Fake News: Last chance for FHBs!

Via News comes today’s headline grabbing news:

With a state and federal election just months away, the recommendations of the banking royal commission expected within weeks and several crucial policies hanging in the balance, the fortunes of young buyers could reverse swiftly.

Realestate.com.au chief economist Nerida Conisbee said first homebuyers were now faced with a crucial window in which to buy before the market potentially changed drastically out of their favour.

…“first homebuyers aren’t the ones who have been finding it hard to get finance — the ones really struggling to get the best rates and the most money are investors, who will probably be the main beneficiaries if the banks start to ease up their terms.”

Ms Conisbee said if banks relaxed their policies, investors were likely to return to the market — which is bad news for first homebuyers.

In short, a reporter chatted with the in-house property spruiker of the captured realty listings business over the water cooler and somehow that ended up as the national headline story!

Only in Australia’s busted media could the removal of negative gearing and the death of specufestors constitute a “drastic” reversal of fortunes for FHBs:

It may be your job to talk up the market, Nerida, but insulting FHBs intelligence isn’t going to do it.

Comments

  1. So under this latest brain fart suddenly investors DO push out FHBs – is this an admission that NG DOES impact competition tending to increase house prices? Contrary to the cries from the same industry that NG has no or very little impact?

  2. JacsonlinMEMBER

    She is smart. I agreed her opinion. History has approved many times. Fed will cut rate in 2019 as early as 2020. The bottom house price of Sydney was in Dec 2018. The keeping fall is not fair for who working hard to afford house those 70% voters who owned self property. It is time to back to normal.

    Nothing is free. You always get how much you paid. The same story all over the world.

    • As long as student and 457 visas keep getting handed to IELTS failures like yourself and “community” mortgage brokers keep filling out their applications then you might well be right

      • A reusa inspired troll with bad spelling. Maybe he’s showed one of his kids how to set up a MB account?

      • CanuckDownUnder

        Oh reusa certainly has many children but he’s never met any of them. There’s a lot of confused men around Sydney wondering how they ended up with such well-endowed jongens.

    • TailorTrashMEMBER

      Your faith is admirable …….and when you learn to speak English you will be a true Australian with those beliefs ….sounds like your purchase or purchases are
      not behaving as planned ……….well tough cheddar me old China …..

    • I don’t know what you’re smoking but the Sydney housing market is not recovering from here. Global liquidity is what matters to all the bubble housing markets across the globe and liquidity is fast disappearing (the ECB joins the Fed this month in ending QE – tick, tock).

      QE and zero rates ‘worked’ last time round because investors were prepared to give the Fed the benefit of the doubt but now they know that QE and ZIRP is nothing but a croc they’ll head for the hills and genuine safety — to bonds initially and then to gold once they realise that Trump is hell bent on running $2trn deficits.

      • DefinitelyNotTheHorribleScottMorrisonPM

        What nonsense are you on about? Those buyers got investor grade stock, built to a level which exceeds the required Australian standards. You know it, I know it, they know it.

    • Jumping jack flash

      “Nothing is free. You always get how much you paid. The same story all over the world.”

      Yes, you’re so right!

      Our houses are worth what we say they are worth. 1 million, 2 million, 10 million, its just a number.
      Here, have some more debt.
      Debt is now wealth. Congratulations, you’re a bank.

      • JacsonlinMEMBER

        I can only afford TOYATA, but I want to buy BMW that I can not afford. The loan is only way to buy BMW. I asked sales why BMW is so expensive, why BMW factory never reduce price as same price as Toyota. Sales told me everyone want to drive BMW. That is why BMW is much expensive than Toyota. Sydney still have a lot affordable houses and apartments because location.

      • @Jacsonlin. You can always order your BMW without the indicator stalk to save a few dollars. Very popular option among BMW drivers it seems.

    • Mystic MedusaMEMBER

      Regarding your very interesting BMW/Toyota analogy below, if the Toyotas suddenly cost a lot more, as much or more than the price of the BMW you covet, say ten times as much, would you be happy to go into debt to buy the suddenly much higher valued Toyota? For example, if the cost of Toyotas quadrupled, but you were able to borrow as much money as you needed to get your Toyota, would you think that reasonable?

      • JacsonlinMEMBER

        But the truth is Toyota is Toyota. BMW is BMW. Sydney is best city in the world. If I get loan approval to purchase BMW. I will work very hard to pay off. Because BMW is my love and dream car.

        Australia did not like USA, People who purchased who took responsibility.

      • Mystic MedusaMEMBER

        I actually love Sydney for all the flaws, mismanagement and hideous congestion/overcrowding/corruption in recent times. But to say that it represents value for money should actually qualify as some sort of personality disorder. There are parts of it which are are Toyota thinking it’s Ferrari – that’s what I was trying to suggest to our friend here.

