ABC online is reporting that Canberra is set to overtake Perth as Australia’s second most expensive city to buy property.
Guess that’s it kiddies. You will only ever own a house now if your daddy is rich and your mummy is good looking.
Holden, that is what I did back in 2007. The saving on the house itself was minimal but the savings in stamp duty is where it made it worth while. I paid stamp duty on the block which cost $50,000 contracted the builder to build the place for about $110,000. If I had of just brought the same place off the builder it would have been about $170,000 + stamp duty on the whole lot.
As for the whole debate the market is just nonsense for what ever reason. Prices are way too high and for someone coming in it must be so hard. Guess just one of the many problems of having an interest rate that was so low for so long. Maybe people might now understand why the RBA uses rates to control inflation.
In one way I shouldn’t complain because I got in before the market went silly and my place has more than doubled, almost trippled in 7 years. But the problem is if I want to move up myself then I would have to double my mortage, whereas 7 years ago the increase would be marginal. So my gain is on paper only. It is usless to sell because any gain would be lost in buying the next property. The advice I was given was to use the equity in my current place to buy an investment property say every 2 years, then in 10 sell them all and my own place and move up. Sounds like a lot of hard risky work. Oh I wish for simpler and cheaper times.
Also consider buying off plan. If you’re comfortable reading plans and visualising spaces you can save quite a lot of dough by essentially agreeing to take on some of the builder’s risk.
We bought our investment property off the plan and it saved us in the region of $20-30K I’d suggest.
Where is your favourite Pho restaurant in Canberra?