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Buy or wait first home Sydney

Discussion in 'Where to Buy' started by Dino, 29th Sep, 2016.

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Should we continue to rent and find out whats going to happen in the sydney market? and will we be m

  1. Continue to rent for 1 year

    6 vote(s)
    35.3%
  2. Continue to rent for 5 years

    0 vote(s)
    0.0%
  3. Buy an investment in melbourne 400k?

    3 vote(s)
    17.6%
  4. Buy in sydney now 550k flat

    8 vote(s)
    47.1%
  1. Dino

    Dino New Member

    Joined:
    29th Sep, 2016
    Posts:
    1
    Location:
    Sydney
    Hi,

    We are a young couple looking to start our first purchase into property in sydney. Wife make 60k and i'm part-time student on 10k.
    Looking into property around sydney west (south strathfield, north parramatta, campsie) around the under 550k mark. Flat with less than 6 units.

    I am trying to convince my wife that its not the right time to buy, since reading property magazines that predict that sydney is at the top of its market price and too many new apartment plans being built yet to be completed.
    Well, I haven't convinced her well since I have no proof of the above predictions happening in the future. Will the price hold stagnate for next 5 years? who knows. If I play the long hold game of 10+ years would I still lose? who knows.

    Some questions
    Should we continue to rent and find out whats going to happen in the sydney market? and will we be making a lost if we keep renting since people say "rent money is dead money?


    Young blood first time buyer, everything is risky.
     
  2. ej89

    ej89 Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    688
    Location:
    Sydney.
    I'd buy in melb
     
  3. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,943
    Location:
    Sydney
    Hi Dino! Wondering... surely you can earn more than 10k even as a part time student? There must be opportunities to increase that number?
     
  4. MsAli

    MsAli Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,147
    Location:
    Sydney, Australia
    @Dino - with limitations on resources right now, I'd look at investing somewhere I could make gains. As you call out yourself Sydney is likely at peak.

    How will buying in Sydney, and that too a PPOR, impact your future ambitions to build a portfolio?
     
  5. WattleIdo

    WattleIdo renovating Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,822
    Location:
    Central West NSW
    None of the above.
    Get jobs elsewhere - not Melbourne either.
    Move to a place where the city or town looks like Sydney and Melbourne looked in the 70s and 80s. That's how you'll get the kind of deal your baby boomer aunts and uncles got. Except you'll have a faster car and internet connection.
     
    Hwangers and HUGH72 like this.
  6. Omnidragon

    Omnidragon Well-Known Member

    Joined:
    17th Oct, 2015
    Posts:
    414
    Location:
    Victoria
    Wouldn't buy Syd any time soon. Wait for a bit of cooling off, may take a few years tho and you'll feel bad these few years but it'll pay off. Melb may be, hot but still relatively affordable.
     
  7. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    This...unless you can double or preferably triple your household income in the near future once study is finished.
     
  8. hammer

    hammer Well-Known Member

    Joined:
    28th Aug, 2015
    Posts:
    422
    Location:
    Darwin
    Nothing is going to stress your marriage more than buying a house that you cannot afford.
     
    Phase2, ej89, Eugene82 and 2 others like this.
  9. Mumbai

    Mumbai Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    763
    Location:
    Sydney
    You nailed it... or rather hammered it!
     
    Sarah T likes this.
  10. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,173
    Location:
    Gold Coast
    Im not qualified to answer the question

    I do have clients from 2004 that are still waiting for prices to ease in Sydney before buying

    ta
    rolf
     
    krispy, Nlang, mitsui and 5 others like this.
  11. Sam654

    Sam654 Member

    Joined:
    7th Jul, 2016
    Posts:
    16
    Location:
    Sydney
    Would you consider staying in your rented accommodation and buying something else and renting that out (rentvesting)?
    It would be worth getting an investment that isn't going to impact future serviceability too negatively and something that will increase in value allowing you to release equity, to replace the deposit you obviously have now, when you finish studying.

    Now finding an investment property that will give you this yield and growth you'll probably need help with!

    Accepting that you'll be renting for a while longer will be something that will have to grow on you and your partner too by the sounds of things.
     
  12. Azazel

    Azazel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,113
    Location:
    Brisbane
    You could always buy an investment property somewhere else, and continue renting.
    I wouldn't be buying in Sydney at the moment, especially an apartment.