Australia housing bubble

[MITCHAY]

Originally Posted by zilo

ANZ raises mortgage rates out of the RBA cycle by 60 basis points.


It's over 6% for almost any mortgage.

wow....how does anyone pay a 700k mortgage now?

Luckily I borrowed less than half that but I've gone from $300 to $500 per week so can only imagine.

I'm at 6.52%. Asked the broker to knock it back into the 5s as comparable product is mid 5s if I were to refinance.

Let's see how that goes but you ask for nothing you get nothing

[T3rminator]

Originally Posted by zilo

ANZ raises mortgage rates out of the RBA cycle by 60 basis points.


It's over 6% for almost any mortgage.

wow....how does anyone pay a 700k mortgage now?

According to ANZ's website, their standard variable for 80% LVR, with offset, is 6.99%, so if you are getting 6% you are doing well, that "out of cycle" may have been catch up.

How does one pay a mortgage that size? Easy. Cut down on the smash avos and ask those who survived the early 90s for advice.

Originally Posted by MITCHAY

Luckily I borrowed less than half that but I've gone from $300 to $500 per week so can only imagine.

I'm at 6.52%. Asked the broker to knock it back into the 5s as comparable product is mid 5s if I were to refinance.

Let's see how that goes but you ask for nothing you get nothing

That's a pretty good rate. When I fall off that cliff at end of July, I'm staring at 7%. Got my broker onto it now though.

[Citroënbender]

The imported crowd are going absolutely gangbusters in my area again now, it’s almost at the point where you’re afraid to leave the house in case they demolish it “by accident” while you’re at the shops. No council oversight worth a cracker, no notifications, no footpath permits or pedestrian measures, just the Wild West all over again.

[Charliewool]

Great time to be considering a career as a mortgage broker?

[Itsme]

I live out near the western suburbs of Melbourne, and I can assure you house building is going gang busters to the number of new homes popping up daily, interest rate hikes don't seem to be slowing anything down as to what I see.
Plenyt of McMansions being built in the mix.

[Yellow_Festiva]

Originally Posted by fordomatic

Yellow has been sharing his wisdom for years, not just on the housing market either, he's a legend.

Thanks heaps, reading this has made my weekend

Originally Posted by Citroënbender

A shout-out to Yellow Festiva, I think he darned near picked Sydney’s bottom perfectly and his comments on deposit rates are coming true as well. Not everyone in his position would have chosen to share their insights so freely but I for one have appreciated seeing how well focused they were.

Thanks heaps once again, greatly appreciate the kind words

[Citroënbender]

Not sure if it’s a correct perception, but the last few weeks it seems there’s been less use of late night Uber rides in my area, and on the roads generally less food delivery scooters/bikes throughout the day. Are people actually trimming a little fat from their spending, or is it just a seasonal lull?

[kevino]

Originally Posted by Citroënbender

Not sure if it’s a correct perception, but the last few weeks it seems there’s been less use of late night Uber rides in my area, and on the roads generally less food delivery scooters/bikes throughout the day. Are people actually trimming a little fat from their spending, or is it just a seasonal lull?

I do a bit of gig work for Door Dash - its very quiet. Breakfast market down 70 per cent lunch dinner guessing 30-40 per cent.

To be expected if your rent or your mortgage payments increase you have to cut back.

[zilo]

Originally Posted by Charliewool

Great time to be considering a career as a mortgage broker?

One of my sons did it 5 years ago...now on a shed load of money.

[zilo]

Originally Posted by T3rminator

According to ANZ's website, their standard variable for 80% LVR, with offset, is 6.99%, so if you are getting 6% you are doing well, that "out of cycle" may have been catch up.

.

yeah knew that...was going to say 7% but the trolls would have a feeding frenzy

[MITCHAY]

3 business days and not even an acknowledgement of my email. Not even a "yep we are on it"

Bloke at work shows me email from his broker where they automatically reviewed it and got him a cut without even asking

See what they come up with eventually but based on last time I'm not optimistic and maybe should kick em to the kerb and go back to my old broker since the restraint of trade is over.

[MITCHAY]

Originally Posted by MITCHAY

3 business days and not even an acknowledgement of my email. Not even a "yep we are on it"

Bloke at work shows me email from his broker where they automatically reviewed it and got him a cut without even asking

See what they come up with eventually but based on last time I'm not optimistic and maybe should kick em to the kerb and go back to my old broker since the restraint of trade is over.

