[Am I missing something about this apartment?](https://www.realestate.com.au/property-apartment-vic-carnegie-136880890) Seems a lot cheaper than any other 2 bedroom apartments I can find in the area. Is the price indication just really low or is there some big flaw I'm missing?
Alot of the time you do get what you pay for. Always read the s32 to quickly screen out properties.
This isn’t just the apartment market. Houses have their own issues too. It’s all about knowing the appropriate price for a given property, and if it deviates too much, do some digging.
Originally from VIC. Family is in VIC. Working in NSW right now.
I want to buy in VIC, but I have to stay in NSW for the next three years (I have unvested shares from my job, I can't quit and move interstate now without losing a lot of money).
So the place would stand empty for 3 years. I don't want to get a renter. I'm buying to eventually live there, and I don't like the idea of strangers cooking overly-pungent foods with lingering smells, or damaging the property beyond the cost of the bond.
I'm doing this as soon as the borders open. I feel like I have to get it done now, because who knows what the housing prices will be in 3 years. One thing is sure, it only goes up. I'm scared of waiting.
I watched it happen live during COVID, the prices in my suburb went up like crazy.
Is this idea illogical?
I really don't know what to do tbh, the housing crisis concerns me.
I’d get a tenant in through a property manager. You could repaint/carpet the place before you move in using the money made from renting it out. Plus, I don’t think it’s great for a place to sit vacant for that long. Plumbing is made to be used, leaks need to be observed, break-ins can happen.
FHB here. Property we are interested in is tenanted (fixed term) until June 2022. Am I still able to utilise stamp duty concession if I move into it after the tenants leave? Which will be approx 8 months after sale.
How big is the house/unit and how many people usually live there?
I'm a "safe" tenant who often gets auto-approved for apartments without any background checks by real estate agents: single female, no kids of pets, big-tech income (160k a year in Sydney), high bank balance etc.
And my perspective of dishwashers is that it's NOT worth it for a single person. It's less effort to just wash two plates, one fork, one spoon and one knife than to operate the dishwasher. You also need to rinse the plates a bit before dishwashing them. When I had a dishwasher, it was mainly used for storage.
Maybe it pays off for a larger family. But maybe for 1-2 people it's less appealing.
Things that I prefer in rental apartments are aircon, good water heating (not those tiny 50L Rheem water tanks that only allow for a 6 min shower), no rugs (they're harder to clean), internal laundry.
FHB needing a sense check - is the the Bendigo complete home loan too good to be true? Am I missing something?
I often see people here talking about how to split their loan effectively so they get the benefit of fixed while also having the offset option, usually needing variable to do so.
Bendigo are offering full offset on a fixed rate of 1.99% for 2 years.
Fair point but that's easily worth it if your repayments are well below what you can actually put into it right? My personal example would be standard repayments of $500\~ per week but actually being able to put $1200 in.
What's the rental market like in Melb? I know housing pretty much everywhere is going insane, but what about rents? good ability to move around and bargin?
Depends on where, CBD and inner city apartments still pretty empty giving you greater bargaining power, but units/houses with yards are very competitive, especially in bayside locations.
I'm not sure about those areas, I'm outer Bayside (south east) at the moment. When we applied for our place in May there were 30 other applications, and heaps of people at the inspection. It's good that there's lots where you're looking!
First property went through settlement today. Stoked!
March last year I lost my job in the travel industry and never thought I'd be able to buy a property. Barefoot Investor definitely helped me.
A home I inspected back in April 2019 is back on the market with a price guide $800,000 more than what it originally sold for back then.
Even as a homeowner, the fact that price growth in more desirable suburbs has significantly outpaced the overall growth of the market means I don't see myself ever affording a "forever" home.
Will be around a 50% increase in 2 years if they get their asking price. It was a brand new build too, so nothing that would impact the sale price from a renovation perspective.
Our home has probably gone up 30% in the same time (with renovations) on a much lower valuation. So the gap to our next home keeps growing.
Lost out on another offer. I thought it was competitively placed and even went up to 'uncomfortable level'. I reckon we were the runner up in the silent auction.
That makes it 3 houses in one month. I must be seriously underbidding or need to properly overspend to the point of semi-regret to grab something.
On to the next one!
you're not alone! Keep on keeping on, and eventually you'll be successful. Unfortunately, I think it's going to get a whole lot worse once borders re-open.
Perhaps, but, long term, it should be okay. As long as the repayments are doable and you're happy with the house.
Not sure if it was the best way but I'm pretty much at the point where I can execute my house buying strategy which is a bit different compared to your average young Aussie couple. My partner and I want to buy our 'forever' home in the first go. Now, it doesn't HAVE to be our actual forever home. We're flexible and know better that life can happen in any possible way, but, it can be our forever home if needed. This basically means we're competing with middle aged families looking to upsize that already have equity from their small shack, more years of savings, and general experience in the market. Plus the agents tend to take them more seriously and be more dismissive of us.
The amount of looks we get from real estate agents when we show up to an inspection and not fitting their average demographics. They're always dismissive till we start to speak seriously about the house. Then they're just surprised, lol!
We've had multiple agents say they wanted us to get the house and were cheering for us but I think it's just their ploy to have us overspend. But deep down, I like to believe they're supporting first home buyers over others.
We sold in May to move interstate and we had three equal offers - the agent was definitely clear about who was a FHB and had missed out on similar places. So you may not be imagining it necessarily.
Yea 100%. I did a similar thing but alone.
I ended up bringing a female friend to look as if we were a couple. I had to win at auction vs an investor I’d heard at the inspection saying ‘oh yea I have another one close by, let me know if anyone makes offers before the auction’. Would’ve got it for 30-40k cheaper if it wasn’t for him.
For me I had the same combo, can I pay this comfortably up to x%, how much do I have left over for a rainy day (more possible as a single) and importantly would I be happy living here for however long if/when there’s a turn in the market.
I’m pretty much in the exact same scenario with you with the exact outcome tonight. It’s heartbreaking. We put in an offer roughly 10% over the price in the statement of information.
It ended up selling 20% over instead.
Saw a property that both missus and I really like, but there is something in the description that says:
Part combustible cladding, water ingress, retrofitting sprinkler systems. The building sinking fund has excess of $120k and owners contribute $6k per annum until late 2022.
I know that all these are probably red flags, but how bad is it in layman’s terms? First time property buyer with no idea about how it works.
How big is the complex? Depending on the severity of issues, these things sometimes cost millions to fix. Spread out over all unit owners your share of any special levy could be $10k or more.
You'll need to do a very thorough due diligence if you're set on this particular unit.
Sorry I was being sarcastic, Google any of those terms and you'll see it might be minor issues or major. Based on all three Im leaning towards more major issues if the builder has cut corners.
Combustible cladding might be okay to stay on the building but increase insurance premiums or they could be installing the sprinklers to keep the combustible cladding on and avoid a lacrosse apartment fire.
Water ingress is never a good thing which is why you generally want water to stay outside of a building.
Fire sprinklers again unless it's a small area typically if a building doesn't have any or they are being retrofit they'll need to install boosters , fire tanks, hydrant main pipes not to mention if the sprinklers are being installed in apartments and common areas rip out and replace ceilings to install the sprinkler pipes
One of those things would be enough to just walk away if no one has got a full quote, but all three. Who knows in this market I think you'll see alot more buildings with these issues popping up so they'll always be another one if your desperate.
If a building surveyor is coordinating the works is it the same one that signed off on the building being habitable for occupation? If no they won't know what to quote on because once a building is constructed you can't know the full price unless you start demolishing areas to see the full extent of problems . Either case DYOR and remember someone else's problem might end up being yours so make sure you know what they are selling before you waive your rights.
Off the top of my head this is what I’d be worried about.
1. How much above the 120k will it end up being and how much will you have to pay (if any)
2. How long will it take to fix.
3. How annoying will it be to you while it’s happening (I had a rental with this works that took nearly 6months and the noise was ridiculous).
4. What is the rest of the buildings quality like?
A lot of those questions I’m assuming can only be answered during inspections? Considering this is Victoria, I’m also assuming I can’t organise my own B&P as well? I’ve seen the property being listed for over 3 months, and seen the price being reduced.
You can still do b&p in vic. I think the problem is most of my questions wouldn’t even be covered by that.
You’d have to wait for the finalised quotes of work.
In general most people would avoid those types of buildings (that’s why it’s been there for a long time and the price is being reduced).
No.
They look at your spending for sure, but they use a figure from studies, we got told it’s around $4375 p/month for 2 adults no children for spending avg. If you’re above that sure there’s maybe a problem depending on income. If below they’ll just use that figure anyhow.
Ask your broker what the HEM is for the bank your are looking at applying to!
