Join Australia's most dynamic and respected property investment community

NSW Invest in The ponds

Discussion in 'Where to Buy' started by fairy, 12th Nov, 2015.

Tags:
  1. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    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.
     
  2. Brian84

    Brian84 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    962
    Location:
    Sydney
    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.
     
  3. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    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.
     
  4. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,449
    Location:
    33°41'24.7"S 150°55'34.3"E
    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.
     
    Tekoz likes this.
  5. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    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
     
  6. Tekoz

    Tekoz Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,244
    Location:
    Sydney
    According to @sash this year is not a good time to build or even enter the proeprty market in Sydney especially.
     
  7. JDP1

    JDP1 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    2,840
    Location:
    Brisbane
    really? we are talking about the Ponds- the one that 40km NW of the CBD.
     
    Tekoz likes this.
  8. Befuddled

    Befuddled Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    251
    Location:
    Sydney
    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
     
    Tekoz and Brian84 like this.
  9. jins13

    jins13 Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    955
    Location:
    Sydney
    Didn't the pons have issues with connections to gas, water, electricity and internet?
     
  10. twobobsworth

    twobobsworth Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    248
    Location:
    Sydney, New South Wales
    Still has internet issues.
     
  11. Travelbug

    Travelbug Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    313
    Location:
    Sydney
    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.
     
    Tekoz likes this.
  12. Tekoz

    Tekoz Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    1,244
    Location:
    Sydney
    @Travelbug so if we sell the property at a lost, does it still incur CGT or any other taxes ?
     
  13. Inov8ive

    Inov8ive Well-Known Member

    Joined:
    17th Jul, 2015
    Posts:
    484
    Location:
    Sydney
    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.
     
    Tekoz likes this.
  14. Travelbug

    Travelbug Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    313
    Location:
    Sydney
    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.
     
  15. wombat777

    wombat777 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,449
    Location:
    33°41'24.7"S 150°55'34.3"E
    Gockie likes this.