Join Australia's most dynamic and respected property investment community

Anyone selling a bit in Sydney and then buying in other states.

Discussion in 'Where to Buy' started by Tonibell, 15th Jul, 2015.

  1. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    394
    Location:
    Sydney
    Is anyone tempted to sell in Sydney as it might have reached the top of the cycle (as indicated by the media) and then buy in other states.

    Just want to hear from those that have been through a previous cycle and held on to their properties. With the level of investors in the Sydney market resulting in maybe flat rental yields going forward. Is it best to chase a bit of the property cycle in other states ?.

    Or is the capital gains tax, just too much to bear. !!!!!!.
     
    RetireRich101 likes this.
  2. beachgurl

    beachgurl Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    455
    Location:
    Sydney
    I've doubled my money on a few properties but my concern is being able to borrow that amount again. With the APRA changes I'm better off staying put. Once the Sydney market cools a bit we should see rentals rise again and a bit more cash in my pocket.
     
    ej89 likes this.
  3. EN710

    EN710 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,130
    Location:
    NSW
    Hmmmm... I have just seen a bus ad saying "One million more people in Sydney in 10 years" (ad about city development), so I don't think I'm selling anything anytime soon, not that I have any to sell :rolleyes:
     
    Leo2413 likes this.
  4. Biz

    Biz Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,474
    Location:
    Sydney
    I actually see it as the opposite. I don't think there is the same amount of capital growth going forward as there has been the last couple of years so by next year people will start to unload "investments" that are not making them money and hurting their cashflow. Less rental stock will see yields rise. The yields are absolutely awful at the moment the only thing keeping the party going is the growth side.

    Not selling because even though I anticipate prices to come off a bit I would have to pay more in capital gains if I sold and everything we own is very cashflow positive anyway.
     
    ej89 and RetireRich101 like this.
  5. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,310
    Location:
    Sydney
    Yes, very tempting. Purchased in western Sydney at the peak 2003, some finally doubled. But even some that were purchased 2-3 years ago that made 40-50% gain, am tempting for those as well. It was a painful experience to keep this stock in 2005-2010 where it went down and side ways... and trying hard to avoid this happening again.

    Wanted to make some acquisition in other state on earlier cycle, while still keeping the sydney property in parallel until a good time to sell in the next 0-18months. With Mr Apra coming into the picture, what was planned to accumulate multiple properties in other cycle/state at the same time keeping Sydney properties until a good time selling, is a bit far fetch now..
     
  6. RetireRich101

    RetireRich101 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,310
    Location:
    Sydney
    That's one reason for me not taking some profit off the table, if I decide not to sell.
     
  7. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    2,458
    Location:
    Sydney & Gold Coast
    Pre-APRA changes, I was heavily considering nuking my PPOR to release some CGT-free capital to take up to Bris as the numbers made sense (buy, reno, refi, repeat a few times – would have turned PPOR of about $500k into holdings of double of triple that in Bris and improved cashflow) but the lending changes shot a hole through that plan. I would have still retained over $1mil of Sydney stock in that event anyway.

    I think around 9-12 months from now will be an ideal time to be offloading Sydney stock. Pending what happens with rates and APRA intervention.
     
    ej89 likes this.
  8. Be Developer

    Be Developer Property Developer Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,078
    Location:
    Australia
    yup,lot of investors will start cashing in sydney market to invest in other areas..

    hurdles are APRA changes, and ability to lock in a good deal!
     
    ej89 likes this.