Has the APRA credit tightening changed your buying plans?

It's easy to make a flippant comment like that

But did they ? Three years ago , most people were complaining about Sydney underperforming compared to all the other capital cities and a couple of years before some experts were predicting sydney to crash.

Cliff

 

Ditto...I agree doc!

Easy doc...otherwise I will have to prescribe Norvasc or Candesartan...if you blood pressure goes through the roof.

 

No problems with the BP sash .

part of my interest in ensuring a good retirement is mums 92 , dad's 89 and both going well .

I'll need a decent amount put away to ensure I can live in the lifestyle i want to become accustomed too for a few more years yet .

Cliff

 

Yes I know...with modern medicine it is very possible we will live well into the 80s and 90..may even a 100.

This is also one of my what if scenarios which I need covered off...

It does seem that there are always others who seem to think there is a silver bullet....might be...but it also carries higher risk. I just can't see the risk vs return....or the substance behind what NHG is saying.

Always happy to have the aha ...moment and be corrected.

 

Hey all there has been allot of changes occurring and CBA will be tightening the screws for new built homes too...

I am starting to think that there are going to be more and more good opportunities out there soon....

 

I settled on the latest purchase just before the changes came into play. I believe I would be one of those who wouldn't qualify for what I have now so count myself lucky. Purchase was funded by equity pull from last IP so from what I've read on here that may not of been able to happen now.

For me it may mean tipping cash in to the next one as I may no be able to rely on an equity pull, which is my strategy for now. Also means a longer time frame between purchases to save that cash

 

One further follow on from the APHRA changes is the majors have gone or are in the process of raising more money from the stock market . Causing a slight slump in bank prices , but once it's happened , obviously the banks will be in a stronger financial situation which can only be good news .

Cliff

 

I somewhat agree, I would be more likely to take advice from someone who managed to build decent equity while investing outside of Sydney, would indicate a different skill set at the least. In some ways, it is dumb luck. On the one hand, it's look at how well my well thought out Sydney purchase went. On the other it's, well, it was fairly flat for a while.
Brisbane is a strange one, will be interesting to see if Canberra takes off this year too.

 

Agree with you Cliff.

Plenty of people have also lost money buying in Sydney during the past few years.

 

Canberra was hot for last few quarters(fluffy played a role), not sure employment situation is improving.

Renters in Canberra are having a field day for some time now, Few of my mates are not able to fill in their vacant houses at the same rate as vacated, finding it difficult to attract interest even with a 10% reduction, and this after rent going no where for last few years in years.

Units are in abundance supply both new and exisiting, and there's queue of new suburb release in a year or three Denman/throsby/Kenny this in addition to existing new suburbs like moncrieff/casey/jacka etc

What do you think the price might do here?

 

There's a lot of supply in Canberra - units in particular. Rental growth will be slow/negative for the next 24 months i suspect with many of those units yet to come online. Lots of greenfield estates too at the same time as sanj mentioned - not sure its necessary with current economic conditions there. Local forum members generally suggest older areas with large blocks will likely do OK.

 

Units obviously are pretty flat, depending on the location probably will be for a while. Centrally located ones should still do well, some nasty BC around though.
All the cheapie houses seem to be gone where I was looking. Depends on the suburb, but everything seems to be selling pretty quickly (Southside).
Wouldn't be surprised if it takes off this year.

They're probably on to something there @Redom
Narrabundah would be my pick if I could afford it with the current lending changes, but good luck getting anything near the 'median'.

 

@Azazel - why Narrabundah if you don't mind me asking? Proximity to more premium areas always seems attractive, but i haven't seen all that much happen here of late.

Theres a unit/townhouse development that has been selling for 3.5 years (albeit last couple)!

There moving a lot of public housing out from inner ring suburbs to outer areas to keep apace with sprawl of Canberra - all else equal, may have a positive impact too.

 

Only talking about houses but Narrabundah median $655k, next to neighbouring Griffith $1.14M and Red Hill $1.13M looks pretty good.
Median price went over $600k in 2008, so prices haven't moved that much.
Easy commute to Russell or the City. Not far to trendy Kingston.
Close to St Eddie's, St Clare's, Grammar, [...Narrabundah College]
Could walk to Fyshwick if you really wanted, but now that there's no fireworks, I can't imagine why anyone would want to.

 

It's changed my end product for sure.

I've had to look to actually spend more, but to get a much (MUCH!) better return - but it means appealing to a more mass demographic than the niche one I was looking at previously which had the serious potential to bid up prices - from what I've seen in other areas similar.

That said, sometime the design side of things gets the better of me - and good ideas come at the expense of rational equity generation.

So all up, I'd say it's bee a worthwhile exercise.

 

Narrabundah is a relatively expensive place for ordinary folks/investors.
It is hard for old houses to get renters now. Renters and owners are mostly public servants (not big families?). Big families tend to look for something spacious or shining .......
With public servant hiring freeze removed from July 2015, most agencies started to recruit.
Probably, some new blood will fill in this place next year IMO.....

 

Yep, all perfect reasons for Narrabundah going well over the long term (except Fyshwick of course ). It hasn't moved in price much so far - lower I mean, not upper Narrabundah - but I think the gentrification has finally started; but it'll take a lot of KDRs or renos to improve the lower Narra stock from its low starting point.
Pretty bad transportation is really its main letdown; having said that I used to ride my bike to Telopea, then N.College, then later into ANU back when I was young and fit (=silly in the old Canberra winters!).

 

Geeze, I was thinking the ride to ANU would be longer than that, 10kms isn't too bad.
Transportation is a let down in Canberra in general.

 

I want to know where you get your mattresses from - I like that kinda' find…….

 

My borrowing power courtesy of Westpac was halved, but my situation as a non-resident might be the x factor...trying to get something through Bank of Adelaide and broker atm,