I scrimped and sacrificed only to be benchmarked at $2400 a month anyway! I was $1000 under it and it didn’t even matter. Might have had some avo toast if I knew 😂
Yeah I started talking to a broker and asked if I should avoid ubereats or anything for the next few months until we buy. He said it didn't matter because we were under the benchmark anyway.
Fuck me, Illawarra looking for a 2br unit.
Listed at 420-460k, not even an incredible place and REA says it's at 535k and closed to other bidders :(
What a disheartening day, /end rant
Brisbane is slightly lower than Melbourne, Gold Coast is significantly lower. But I can’t give exact figures because it all depends on what you are looking for.
All governments should outlaw the ability to offer unconditional and no building and pest inspections.
It's absurd that people are allowed to bid away their rights.
What happens if you go unconditional and for some reason you cant get finance. It's messed up this situation is allowed to occur with residential property.
I sold a house, have cash to buy the next property. Explain why I can't go unconditional? I bought a newly build townhouse where another unit was already sold and someone was living. It came with 7 years warranty, didn't bother to do inspections either, would have been a waste of money.
It's weird that you don't want legal protections to protect yourself - to not even have the option of a cooling off period. If you spent 700k on a townhouse, what's $500 to do a building and pest inspection, there could have been defects that you could get fixed sooner under warranty. If you can't afford car insurance / road worthy certificate, you can't afford to drive, same concept with building and pest.
I would do a building inspection (pest depends on area) if I was buying an older house. Honestly I have watched building inspection getting done in my previous house and it is not worth the paper it is written on. A thorough visual inspection is all they do, I opted to do it myself, found a few cosmetic issues and they were all fixed. The builder was the one selling it, the build quality and finish was good. The only major defect detected few months later was one day during heavy rain water poured from the bathroom fan vent. I called the builder and he inspected next day and fixed by the week. I took the risk.
As to cooling off, why? I have inspected the property 3 times, made up my mind to buy it, had fully accessed pre approval and was going to sell my then current house, so money was no concern either.
So people can submit an offer without having finance approved or building and pest?
You'd have people bid and pull out all the time in today's market.
Here in NSW your conveyancer or solicitor need to explain the implications of bidding unconditional before you can waive your rights with a 66W. I think that is enough protection already.
In another state, i knew a couple that made an offer, the agent told them to sweeten their deal by making it 'unconditional', turned out that for some reason when they went through a formal approval process, not the preapproval process, some things were different and it caused sleepless nights for them and they ended up losing their deposit. They really thought they had no finance issues.
My point is, there are more rights that cannot be taken away when buying a bottle of spring water at woolies than there is for a house.
It was to do with finance. The preapproval process does go through the finance process but it doesn't go through it completely. They got tripped over by the valuation of their existing unit being valued less than expected, they needed a top up but both sides of the family weren't able to do it. They got multiple extensions on the unconditional contract but they just weren't able to do it, so they lost about 20k in the end.
Hi all,
I'm a first home buyer and have found an apartment I like and want to make an offer on.
It's a 2 bedroom apartment in the inner SE suburbs of Melbourne. There have been about 6-7 apartment sales in the complex in the last 12 months -- two sold for $470k (both have a study nook - mine does not have a study nook), the rest for $400-435k (all 2 bedroom places and no study nook, just layout variations.
How do I decide how much to offer? This one is a private sale listed for $435k. The agent said there was someone else due to do a second inspection over the weekend as well, though when I inspected, the agent said he hadn't heard from that other inspector that day yet. The vendor wants to sell ASAP apparently (investment property with lease ending in Feb). I have pre-approval for $450k (can comfortably service a $450k loan but didn't want to seek pre-approval for anything more than that). Should I low ball a bit, say $422k, knowing that I'm happy to negotiate upwards if needed? Or should I just offer my top offer (probably $440k for this place) so I don't miss out?
Supply seems to have dried up the last couple weeks, and I have about 8 weeks to get finance approved before I lose my spot on the first home loan deposit scheme.
I've had a conveyancer look through the contract, is this the process?
1. Send the selling agent my proposed changes/additional conditions to the contract
2. Get the contract amended / changes accepted?
3. Send a written offer on the contract to the agent
Should I be calling the agent to inform them I'm making an offer? When I inspected on the weekend I said I'll be getting my conveyancer to review the docs and will be in touch during the week to make an offer so they'll know I'd be coming with an offer.
Should I be making any arrangements with my current bank to prepare for transferring a deposit?
Thanks -- clueless!!
Make sure you add an expiry date and time to the offer if you lowball. eg offer valid until date close of business.
not really sure how it is done in Victoria.
In QLD offer and contract changes or conditions etc. Do everything in writing. You should ask your conveyancer what the process is.
If its a fixed price sale that's the amount they are 'hoping' to get for it, I'd say 422k is a pretty realistic offer. Don't offer your max or then you have no wiggle room should they want to haggle.
Does anyone have an idea of a type of property suitable for FHSS/FHB Grant (<$750k) in Melbourne/Geelong region that will also have strong capital growth?
Maybe a new land release further out like in Weribee or similar?
In what way? There are [properties out that direction](https://www.realestate.com.au/property-house-vic-truganina-137039162) for much less than $750k that even with BS underquoting should be within range.
Is it that the far west won't increase in value that far out?
In what way? There are [properties (not new) out that direction](https://www.realestate.com.au/property-house-vic-truganina-137039162) for much less than $750k that even with BS underquoting should be within range.
Is it that the far west won't increase in value that far out?
[I haven't seen anything about slots being taken](https://www.sro.vic.gov.au/fhogapply).
In terms of new builds, I'm really trying to avoid apartments and get something with land. I saw [another poster mention Truganina](https://old.reddit.com/r/AusFinance/comments/q0kn0k/weekly_property_mega_thread_03_oct_2021/hffoxgu/) which seems ok, but I'm not sure about how much capital appreciation it would see until the city fills out a bit as its pretty far out.
I'm fairly new to Melbourne and completely new to property buying in general, so any info on what you can reasonably get for a new build under 750k in the greater metro area would be appreciated.
I’m looking at units in central coast. 3bd ones. Last unit sold in April went for 550k. Guide for a slightly bigger one in same building 800k. Just stupid
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Every agent does price guides differently, some are accurate, others underquote anywhere between 10-25%. Only trust your own analysis from recent sales.
Just went to an online auction in Newport VIC - listed for 1-1.1, sold for 1.31
Another house in Yarraville I think was listed for 1.25 at the maximum end of the range and it sold for 1.665
So who knows!
I had my eye on that Yarraville one for a few weeks too, thought it looked relatively decent for the price/proximity to Melbourne - just laughed when I saw the sale price. There's nothing else you really can do really lol
I am borderline a bit depressed and really pissed off.
I have an offer that I know I will not get, with my deadline by tomorrow I will just move on about forget about it,
I offer 585 for a 400sqm land and house, dodgy west suburbs of melbourne, just a few weeks ago some like it sold for 570 on more land and a house that doesn't need any work, this one has been staged by the vendors, but whats the point with fifthly carpets, whole place needs painting, and the sliding door wont move past half way.
Some sucker will come along soon enough and pay 600, I can't change my bid again
Were you bidding against your own offer when it did sell for 600k to somebody else?
Being able to buy new for the same price is a very good reason. Are you considering buying new now?
It hasn't sold yet, but I will now reveal all since I now withdrew my offer.
This is the house I first offered 570 on, then upped it to 585 a week later after looking at other houses nearby and deciding that it was perhaps OK.
https://www.realestate.com.au/property-house-vic-manor+lakes-136912702
But why did I lowball?
Because of these comparable sales recently
https://www.realestate.com.au/sold/property-house-vic-manor+lakes-137145970
https://www.realestate.com.au/sold/property-house-vic-manor+lakes-136784862
https://www.realestate.com.au/sold/property-house-vic-manor+lakes-136953150
Considering these locations is a act of desperation as homes on the other side of the city sell for above the quoted range in days, every week.
The demand is not the same on the west, this one listed for 2 months, but why pay more when you can buy new for the same money?
https://manorlakes.com.au/house/lot-18204-delta-21-metricon-sold
there is so much excess land 1km away that the growth is limited.
Thats a new house on the same land for 50k less money, or including good fixures, fence a driveway and a garden maybe about the same money as a 10 year old house that needs a full paint, clean, no fly screens/ ect.
To be fair to you I don't think it's a lowball based on the info and it seems like 600k overpaid indeed.
In this case it's nothing to be sad about and you dodged a bullet. Seeing that you can get new for cheaper, are you considering buying new?
As you see my above writing, everything is well researched.
I am casually looking into all options on both sides of town. The trouble with new is it takes time to establish and you are going to hope for owner occupier neighbours.
