NSW Anyone still actively looking to buy in Sydney?

Seems like a lot of investors on this forum are steering clear of Sydney, is anyone still actively looking at Sydney, perhaps the Western suburbs?

 

Yes, only because I need/want a PPoR here. My investment dollars are heading elsewhere.

 

Hodor, same here. I'd love the next PPOR to be still in Sydney - I don't really think of PPOR as investment, so buying criteria is different. Unfortunately Sydney now is not in my price range
If you see the number of sales, people do buy here (albeit maybe not an investor).

 

I'm keeping an eye on prices in my preferred pockets of Sydney. More to be aware of when the peak prices hit before the inevitable down turn.
I'm keen to get back into a flat Sydney market where you can inspect properties at your own leisure and put in low ball offers. It's my kind of market.

 

Yes absolutely. Looking for small/medium project sites in the south and inner west.

 

Yes still looking in Sydney i don't think you can just throw a blanket over the whole city and say don't buy here at all.

 

We've got our Sydney PPOR on the market, if we get the right price we will sell and look to buy again in similar market. This will result in near zero debt on PPOR and loads of equity to buy investments when a buyers market returns.

As much as I believe we are near the peak, if we were to not buy again soon after selling and the growth continues I would be more disappointed than if we buy a nice PPOR and it drifts backwards a bit.
It's kinda like going to the casino.... Black or red?

 

We just settled on an OTP NRAS townhouse at Bungarribee (near Blacktown). I wouldn't of bought it if i had to be out there fighting with the masses like you have to do in Sydney these days. Our most recent investment before this one was in Brisbane.

 

The only reason I would buy in Sydney now is if I could pick something up at least 10% below market value (aka a "time machine" purchase).

Not impossible..but close.

 

Would you gamble with not re-purchasing a PPOR after selling?

 

$600k for old house on regular block in campbelltown....

Time to look at other States...

 

There are still deals to be done in Sydney. I saw one last week that sold for 750k (A house) a few K's out from the city. 50k reno and some papers to the council and it would be worth 950k.

http://www.realestate.com.au/property-terrace-nsw-petersham-119966541

It's a big one bedder that has been badly configured. Need to gut the interior and convert it to a 2 bedder. The clincher is it has rear lane access but it has not been utilised as a car spot. The houses next door have it done but this one didn't. That will add 100k there straight away.

Right near Norton street, train stations and a hop into the CBD.

Why would you buy some trash off the plan when things like that are still available?

 

Well, I guess it's all because when buying OTP, you can get the following so called "benefits":

1. new building can generate high depreciation for cashflow
2. renter / young professional prefer new building as opposed to new ones.
3. once the OTP proeprty is fully built, then it is going to appreciate in value.

 

Nope gone south to Mexico!!

Then heading North to the white shoe brigade....don't miss Sydney at all...will leave it to the amateurs.

 

I am using property as a vehicle for wealth creation so selling and repurchasing a PPOR is not part of my plan.

Had I recently sold my PPOR though, I would be renting where I wanted to live and redeploying the sale proceeds elsewhere, seeking stronger capital growth to buy a killer PPOR in the future, when the timing looked better.

But a PPOR is a personal and emotional thing. I can understand why people want to own where they live and that can include buying at times when it may not make much "investment" sense.

 

Cheers Steve,
It’s true we could rent and deploy the funds elsewhere but to what end? Sell the IPs down the track, pay CGT and then buy a new PPOR. The loss in rent / tax will more than likely be the same or more than any drop in prices from buying near the top. If we bite the bullet and buy a new PPOR with zero debt, we can add investments as income / debt level allows. The attraction to low debt is that we will be starting a family soon and therefore be on a single income for some time.

 

I just bought one ( 3 bed in hillsdale) 1 month ago...

Still looking at Sydney as we speak ( + Brisbane..but more Sydney)

 

To the end of making best use of capital and creating further wealth, which means more options.

Other people's money is a wonderful thing.

Of course, everyone's ambition, situation, goals, plans, risk profile etc are different.

It might suit your situation to do as you plan, no questions. Financially you might not have other options but I'd chat with both your mortgage broker/finance strategist and accountant who will give you better insights into your situation and your options.

In your shoes, I'd be aiming to maximise my outcome (which in me view would be creating more security and wealth, therefore more options).

I'll invent some numbers demonstrate my point. Assume your PPOR sale left you with $1mil in the bank, and that your current household income is very strong (may not be the case but lets imagine ). I'd:

• Use $750,000 to buy $4.4M of property (12% deposits + 5% costs)
• Retain $250,000 in offset accounts for holding costs (to cover initial cashflow shortfalls on any negative geared properties), rent, emergencies, holidays, repairs, maintenance, future renovations, future development, trips to outer space...who knos. Not to mention the strong interet savings the cash in offset will provide while it's not used.
• Kick my feet up knowing with a fat pile of cash leftover for peace of mind and a $4.4M portfolio, I'm safe and secure and and open to a $400,000 increase in net worth when the portfolio has seen its first 10% growth. Lets say over a long enough period of time the portfolio doubles in value to $8.8M. Your equity position has you in the clear by $4.4M. That's helpful.
• Continue to hang on to the properties as holding costs lower and values climb.
• Reassess when appropriate.

Food for thought.

 

I must stress, I'm simply providing some insight into how I would play my hand. It might not be the best option for others.

 

I bought in Sydney last October, it had boomed, has been since 2013 but since October its boomed even more. I bought under market value (no competition) and I can say that one would sell for 100k more now than what I paid for it. Great long term growth prospects too.