In Sydney, less than 50% of properties will be owner occupied in the future..

nice joke

 

I am bullish on central coast too and have invested there. Northconnex will improve transit times to Sydney and demographics are fast changing.

My tenants are a young couple (school teachers) who commute daily to Hornsby and according to the RE, loads of new tenants in the area are people from Sydney who want to buy on the central coast but rent first to get a feel.

The real issue there is too many Centrelink dependent people and heaps of housing estates spread across the coast. Give it 10 more years and this whole area would transform into upscale & trendy beach suburbs.

Schools aren't bad either (specially around Gosford) so it's a matter of time before immigrants discover the coast and higher prices will follow.

 

Funny you said that. There are migrant families who moved there to get a better chance of getting into Gosford High, according to anecdotes. Centrelink recipients are everywhere. Statistics about that would be good. I'm bullish on CC but already too late for me to get in. Now even Chain Valley Bay prices are on the way up... the weekly emails from agents are depressing.

 

No, on the contrary, Sydney is the Lower Central Coast.

 

LOL. Hope all is well Alan.

 

All good here. How's your IP going in Carro on the Upper Central Coast?

 

Doing good mate. Great tenant. Love the scarcity of its kind factor. CC prices as you predicted, keep rising, even for San Remo and the havens...

 

Something that I am coming across more and more is younger people buying their home in a trust rather than under their own name. When I ask some they state that they are now coupling, or are self employed as contractors and want to protect the asset. Or there may be a group of friends/family setting themselves up.

This types of home owners would skew the figures.

 

Five reasons Gen Y is worse off financially

"Entry-level properties are more expensive than ever
Those wanting an inexpensive property for their first home are also being squeezed out of the market.

The report showed the 10th percentile of homes, the cheapest in the market, had grown 108 per cent in value between 2001 and 2014, compared to a 47 per cent growth for 90th percentile properties at the top of the market.

"An implication of this finding is that housing at the 'affordable' end of the distribution appears to have become relatively less affordable between 2001 and 2014," the report states".

None of the reports about housing affordability are surprising; however, there are some interesting implications such as affordable housing having better growth than premium housing.

 

APRA reigning in the borrowing power of the working poor/over leveraged certainly hasn't helped either. Medium term, without wage growth there could be quite the stalemate situation in affordable areas; greater fools will be saved from themselves by APRA and FHB's could end up either priced out or reluctant to push the market higher.

 

Agree, but there is only so much APRA can do when the property market is awash with cheap credit and foreign money. RBA will almost certainly undo what APRA has done.

The wage stagnation has comprehensively been offset by cheap credit .

 

14km from Sydney CBD: only 600k.

22/267 Blaxland Road, Ryde, NSW 2112 - Property Details


You have to accept Sydney is in massively high demand and prices will be in accordance. Just need to change expectations. Those who keep fighting it will end up in Adelaide.

The demand is just too strong and it aint gonna go backwards (much). That's it.

 

I drive down that road regularly, it joins Eastwood to Ryde. Not a preferred location. Its not near trains, and on the section of road you always get traffic banking up from the intersection with Lane Cove Rd. And while you have on street parking during most hours, it's a clearway in weekday peak hours. Pass.

 

I'm not saying to specifically buy that unit, there are heaps more in that price range all over the place.

 

That is true.

 

Travel wise, as long as we are allowed to work from home 1-2 days a week I think travel is manageable..... I prefer beaches than job but hubby dislike central coast, so moving to Melbourne instead

 

600k is still a big ask of you're on 60k per year. Even 500k is going to be severly stressful. No need to start an affordability debate...individuals can get it together and change their situation... but most won't. It is what it is. A lot of people are on 60k.

I think the demographic shift @Gockie is pointing to will happen. You just have to look at how many youth are buying homes to see where this is heading.

Once the renters overtake home owners policy will have to change to accommodate the new majority.

No idea how though...My crystal ball is a tad murky.l

 

Sydney, especially within high demand/no new land areas will become a wealthier and wealthier demographic. People who can't afford it will move out further or migrate to other states. I don't see home values significantly declining in high demand areas unless the demand/supply equation is changed. Highly unlikely.

 

Yes true. My first place was $252k back in 2005. Bought a 2 Br unit in West Ryde for that money. Loan of $200k. Repayments for that on a single income (I think I just got a pay rise to about $70k pa) wasn't easy, hardly any principal was being paid off. The interest rates were more like at the 7% mark though.

 

I'd also add one more point why I agree with the title...Sydney (and most of the larger markets in Australia - melb and definitely Brisbane) are fast going into a gig based economy.
It's going to get harder and harder to get permanent full time employment. Most will be contract based.
The ones that do have permanent will likely get paid less (for the stability permanent provides) and given high Sydney prices they will be stretched. on the other hand contract employment although higher $$ does not have the safety /stability and they too may be wary to large committed purchases especially if they are already expensive.
Not an easy situation to be in..however, as long as Sydney freely offers jobs it's going to be ok. The problem is when it doesn't and at some point the jobs scene in Sydney will pull back. What then and when...