Entering The Housing Market Part 2

[FlyingHigh]

Now that's not true of everyone but if you speak to an Agent that's what they will tell you is driving some of the perceptions about housing affordability.

And not their greed or ego's?

[Psyber]

Yes Punky, I think you, Hondo, and I are saying much the same from different angles. I agree with Hondo, that expectations are a factor. The house my father bought was a 2 -bedroom job and abit run down, and the biggest room was 15 feet by 14 feet. The laundry at the back was converted to a third bedroom and a back lobby/verandah was then enclosed to form a laundry. The kitchen was tiny, perhaps 9 feet by 7 feet.

The big negative change is that even in Adelaide the average priced home is further from the city, and you pay relatively more to get closer. But that is a function of the size of the city. On the net the other day I spotted a 4 bedroom house on 140 hectares for under $200,000, but it was in a remote part of the Snowy Mountains. It looked quite pretty but the heating and fuel costs would kill you!

[Psyber]

Now that's not true of everyone but if you speak to an Agent that's what they will tell you is driving some of the perceptions about housing affordability.

And not their greed or ego's?

Every seller and every salesman on commission is of course pushing for the best price. I'm about to join them!

[MagicKiwi]

And don't forget the things we have to have inside the house also. We moved across the ditch to a full dump of a house in what was then a dump of a suburb called Prospect. Paint peeling off the walls, you had to light the shower with a match, loo outside, no airconditioning or heating. After three years, my parents bought into the suburb as it was close to North Adelaide where they both worked and so the family home was a street away from the NAFC.

These days there is an expectation that the dish washer will be in place, ducted reverse cycle airconditioning, garaging and cover for as many cars as you can fit in the driveway, close to all facilities, etc, etc. If the baby boomers are guilty of anything, it's giving their children a better life than they had as far as living conditions.

My baby boomers sold the family home and nicked off in motorhome two and a half years ago. I hope they're spending every cent of the inheritance!

[rogernumber10]

I'd hate to be starting out now, but I'm sure there were plenty of home owners saying the same when we first entered the market.

That's spot on Ian ..

In 2011 there'll be a thread on SAFooty where people will be saying how lucky they were that they bought in 2008. And ditto, 3 years after that.

Agree entirely. We bought in 95 in Melbourne and lost out quite badly on the sale in SA back then. Was a struggle for a few years and spent so much time stressing about it. Going okay these days and house re-valued now about three times what we paid (extension of the burwood tram line for five kms past our joint has had a massive impact on our area). Still wonder how my kids will be able to buy and it's our view we will be in the house until they leave, since it costs so much before you even start to sell (commission) and buy again (stamp duty). Been cheaper to just renovate and extend in here, compared to move.

[smac]

We did the same Rog, an extension and renovation over the past 4 years has seen our place double in value and keep up with the growing family.

Long term residence now.

[Dog_ger]

Just Buy.

Hang on for as long as you can.....

Stop listening to BAD.

Everything is GOOD.

[Psyber]

Just Buy.
Hang on for as long as you can.....
Stop listening to BAD.
Everything is GOOD.

Essentially true. Whenever you get in you'll come out on top in the long run. The only thing at the moment is that it looks like interest rates are going to keep rising and when they get high enough resale values will drop temporarily. That won't matter so long as you have the income margin to keep paying the loan through the high rate period until things settle down again..

[Rushby Hinds]

Every seller and every salesman on commission is of course pushing for the best price. I'm about to join them!

Not true.

Why would a salesman worry about an extra $500 commission if he could close a sale at a cheaper price today, or have the house linger for another few months on the books for the last few $$$.

[Psyber]

Every seller and every salesman on commission is of course pushing for the best price. I'm about to join them!

Not true.

Why would a salesman worry about an extra $500 commission if he could close a sale at a cheaper price today, or have the house linger for another few months on the books for the last few $$$.

Yes you have a point there - some may not.

The agency I bought my present house from didn't actually like their vendor, who was hard to get on with and argumentative, and they wanted to get rid of him, and it was just before Christmas, so they let me beat them/him down by over $130,000 on the original asking price put up four months earlier at the beginning of the last minor price slump in Victoria a few years ago. And he took it because he had to settle on a new house within a month. That was significant commission given up at 3%.

I'll give the selling job to the other local agent I know who wouldn't deal with that vendor on past acquaintance, and told me all this, and to buy it if I could beat them down, by about $80,000 in the current market. He sold my previous place very well at the beginning of the same slump. I'm confident he'll get me every dollar he can, even though I am tight about commission. [My sister was in Real Estate in SA for many years.]

[Incidentally, for my old mate Andy, the unpopular vendor was a lawyer. ]