Australia doesn't have a housing affordability crisis

No loss if it's not sold?
I have never understood that logic

 

3-4 mil is not top end.
The top end is wolsley rd pt piper where they eat meat pies with cutlery

 

Buying a PPOR for family to live is not really an investment.

$4Million would put you in the very pointy end of Australian property market.

Point piper has the .001% but that is hardly relevant.


All I was saying if you are really in the market for a $6,000,000 home a few thousand is of no concern.

I know when I come to buy a prestige car for the family im not trying to work out how much I will loose or gain.

Its a matter of suitability for the family.

MY PPOR could be worth $4,000,000 or $2,000,00 0 it makes 0 difference if your family is living in it for 30+ years.

 

If you could have purchased the same property for 500k less upfront, compounded over the life of the loan it translates into will over a $1m in extra repayments which could mean the difference between working 40 as opposed to 60 hrs a week, more time for holidays and marital harmony. Watch the recession cause a spike in divorce rates.

 

On the lower north shore every refurbished family home is not worth less than $3m. Yes it's many multiples of the median in mount druitt but it is very much the median in the area and therefore considered pretty"average" for those that live and work in those circles.

 

Do you see the "+"? There is no point in arguing what is the top end? Is it 1%, 0.1% or 0.01%?
The main point is why do you need to worry about a paper loss (since it is not sold) of your PPOR? Yes, you may get it for $500k cheaper, but may also pay $1mil more unless you tell me you can forecast when the market reach the bottom.
If someone can afford a $3mil+ PPOR, I don't think it is because they work for 40 or 60 hours. It is more on how to make the money work smarter and harder for you. That section of the market is not for a typical working household in Australia.

 

Wrong wrong wrong. They are heavily leveraged. All of these mums and dads on upper middle level management salaries 200-250k pa × 2 with 2 luxury cars private school fees international holidays kitchen renos... all of them are on equity maaateee....
When the tide goes out....
Go on..... send an offer in on one of those $4m homes advertised for rent. See the response. You can knock off 30 percent from their asking price and they are still desperate to sign.

Falling prices, no tenants, the worst is yet to come for Sydney housing market

Credit crunch could hit house prices by 20pc: Endeavour

 

The links you post are not talking about any $3mil+ house sector, nor any mum and dad investors on $400k-$500k per annum income buying a $3mil+ IP nor 30% rent drop on thos properties. And I thought we are talking about main resident, not investment?

 

Why does it matter if it's ppor or secondary. Credit is generally tighter for both classes..... prime property dropping 5% is still a big hit to take on most peoples primary store of wealth.

 

Based on your original post talking about a potential $500k loss with 8% price reduction of a PPOR. As another member point out, it is actually $6mil+ property.

 

And some of those same *******es in lane cove and mosman sold for $2.5m in 2017.. absolute dumps
Those will drop the most

 

If it is my main residence that I am happy to live there for 20 years, why do I need to worry about a temporary 10% drop? I buy my main residence when I want to and can afford it comfortably, never want to time the market.

Nevermind, I do not think we are talking the same language here so I will stop.

 

No...3 percent stamp duty is sunk cost. Can't recover. And 5% down on $4m is 200k.
Add marketing and agents fees and you lose another 1.5-2%
Plus moving costs

So the point being if you wished to liquidate your home you would lose $500k

 

No
If you purchased a $4m property in 2017
Your stamp duty, moving costs etc. All n up would have been $200k
Those same homes now are $3.7m
Plus agent and marketing fees: $80000
So you've lost $600k by buying and selling within a year
600k/4m
Is well over 16%

 

To be honest were ever in the market for a $6 million dollar home ? The mindset is simply not their to me.

Sorry if im offending. I have friends leaving in all place including Point Pier and they don't approach property in your way.

You don't buy a F430 and worry about what it will cost in 1.5 years If you are maybe a Ferrari is simply not for you.

All I see is a dreamer.

 

A Ferrari is a toy

A home should be for shelter but this glorious nation has turned it into a speculative bubble.
So it is not a Ferrari for most. It is a store of their wealth their hopes and dreams of a comfortable retirement forever banking on never ending credit to sell to the next greater fool.

The games up.

 

I'm happy to continue to dream of buying a comfortable home somewhere in lane cove at a multiple of less than 8× annual income unlike the present day 12×
It will come

 

I think your assuming that $4m is a different league in Sydney.
It isn't
I'm stating that it's routine for well renovated homes from lane cove to chatswood willoughby Northridge cremorne mosman etc.
Most upper middle class working families
Not bourgeois rich with swiss accounts or newly made Chinese millionaires
Just hard working professionals who pay income tax and are highly leveraged and wealthy on paper but mortgaged to the hilt

 

Com'on mate, why someone want to sell the $4mil+ house just after 1 year of purchasing it? Property is a long term game with expensive transaction cost. Please don't tell me that they are forced to sell due to rate rise, P&I rollover blah blah. I have heard enough about it. If can happen but to what extent, no one know so please do not generalise things that easy.

 

Why do they need to sell?
Divorce?
One person loses their job?
Illness?
Whatever
The why isn't whats important
If and when you sell in a flat/ falling market you've lost a significant chunk of equity.