Hi all, been browsing a bit here and learning. So here is the silliest question you will probably ever get. My PPOR in Seven Hills Sydney is fallen to pieces and leaks in every storm. We bought it when we were expecting our child in 1995/6. This house cannot be repaired - waste of money. It is a 651 sqm block zoned r3. Just starting to do the due diligence to get an idea of what it may be worth - will contact a town planner to get an idea of best and highest use once I've clarified a few things. Now we want to stay in Sydney because of my husband's business and music interests. So I'm looking at what we could afford out in the Penrith region. So, my question is, can I ignore all the hype about how Sydney is a falling market, since I will be both buying and selling in this same market? Won't these factors cancel each other out? Sorry about War and Peace. Not very good at writing concisely. Thanks, Kate
there's more than one market in sydney so I would be looking at what penrith is doing compared to seven hills (I have no idea of either). With an R3 zoned property it would be worth more than a similar house / block that is not R3. I would think that at the moment development is drying up around that area though? Possibly better off holding till the next up cycle if that's possible. Anyone buying R3 is probably land banking and if the house is not livable / repairable it would be a harder hold. Could you hold / rent till the next upswing and go buy elsewhere? Wait till the market is heading up again and then sell. May mean some $ into repairs so you can rent it out in the mean time. This is all off the top of my head without any real knowledge of the seven hills area.
Not to directly answer your question but a comment on R3 land in your LGA (Blacktown?), my guess is that you may not be able to take full advantage of that R3 zoning due to your lot size of only 651 sqm (this may only allow the same options as R2 land). For some of the more attractive building options you may need 900 sqm? I may be wrong in this case but I see this across Sydney a fair bit.
Yes, if the Seven Hills market is the same as the Penrith market. As @Anthony416 alluded to, you may have to consolidate your property with a neighbor/s to take full advantage of the R3 zoning.
Are you making the calculation that your Seven Hills property is now only worth just above land value and therefore with that figure you will buy a better house at Penrith? Going from Seven Hills to Penrith is still a fair way out and its damn hot out there today and you will be stuck on the M4 and M7 every day.
Food for thought in all your comments. Thank you. I hadn't been mmm thinking in terms of the development drying up a bit but you could be right.
I laughed when I read that because We spent all morning looking at 6 houses out there in the 40 degree heat and I'm only just recovering!
Thanks for the comments. I may well find that I'm being overly optimistic but I was thinking it's possible that last year's State Govt Low Rise Medium Density Housing Code changes could override the minimum block size in the Blacktown Council rules. This is possibly the most important piece of research I'll be doing - to clarify that. Cross your fingers for me!
Yes, well, no.... 1... It is not hype, it is very real and falling. 2..... If you sell and buy in same market, it matters little if the costs are ok with you, it is what all normal people have to do if they want to upgrade or downgrade. 3..... PPORs are really exempt pretty much from market conditions, if you need somewhere to live, you buy what you can that suits you.
Hi Kate, if it’s a falling market, general rule is to sell first then buy. When you buy you’ll generally have lots of choice. But before buying the general rule is you want to secure a buyer for yours (and know the sale amount). Better to not have to stress over having no buyer, no interest
Yes - hype was the wrong word. As for PPORs being exempt from market conditions, yes I guess you're right theoretically. I think it's because of my age, being 61, and my two small IPs having about $100k worth of equity in each, I tend to think as though any PPOR decision is also an important investment decision, if that makes sense? Not a lot to play with! Your feedback is very helpful, though. Thank you.
Yes, I have always thought of my PPOR as an investment too. But at the same time, I have never baulked at selling my home to get another in any market, but I would avoid if too warm or hot. As you age, it is prob a very good idea to think of new buy as an investment, maybe you can sell without being in a rush, rent and really pick your next home, you just put most of the stuff into storage if you rent a small place..... Prices look like they will come off more, too bad you did not sell 12 months or 15 months ago...you would have prob picked up another nice chunk of coin if going back now or in 12mths.
Yes, the idea of selling and renting would be tempting while checking out the next step. Sadly we can't because my husband works from home restoring furniture and the set up he has, with different machinery in different sheds etc is too complex to move to a rental. Can only be moved with great care and consideration. Sigh.
