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First-home buyers borrowing 50 per cent more than they did 10 years ago

Discussion in 'General Property Chat' started by Azazel, 11th Jun, 2016.

  1. Azazel

    Azazel Well-Known Member

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    I can't work out where this commentator gets their point from.
    Because the percentage has gone up the most in NT and WA, it's investors fault?
    Analysis shows first-home buyers are borrowing more
    Hey Taj, I'm sure there will be some bargains in NT and WA if you keep an eye on the markets there.
     
  2. Bayview

    Bayview Well-Known Member

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    The first clue in this report is the program it is aired on....Q and fricken A.....

    Hand-picked audiences, stacked panels, echo-chamber tweeters carefully selected by the producers, etc. :rolleyes:

    But I digress...

    Most investors are trying to buy an IP cheaper than asking price, I would have thought.

    There will be some who will pay the asking price and more, but with so many properties for sale every single day; there is no need to do it..

    So, you have to ask yourself; Why would they do it?

    The only conclusion you can come to is that they are trying to outbid the competition - which would suggest that the market is hot, and there is lots of demand.

    If this is the case, then it is going to be bad news for the whole market in that area at that time - no matter what their position; FHB, investor, downsizer, etc.

    Investors simply cop the blame because of the perception that they are swimming in dollars and can pay more - and will.

    NG is always thrown up as one of the faults in the system; it has been around for a hundred years (except 2 years) - it is only an incentive TO BUY...it doesn't mean the investor is going to blindly keep on offering more for the property.

    It is not a tool of leverage to shut out the rest of the market.
     
  3. Hanison

    Hanison Well-Known Member

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    In other news.

    Average wage grows 33% over the same period.
     
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  4. big max

    big max Well-Known Member

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    The most obvious response to the headline is "yes and are paying 50% lower interest rates on their mortgages.
     
  5. Johnny Cashflow

    Johnny Cashflow Well-Known Member

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    50% ....

    Big deal :rolleyes:
     
  6. House

    House Well-Known Member Premium Member

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    This 12-15x median income thing confuses me. What in tarnation would one person on a single income of $70k want with a 3br house on a quarter acre? And naturally it has to be within 20mins of the CBD :rolleyes: *cough* sense of entitlement? *cough*

    When I say they can buy their 3br house for 7-8 times one persons income but it's an hour away from the CBD they then complain about distance. And size of deposit required.

    They also seem to forget to factor in any other economic variable that has inevitably pushed prices up over the last 30yrs such as population growth, urbancentricity, supply etc and that price growth should somehow be linear and correlate with income growth.

    Housing is obviously expensive right at the peak of any cycle, but it's not unaffordable. While I plan to buy a PPOR in about 3-4 years, had a quick look at a repayment thingy and an average 3br on a decent block of land in The West is $30k pa P&I but an hour from the city. My partner and I were paying that just rent a shoebox right by the city. And it still took me 45mins to get to N Syd!
     
    Last edited: 12th Jun, 2016
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  7. Scott No Mates

    Scott No Mates Well-Known Member

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    Don't housing costs double every 7 years? They're getting a bargain if mortgages have only doubled! ;)
     
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  8. jins13

    jins13 Well-Known Member

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    Better for people to change their negative attitude and find strategies to make the situation work for them. The battle is already lost already with that kind of attitude anyway.
     
  9. Azazel

    Azazel Well-Known Member

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    That is annoying.
    And there are plenty of places where you can buy a house for much lower than that percentage.
    + there are generally 2 wages.
     
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  10. Azazel

    Azazel Well-Known Member

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    Ah, I missed that part.
    Lets change everything to suit everyone.
     
  11. Ed Barton

    Ed Barton Well-Known Member

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    QFA - almost sounds finger licking good.

    You need to get over your obsession with the ABC being left of communist. Your POV is always extreme right so you see anything that is not Thatcherism as extreme left.

    The media, of any persuasion will always hand pick audiences, stack panels and carefully select everything.

    So do I.

    The folks on this forum are the exception, not the rule. Most investors buy one, or perhaps two properties. They buy with emotion, pay too much and buy in the wrong areas.
     
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  12. Bayview

    Bayview Well-Known Member

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    I will; when they stop. o_O

    They aren't left of communists though - that is a nice exaggeration - they are merely very biased, which is fine if they are an independent commercial network - but we citizens are all paying for them to present an unbiased, balanced news service.

    How do you know this, Ed?