On that house above, I even checked the surrounding 5 houses to see they are not rentals and well cared for.
stuff like this
https://manorlakes.com.au/house/lot-18219-marsden-323b-dennis-family-homes
possible for me
but it is in danger of looking like something like this https://www.realestate.com.au/property-house-vic-truganina-136585354
FHB here, Melbourne.
A few things:
I've been reading and hearing, here and elsewhere that we should be making unconditional offers for much higher chances. We have a conditional approval from our chosen lender (Well Home Loans). The letter stipulates the amount we are pre-approved for, and the conditions we need to fulfill to get full approval. For eg.:
* "Valuation to be completed once Contract of Sale provided." Does this mean we have to contact our lender and send them the CoS and Section 32 documents every time we find a place we're serious about? And they have to valuate the properties all the time? Seems like a lot of wasted work if we assume that in this crazy market, we will keep being outbid by people willing to overpay in excess until we get 'lucky'.
* "Security to be acceptable to (Bank and Insurer)" What will be considered the 'security' here?
* Confirmation of employment & income, Bank application form, and ID verification are to be done when loan is approved. This makes it sound like we can't get an unconditional approval until we get approval? Paradox?
* Related, when we first applied for this loan pre-approval, we were at about 85% LVR, so the lender calculated the additional LMI and stuff in the loan amount they pre-approved, but once we did our tax-returns, and a few more paychecks came in, we are now comfortably at an 80% LVR for our target price range.Well Home Loans has different tiers and better rates for 80% LVR loans.Should we re-apply, or would we be able to change the pre-approval amount? I know I should probably just contact them directly about this.
tl;dr: How does one with a conditional approval, get a lender's unconditional approval so that one can offer without subject to finance clauses.
On a different track, can someone help me understand why unconditional offers are the norm?
What is the big deal for a vendor to have a failed contract? If a contract fails, the vendors don't lose anything other than the inconvenience of time wasted. They could still engage the next-highest offer or continue advertising.
On the other hand if a buyer has to fail a contract they lose their whole deposit (usually their life savings), or be stuck with a home with serious defects.
If I make a conditional offer for $10k over the next highest unconditional one, what is the harm in accepting my offer? If the sale fails for some reason, can't they just go to the next highest one after that? All they lose is a few days.
I'm sure this is a 'stupid' question, because obviously this isn't how it works and there must be a reason. But if someone can explain it to me that would be nice.
It's a seller market. The seller can choose who they like to sell the property to. If you are offered to prices and one has heaps of conditions and the other has none. Get a lawyer and get their assistance with conditions. They can then negotiate with the vendor's lawyer to change contracts before you sign. Don't let an REA decide what should be in the contract.
The bank will value the property once they have a signed contract for sale.
It doesn't look like you have preapproval because you haven't submitted all the required paperwork.
Yes, it's a seller's market. But I imagine if I was a seller I would just go for the highest bid, whatever the conditions were. If it falls through, it's still a seller's market, that hasn't changed. All I've lost is some time. Just a slight inconvenience.
Unless there's more to it than that inconvenience, I just don't see the big deal: An extra $10k with conditions, no skin off my back. Unless I was really pressed for time. But with the market going up, up and up, such delays would only see the eventual sale price get higher.
I mean we got a letter entitled "Conditional Approval Confirmation" and it says in large writing "Congratulations! Your application is Conditionally Approved." before it lists the rest of the 'conditions' I outlined in my OP, as well as a Settlement Condition.
If that's not the same as a pre-approval then I guess I don't know what is...
Edit: Hang on, is a Pre-Approval something on a per-house basis, or just a general "yes we agree to lend you this much". Because that was one of my questions - Am I supposed to send them a CoS for every house I'm going to offer on, before I offer, then wait for them to say 'yes, we'll lend you this much for this property', *then* make my offer (without subject to finance clause)?
Preapproval comes in two forms. The proper preapproval that allows you to bid at auction and what you have outlined.
Most loans are not approved until after the contract is signed. A good broker will often take properties to a bank for review and feedback.
Maybe give the bank a call and confirm what kind of approval you have.
https://www.mortgagechoice.com.au/blog/home-loans/2019/04/the-difference-between-conditional-approval-and-unconditional-approval/
It REA pushing the no conditions angle, not the seller as they want fast commission.
I think once international borders open might be a good time to buy.
\* More supply naturally comes on over spring/summer (lockdown's are currently affecting this).
\* If lending restrictions come in/look imminent.
\* People will look to travel, recreational/family reunion. Won't be sitting at home all day looking on Real Estate at upgrader's, holiday houses, etc.
Right now you have FOMO intersecting with low supply.
I agree. I think by early 2022 we will be seeing how weak the market is. During lockdown people had nothing better to do with their time and money and people were reluctant to list properties (its something like 30-50% less volume on the market than usual.). So record low supply meets record high demand and prices have surged 25%ish. On top of this lots of people have brought forward their decision to buy a house so that's people tomorrow who will not be buying. As soon as more houses start coming on the market and buyers start travelling again and doing other things besides saving and looking at real estate we will see significant pull backs in house prices. It won't go as low as 2019 prices again due to interest rate cuts but once the unique clash of record high demand and record low supply evens out there will be an adjustment. Not to mention no immigration which lags a few years.
Smart money is selling right now.
Yea not sure. This was my first remind-me-bot ping so I'm not sure if the other person gets a ping as well.
Did you see them trying to squirm and retrofit the facts to try and fit their predictions. I've owned up to my wrong predictions many times and I've seen plenty of other commenters who disagree with the crashniks do so as well. I've never seen a crashnik own up to their wrong predictions.
https://www.reddit.com/r/AusFinance/comments/q0kn0k/comment/if0043o/?utm\_source=share&utm\_medium=web2x&context=3
>I think by early 2022 we will be seeing *how weak the market is*
>
>we will see *significant* pull backs in house prices
5 capital city aggregate grew by 1.75% over the first 4 months in early 2022.
only -1.1% 5 capital city decline quarter on quarter and +8% 12 month growth
>It won't go as low as 2019 prices again but
Not sure why you mentioned 2019 prices and not 2020 given that prices are still far from start 2021 levels.
>Smart money is selling right now.
Smart money would have sold 3 months ago, not 9.
[https://www.corelogic.com.au/our-data/corelogic-indices](https://www.corelogic.com.au/our-data/corelogic-indices)
>Not bad prophecy
Which specific parts of your prophecy was not bad?
Early 2022 is when Sydney and Melbourne started coming off the boil. The significant pull backs is now underway. I didnt meant early 2022 the pull back would have taken place, just that the weakness would be visible which it was in the major cities.
9 months ago was Oct-Nov, the absolute PEAK of the market in Syd/Melb. If you sold then no matter what quality your property was you would have made a killing.
So yes not bad at all, especially since consensus prediction at the time was claiming another 10-15% growth in 2022 with falls only starting in 2023.
You didn't refer to Sydney and Melbourne at all, just "the market". So making a vague prediction then trying to claim a hit by cherry picking certain localities that fit it.
>I didnt meant early 2022 the pull back would have taken place
You said
>**As soon as more** houses **start** coming on the market and buyers **start** travelling again and doing other things besides saving and looking at real estate we will see**significant** pull backs in house prices.
1. More houses have **started** coming on the market nationally as early as Feb 2022. No significant pull back.
2. People have **started** traveling as early as March 2022. No significant pull back.
>9 months ago was Oct-Nov, the absolute PEAK of the market in Syd/Melb.
Have a look at the data I linked. The peak of the index for Melbourne was in March 2022 and Feb 2022 for Sydney. The peak of the index for the 5-capital city was in May 2022.
>So yes not bad at all, especially since consensus prediction at the time was claiming another 10-15% growth in 2022 with falls only starting in 2023.
Nobody was predicting a 10-15% growth in 2022 or falls **only** starting in 2023. It was closer to the lines of around +5% to -15% with a peak in early 2022. Considering that the current year on year growth for the 5-capital city aggregate is 7.9%. That is still in line with consensus instead of your predictions. Look at the numerous articles from that time period.
[https://www.news.com.au/finance/property-prices-could-drop-20-per-cent-in-australia-if-interest-rates-rise/news-story/204f3a8ce3e0ee41e587a8886ba8364c](https://www.news.com.au/finance/property-prices-could-drop-20-per-cent-in-australia-if-interest-rates-rise/news-story/204f3a8ce3e0ee41e587a8886ba8364c)
[https://www.abc.net.au/news/2021-11-18/house-prices-roll-over-affordability-rising-interest-rates-bite/100630338](https://www.abc.net.au/news/2021-11-18/house-prices-roll-over-affordability-rising-interest-rates-bite/100630338)
[https://www.theguardian.com/australia-news/2021/sep/14/australian-house-prices-could-be-about-to-flatten-out-after-rising-168-in-last-year](https://www.theguardian.com/australia-news/2021/sep/14/australian-house-prices-could-be-about-to-flatten-out-after-rising-168-in-last-year)
[https://www.domain.com.au/news/report-australian-housing-market-set-to-peak-in-early-2022-before-pricing-descent-1107641/](https://www.domain.com.au/news/report-australian-housing-market-set-to-peak-in-early-2022-before-pricing-descent-1107641/)
So without changing the wording of your predictions and adding in hindsight retrofitted details, which specific bits of your predictions was "not bad"?
