might be for buying off the plan apartments
Some as low as 70% if its an investment loan, financial institutions have been wary of inner city apartments for some time, especially some of those 1 bedroom ones that are basically the size of 1 bed.
You are confusing the topic here.
People are saying there is no stock available for FHB in inner city. When in fact there is plenty of stock in that 400 range to get into. It is just a matter of are people happy to live in an apartment?
Not true around the lending. Yes you have issues with apartments less that 40 internal sqm, but 2BRS are normally bigger than that. Some banks have postcode restrictions and development lending thresholds, though you can still find 95% lend.
There are issues around short valuations with apartments, particularly if there is an absence in like for like sales.
None of the above goes back to the whole âfirst home buyers are priced out of places near the city and their workâ
You are talking about housing quality etc, but surely most peoples first home is not their dream home?
Regarding banks, Bank of Queesland for example do 95% + LMI capped for first home buyers - there are plenty still in this space, need to demonstrate you can save 5% or demonstrate you can pay rent for past 6 months (as evidence of gen savings)
I am not advocating docklands or the quality of stock or future equity growth
again I am saying, if FHBs want to live near the city they can.
That is a rational consumer argument.
The same could be said for virtually any scenario. Without taking in to account housing quality, schools equity growth youâre not looking at it from a real world scenario.
I forgot about LMI. Probably for a good reason, it may get you to the remaining 5% required for deposit but the amount it costs is ridiculous
We all know they can potentially, but affordability surely takes into account quality, value and upfront investment?
If the question was âcan they live near the city with limitless resources or in any vesselâ then the answer would be yes.
Iâd be considering a phasing out of multiple properties to be negatively geared.
You can claim one, or maybe two, and then after that, you can claim 50%, then 25%, etc.
And no capital gains discounts on negatively geared properties.
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i think that is definitely the approach. Without a well thought out transition plan it will never get off the ground and if it did values would plummet with the excess supply on the market
The housing prices is also the centralisation effect of jobs in Australia. Virtually all of our biggest companies and employers are CBD based given it has the best transport to it from any direction, thus able to find the best staff (bigger capture area).
I think a lot of people would like to live a country lifestyle if the jobs were around to support it or better transportation to support it.
Vice versa on transport, using Victoria as an example, imagine if you could get from Cranbourne or Pakenham to the CBD in 45 minutes? Less pressure for the inner suburbs, more evenly spread pricing across the board. On the flip imaging a northern train that could run from CBD to Bendigo in under an hour?
But then would all that help when for example, Keysborough where I live, purchased land and house in 2007 for $450,000 now itâs worth $1M+. Thatâs a 9% increase per annum. Last time I checked most businesses donât increase their prices by 10% a year and certainly donât give their staff a 10% increase per year.
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Now youâve gone to far.
And there is no reason this couldnât be transition in over 10 / 20 years so there isnât a panic on the market.
Move to Bacchus Marsh, great place, house prices affordable, 45 minutes by train or car to CBD.
Only downside is that I live here, but I wonât live forever.
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I reckon the house weâre in wouldnât be worth much more than what we paid for it in 2007, if at all. Thatâs what happens when you buy at the peak of the cycle. Having said that we also sold at the peak of the cycle so itâs all swings and roundabouts. Where people will be rooted is once all the foreign purchasers pull out of the market leaving those who purchased at the peak without the benefit of selling as well left with a mortgage on a property worth sh*tloads more $$$ more than the propertyâs actual worth. Then if interest rates rise weâll have our own version of the GFC happening right here. The potential for wide scale ruin is huge.
lolâd.
Hmm, best advice for anyone at the moment is to NOT buy in Syd or Melb for a couple of years, but stack the dollars away in high interest terms or stocks, and wait for the inevitable bursting of the bubble, then swoop.
Timing is important but hard to pick. I know people who paid $800k back in 2006 who would be lucky to get $600k for it today. 11 years later. Lucky for them, good timing you might say that interest rates have been low enabling them to get on top of the mortgage but if rates rose as the market dropped over here, they would have been stuffed. Imagine paying 7% p/a on a borrowed $1m to buy around Sydney or Melbourne? It doesnât bear thinking about.
Speaking of Interest Rates, CBA and ANZ announced increases today - to go along with NAB and Westpac last week.
Mostly stinging investors but also giving owner occupiers a little clip (and a big clip for those on interest only loans)
Big spread between O/O P&I to Inv I/O, now out to a 65-70pt spread
F*ck them.
I fixed all three of my mortgages at 3.7% p/a for 3 years late last year. I encourage anyone with a mortgage to shop around as there are some good deals out there with credit unions and small bank and non-bank lenders. Those 4 banks donât make multi $billion profits by chance.
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Itâs not only property that is negatively geared.
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What?