in Perth?

 

Congrats and perfect timing! I envy ya!

 

The main thing to look at with a PPOR in my opinion is servicability in the future. If the value falls, ok, that kind of sucks, but it doesn't really affect you too much. Even in Ireland and USA default rates, at their absolute worst, only hit around 9-10% and most of these were new, inexperienced investors who'd bought into new developments like fringe estates (which became practically worthless) or people who'd borrowed completely unrealistic amounts.

Yes if you buy now you'll probably be overpaying. But if you've looked at whether you'll be able to afford despite rate rises and temporary loss of income, and you're not doing it in a knife edge, waiting on the sidelines could cost you a lot in utility and opportunity, especially if you're looking at a house you really want.

If Darwin's fallen 30% it's probably fallen all or at least close to as much as it will fall. Fundamentals are a floor as much as they are a ceiling. Bubbles, as a whole market, only ever correct so far (some assets correct much more than others). Apartments in Darwin might fall further than houses just due to overbuilding, but good homes are probably close to their floor and may have even overshot. If I lived in an area that had already seen a decent correction, I'd probably buy - worst case scenario, if it does fall further, you're already at least halfway down the cliff.

 

That's just it. We're buying now as it's the same or cheaper than renting.

If something goes wrong we won't be stressed. It is affordable.

The pendulum has swung.

 

I wish. Trading up means selling current property at a depressed price... not worth it for me. I have been tossing up about renting somewhere bigger/nicer but the numbers also don't stack up there.

 

We kept our previous house as an investment - it got rented reasonably quickly and not a bad rent considering the Perth market, so pretty happy.