Is house price set to fall, Should I wait to buy my first house?
Please let me know Thanks
Is House Price Set to Fall, or Should I Wait to Buy My First House?
prax21 on 09/03/2020 - 13:28
Comments
The current forecast is for Australian unemployment is about to rise to 6%+ with the loss of 100,000 jobs due to COVID-19. that's 100,000 households that are possibly about to stop meeting their mortgage payments. When all the stock hits the market from all those delinquencies that what do you think will happen?
Yeah but 25 million x 60% x 2% = 300,000
If the black death was any indication, things could be good for employment. Of course, lots of people would need to die though, so there are some negatives.
That doesn't sound right.
I think you'll find that special provisions will be made just like in China.
No one is being foreclosed on because they don't have a job. Some are even unable to pay for basic food and quarantine costs which are borne by the person being quarantined.
As for bank profits; they are going on the way down. It doesn't mean the house prices will budge, especially if nothing is being foreclosed on. There needs to be a big stock of properties that comes onto sale due to delinquencies and without any government assistance. I don't think this Morrison government will mismanage this, but you never know.
What about renters? The stuff in the news about police checks is frightening. I've symptoms and have had direct contact with a family that recently came back from China. If I'm told to stay home, I won't be able to work and I'll have no way of paying my rent ($520/week). What point is there staying home for 14 days if I end up without a home? How many families does the government expect to start living out of their cars because of this self quarantine nonsense?
The actions of Macron might hint to what might happen in Australia if all shit hits the fan.
and this is why we have a problem you have symptoms and are more worried about where you'll live than the number of people you or the people you infect will kill
OP…no one knows how the house, shares, gold, oil, futures markets will go. No one.
If they did they would not tell you because telling you will be at their detriment.
and if they do tell you, it is likely to be at your detriment and to their benefit.
"They" sound like bankers.
The only winners are the brokers!
Ask a stupid question….. Well maybe it wouldn't be quite stupid if it contained some specifics.
With government policy protecting negative gearing and capital gains on home owners houses . Combined with lower interest rates that the markets are showing will stay for the foreseeable future . I would buy . No way Labor would bring changes if they want to win the next election . Smart builder's are now living in grannie flats at the back and building new homes as a tax free venture especially in Sydney .
House prices fall, house prices rise. Over a long term prices rise.
The Estate Agent (we all know how honest they are) will try to convince you that they will rise if you are buying, so buy now, and tell you to sell now before prices fall if you are thinking about selling.
Buy a house because you want to, don't believe anyone with a vested interest or on a commission.
I'd wait. At least wait and see if we haven't all been beaten to death over toilet paper.
Houses will be ok
Apartment prices will sink faster than the apartment block
It depends on where, unit in Manly, you'll be fine, Parramatta, not so much.
Ive been making some good dough trading crypto
Yes.
No.
Maybe.
There's always bargains to be had if you know where to look.A mate and I just bought a house from avid The Block fans. They've de-valued the property by 100K after their so-called 'reno'.
Depends where you're buying. Depends what happens with the economy in the next year. Depends on what happens in the next election. And about a billion other factors.
My neighbour is selling his place, and reportedly just turned down an offer $300k more than the valuation as there's so much interest from people with big money and he's not in a rush to sell it. (personally I think that's nuts and he should take that offer but each to their own). So it seems at least on my street, the market is currently very hot.
When we bought our place only months ago, we got it for probably $200k+ less than it was worth (going by similar properties in the area), as the sellers were in a rush, there just weren't any interested buyers, and the garden needed some weeding, and the house could use a coat of paint. It seems at that time, the market was rather cold.
So who knows.
I think if you find something you believe is great value now and you're in a position to buy it, then perhaps you should.
Yeah, market is going a bit crazy at the moment and trying to catch up from the -20% over the past two years. There are some notable foreign buyers now the AUD has fallen and Hong Kong protests have taken place.
Some coronavirus refugees too. I can't estimate those numbers though and which suburbs will be affected. My guess is up for areas like Rose Bay.
Any bet you're a gen y or z with some small cash in the bank trying to play the property game, with little to zero knowledge about investments, don't worry ozbargain to the rescue
It's a defensive asset. I'm not sure if it will go down.
My guess is it would be safer for people to sell bank stocks and buy property for the time being, or even just hold cash.
It's hard though. I've got around 40% in cash, 50% in property, 10% in stocks at the moment.
Property is a long term investment. So you should try get in during one of the dips. It is currently in a dip at the moment, down for these two years; at least in the areas I am buying. Slightly up this year though. I saw a lot of properties revise prices upwards in the past month, one offering for $520k suddenly jumped to $529k. You can do your own historical research using google cache. Just buy an area you like, especially if you are going to live there. Any time to buy is good if you aren't investing. You'll improve your quality of life; that's the most important.
What dip?
Do you know the definition of a dip?
Yummy dip!
Dipped literally refers to something dunked in some kind of substance. But as a slang term, dipped means "to leave" or "to be well-dressed." On a slightly more violent note, it can also refer to getting stabbed.
Nobody knows for sure. It’s all speculative.
Housing is an living investment, you need a house to live in, so to a degree people will be wanting housing to ensure they have somewhere safe, to weather the storm, so to speak. On the other hand there will be a reduced demand for housing particular to some buyers (likely investors who might be wary of a potentially uncertain market and who may be more prone to fears of coronavirus, as they’re not buying a house to live in).
The economy will likely take a hit, yes. But will house prices realistically drop that much? Who knows? I suspect yes but not to the extent that maybe some people are expecting. If people begin to lose money in super they’re going to want to keep it in a more secure form, which might be housing. There will still be a large demand for housing from a younger generation of home buyers.
I believe the decreased rates will help keep prices a float for a bit longer. Globally if markets continue to crash and u employment rises, the prices will fall.
Long term, I can’t see rates ever climbing back to over 4%.
There’s a lot of people in Sydney on $1m+ mortgages. It would be a blood bath if the bank had to take on all those loses.I imagine the government will step in to protect the bubble.
govt will step in the protect the bubble, australia is way too deep into property now to ever burst out
I made an offer for 635k a month ago which was rejected then. Now agent called me mentioned that vendor ready to give 25K discount on my last offer if I sign a new contract in a week. I said 'NO' considering the current market.
Yes, it’s scheduled to fall in the next two weeks on Saturday at 3.12pm.
Seriously - who the hell knows? If there are still people interested in buying a house you’re still going to have competition. Best you can do is start looking and bidding. You’ll soon get a good feel for house prices and your local demand.