Waiting for FHB's to go away?

GIDDO

GIDDO

:confused:
I am inclined to wait till after July 1st (or even next year) to look for property.
How many other s'softers of a similar opinion?
I am a bit surprised by how many somersofters seem to be actively buying in the FHB brackets right now. I hate competing with buyers who are inexperienced and may pay too much.

I would like to ask these people why they are buying in the >$4-500k bracket right now when the market will be much softer in only 3 months time.

Not having a go at anyone in paticular but wanting to understand why the market will continue to be strong after July 1st in the FHB segment??

I am a bit thick. Take it easy with me.;)
 
I am biding my time as well. It is a difficult thing to do! When the FHB's disappear in July there should be a lot less buyers around and hopefully some good deals.
 
FHB are starting to slow down in NSW

SMH said:
TAKE-UP of the first-home buyers' grant has fallen in NSW for the first time since the scheme was was boosted in October.

New figures released yesterday by federal Housing Minister Tanya Plibersek showed that about 4000 people in NSW took advantage of the payment in February, about 500 fewer than the month before.

Nationally, 12,664 took up the grant in February, down from 12,835 in January.
Click to expand...

I think the FHB segment will lose its sense of urgency in July regardless of whether the grant is removed, reduced or kept - so the market should be less frenzied.
 
GIDDO said:
I am a bit surprised by how many somersofters seem to be actively buying in the FHB brackets right now. I hate competing with buyers who are inexperienced and may pay too much.
Click to expand...
I have exactly the same view.

Maybe we're both a bit thick. ;) (Perhaps it's linked to our shared birthday?)
 
If competing in this frenied market isn't hard enough, trying to get finance through is a major pain. CBA are getting 6000 new applications per week and seem not to have the capacity the process them very quickly, with nearly a 2 week lead time just to acknowledge the receipt of the application. That's half a 30 day settlement and you still have to wait for condtional approval!
 
"Everybody" seems to now know that FHB homes are going like hotcakes, too, so surely it's too late to buy now. (Analogous to the taxi driver stock tips. ;)) I would have thought now was a good time to sell <$500K, not buy!

Of course if you have some confidence that FHB grants are not only going to be extended but even enhanced after July 1, then fill your boots and buy up. :)
 
NedKelly said:
If you were a FHB would you take the risk and wait?
Click to expand...

Absolutely! I have 2 friends who are FHB and nervously waiting 'til after June 30 to bitethe bullet. I agree that even if it is extended, it's the time-bound nature of the current situation that's pushing up prices.
 
To answer GIDDO's original question, I agree. I wouldn't plan on buying in FHB territory right now. I guess that there is always a bargain if you look hard enough but I would think the chances are less now than they'll be in 6 mths time.
 
I'm thinking the grant will be extended. As an investor, I have also been suprised that other investors are buying now.

If I were an FHB, I would wait. I think prices are inflated by at least 5%-10%. So there is your FHOG anyway.

Regards JO
 
I think we have a two tier market currently in play around the nation. The low-end under 350k is going nuts!

The higher end - over 700k is pretty quiet.

I am finding the crazy bidding in Sydney ridiculous and have decided to stay out till the heat goes out.

The people getting in now better do their due diligence....particularly if unemployment goes up to 6.5% by June!

There are opportunities...but can't see a lot in the low end of the market in Sydney at the moment.

Will be interesting if this is the....errr...dead cat meow (bounce) or the calm before the storm. Also I believe that the bank tightening of credit will also slow things down...let alone their inability to process applications.
 
"I think we have a two tier market currently in play around the nation. The low-end under 350k is going nuts!"
SASH

Sure is in Toowoomba.
Just sold 2 places and I am sure I got the first home buyers grant for both of them (and more)!!! I am not even a FHB!

Now I wait...:D
 
Like Giddo I can see no logic in buying before July, but it's the second part I'm interested in.

The inference seems to be that it will be OK to buy after that. I'd be unwilling to buy into a falling market, and that's what you say will happen when FHOG is removed. The FHOG may be like a one legged stool, in that it does not have an across the board effect, but it is a prop. Without it what will keep the market going?
 
I wouldn't rush.

Sunfish said:
Like Giddo I can see no logic in buying before July, but it's the second part I'm interested in.

The inference seems to be that it will be OK to buy after that. I'd be unwilling to buy into a falling market, and that's what you say will happen when FHOG is removed. The FHOG may be like a one legged stool, in that it does not have an across the board effect, but it is a prop. Without it what will keep the market going?
Click to expand...

Interesting point Sunfish. I guess it's likening buying a stock whilst it's plumetting (to buy it cheaper). Depends on whether one likes catching falling knives. :rolleyes:

I am still amivalent about this lower end. Stock in Melb (and by all accounts and posts in this thread and others) and most areas around the country under 350 K is going fast.

This sector has been bouyed by falling interest rates helping investors buy up and also the FHO who with the grant and lower interest rates are also putting their hand up.

This sector may soften with further job losses and when interest rates rise. This will impact (especially) the young one's who have not lived thru (or been at the age where it mattered) a recession and the state of affairs of the early 90's. It will particularly impact new house and land product that was bought on the fringes without amentity......ouch for those :mad:

I'm tipping that this may not impact (as much) the cheaper (infill) suburbs where they cannot manmufacture any more land and ther amenity and decent infrastructure already exists.

Watch this space.......;)
 
Bandaids anyone?

Sunfish said:
I just can't help myself. :) I have a share traders mind-set. And I've lost a lot of blood catching falling knives. LOL
Click to expand...

I USED to.....so in the past I am also guilty, however the price of the learnings has also been worthwhile. This current penguin rally shall pass. Still sitting on my hands.......waiting, waiting, waiting :)
 
optimists

I started this thread hoping to hear some reasons why it is a good idea to buy before July.

Now I am surprised at the number of ppl who are NOT buying right now.
Where are all the optimists right now? (I am certainly waiting till 2010)
 
I was trying to stay polite today :( but I must reply:

The property bulls are very queezy about answering direct questions. They are happier in a wolf pack insisting the bears answer endless questions. The last one I put up was also ignored.
 
You must log in or register to reply here.

Similar threads

see_change
Yes Virginia , prices DO always go up ...
2
Replies
29
Views
5K
Big Will
B
ej89
Dual living double storey
Replies
10
Views
3K
RetireRich101
R
C
Should I buy again in the same small complex?
Replies
7
Views
1K
NedKelly
NedKelly
S
Your first IP - reno vs. newer property?
2
Replies
24
Views
4K
seapiggy88
S
S
Journey so far - $75k salary (average), 5 years, 10 properties
2 3 4
Replies
66
Views
25K
Simon L
S
Back
Top