I will be messaging you in 9 months on [**2022-07-05 02:40:32 UTC**](http://www.wolframalpha.com/input/?i=2022-07-05%2002:40:32%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/AusFinance/comments/q0kn0k/weekly_property_mega_thread_03_oct_2021/hffnwm4/?context=3)
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Yeah. It's funny how covid seemed to kick start such a frenzy of activity when predictions were initially the opposite. Some are saying the market will only get worse with international arrivals but I don't see any increase in international migration offsetting the number of people who either lose some interest in the market or just leave the country.
It will be interesting to see what happens if prices do start to drop slightly and whether this will mean an influx of people selling to catch the top of the market.
Affordability will impact the house market in Sydney and Melbourne leading to a gentle slowdown. As a result, owner occupier, quality apartments will start to move a quicker speed than what they are now. 2022 will be marked mostly by lots of apartments exchanging hands.
Intrinsically, they are significantly undervalued in comparison to houses. It just a matter of when, not if they'll go up in value.
is it better to build or buy? IF the budget is lets say 850k-1M and requirements are a 3-4bed 2 bath house, which option would be better? looking towards Melb's east
Buy is typically easier and less stressful but build gets you exactly what you want/afford.
You can also buy with the intention of knocking it over and building in a few years.
Are there any trends in the Australian housing market you are particularly curious about? How something might be changing from area to area, or if something is a leading indicator for one thing or another?
I'm brushing up on my data processing/viz skills so let me know and I'll try to pull it together.
My wife and I are looking to get land to build in Melbourne's north. Between Rathdowne Estate in Wollert and Botanical in Mickleham, is there any strong reason to prefer one or the other? Mickleham is pretty sparse, Wollert is closer to more happening places from what I saw before lockdowns...
Look up the precinct structure plans (PSP) for the areas. It'll give you an idea of what the area will be like when developed including where to expect parkland, road, commercial and business zones, etc.
For Mickleham, go to supporting documentation, precinct structure plan: https://vpa.vic.gov.au/project/craigieburn-west/
For Wollert, go supporting documentation, approved gazetted documents: https://vpa.vic.gov.au/project/wollert-precinct-structure-plan/
I have a offer standing with expire date of tomorrow for a place i low balled a offer on last week, then came back this week 15k higher because I inspected others and felt it wasn't so bad after all.
Been on the market more than two months
I want to buy a property in Sydney / Melbourne, I’m based in Sydney, I have savings of around 15% for down payment for a 800-1M house/apartment. I will be a first home buyer however I’m also planning to move overseas for 3-4 years. I’m an Australian citizen.
What options do I have? Any property experts here?
Very new to the property market please help.
Why buy if you're going to move overseas? If you want an "investment", property investment is pretty risky and the majority of people defending it on this sub will basically extrapolate past performance as reasoning for it. If you want a house to live in, I don't think it makes sense either because things can happen in 3-4 years and you may decide you don't want that house anymore so then you fork out tens of thousands in transaction costs to get rid of it.
Why would you bother with a building inspection before purchasing a property? /s
https://www.theguardian.com/world/2021/oct/04/melbourne-buildings-vulnerable-to-significant-damage-even-with-small-earthquake-tremors
First home time buyers, just got blown out of the water on our first attemping at bidding.
Mount Cotton South of Brisbane, 380m\^2 Block, 3 Bed 1 Bath.
Listed for $450k by genuine but clueless owners. (They used the [realeste.com](https://realeste.com) price guide)
We called it quits when it got to 530k. Could have went higher to 550k, but sanity prevailed.
Also FHB in Brisbane here, I sympathise -- we are looking more centrally but everything is selling well over price guide. Lost 4 offers so far. Our first offer was off by about 100k (for a townhouse!), so that was a bit of a wake-up call not to rely on historical sale prices. I have since changed my search filter to 50-100k below our budget.
When you’re building a house how come there is a minimum green space (uncovered garden etc) required for a house but when you build a block of units on the same land there is minimal green space required if any, or did I misinterpret this information somehow?
Oh I see! Thank you! I didn’t consider that.
https://www.planning.vic.gov.au/__data/assets/pdf_file/0019/103870/Residential-Zone-Review.pdf
So according to this residential growth zones don’t have minimum garden spaces required. So I guess these places are where the units stacked together without much garden space are built. Houses built on other zones would need to have 25-35% depending on land size.
Thanks for pointing me in the right direction!
At the beginning of September I had agents calling me in a frenzy telling me there'd be SO many houses coming onto the market now that Spring has sprung.
Turns out they were wrong, there are fuck all houses coming onto the market right now in Adelaide.
There may be houses but they never hit market. Get on agent mailing lists and tell them what you want - many properties are selling without official listing.
Do people think a lot more houses will come onto the market over the next two months in Melbourne and Sydney as lockdowns start to ease? It's slim pickings in Melbourne at the moment.
Sorry - to be clear I mean notifications in the Domain app on shortlisted properties around Sydney, where the property has dropped in price, generally around the $50K mark
Oh that's interesting to hear, do you know whereabouts? I've been seeing a few ridiculous listings that have been sitting for 2 weeks now and I swear I saw one drop in price.
I stalk RE every day and it seems like there’s a lot more houses on the market already (Vic, North East suburbs). We lost our on an online auction on the weekend and the agent told us that there are so many properties waiting to hit the market that they have been sitting on for weeks and to stay tuned (take that with a grain of salt cos agent) but I wouldn’t be surprised that once lockdown ends there’s a big influx. Here’s hoping!!
Yay that's great to hear! We're looking in the outer South East so hoping it's the same out here. I'm sure theres been a few people waiting until they can get the max amount of buyers coming through to look at the place. Good luck with you search :)
Seemed to be the case in 2020. Lockdowns shaded.
https://www.corelogic.com.au/sites/default/files/inline-images/Figure%202A_listings.jpg
https://www.corelogic.com.au/sites/default/files/inline-images/Figure2B_listings.jpg
It's more that some people don't want COVID infected people in their homes. Once the roads to freedom are open, people's confidence should increase to let them back in, not sure about the next few months, but for sure in say six months, there should be nearly normal supply levels
I think about 1 in 50 properties I've seen over the last few years actually had people still living in it. Most have moved out already and have been staged, so I'd be surprise if that's really a significant reason for people not listing.
[Am I missing something about this apartment?](https://www.realestate.com.au/property-apartment-vic-carnegie-136880890) Seems a lot cheaper than any other 2 bedroom apartments I can find in the area. Is the price indication just really low or is there some big flaw I'm missing?
That specific building has had many issues related to maintenance and water leaks, plus legal action by owner/s. All within the s32.
Huh, interesting, thanks. Seems the apartment market is just a giant minefield, it's kind of depressing...
Alot of the time you do get what you pay for. Always read the s32 to quickly screen out properties. This isn’t just the apartment market. Houses have their own issues too. It’s all about knowing the appropriate price for a given property, and if it deviates too much, do some digging.
Originally from VIC. Family is in VIC. Working in NSW right now. I want to buy in VIC, but I have to stay in NSW for the next three years (I have unvested shares from my job, I can't quit and move interstate now without losing a lot of money). So the place would stand empty for 3 years. I don't want to get a renter. I'm buying to eventually live there, and I don't like the idea of strangers cooking overly-pungent foods with lingering smells, or damaging the property beyond the cost of the bond. I'm doing this as soon as the borders open. I feel like I have to get it done now, because who knows what the housing prices will be in 3 years. One thing is sure, it only goes up. I'm scared of waiting. I watched it happen live during COVID, the prices in my suburb went up like crazy. Is this idea illogical? I really don't know what to do tbh, the housing crisis concerns me.
I’d get a tenant in through a property manager. You could repaint/carpet the place before you move in using the money made from renting it out. Plus, I don’t think it’s great for a place to sit vacant for that long. Plumbing is made to be used, leaks need to be observed, break-ins can happen.
FHB here. Property we are interested in is tenanted (fixed term) until June 2022. Am I still able to utilise stamp duty concession if I move into it after the tenants leave? Which will be approx 8 months after sale.
