Hi All, I have seen lot of comments in this forum about not getting in to Syd market. Recently i have approached by friend of mine with opp to buy a land @ The Pond where i could build two house. Inc land price and build cost plus stamp duty would cost me 1.45 Mil. Considering current market it would sell for approx 1.7. Not sure whether it is very risky to get in now as the market may crash in next 1 -2 years. Please share your thoughts.
I reckon hold off because I think the prices will drop within a couple of years because I believe there would be a lot of people who over paid and over stretched their budget and as soon as there is one or 2 rate rises they won't be able to afford it and there will be some bargains from desperate first home buyers. Just my opinion but I'm no expert. Sounds like a big risk if the market makes a quick correction. But with risk can also come reward.
Thanks Brian84. I m not an expert either, Just don't see more that 10 %drop happening though. Lets see what others got to say about it.
What size land and what size house? What is the land cost and what is the build cost? ( pricing does seem high but hard to say without knowing much about the block size and location ) How close is it to the Cudgegong Road station? ( if it is within 10 mins walk, carefully consider ) One big risk in the area is build cost + land cost being less than bank valuation on completion of build.
Land is approx 500 sqm. Land cost 810 inc stamp duty. Built two house (1X 4 bedder an 1 X 3 bedder) Built cost would approx 650 k for both
According to @sash this year is not a good time to build or even enter the proeprty market in Sydney especially.
the Ponds is one of those areas earmarked by some here as a potential buying opportunity in 2-3yrs time. For the reasons mentioned by @Brian84
Are you planning on selling them? If so there will be no profit WHEN Sydney drops (even if by only 10%) by the time you pay sell costs there will be nothing in it. And if you have to pay CGT (depending on your circumstances) you will lose money. Prices have come off the boil already by at least 5% in lots of areas in Sydney. i agree, wait a few years. 2018-19 there will be bargains to be had.
The Sydney market is a series of markets within a market. At any given time, there will be certain parts of Sydney going up in value and certain parts going down- and for a zillion different reasons.
Just the normal buy costs (stamp duty etc) and sell costs. Why would you take such a big risk with so little chance profit? Yes but you'd be hard pressed to find anyone saying Sydney (anywhere) was good buying.
Further confirmation of the rail link extension through to the CBD. This link will help support capital growth in the coming years ( or at least reduce price drops ). Rapid Metro build for Sydney’s second subway system - Government News