Housing market 2021

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Jordie_tackles said:
That is more why it is there? I’m saying why lower the buffer just reduces the contingency if rates go up again and people have borrowed more.
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The buffer was raised to 3% during the pandemic when the cash rate was next to nothing, before that the rate was 2-2.5%. Given the cash rate has started to normalise it makes sense to reduce the buffer back to what it was also.
 
Nuggs Bunny said:
The buffer was raised to 3% during the pandemic when the cash rate was next to nothing, before that the rate was 2-2.5%. Given the cash rate has started to normalise it makes sense to reduce the buffer back to what it was also.
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Fair enough, to me it should be left alone (in the first place) it is basically manipulation the cash rate as you are lifting or reducing borrowing capacity. Which is what the RBA do when they set the cash rate. I am probably in the minority with this opinion.
 
Jordie_tackles said:
Fair enough, to me it should be left alone (in the first place) it is basically manipulation the cash rate as you are lifting or reducing borrowing capacity. Which is what the RBA do when they set the cash rate. I am probably in the minority with this opinion.
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Maybe we have someone across what the lenders have in their margin on residential loans.
If I was lending the money, the ability to repay would be very important.
 
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
 
Plugger46 said:
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
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That’s too tight imo. I’m surprised you got a loan with that.

If you’re open to a room and you can get that up to $1k with the rent then that’s ok. I’d allow another 1% of rate rises as a contingency
 
Plugger46 said:
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
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Any assets you can sell ? Second job, nights/weekends.
Cheaper ale?
Never shared accomodation? Its a compromise. Like a fridge at work when the a-hole or two/three.
 
Kwality said:
Any assets you can sell ? Second job, nights/weekends.
Cheaper ale?
Never shared accomodation? Its a compromise. Like a fridge at work when the a-hole or two/three.
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I'd personally have to sell other assets down the bottom of the list.

Could be a case of weekend Uber driving vs a housemate, I'd probably land on a housemate there.

What about renting the whole place out for 2 years while renting a cheaper place for yourself?
 
Plugger46 said:
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
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Just grind mate.

It will suck but do UBER eats or UBER.
Pick up a second job.
Collect bottles and cans.
Cut expenses
Appen online work
Mow lawns
If you’ve got a ute do deliveries
If you got any skills run a small business

Cleaning
Dog walking

Speak to your bank and say your in mortgage stress
Sell unwanted goods
 
Plugger46 said:
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
Click to expand...

Might not be as fun, but I think getting a housemate will be the least stressful way to deal with it. At least until interest rates go back down, or you find yourself in a better financial position.
 
Housing market is fine.
The issue is 2 fold

Firstly, people wanted to either live close to the cbd, or wanted bigger homes. A 3 bedroom home most grew up in would be suffice. In my estate alone (first stage only built 2 years ago) there has been 3 houses on the market for 6 months without an offer, all 3 beds.

Secondly, people borrowed far more than they could afford. My wife and I borrowed 350k. Our borrowing power was 700k. It's a basic home but it's a first home.
Some of the borrowing is on the banks who encouraged larger loans, but very few people were smart about their borrowing
 

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Mitchell Madness said:
Secondly, people borrowed far more than they could afford. My wife and I borrowed 350k. Our borrowing power was 700k. It's a basic home but it's a first home.
Some of the borrowing is on the banks who encouraged larger loans, but very few people were smart about their borrowing
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Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
 
ash_1050 said:
Congrats mate, have got settlement for my place coming up June 26th so I completely understand the feeling.
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Thanks mate - if you're anything like us you'll be happy to see the back of all this paperwork!
 
Engimal v3 said:
Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
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Smart choice incase rates keep increasing.

Got mine cheap 3 years ago. I decided to go a bit higher I’d be under water right now!!
 
Engimal v3 said:
Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
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Many (myself included) can fall into the trap of buying too much house and sacrificing too much of the short-term (family holidays while kids are little etc).
If you picked what you need and a lot of what you want for 530k, you've done well.

We're also in a period of normalizing interest rates, the current run is more likely the floor than the ceiling, in my opinion. People are realizing that cheap credit causes bubbles.
 
Plugger46 said:
I've got 24 hours before my cooling off period ends my rate will be 5.9% over 2 years my average left over per week will be around $$530-560

i work full time

I'm just unsure if $560 is doable. I obviously need money for food and other expenses like petrol and beer (lol) but i also need to save money if something goes wrong with the house or my car

Really battling with this decision. I like the idea of renting a room out but i thing its fair enough to be picky on who. i don't want any random

Thoughts everyone?
Click to expand...
Dude, I'm exactly in the same position.

