Apparently Everyone Here Is To Blame

They don't need to have jobs either.

 

That's easy then.

 

Thanks Bayview. I have bought a PPOR - so that's one less thing to worry about. But that leaves me to start at scratch.
Atm where to buy and how to choose are prolly secondary questions (I do have the same (and some more) must have criterias you listed). The primary is, do I have 12% to 14% for initial costs.

Which for a basic $500k property is about $70k. Saving @3k a month means 23 months to go before the secondary questions can be answered. Come 23 months, the 14% required ($70k) would have pushed to a figure which will keep on increasing. Then it seems to be a carrot which this donkey cannot chase .. unless PPOR gets some equity that can be drawn. But PPOR was bought at 90% LVR so LMI will be an itch.

 

$500k will get you plenty of property, but as the price goes up, the rent yield doesn't always follow it.

You might want to consider lowering your sights and possibly buy two cheapies instead of one at $500k?

The Banks look at the rental yields as part of the overall DSR, so two cheapies with better yields may allow you to borrow a bit more and get say; 2 x $300k IP's.

This is also better for risk management - less likelihood of vacancies; chances of both being vacant at the same time are less. Can happen; and has happened to me - 3 vacant all at once!!

But, the cheapies are very easy to rent as the rental pool is much bigger, so there is that to consider as well.

 

Exactly. Yet thousands flock to it every year either to holiday or reside permanently, and, are paying a fortune for the opportunity!
Seriously, what does it have going for it? Apart from employment opportunities, from what I read it is a congested mess.

 

Lots of money being thrown at it:
http://www.budget.nsw.gov.au/__data...e_than_$16_billion_for_transport_upgrades.pdf

 

That still doesn't make it a great tourist destination though.

 

It has always been and will always be hard for someone people to buy property whilst easy for others. Nothing has changed in generations.

 

My experience at auction this year tells me a very different story. 95% of auctions I have attended this year that sold well over reserve price and on many occasions way beyond comparable sales in the immediate area were sold home buyers.....not investors and many of them first home buyers pushing the prices up....and bidding against themselves multiple times.
Investors are more inclined to purchase to a certain value then walk once it goes beyond that point.

 

I can vouch for that skater. I have had increased buyer inquiry from Sydney investors looking to buy in melbourne and Brisbane because the market is too hot in Sydney.

 

I find in many cases, the properties targeted by home owners are different to those targeted by developers. Not in all cases of course, and it will depend on the area, price point etc. Take Glen Waverley for example, no-one but a developer is lining up to buy the old dumpy original house on 900sqm but a developer. And similarly no-one but home buyers or investors are buying the town houses or large family homes in great condition.

 

Exactly.

There would be a percentage of FHB's who have the resources and aptitude to buy one of these and do it up over time, but not many I'd wager.

The problem with these places though is the zoning for the FHB's too...the developers will pay a premium because of that zoning, which will exclude most FHB's of course.

If the zoning was only for single dwellings, there would be no developers/in sight most likely, and the property would have an entirely different value.

We see it down our way all the time - old dumpy beach houses from the '50's that are on larger blocks nearer to the beach command silly dollars.... a year later there are 5 townhouses on the block.

 

Which areas are these though, Lisa?

The media constantly rattle on about the amazing clearance rates, but then when the areas are looked at more closely, it's the same old small group of leafy suburbs..such as yer Hawthorn, Middle Park, Brighton and so forth....meanwhile everywhere else is pretty much normal at best, and/or not even.

For example; I live in Dromana, and after living here for 15 years (except for 3 in the middle in the USA) I am always amazed by how badly auctions do down here (but not just here of course - all up and down our section of the Peninsula), and yet folks continue to have them week in week out.

Year in year out I see auctions with no bids....or a solitary Vendor bid and lots of silence.

The only ones that do well are the few which are development blocks and the odd one which is absolute blue-chip locations for a single dwelling zoning.

 

These are the kind of auctions I like!

 

Not in Brisbane and other cities where you cant generally build townhouses on family-sized blocks of land. Unless it is in very limited cases, you need greater than 800 m2 land to develop, and most of those blocks have already been sold off. So yes, developers in Sydney, but not in other cities like Brisbane.

 

I'm Gen Y and always have a bit of a laugh when I read these articles. It's always the same story of the same group of people complaining that it's too hard, while the rest of us actually take action.

I can tell you the problem with most of the people I know is that they waste their money when they are young, particularly when living at home rent free or very cheaply. Most I know have traveled all over the world multiple times, had crazy cars or just generally waste money by getting drunk most weekends. These are the same people who complain a few years later when they can't afford to buy.

The second part is that most young people refuse to buy where they can afford. They expect to buy where they already pay exorbitant rent in places like Bondi or Newtown. It's funny that when these same people ask where I live and I say the suburb in North West Sydney, most don't even know where it is and then act all snobby like they are better or more well off. Truth be told it's quite the opposite...

 

I don't think it is hard, I think it is just as easy or easier than it was 20 years ago.. 3 months ago I was driving down the road and saw a 3x2 unit for sale immediately drove to the agent made an unconditional offer with short expiry, contract was signed that day settled 23 days later. with in hours of it becoming vacant was offered $330/week a few days later 350. Out goings for rates and insurance are about 3.5k, Purchase price including stamps and costs just under 270k. The unit is very low maintaince 8 years old so has good depreciation. I have seen a lot good properties go begging a lot over 6 months. I wonder just is wrong with people they prefer to whinge or are they scared of success or not having to work or is the entitlement attitude that some-one else should provide for them ?. You just have to know your rental market and what type of property is in demand. With a 6 figure salary there shouldn't be anything holding you back.

 

I thought the Chinese would be to blame. Every open/auction I've been to has been majority Chinese by a mile. An auction in Clayton I counted around 41 Chinese and 3 Caucasian.

Can only be Chinese when literally every auction you've been to these last 4 months has 4+ Chinese people left fighting against eachother with ridiculous bids 20-40%% higher than everyone else

 

So true. Im 21 and I have only one friend around my age actually saving to buy a house. They all waste their money on cars, alcohol, expensive holidays. And trying to talk them into the importance of investing and saving earlier and how much better setup you are for life but they all see it as being a waste of time and that they will buy later in life. It's funny when a lot of them actually earn a decent wage especially when they are still living at home with minimal expenses but yet still live paycheck to paycheck.