Interesting reading

Discussion in 'Property Information Resources & Tools' started by Beano, 1st Dec, 2016.

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  1. Beano

    Beano Well-Known Member

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  2. larrylarry

    larrylarry Well-Known Member

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    What's your take? I thought it's just common sense? over here you still have to come up with 20% deposit. so no deposit, wages then no loan. I'm sure someone is going to draw a conclusion that Australia is Ireland.
     
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  3. Sackie

    Sackie Well-Known Member

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    Don't underestimate the rarity of common sense nowadays.
     
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  4. hammer

    hammer Well-Known Member

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    Oh no, stupidity still rules....

    Talking to a workmate the other day. Thinking I selling their property because they need a new kitchen??!!!

    Another one who is maxxed out has just been given a promotion and now wants to use that serviceability to build a shed out the back of their house which has dropped 20 percent in value so her husband can house his corrolla collection.....
     
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  5. willair

    willair Well-Known Member Premium Member

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    ....UKI nth nsw ....
  6. Marg4000

    Marg4000 Well-Known Member

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    Our son bought his first home with a 105% loan, in Melbourne around 2005. And now in his third dream "forever" home. Several of his friends got their start with the 105% loans, and all have flourished.

    But he could comfortably afford the repayments from day 1, unlike the writer in the article who clearly over-extended himself and struggled with the mortgage from the outset.
    Marg
     
  7. Big Will

    Big Will Well-Known Member

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    I don't follow the UK/Ireland market but the warning signs to me Ireland was over priced is when it is reaching the same as the UK and definitely when it beats the UK price.

    It would be like Newcastle or Brisbane costing more than Sydney, if it happens either Sydney has to boom or there is going to be some correction in place for those markets.

    Through history you see Syd > Melb > Bris > Perth > Adelaide > Darwin. Which also corresponds with population and employment opportunity.

    People might argue about Bris & Perth but Brisbane isn't as reliant on mining as much as Perth. If mining is going great Perth can outpace Brisbane and even Sydney but once the mines go bad look out (this is currently happening).

    Furthermore if Sydney is 2x Melbourne price then either Melbourne needs to pick up or Sydney will be in for some pain.
     
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  8. larrylarry

    larrylarry Well-Known Member

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    It's their choice and decision. As long as they are happy with their decision. Short term pain and long term gain is not always shared by all. I'm itching to buy a new car to replace my 14 yr old corolla but not willing to part with the cash.
     
  9. 2FAST4U

    2FAST4U Well-Known Member

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    Record low borrowing costs
    Record high private debt
    Record house valuations
    Record low wage growth

    What could possibly go wrong?
     
  10. Perthguy

    Perthguy Well-Known Member

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    When Perth was more expensive than Sydney I knew that Perth was overpriced.
     
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  11. Big Will

    Big Will Well-Known Member

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    Yup, same as my parents told me that they could buy a house in Gladstone for the same price as Brisbane so instead went with Brisbane. Yes the yield was greater in Gladstone but fast forward 10 years and Gladstone is worse than where it was before and Brisbane has pretty much doubled.
     
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  12. Perthguy

    Perthguy Well-Known Member

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    What could possibly go wrong? Concurrent deflation and interest rate increases. We would be worse off than we are now.
     
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  13. dabbler

    dabbler Well-Known Member

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    And now it is the other way around, you can say the same.
     
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  14. Gockie

    Gockie Life is good ☺️ Premium Member

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    But you can also not buy.... colleague in 2008. Renting a house in Lane Cove. Could have bought for say 800k (or even much less if they went further out!) but they had no deposit.

    He would only feel comfortable to buy if he got promoted to a manager (he was already on a decent wage, wife also on a decent wage as a teacher).
    Now everything is well out of reach....
     
  15. Perthguy

    Perthguy Well-Known Member

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    Sure can. For me, Sydney is overpriced and I wouldn't touch it. That doesn't make Perth good buying yet, but it is getting there.
     
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  16. dabbler

    dabbler Well-Known Member

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    I know of a couple of spots that may be undervalued, I am not going to plaster them here, but in one could get very close to 5% up until very recently, most places are between 2-3

    Nuts, but I have read how some justify it.

    How well do you know Perth ?
     
  17. Perthguy

    Perthguy Well-Known Member

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    I do not know Perth well at all. If you draw a line roughly from Morley to Thornlie, I know those areas reasonably well. The rest I don't know much at all.
     
  18. Perthguy

    Perthguy Well-Known Member

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    A magical pocket of perfect property in South Karrinyup? ;)
     
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  19. dabbler

    dabbler Well-Known Member

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    Oh no, don't do that, that is not even funny......not at all :p:D
     
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  20. big max

    big max Well-Known Member

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    The headline is wrong "don't buy in unless you can truly afford it"

    It should read "don't buy in unless its a good investment"

    Plenty of people can "afford" to purchase an overpriceded assset. But the aim for anyone, regardless of whether you have the ability to purchase, is whether the purchase makes financial sense.
     

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