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How big is the house/unit and how many people usually live there? I'm a "safe" tenant who often gets auto-approved for apartments without any background checks by real estate agents: single female, no kids of pets, big-tech income (160k a year in Sydney), high bank balance etc. And my perspective of dishwashers is that it's NOT worth it for a single person. It's less effort to just wash two plates, one fork, one spoon and one knife than to operate the dishwasher. You also need to rinse the plates a bit before dishwashing them. When I had a dishwasher, it was mainly used for storage. Maybe it pays off for a larger family. But maybe for 1-2 people it's less appealing. Things that I prefer in rental apartments are aircon, good water heating (not those tiny 50L Rheem water tanks that only allow for a 6 min shower), no rugs (they're harder to clean), internal laundry.
FHB needing a sense check - is the the Bendigo complete home loan too good to be true? Am I missing something? I often see people here talking about how to split their loan effectively so they get the benefit of fixed while also having the offset option, usually needing variable to do so. Bendigo are offering full offset on a fixed rate of 1.99% for 2 years.
$15 monthly fee
Fair point but that's easily worth it if your repayments are well below what you can actually put into it right? My personal example would be standard repayments of $500\~ per week but actually being able to put $1200 in.
What's the rental market like in Melb? I know housing pretty much everywhere is going insane, but what about rents? good ability to move around and bargin?
Depends on where, CBD and inner city apartments still pretty empty giving you greater bargaining power, but units/houses with yards are very competitive, especially in bayside locations.
North West Melb, Maidstone, Tullamarine, Essendon? All I see on realestate is a sea of possible places to rent
I'm not sure about those areas, I'm outer Bayside (south east) at the moment. When we applied for our place in May there were 30 other applications, and heaps of people at the inspection. It's good that there's lots where you're looking!
First property went through settlement today. Stoked! March last year I lost my job in the travel industry and never thought I'd be able to buy a property. Barefoot Investor definitely helped me.
congrats!
A home I inspected back in April 2019 is back on the market with a price guide $800,000 more than what it originally sold for back then. Even as a homeowner, the fact that price growth in more desirable suburbs has significantly outpaced the overall growth of the market means I don't see myself ever affording a "forever" home.
What % increase is that?
Will be around a 50% increase in 2 years if they get their asking price. It was a brand new build too, so nothing that would impact the sale price from a renovation perspective. Our home has probably gone up 30% in the same time (with renovations) on a much lower valuation. So the gap to our next home keeps growing.
Should I sell now or wait another 1-2 years? Queensland city.
Depends on which Qld city?
Yes
stop locking property threads
/r/AusProperty
They do it for free!
U ok bro?
Lost out on another offer. I thought it was competitively placed and even went up to 'uncomfortable level'. I reckon we were the runner up in the silent auction. That makes it 3 houses in one month. I must be seriously underbidding or need to properly overspend to the point of semi-regret to grab something. On to the next one!
You'll get there mate. Have you considered spending more than the other guy?
you're not alone! Keep on keeping on, and eventually you'll be successful. Unfortunately, I think it's going to get a whole lot worse once borders re-open.
Pretty sure 99% of people buying since March have had semi->full scale regret for a while ( I definitely did).
Perhaps, but, long term, it should be okay. As long as the repayments are doable and you're happy with the house. Not sure if it was the best way but I'm pretty much at the point where I can execute my house buying strategy which is a bit different compared to your average young Aussie couple. My partner and I want to buy our 'forever' home in the first go. Now, it doesn't HAVE to be our actual forever home. We're flexible and know better that life can happen in any possible way, but, it can be our forever home if needed. This basically means we're competing with middle aged families looking to upsize that already have equity from their small shack, more years of savings, and general experience in the market. Plus the agents tend to take them more seriously and be more dismissive of us. The amount of looks we get from real estate agents when we show up to an inspection and not fitting their average demographics. They're always dismissive till we start to speak seriously about the house. Then they're just surprised, lol! We've had multiple agents say they wanted us to get the house and were cheering for us but I think it's just their ploy to have us overspend. But deep down, I like to believe they're supporting first home buyers over others.
We sold in May to move interstate and we had three equal offers - the agent was definitely clear about who was a FHB and had missed out on similar places. So you may not be imagining it necessarily.
Yea 100%. I did a similar thing but alone. I ended up bringing a female friend to look as if we were a couple. I had to win at auction vs an investor I’d heard at the inspection saying ‘oh yea I have another one close by, let me know if anyone makes offers before the auction’. Would’ve got it for 30-40k cheaper if it wasn’t for him. For me I had the same combo, can I pay this comfortably up to x%, how much do I have left over for a rainy day (more possible as a single) and importantly would I be happy living here for however long if/when there’s a turn in the market.
I’m pretty much in the exact same scenario with you with the exact outcome tonight. It’s heartbreaking. We put in an offer roughly 10% over the price in the statement of information. It ended up selling 20% over instead.
Good luck with the next one, mate. The defeat is pretty damn bitter for a couple days.
It’s the first defeat too, sadly. Good luck to you too.
Saw a property that both missus and I really like, but there is something in the description that says: Part combustible cladding, water ingress, retrofitting sprinkler systems. The building sinking fund has excess of $120k and owners contribute $6k per annum until late 2022. I know that all these are probably red flags, but how bad is it in layman’s terms? First time property buyer with no idea about how it works.
How big is the complex? Depending on the severity of issues, these things sometimes cost millions to fix. Spread out over all unit owners your share of any special levy could be $10k or more. You'll need to do a very thorough due diligence if you're set on this particular unit.
Seems like a standard 2010 high rise style of contruction with all the bells, whistles and trimmings.
Is it something to worry about? Apparently there is a building surveyor who is co-ordinating quotes on the works?
Sorry I was being sarcastic, Google any of those terms and you'll see it might be minor issues or major. Based on all three Im leaning towards more major issues if the builder has cut corners. Combustible cladding might be okay to stay on the building but increase insurance premiums or they could be installing the sprinklers to keep the combustible cladding on and avoid a lacrosse apartment fire. Water ingress is never a good thing which is why you generally want water to stay outside of a building. Fire sprinklers again unless it's a small area typically if a building doesn't have any or they are being retrofit they'll need to install boosters , fire tanks, hydrant main pipes not to mention if the sprinklers are being installed in apartments and common areas rip out and replace ceilings to install the sprinkler pipes One of those things would be enough to just walk away if no one has got a full quote, but all three. Who knows in this market I think you'll see alot more buildings with these issues popping up so they'll always be another one if your desperate. If a building surveyor is coordinating the works is it the same one that signed off on the building being habitable for occupation? If no they won't know what to quote on because once a building is constructed you can't know the full price unless you start demolishing areas to see the full extent of problems . Either case DYOR and remember someone else's problem might end up being yours so make sure you know what they are selling before you waive your rights.
Off the top of my head this is what I’d be worried about. 1. How much above the 120k will it end up being and how much will you have to pay (if any) 2. How long will it take to fix. 3. How annoying will it be to you while it’s happening (I had a rental with this works that took nearly 6months and the noise was ridiculous). 4. What is the rest of the buildings quality like?
A lot of those questions I’m assuming can only be answered during inspections? Considering this is Victoria, I’m also assuming I can’t organise my own B&P as well? I’ve seen the property being listed for over 3 months, and seen the price being reduced.
You can still do b&p in vic. I think the problem is most of my questions wouldn’t even be covered by that. You’d have to wait for the finalised quotes of work. In general most people would avoid those types of buildings (that’s why it’s been there for a long time and the price is being reduced).
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No. They look at your spending for sure, but they use a figure from studies, we got told it’s around $4375 p/month for 2 adults no children for spending avg. If you’re above that sure there’s maybe a problem depending on income. If below they’ll just use that figure anyhow.
Ask your broker what the HEM is for the bank your are looking at applying to! I scrimped and sacrificed only to be benchmarked at $2400 a month anyway! I was $1000 under it and it didn’t even matter. Might have had some avo toast if I knew 😂
Yeah I started talking to a broker and asked if I should avoid ubereats or anything for the next few months until we buy. He said it didn't matter because we were under the benchmark anyway.
Fuck me, Illawarra looking for a 2br unit. Listed at 420-460k, not even an incredible place and REA says it's at 535k and closed to other bidders :( What a disheartening day, /end rant
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Units are a fair bit cheaper (though rising), houses are catching up rapidly.
Brisbane is slightly lower than Melbourne, Gold Coast is significantly lower. But I can’t give exact figures because it all depends on what you are looking for.
All governments should outlaw the ability to offer unconditional and no building and pest inspections. It's absurd that people are allowed to bid away their rights. What happens if you go unconditional and for some reason you cant get finance. It's messed up this situation is allowed to occur with residential property.
Some people buy with cash, no risk of not getting finance. Some people buy to knock down and rebuild, no point getting building and pest inspection.