7 days and nothing... They better come back big to make up for this total **** service considering they get paid for it.

Maybe I scared them too much with my expectations

[T3rminator]

Originally Posted by MITCHAY

7 days and nothing... They better come back big to make up for this total **** service considering they get paid for it.

Maybe I scared them too much with my expectations

Poor form, but your broker is probably getting 10,000 requests per day . The cliff is coming!

Just got a note from my bank saying I'll be moved on to 6.4 when I fall off that cliff, and that's apparently with a "loyalty discount". My broker has already found me 6.1 with another couple of banks, both with cashback offers that is hard to refuse. I thought banks had stopped with the cashback offers, but apparently its still going.

[zilo]

With other countries raising 50 basis points last week,
I am tipping another RBA increase next week.

Aus rates are amongst the lowest in the world....still

[b0son]

Originally Posted by zilo

Aus rates are amongst the lowest in the world....still

Aus private debt is amongst the highest in the world, so there's that.

[hackney]

Originally Posted by zilo

With other countries raising 50 basis points last week,
I am tipping another RBA increase next week.

Aus rates are amongst the lowest in the world....still

Nope.August at the earliest. 1 in 4 chance of them being raised.

[hackney]

Originally Posted by b0son

Aus private debt is amongst the highest in the world, so there's that.

Correct, we are well in the top ten, around 5th to 7th position.

[T3rminator]

Monkey see no monkey does.

13 rises and barely makes a dint in inflation. Let's go for 20.

[raised by monkeys]

Originally Posted by T3rminator

Poor form, but your broker is probably getting 10,000 requests per day . The cliff is coming!

Just got a note from my bank saying I'll be moved on to 6.4 when I fall off that cliff, and that's apparently with a "loyalty discount". My broker has already found me 6.1 with another couple of banks, both with cashback offers that is hard to refuse. I thought banks had stopped with the cashback offers, but apparently its still going.

ME bank are offering 5.58% for anyone interested, with a 2k cashback that will cover transfer charges. At least that was offered to me by my broker.

[Citroënbender]

They’re offering pretty good term deposit rates as well. Almost to the point where I wonder if it’s sustainable.

[LG17]

We are lucky with our home loan. We locked it in before the pandemic at 2.54% until the end of 2025. Hopefully it should be paid out by then.

[Polyal]

Well we are potentially in the market in the next 6-12 months so I may just hold out renting for a bit longer to see how things fall out around the end of the year. Maybe even wait to the end of next year at worst.

@Zilo you are correct, most of the new builds are rubbish in my opinion so we would most likely opt for something from the 80's/90's.

For us the entry level is 700-750 and I just dont see the quality at all.

[hackney]

Originally Posted by Polyal

Well we are potentially in the market in the next 6-12 months so I may just hold out renting for a bit longer to see how things fall out around the end of the year. Maybe even wait to the end of next year at worst.

@Zilo you are correct, most of the new builds are rubbish in my opinion so we would most likely opt for something from the 80's/90's.

For us the entry level is 700-750 and I just dont see the quality at all.

In that price range there is not that much around, they are pretty well entry level homes. Not only that the market is on the rise again.

[roKWiz]

Originally Posted by hackney

In that price range there is not that much around, they are pretty well entry level homes. Not only that the market is on the rise again.

I guess that would depend on where you are looking. But agree most new builds are shockers.

[hackney]

Originally Posted by roKWiz

I guess that would depend on where you are looking.

Every state is on the rise, there is just no way of avoiding it, all the major capitals are experiencing it. I have to disagree on new builds, we bought last year, cannot fault the home, very well built, quality inclusions.7.2 star energy rating.

[roKWiz]

Originally Posted by hackney

Every state is on the rise, there is just no way of avoiding it, all the major capitals are experiencing it. I have to disagree on new builds, we bought last year, cannot fault the home, very well built, quality inclusions.7.2 star energy rating.

Yeah Ok, as long as you're happy with it.
I tend to look beyond the pretty finishes, and look at timber frame quality, slab construction and ground work but that's just me being in the construction industry.

Funny how when you mention "depends on where it is" and everyone assumes you are talking about cities. Not everyone wants to live in the cities.