  3. I drove past a crummy house on Cape St, Heidelberg today. There was a sign out front in plain black-on-white type:
    Off-market Opportunity
    I seem to recall Collings is the agent. What the fvck? This is a new level of desperate creativity. No, it’s not on the market, but talk to us if you see an opportunity to buy? Does that mean they can circumvent disclosure requirements for a property that is actually For Sale? Am I missing something?

    • Was in SA over Christmas and also saw a few of these in the eastern and western burbs – Newton and Mile End areas.

      Also seems to be lots of very ugly looking subdivision type developments going on – 5-6 tiny 2 storey units/town houses crammed on a block which in the eastern states you’d expect 2-3 at most.

      • Adelaide isn’t immune to these ugly sub-division jobs either. Apartments have started to sprout in inner city suburbs as well. Go back 5 years and the only apartments that existed were in the city and the inhabitants were predominantly IELTS failures.

  4. A little over a week ago a business that had significant assets in my location went bust according to the local rag. In one hit, we had 75 homes to be auctioned on the one day in the one postcode … It will be fun to go to the auction. I pity the FHBs that think this is an opportunity.
    What is the correct etiquette for attending a mortgagee auction ? Does one loudly exclaim that one should not purchase a house where the bank has already screwed someone over for anything more than one-fifth the market rate ? Make the banks feel pain !
    Of course, they simply do not sell without a high reserve in place which, in my view, is not an auction because price discovery is not possible.
    I hope to hear of more bastards going to the wall soon and trust that the bastard-banks get a good scrubbing too.

  5. ABC News ran something similar yesterday with vested interests saying Perth housing market has bottomed and now is a great time to buy, just like they said last month, and the month before, and the…

    Disappointed the ABC is also letting the vested interests spruik as well.

  6. Same message they gave 1 year ago near peak.
    Every day is a great time to buy!

    “FOR first homebuyers waiting for prices to come down so they can finally get into the market, ANZ has some bad news.”
    SEPT 2017
    “First homebuyers are back with good buys around $600,000”
    OCT 2017
    “A NEW loan could help first-home buyers struggling to save a deposit get into their own property sooner. Is this your ticket to a slice of real estate?
    JAN 2018
    “some buyers may be looking at the market and thinking it will be a good time to buy,” Mr Russell said from realestate.com.au”
    FEB 2018

  7. To be fair we have “FHB buy now” next to other crucial news such as Delta’s love life, bikini snaps, etc. Whoever reads this drivel deserves the follow the advice.

  8. Lainson Holdings’ half-built apartment project goes under administration
    https://www.afr.com/real-estate/lainson-holdings-halfbuilt-apartment-project-goes-under-administration-20181221-h19dso
    [A half-built apartment project is up for sale in southern’s Sydney’s Cronulla, after developer Lainson Holdings’ non-bank financier called time on its unpaid loans.

    Builders walked off the 25-29 Tonkin Street property after the local developer’s unidentified private lender called in administrators on the 28-unit project, six months before the scheduled settlement with buyers.

    There is growing distress among apartment developers amid slowing sales in a slumped and credit-starved housing market. Investor mortgage borrowing grew just 1.1 per cent in November, its lowest annual rate on record, Reserve Bank of Australia figures this week showed. Falling property prices gathered momentum in December to end 2018 down 4.8 per cent across the country, the weakest conditions in a decade.]

    • truthisfashionable

      Does anyone know what would happen to your deposit in this situation?

      Is it safe in an escrow account and will be returned if the administrator of the development can’t find a buyer to take over the completion,
      or do you become an unsecured creditor and have to go through that nightmare to get whatever % of your original deposit the administrator left after their fees?

    • Excellent news. I especially like that even non-bank financier has called time on this, which I’d assume to mean that the lower tier lenders are seeing the risks and looking to get out.

    • Great news! Sutherland shire has seen a massive amount of new developments in the last few years. The unit blocks around me are struggling to be filled. I am wondering what will happen to those blocks still stuck in the DA holding pattern.

      • TailorTrashMEMBER

        What’s with that “southern village “ in Kirrawee I see on my way to real southern villages …..is that a slum sold on a promise ?
        ……looks like it’s street front is complete …..but the massive back blocks are looking slow to complete ………..perhaps the off the plan sales are not delivering the readies for their completion ………must be a chart somewhere that tracks completion time related to off the plan sales

      • Please don’t mention “South Village”. It’s the biggest eye-sore in the area and will stand (or hopefully fall down like Opal Towers) for decades as a reminder of the ugliness of the housing boom and how the complete lack of planning and total disregard for surroundings encapsulate this boom.

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