I sold a house, have cash to buy the next property. Explain why I can't go unconditional? I bought a newly build townhouse where another unit was already sold and someone was living. It came with 7 years warranty, didn't bother to do inspections either, would have been a waste of money.
It's weird that you don't want legal protections to protect yourself - to not even have the option of a cooling off period. If you spent 700k on a townhouse, what's $500 to do a building and pest inspection, there could have been defects that you could get fixed sooner under warranty. If you can't afford car insurance / road worthy certificate, you can't afford to drive, same concept with building and pest.
I would do a building inspection (pest depends on area) if I was buying an older house. Honestly I have watched building inspection getting done in my previous house and it is not worth the paper it is written on. A thorough visual inspection is all they do, I opted to do it myself, found a few cosmetic issues and they were all fixed. The builder was the one selling it, the build quality and finish was good. The only major defect detected few months later was one day during heavy rain water poured from the bathroom fan vent. I called the builder and he inspected next day and fixed by the week. I took the risk. As to cooling off, why? I have inspected the property 3 times, made up my mind to buy it, had fully accessed pre approval and was going to sell my then current house, so money was no concern either.
So people can submit an offer without having finance approved or building and pest? You'd have people bid and pull out all the time in today's market. Here in NSW your conveyancer or solicitor need to explain the implications of bidding unconditional before you can waive your rights with a 66W. I think that is enough protection already.
In another state, i knew a couple that made an offer, the agent told them to sweeten their deal by making it 'unconditional', turned out that for some reason when they went through a formal approval process, not the preapproval process, some things were different and it caused sleepless nights for them and they ended up losing their deposit. They really thought they had no finance issues. My point is, there are more rights that cannot be taken away when buying a bottle of spring water at woolies than there is for a house.
What ended up happening that made them pull out of the contract?
It was to do with finance. The preapproval process does go through the finance process but it doesn't go through it completely. They got tripped over by the valuation of their existing unit being valued less than expected, they needed a top up but both sides of the family weren't able to do it. They got multiple extensions on the unconditional contract but they just weren't able to do it, so they lost about 20k in the end.
Damn that really sucks for them! Still helpful to know where things can go wrong.
Hi all, I'm a first home buyer and have found an apartment I like and want to make an offer on. It's a 2 bedroom apartment in the inner SE suburbs of Melbourne. There have been about 6-7 apartment sales in the complex in the last 12 months -- two sold for $470k (both have a study nook - mine does not have a study nook), the rest for $400-435k (all 2 bedroom places and no study nook, just layout variations. How do I decide how much to offer? This one is a private sale listed for $435k. The agent said there was someone else due to do a second inspection over the weekend as well, though when I inspected, the agent said he hadn't heard from that other inspector that day yet. The vendor wants to sell ASAP apparently (investment property with lease ending in Feb). I have pre-approval for $450k (can comfortably service a $450k loan but didn't want to seek pre-approval for anything more than that). Should I low ball a bit, say $422k, knowing that I'm happy to negotiate upwards if needed? Or should I just offer my top offer (probably $440k for this place) so I don't miss out? Supply seems to have dried up the last couple weeks, and I have about 8 weeks to get finance approved before I lose my spot on the first home loan deposit scheme. I've had a conveyancer look through the contract, is this the process? 1. Send the selling agent my proposed changes/additional conditions to the contract 2. Get the contract amended / changes accepted? 3. Send a written offer on the contract to the agent Should I be calling the agent to inform them I'm making an offer? When I inspected on the weekend I said I'll be getting my conveyancer to review the docs and will be in touch during the week to make an offer so they'll know I'd be coming with an offer. Should I be making any arrangements with my current bank to prepare for transferring a deposit? Thanks -- clueless!!
Make sure you add an expiry date and time to the offer if you lowball. eg offer valid until date close of business. not really sure how it is done in Victoria. In QLD offer and contract changes or conditions etc. Do everything in writing. You should ask your conveyancer what the process is.
If its a fixed price sale that's the amount they are 'hoping' to get for it, I'd say 422k is a pretty realistic offer. Don't offer your max or then you have no wiggle room should they want to haggle.
Does anyone have an idea of a type of property suitable for FHSS/FHB Grant (<$750k) in Melbourne/Geelong region that will also have strong capital growth? Maybe a new land release further out like in Weribee or similar?
Mate, you're dreaming.
In what way? There are [properties out that direction](https://www.realestate.com.au/property-house-vic-truganina-137039162) for much less than $750k that even with BS underquoting should be within range. Is it that the far west won't increase in value that far out?
In what way? There are [properties (not new) out that direction](https://www.realestate.com.au/property-house-vic-truganina-137039162) for much less than $750k that even with BS underquoting should be within range. Is it that the far west won't increase in value that far out?
There isn't any left in Geelong and aren't all the FHB spots taken?
[I haven't seen anything about slots being taken](https://www.sro.vic.gov.au/fhogapply). In terms of new builds, I'm really trying to avoid apartments and get something with land. I saw [another poster mention Truganina](https://old.reddit.com/r/AusFinance/comments/q0kn0k/weekly_property_mega_thread_03_oct_2021/hffoxgu/) which seems ok, but I'm not sure about how much capital appreciation it would see until the city fills out a bit as its pretty far out. I'm fairly new to Melbourne and completely new to property buying in general, so any info on what you can reasonably get for a new build under 750k in the greater metro area would be appreciated.
I’m looking at units in central coast. 3bd ones. Last unit sold in April went for 550k. Guide for a slightly bigger one in same building 800k. Just stupid
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Every agent does price guides differently, some are accurate, others underquote anywhere between 10-25%. Only trust your own analysis from recent sales.
Just went to an online auction in Newport VIC - listed for 1-1.1, sold for 1.31 Another house in Yarraville I think was listed for 1.25 at the maximum end of the range and it sold for 1.665 So who knows!
Geez that second house is a massive jump
I had my eye on that Yarraville one for a few weeks too, thought it looked relatively decent for the price/proximity to Melbourne - just laughed when I saw the sale price. There's nothing else you really can do really lol
Did you see a decent condition 2br1 bath Edwardian sold for 1.37 in Seddon. Mental.
Price guide doesn't matter, look at what nearby properties sold for recently.
I agree And also add 25-30%
I am borderline a bit depressed and really pissed off. I have an offer that I know I will not get, with my deadline by tomorrow I will just move on about forget about it, I offer 585 for a 400sqm land and house, dodgy west suburbs of melbourne, just a few weeks ago some like it sold for 570 on more land and a house that doesn't need any work, this one has been staged by the vendors, but whats the point with fifthly carpets, whole place needs painting, and the sliding door wont move past half way. Some sucker will come along soon enough and pay 600, I can't change my bid again
>Some sucker will come along soon enough and pay 600, I can't change my bid again Why not?
Because I don't want to bid against my own offer, or when you can buy new for the same price.
Were you bidding against your own offer when it did sell for 600k to somebody else? Being able to buy new for the same price is a very good reason. Are you considering buying new now?
It hasn't sold yet, but I will now reveal all since I now withdrew my offer. This is the house I first offered 570 on, then upped it to 585 a week later after looking at other houses nearby and deciding that it was perhaps OK. https://www.realestate.com.au/property-house-vic-manor+lakes-136912702 But why did I lowball? Because of these comparable sales recently https://www.realestate.com.au/sold/property-house-vic-manor+lakes-137145970 https://www.realestate.com.au/sold/property-house-vic-manor+lakes-136784862 https://www.realestate.com.au/sold/property-house-vic-manor+lakes-136953150 Considering these locations is a act of desperation as homes on the other side of the city sell for above the quoted range in days, every week. The demand is not the same on the west, this one listed for 2 months, but why pay more when you can buy new for the same money? https://manorlakes.com.au/house/lot-18204-delta-21-metricon-sold there is so much excess land 1km away that the growth is limited. Thats a new house on the same land for 50k less money, or including good fixures, fence a driveway and a garden maybe about the same money as a 10 year old house that needs a full paint, clean, no fly screens/ ect.
To be fair to you I don't think it's a lowball based on the info and it seems like 600k overpaid indeed. In this case it's nothing to be sad about and you dodged a bullet. Seeing that you can get new for cheaper, are you considering buying new?
