Real Estate melt down

[Guest Guest5035]

The markets falling big time in places, people paid big $$ a while ago and are now losing and theres no buyers, buying a house now is a good time.

 

http://www.adelaidenow.com.au/property/news/real-estate-slowdown-forces-massively-rediced-prices-at-newport-quays/comments-e6frefgc-1226102335738

 

Stevo

[Guest domjcw]

The advertiser piece is about a specific apartment development. But house prices have dropped pretty much across the board. It is a good time for those entering the market in Adelaide for the first time such as new arrivals. We have just bought a place (discounted 20 percent from the original asking price). Hopefully the market will not fall too much further

[Guest Asil]

Why is it a good time in a falling market?

[sueoc]

Yes,we just bought one,and moving in Friday.Must say though,there's still plenty asking daft prices,even those going up for sale this week(just been looking)That coupled with Agent's bullshiit about how it is about to sell this week if you don't put an offer in quick and other tall stories,it still makes buying a minefield if you rush in.My advice is decide what you would pay for one you like,put your offer in,and leave it at that,'cos you can be sure the Agent will try and bump you up.He's working for the Vendor,not you.There's plenty to choose from.

[Guest Asil]

good advice

[Anne B]

We had a flyer in the letter box a few weeks back trying to sell these apartments at massive discounts. Also a few months back there was a auction of a number of flats in a new block at West Lakes that were being sold off cheap. The same is happening in the Gold Coast and Melbourne - they are building too many apartments. In this area there are loads of 2 on a block (1 and 2 storey) new houses being built or just recently up for sale. The market is getting saturated with them and prices are going to have to fall. A lot of people who thought they were going to get rich quick are going to be disappointed. One development in Grange of 3 courtyard homes on a block have been up for sale for months. The vendors have at long last slashed $100,000 off the asking price of each house but they still haven't sold. It's a good time to buy but it might be even better to wait......

[Guest Guest5035]

Be happy with the house and then be happy with the price, or wait and lose it.

 

stevo

[Guest monkey-74]

How hard is it to get a mortgage as we won't have any history and only about a 10% deposit.

[Guest teamV]

Were hoping the drop in house prices ,will make the pain of the raising Ozzy dollar,a bit easier.

[trevorpayne]

The housing market will correct itself and keep falling until first time buyers can afford to buy.

If 1st time buyers cant buy then the next person can not move up the rung of the ladder.

As it is becoming a buyers market then the offers made will be 15- 20 % lower than the asking price and if it stays this way then expect house to fall upto 25-30% over the next 2-3 years.

[sally1968]

How hard is it to get a mortgage as we won't have any history and only about a 10% deposit.

 

 

Not sure about how hard it will be and it will depend on whether you are working for an employer or self-employed. If you are working for an employer and have wages slips etc to verify your income you can borrower to 90% of the properties value but you will have to pay mortgage insurance and this can be hefty!! This is an insurance to cover the bank for lending at above the usual 80% threshold if the property sells at a loss.

 

If you are self-employed and cannot verify your income with sufficient proof you will only be able to borrower a maximum of 80% but this will again attract mortgage insurance. If you don't pay the M.I. most lenders will only go to 60% in this situation.

 

I work for a bank so am only talking generally in relation to who I work for but believe it is the same for most lenders.

 

Hope this helps

[Guest monkey-74]

Not sure about how hard it will be and it will depend on whether you are working for an employer or self-employed. If you are working for an employer and have wages slips etc to verify your income you can borrower to 90% of the properties value but you will have to pay mortgage insurance and this can be hefty!! This is an insurance to cover the bank for lending at above the usual 80% threshold if the property sells at a loss.

 

If you are self-employed and cannot verify your income with sufficient proof you will only be able to borrower a maximum of 80% but this will again attract mortgage insurance. If you don't pay the M.I. most lenders will only go to 60% in this situation.

 

I work for a bank so am only talking generally in relation to who I work for but believe it is the same for most lenders.

 

Hope this helps

 

Thanks for the reply

I asked as we live here and both work no dependants no debt here or uk and the banks have turned us down for our visa (SS) and now our credit check. It is getting very frustrating and disheartening.

[Guest Guest5035]

http://www.adelaidenow.com.au/money/home-values-fall-further-in-june-rp-data-rismark-hedonics-value-index-reveals/story-e6fredkc-1226104301610

 

more news

 

stevo

[Anne B]

Adelaide has the 3rd largest drop at 3.1% in the country (click on the chart to get it larger)