Just sold my house and bought another one at the lower to mid end of the market. The houses in the low end were in problem suburbs.

I'm faced with a difficult situation.

Put down 20% deposit and avoid the 12 K LMI and have limited funds left over that I need
put down a 12% deposit and pay the LMI but have more flexibility with future expenses.

Either way I need to make sure my expenses are sustainable. (I can't be losing money)

What pisses me off with the RBA is they're going to ******* send the country into a recession which is what they did last time, and then drastically lowered rates. Why the hell are they being so aggressive.

To put into perspective when my finance settles I'll hopefully get a 3 year fixed rate at 5.7ish%. Even with a modest mortgage I'll potentially be up for as much as $500/wk in repayments. Even with very tight spending I'll have * all money for anything at all. I'll be restricting energy use, eating budget meals, never going out, never spending money because I just won't have any left over. The only money left over will be for my footy membership. I'll have to cancel my gym membership.

I'll have to consider a boarder but that's potentially going to bring about new problems for my situation.

My question is how the * are people able to spend money? Are they going further into debt with credit cards and personal loans because I cannot work out how people can be paying $700 a week on a mortgage for a $500k loan

The RBA is being absolutely reckless.
 
Engimal v3 said:
Same here - we got pre-approved for $700k but ended up buying for $530k. There's a lot of piece of mind knowing that we won't be locked into mortgage hell.
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The problem is even with a modest mortgage the high interest rates are a real ******* drain.

I bought one of the more affordable properties the same price as the one I just sold. Anything cheaper was either a wreck or in a dodgy neighborhood.
 
Purple7x08_24 said:
Dude, I'm exactly in the same position.

Just sold my house and bought another one at the lower to mid end of the market. The houses in the low end were in problem suburbs.

I'm faced with a difficult situation.

Put down 20% deposit and avoid the 12 K LMI and have limited funds left over that I need
put down a 12% deposit and pay the LMI but have more flexibility with future expenses.

Either way I need to make sure my expenses are sustainable. (I can't be losing money)

What pisses me off with the RBA is they're going to ******* send the country into a recession which is what they did last time, and then drastically lowered rates. Why the hell are they being so aggressive.

To put into perspective when my finance settles I'll hopefully get a 3 year fixed rate at 5.7ish%. Even with a modest mortgage I'll potentially be up for as much as $500/wk in repayments. Even with very tight spending I'll have * all money for anything at all. I'll be restricting energy use, eating budget meals, never going out, never spending money because I just won't have any left over. The only money left over will be for my footy membership. I'll have to cancel my gym membership.

I'll have to consider a boarder but that's potentially going to bring about new problems for my situation.

My question is how the * are people able to spend money? Are they going further into debt with credit cards and personal loans because I cannot work out how people can be paying $700 a week on a mortgage for a $500k loan

The RBA is being absolutely reckless.
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Some of the people I know in Melbourne recently purchased in past 6 month were at $5,000 p/m in repayments which was absolutely eye watering to live under that much debt.

Even with 2 solid incomes it’s difficult to fathom how you can live a relatively ‘normal’ life paying that much for a family home.
 
My mortgage has gone up from $5.5k pm to $9k pm! Rates are doing what they’re meant to thought, we’ve cut back our spending

Problem is, only 30% of Australia has a mortgage and only half of those have one with an LVR above 60%. Increasing rates isn’t impacting enough people. I’d increase compulsory super payments. Cuts everyone’s disposable income without lining the banks pockets
 
Lyyynnnchy said:
My mortgage has gone up from $5.5k pm to $9k pm! Rates are doing what they’re meant to thought, we’ve cut back our spending

Problem is, only 30% of Australia has a mortgage and only half of those have one with an LVR above 60%. Increasing rates isn’t impacting enough people. I’d increase compulsory super payments. Cuts everyone’s disposable income without lining the banks pockets
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The RBA is applying a broad measure to curb inflation and it's hurting the most vulnerable. Problem is a lot of boomers are cashed up. Rents are going to keep going up, more and more people are going to be living on the streets, starving and going without essentials. Reason being is there is a massive shortage of houses and the poorest will be pushed out by people able to pay more.

Tell me how someone can survive paying $600 a week rent. Even $75K income would struggle. So someone who earns a basic $23/hr wage where are they living?
 
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