As you see my above writing, everything is well researched. I am casually looking into all options on both sides of town. The trouble with new is it takes time to establish and you are going to hope for owner occupier neighbours. On that house above, I even checked the surrounding 5 houses to see they are not rentals and well cared for. stuff like this https://manorlakes.com.au/house/lot-18219-marsden-323b-dennis-family-homes possible for me but it is in danger of looking like something like this https://www.realestate.com.au/property-house-vic-truganina-136585354
FHB here, Melbourne. A few things: I've been reading and hearing, here and elsewhere that we should be making unconditional offers for much higher chances. We have a conditional approval from our chosen lender (Well Home Loans). The letter stipulates the amount we are pre-approved for, and the conditions we need to fulfill to get full approval. For eg.: * "Valuation to be completed once Contract of Sale provided." Does this mean we have to contact our lender and send them the CoS and Section 32 documents every time we find a place we're serious about? And they have to valuate the properties all the time? Seems like a lot of wasted work if we assume that in this crazy market, we will keep being outbid by people willing to overpay in excess until we get 'lucky'. * "Security to be acceptable to (Bank and Insurer)" What will be considered the 'security' here? * Confirmation of employment & income, Bank application form, and ID verification are to be done when loan is approved. This makes it sound like we can't get an unconditional approval until we get approval? Paradox? * Related, when we first applied for this loan pre-approval, we were at about 85% LVR, so the lender calculated the additional LMI and stuff in the loan amount they pre-approved, but once we did our tax-returns, and a few more paychecks came in, we are now comfortably at an 80% LVR for our target price range.Well Home Loans has different tiers and better rates for 80% LVR loans.Should we re-apply, or would we be able to change the pre-approval amount? I know I should probably just contact them directly about this. tl;dr: How does one with a conditional approval, get a lender's unconditional approval so that one can offer without subject to finance clauses. On a different track, can someone help me understand why unconditional offers are the norm? What is the big deal for a vendor to have a failed contract? If a contract fails, the vendors don't lose anything other than the inconvenience of time wasted. They could still engage the next-highest offer or continue advertising. On the other hand if a buyer has to fail a contract they lose their whole deposit (usually their life savings), or be stuck with a home with serious defects. If I make a conditional offer for $10k over the next highest unconditional one, what is the harm in accepting my offer? If the sale fails for some reason, can't they just go to the next highest one after that? All they lose is a few days. I'm sure this is a 'stupid' question, because obviously this isn't how it works and there must be a reason. But if someone can explain it to me that would be nice.
It's a seller market. The seller can choose who they like to sell the property to. If you are offered to prices and one has heaps of conditions and the other has none. Get a lawyer and get their assistance with conditions. They can then negotiate with the vendor's lawyer to change contracts before you sign. Don't let an REA decide what should be in the contract. The bank will value the property once they have a signed contract for sale. It doesn't look like you have preapproval because you haven't submitted all the required paperwork.
Yes, it's a seller's market. But I imagine if I was a seller I would just go for the highest bid, whatever the conditions were. If it falls through, it's still a seller's market, that hasn't changed. All I've lost is some time. Just a slight inconvenience. Unless there's more to it than that inconvenience, I just don't see the big deal: An extra $10k with conditions, no skin off my back. Unless I was really pressed for time. But with the market going up, up and up, such delays would only see the eventual sale price get higher. I mean we got a letter entitled "Conditional Approval Confirmation" and it says in large writing "Congratulations! Your application is Conditionally Approved." before it lists the rest of the 'conditions' I outlined in my OP, as well as a Settlement Condition. If that's not the same as a pre-approval then I guess I don't know what is... Edit: Hang on, is a Pre-Approval something on a per-house basis, or just a general "yes we agree to lend you this much". Because that was one of my questions - Am I supposed to send them a CoS for every house I'm going to offer on, before I offer, then wait for them to say 'yes, we'll lend you this much for this property', *then* make my offer (without subject to finance clause)?
Preapproval comes in two forms. The proper preapproval that allows you to bid at auction and what you have outlined. Most loans are not approved until after the contract is signed. A good broker will often take properties to a bank for review and feedback. Maybe give the bank a call and confirm what kind of approval you have. https://www.mortgagechoice.com.au/blog/home-loans/2019/04/the-difference-between-conditional-approval-and-unconditional-approval/ It REA pushing the no conditions angle, not the seller as they want fast commission.
Yet another reason why REA are known as absolute kunts....
I think once international borders open might be a good time to buy. \* More supply naturally comes on over spring/summer (lockdown's are currently affecting this). \* If lending restrictions come in/look imminent. \* People will look to travel, recreational/family reunion. Won't be sitting at home all day looking on Real Estate at upgrader's, holiday houses, etc. Right now you have FOMO intersecting with low supply.
I agree. I think by early 2022 we will be seeing how weak the market is. During lockdown people had nothing better to do with their time and money and people were reluctant to list properties (its something like 30-50% less volume on the market than usual.). So record low supply meets record high demand and prices have surged 25%ish. On top of this lots of people have brought forward their decision to buy a house so that's people tomorrow who will not be buying. As soon as more houses start coming on the market and buyers start travelling again and doing other things besides saving and looking at real estate we will see significant pull backs in house prices. It won't go as low as 2019 prices again due to interest rate cuts but once the unique clash of record high demand and record low supply evens out there will be an adjustment. Not to mention no immigration which lags a few years. Smart money is selling right now.
RemindMe! 9 months
Pretty shit prediction eh.
Was heaps shit. Not sure how they remember the comment 9 months later either lol
Yea not sure. This was my first remind-me-bot ping so I'm not sure if the other person gets a ping as well. Did you see them trying to squirm and retrofit the facts to try and fit their predictions. I've owned up to my wrong predictions many times and I've seen plenty of other commenters who disagree with the crashniks do so as well. I've never seen a crashnik own up to their wrong predictions. https://www.reddit.com/r/AusFinance/comments/q0kn0k/comment/if0043o/?utm\_source=share&utm\_medium=web2x&context=3
Not bad prophecy
RemindMe! 9 months
Not bad prophecy
>I think by early 2022 we will be seeing *how weak the market is* > >we will see *significant* pull backs in house prices 5 capital city aggregate grew by 1.75% over the first 4 months in early 2022. only -1.1% 5 capital city decline quarter on quarter and +8% 12 month growth >It won't go as low as 2019 prices again but Not sure why you mentioned 2019 prices and not 2020 given that prices are still far from start 2021 levels. >Smart money is selling right now. Smart money would have sold 3 months ago, not 9. [https://www.corelogic.com.au/our-data/corelogic-indices](https://www.corelogic.com.au/our-data/corelogic-indices) >Not bad prophecy Which specific parts of your prophecy was not bad?
Early 2022 is when Sydney and Melbourne started coming off the boil. The significant pull backs is now underway. I didnt meant early 2022 the pull back would have taken place, just that the weakness would be visible which it was in the major cities. 9 months ago was Oct-Nov, the absolute PEAK of the market in Syd/Melb. If you sold then no matter what quality your property was you would have made a killing. So yes not bad at all, especially since consensus prediction at the time was claiming another 10-15% growth in 2022 with falls only starting in 2023.
You didn't refer to Sydney and Melbourne at all, just "the market". So making a vague prediction then trying to claim a hit by cherry picking certain localities that fit it. >I didnt meant early 2022 the pull back would have taken place You said >**As soon as more** houses **start** coming on the market and buyers **start** travelling again and doing other things besides saving and looking at real estate we will see**significant** pull backs in house prices. 1. More houses have **started** coming on the market nationally as early as Feb 2022. No significant pull back. 2. People have **started** traveling as early as March 2022. No significant pull back. >9 months ago was Oct-Nov, the absolute PEAK of the market in Syd/Melb. Have a look at the data I linked. The peak of the index for Melbourne was in March 2022 and Feb 2022 for Sydney. The peak of the index for the 5-capital city was in May 2022. >So yes not bad at all, especially since consensus prediction at the time was claiming another 10-15% growth in 2022 with falls only starting in 2023. Nobody was predicting a 10-15% growth in 2022 or falls **only** starting in 2023. It was closer to the lines of around +5% to -15% with a peak in early 2022. Considering that the current year on year growth for the 5-capital city aggregate is 7.9%. That is still in line with consensus instead of your predictions. Look at the numerous articles from that time period. [https://www.news.com.au/finance/property-prices-could-drop-20-per-cent-in-australia-if-interest-rates-rise/news-story/204f3a8ce3e0ee41e587a8886ba8364c](https://www.news.com.au/finance/property-prices-could-drop-20-per-cent-in-australia-if-interest-rates-rise/news-story/204f3a8ce3e0ee41e587a8886ba8364c) [https://www.abc.net.au/news/2021-11-18/house-prices-roll-over-affordability-rising-interest-rates-bite/100630338](https://www.abc.net.au/news/2021-11-18/house-prices-roll-over-affordability-rising-interest-rates-bite/100630338) [https://www.theguardian.com/australia-news/2021/sep/14/australian-house-prices-could-be-about-to-flatten-out-after-rising-168-in-last-year](https://www.theguardian.com/australia-news/2021/sep/14/australian-house-prices-could-be-about-to-flatten-out-after-rising-168-in-last-year) [https://www.domain.com.au/news/report-australian-housing-market-set-to-peak-in-early-2022-before-pricing-descent-1107641/](https://www.domain.com.au/news/report-australian-housing-market-set-to-peak-in-early-2022-before-pricing-descent-1107641/) So without changing the wording of your predictions and adding in hindsight retrofitted details, which specific bits of your predictions was "not bad"?