[hackney]

Originally Posted by roKWiz

Yeah Ok, as long as you're happy with it.
I tend to look beyond the pretty finishes, and look at timber frame quality, slab construction and ground work but that's just me being in the construction industry.

Funny how when you mention "depends on where it is" and everyone assumes you are talking about cities. Not everyone wants to live in the cities.

Obviously the further you go out, it tends to be cheaper. But, more often than not if that own is say only an hour or less away(commuter belt) prices tend to follow that city upwards, not all the time mind you.We experienced that when we moved ,nearly doubled our price in 7 years. I can fully understand you looking @ ‘quality’ of a build.But the majority of homes we looked at were of pretty high quality.The worse home we owned wax’s on acreage quite a few years back.’Beechwood’ home.Finishes we’re very, very average.Painting was truly awful.But other than that quite a solid home.It has just been sold in the last month or so for 1.35 mill.(we only paid $520,000 for it)A lot of work has been done to it,changing layout etc…Very, very good job by them.

[roKWiz]

Originally Posted by hackney

Obviously the further you go out, it tends to be cheaper. But, more often than not if that own is say only an hour or less away(commuter belt) prices tend to follow that city upwards, not all the time mind you.We experienced that when we moved ,nearly doubled our price in 7 years. I can fully understand you looking @ ‘quality’ of a build.But the majority of homes we looked at were of pretty high quality.The worse home we owned wax’s on acreage quite a few years back.’Beechwood’ home.Finishes we’re very, very average.Painting was truly awful.But other than that quite a solid home.It has just been sold in the last month or so for 1.35 mill.(we only paid $520,000 for it)A lot of work has been done to it,changing layout etc…Very, very good job by them.

2.5hrs to the nearest major city is fine by me.
Just far enough to keep the ever demanding commuters out.

Low prices = low rates and a lower cost of living.

I reckon if I still lived in $ydney I would be earning upwards of 1/2 million bucks a year but would need double that to live my lifestyle, while being stuck working 7 days a week. All to buy an overpriced roach invested/termite ridden dump in the burbs.

It's like the old saying, how to make a successful million $ a year business, start with 2 million.

[.:4:.]

Originally Posted by roKWiz

2.5hrs to the nearest major city is fine by me.
Just far enough to keep the ever demanding commuters out.

Low prices = low rates and a lower cost of living.

I reckon if I still lived in $ydney I would be earning upwards of 1/2 million bucks a year but would need double that to live my lifestyle, while being stuck working 7 days a week. All to buy an overpriced roach invested/termite ridden dump in the burbs.

It's like the old saying, how to make a successful million $ a year business, start with 2 million.

The other thing you have to consider is a persons proffesion. Say for example a person is a high rise window washer. There will not be the same amount of work in a country town then in a city. Opposite for say a person who works on septic tanks. Less of those in a city. So to a degree you have to live where the work is. I was never adverse to driving an hour + to work and 2 hours or so home (arvo traffic). The people who thought i was crazy for having to sorta commute everyday were also the ones who complained about rent for their 2 bedroom units. I did it for the pay, that pay in turn went towards the mortgage on my house.

[roKWiz]

Originally Posted by .:4:.

The other thing you have to consider is a persons proffesion. Say for example a person is a high rise window washer. There will not be the same amount of work in a country town then in a city. Opposite for say a person who works on septic tanks. Less of those in a city. So to a degree you have to live where the work is. I was never adverse to driving an hour + to work and 2 hours or so home (arvo traffic). The people who thought i was crazy for having to sorta commute everyday were also the ones who complained about rent for their 2 bedroom units. I did it for the pay, that pay in turn went towards the mortgage on my house.

Living on the road the work is always near me but that's the way I wanted to set myself up as, right from the get go initially living in $ydney.

There are jobs in every part of the country if you are willing to take them. Doesn't matter whether you are in trades, professional or unskilled, people are too worried about chasing big money most of the time along with greed.

You usually do not require the same amount of hours/work living in a country town as the costs are lower unless you've bought into the whole consumerism lifestyle.

I would rather travel 1500km and stay very close by or onsite while doing a job, than commute in a city.
This way you get to experience different places and not stagnate in one place/job holding out for retirement, to go buy a place in the country so you can relax or buy a grey nomad lifestyle when its too late.

I like to think we've done all this in reverse.