    I would agree with you when it's a PPoR buyer....and PPoR buyers outnumber investors - therefore - by your description - everyone is buying by emotion and over-paying....especially in Sydney over the last 18 months.

    Maybe I am a totally abnormal person compared to Joe Av, but I have bought and sold over a dozen houses (both as PPoR and IP's) in my life, and have only paid the asking price for one out of 12...our most recent one - in a very high demand premium section of our suburb, and we offered full asking price to secure it before anyone else found out about it - was on the market less than 24 hours - did we pay too much? No, because another almost identical property sold a few months earlier for the same price as the asking price on ours.

    I would venture to say that had we waited and "hummed and hahed" for another day or two until everyone found out about it - the price would have gone up more.

    So; considering I am Joe Av, and have only ever paid below asking price; surely every (or most) other Joe Av will be looking to do the same? Or maybe around asking price?

    At least; enough of them to not be the investor culprits in pushing up the prices?
     
    Last edited: 13th Jun, 2016
  13. sanj

    sanj Well-Known Member

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    I have no idea why Q&A is being discussed when the topic is a claim that FHB homeloans have increased by 50% in 10 years. The stats quote the ABS so i assume they are accurate and the articld is on a website owned by rupert murdoch, who wojld never be accused of being sympathetic to the left.


    Why not discuss the content of the article instead of the fact that a 30 sec video at the top of it happens to be on a show you dont like? The authors of the report that came up with this 50% stat arent even featured in the video either.
     
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  14. Azazel

    Azazel Well-Known Member

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    Anyway.
    Do you think we'll see a follow up saying although the percentage has gone up the most in NT and WA, it will probably go down the most?
     
  15. Bayview

    Bayview Well-Known Member

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    It goes to context, yer Honour...

    Maybe if you were to watch the show enough times, you would see how it would illustrate how that is pertinent to the content of their articles, and the slant they put on them.

    Just to give you a small hint - the ABC is biased to the Left, and mostly opposed to investors and their evil NG. They oppose it, and it is easy to assume they have a dislike for anyone rich, and/or seemingly taking advantage of the poor, the working class, the young Left voters, etc.

    Hence; they will never willingly show any content on these issues with the unbiased and balanced perspective we all deserve.

    I could give you myriad examples, but I think it's best to see for yourself.

    I did discuss the article; you might want to take yer own advice and discuss the contents of article too...instead of sniping me. :rolleyes:

    Put forward your comments on the article, and I will discuss them with you.
     
    Last edited: 14th Jun, 2016
  16. Azazel

    Azazel Well-Known Member

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    Ugh, best to ignore. We were so close to moving on from the token career lefty on a mission to spam derail every thread containing any of their trigger words.
     
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  17. LibGS

    LibGS Well-Known Member

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    Ad homenim straw man. Nothing to see here.
     
  18. sanj

    sanj Well-Known Member

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    Holy moly.

    We could have had a simple and potentially interesting discussion about home loans increasing for fhbs by 50%, wages not increasing as much and whether or not that is offset by record low interest rates etc or if the main impediment is the deposit. Personally i think in perth at least now is the best time in a decade to be a first home buyer, in sydney it's nowhere near as good a time, comparatively.

    I have not mentioned anything other than wondering why we were hearing about everything other than the actual thread topic and report/stats that are referenced.

    I have not mentioned politics, investors, media or any of that @Azazel so i hope youre not referring to me trying to derail the thread wheb the main off topic posts have been by you and marc.


    Back on topic for everyone else, what are the thoughts on state of market for fhbs in other states now vs 10 years ago? Like i said i would rather be a fhb in perth todag vs in 2006 but i dont know the other markets well enough to have an opinion on, apart from sydney.
     
  19. Bayview

    Bayview Well-Known Member

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    investors will always chase CG and/or rent yields.

    Therefore; the NT would have seen some interest from them due to lower buy prices, coupled with good yields. Plenty of FHB's would have enjoyed the climate before this - cheaper houses.

    Once that initial attraction ends (CG ends and/or yields drop due to CG or other factors - the interest ends), the prices level off and affordability catches up.

    The window of time used for the article is not the whole picture - and this is what often gets left out in these articles.
     
    Last edited by a moderator: 14th Jun, 2016
  20. sanj

    sanj Well-Known Member

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    For anyone else reading - what are your thoughts on the various states abd whether is is easier to be a fhb now or 10 years ago?

    Im not talking about investors, left or right side of politics, NG or any of the tangents some others seem to fly off on, just purely fhb now vs then.