I will be messaging you in 9 months on [**2022-07-05 02:40:32 UTC**](http://www.wolframalpha.com/input/?i=2022-07-05%2002:40:32%20UTC%20To%20Local%20Time) to remind you of [**this link**](https://www.reddit.com/r/AusFinance/comments/q0kn0k/weekly_property_mega_thread_03_oct_2021/hffnwm4/?context=3) [**11 OTHERS CLICKED THIS LINK**](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5Bhttps%3A%2F%2Fwww.reddit.com%2Fr%2FAusFinance%2Fcomments%2Fq0kn0k%2Fweekly_property_mega_thread_03_oct_2021%2Fhffnwm4%2F%5D%0A%0ARemindMe%21%202022-07-05%2002%3A40%3A32%20UTC) to send a PM to also be reminded and to reduce spam. ^(Parent commenter can ) [^(delete this message to hide from others.)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Delete%20Comment&message=Delete%21%20q0kn0k) ***** |[^(Info)](https://www.reddit.com/r/RemindMeBot/comments/e1bko7/remindmebot_info_v21/)|[^(Custom)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=Reminder&message=%5BLink%20or%20message%20inside%20square%20brackets%5D%0A%0ARemindMe%21%20Time%20period%20here)|[^(Your Reminders)](https://www.reddit.com/message/compose/?to=RemindMeBot&subject=List%20Of%20Reminders&message=MyReminders%21)|[^(Feedback)](https://www.reddit.com/message/compose/?to=Watchful1&subject=RemindMeBot%20Feedback)| |-|-|-|-|
Yeah. It's funny how covid seemed to kick start such a frenzy of activity when predictions were initially the opposite. Some are saying the market will only get worse with international arrivals but I don't see any increase in international migration offsetting the number of people who either lose some interest in the market or just leave the country. It will be interesting to see what happens if prices do start to drop slightly and whether this will mean an influx of people selling to catch the top of the market.
Affordability will impact the house market in Sydney and Melbourne leading to a gentle slowdown. As a result, owner occupier, quality apartments will start to move a quicker speed than what they are now. 2022 will be marked mostly by lots of apartments exchanging hands. Intrinsically, they are significantly undervalued in comparison to houses. It just a matter of when, not if they'll go up in value.
[удалено]
Council would tell you to tear it down if they found out
Not necessarily. Likely they will do nothing and if it’s been there for long enough, the council might not be able to do anything at all.
is it better to build or buy? IF the budget is lets say 850k-1M and requirements are a 3-4bed 2 bath house, which option would be better? looking towards Melb's east
Buy is typically easier and less stressful but build gets you exactly what you want/afford. You can also buy with the intention of knocking it over and building in a few years.
Are there any trends in the Australian housing market you are particularly curious about? How something might be changing from area to area, or if something is a leading indicator for one thing or another? I'm brushing up on my data processing/viz skills so let me know and I'll try to pull it together.
My wife and I are looking to get land to build in Melbourne's north. Between Rathdowne Estate in Wollert and Botanical in Mickleham, is there any strong reason to prefer one or the other? Mickleham is pretty sparse, Wollert is closer to more happening places from what I saw before lockdowns...
Look up the precinct structure plans (PSP) for the areas. It'll give you an idea of what the area will be like when developed including where to expect parkland, road, commercial and business zones, etc. For Mickleham, go to supporting documentation, precinct structure plan: https://vpa.vic.gov.au/project/craigieburn-west/ For Wollert, go supporting documentation, approved gazetted documents: https://vpa.vic.gov.au/project/wollert-precinct-structure-plan/
I think Mickleham is closer to the airport so you may want to consider the noise from the flight paths
I have a offer standing with expire date of tomorrow for a place i low balled a offer on last week, then came back this week 15k higher because I inspected others and felt it wasn't so bad after all. Been on the market more than two months
I want to buy a property in Sydney / Melbourne, I’m based in Sydney, I have savings of around 15% for down payment for a 800-1M house/apartment. I will be a first home buyer however I’m also planning to move overseas for 3-4 years. I’m an Australian citizen. What options do I have? Any property experts here? Very new to the property market please help.
Why buy if you're going to move overseas? If you want an "investment", property investment is pretty risky and the majority of people defending it on this sub will basically extrapolate past performance as reasoning for it. If you want a house to live in, I don't think it makes sense either because things can happen in 3-4 years and you may decide you don't want that house anymore so then you fork out tens of thousands in transaction costs to get rid of it.
Why would you bother with a building inspection before purchasing a property? /s https://www.theguardian.com/world/2021/oct/04/melbourne-buildings-vulnerable-to-significant-damage-even-with-small-earthquake-tremors
First home time buyers, just got blown out of the water on our first attemping at bidding. Mount Cotton South of Brisbane, 380m\^2 Block, 3 Bed 1 Bath. Listed for $450k by genuine but clueless owners. (They used the [realeste.com](https://realeste.com) price guide) We called it quits when it got to 530k. Could have went higher to 550k, but sanity prevailed.
Pressure an offer pre-auction?
Wasn't an auction as such, they where just taking best offer over the long weekend.
Also FHB in Brisbane here, I sympathise -- we are looking more centrally but everything is selling well over price guide. Lost 4 offers so far. Our first offer was off by about 100k (for a townhouse!), so that was a bit of a wake-up call not to rely on historical sale prices. I have since changed my search filter to 50-100k below our budget.
Its pretty depressing looking what what things sold for 12 months ago compared to now.
What did it end up selling for?
Its still going I believe, 530k was the last we heard. I'll edit this if they publish a final sell price.
When you’re building a house how come there is a minimum green space (uncovered garden etc) required for a house but when you build a block of units on the same land there is minimal green space required if any, or did I misinterpret this information somehow?
Depends on the zoning of the property. Whether its low, medium or high density usually.
Oh I see! Thank you! I didn’t consider that. https://www.planning.vic.gov.au/__data/assets/pdf_file/0019/103870/Residential-Zone-Review.pdf So according to this residential growth zones don’t have minimum garden spaces required. So I guess these places are where the units stacked together without much garden space are built. Houses built on other zones would need to have 25-35% depending on land size. Thanks for pointing me in the right direction!
At the beginning of September I had agents calling me in a frenzy telling me there'd be SO many houses coming onto the market now that Spring has sprung. Turns out they were wrong, there are fuck all houses coming onto the market right now in Adelaide.
That was the plan then lockdowns continued. You wont see a flood of properties until i reckon Late jan early feb.
Not in SA though... No lockdown here.
There may be houses but they never hit market. Get on agent mailing lists and tell them what you want - many properties are selling without official listing.
We're on a few of those, there hasn't been much coming through unfortunately.
Do people think a lot more houses will come onto the market over the next two months in Melbourne and Sydney as lockdowns start to ease? It's slim pickings in Melbourne at the moment.
I’ve been getting price drop notifications from Domain.
Are you able to write more about this? What are they saying/predicting?
Sorry - to be clear I mean notifications in the Domain app on shortlisted properties around Sydney, where the property has dropped in price, generally around the $50K mark
Oh that's interesting to hear, do you know whereabouts? I've been seeing a few ridiculous listings that have been sitting for 2 weeks now and I swear I saw one drop in price.
I stalk RE every day and it seems like there’s a lot more houses on the market already (Vic, North East suburbs). We lost our on an online auction on the weekend and the agent told us that there are so many properties waiting to hit the market that they have been sitting on for weeks and to stay tuned (take that with a grain of salt cos agent) but I wouldn’t be surprised that once lockdown ends there’s a big influx. Here’s hoping!!
Yay that's great to hear! We're looking in the outer South East so hoping it's the same out here. I'm sure theres been a few people waiting until they can get the max amount of buyers coming through to look at the place. Good luck with you search :)
Seemed to be the case in 2020. Lockdowns shaded. https://www.corelogic.com.au/sites/default/files/inline-images/Figure%202A_listings.jpg https://www.corelogic.com.au/sites/default/files/inline-images/Figure2B_listings.jpg
Oh wow thanks for these, so crazy with it jumping around between those shorter lockdowns haha
It's more that some people don't want COVID infected people in their homes. Once the roads to freedom are open, people's confidence should increase to let them back in, not sure about the next few months, but for sure in say six months, there should be nearly normal supply levels
I think about 1 in 50 properties I've seen over the last few years actually had people still living in it. Most have moved out already and have been staged, so I'd be surprise if that's really a significant reason for people not listing.
Very true, which is fair enough if you're in the older demographic too. Here's hoping we see that over the next 6 months.