Is it a good timing to buy at all?

I have a fundamental question which has been on my mind. With market being extremely hot across almost all of the country, is it a good time to buy? With a well accepted prediction that the market will cool off a bit, why is there such a rush to buy at such peak prices? Let's say if prices don't fall at all, one will still face less competition in a calmer market so it will still be a better situation for buyers anyway.. isn't it?

I am not convinced that buying at the current prices has much upside in the near future at least, but happy to hear opinions of others. I know some markets can be exceptions but almost 80% of the country (if not more) is currently seeing its highest ever (and possibly peak) prices so this comment applies to pretty much all those markets.

Through my life, I always learnt that it's best to buy when the buyer has an upper hand as they can get a better deal (product and price) in general, however the current situation is totally the opposite. Is it that people like me are actually missing the boat (or missing out on opportunities) by not buying now OR is it just the unwanted FoMo exhibited by the other buyers (which happen to be a huge number though)? Either of these can be right but I will appreciate thoughts of more experienced people here.

 

Well, did you buy in 2018 and 2020 when the accepted prediction was that prices would fall? Why / why not?

good buying opportunities only look that way in retrospect.

can you afford to wait and be wrong? Depends if you already own something or not.

if you dont own the risk is what if prices rise more. Think thats crazy? Sure, but those who bet wrong over the last couple of years have seen their buying power permanently eroded.

or you can wait until rates ‘inevitably’ rise and the market ‘inevitably’ returns to ‘normal’ no idea what that means.

 

I did buy 3-4 yrs back when the market was much calmer and I don't regret it since I hardly had to compete with other buyers and hence didn't have to overpay. In the current market, it's impossible to buy without throwing extra $$$ to compete with the crowds. That's where the difference is.

 

Sometimes it can be hard to get your head around the fact that you now have to pay a lot more for something similar to what you bought previously. But it is, what it is.

Personally I usually buy in a buyers market, however that is not always true. I buy when I see something of value and did, in fact, buy something in Sydney this year. I also bought something last year & two the year prior.

 

2017: is sydney a good buy? Agreed prediction is that it will fall.
2021: was sydney a good buy in 2017? Yes.
2037: …..

perspective (and hindsight) is everything.

 

i agree with this. i recently bought again and as mentioned above when i see something of value and the numbers stack up i go for it. media hype is bloody annoying!

 

do you trust Jerome Powell and his hawk taper talk?
If so, don't buy ~ they'll reduce MBS and end this bull market.

 

I get annoyed at the expectation that property is something u just buy and like the golden goose it lays golden eggs.

The major benefit can come from adding value. Just a layman's perspective is that added value comes from:

1. Location being re-rated / rezoned;
2. Living accommodation increased;
3. Sub divide;
4. Dual living / granny flat;

So in Logan there have been great opportunities since 2014/15 based on value, zoning, transport etc, that need tidying up. The boom is bonus.

Since boom, a pile on has occurred buying property that photographs well. In my opinion u can still buy property that requires value add.

So restrict to fixers and large land, and jump in

 

Hi @boganfromlogan that's a really useful summary. I understand how rezoning can increase value, but what does being re-rated mean?

 

i think its why so many "investors" have come flooding in wanting to buy property.
its like the house flipping game, it cant be done like in the usa on all these reno shows, it doesnt work that way, too many outgoings when you sell....

 

Sea change re-rated the beach shack
Green change re-rated the paddock
Traffic congestion re-rated the GC express to Bris
boganfromlogan single-handedly re-rated Logan Reputation ))
Redfern re-rated due to historic abuse of first nations ppl, and developers moving In
Climage change re-rated Mt Tamborine
Corona re-rated Tasmania
Movie Stars re-rated Byron Bay, antivaxers re-rated it back again
Madman re-rated port Arthur

 

I see! Haha yes Logan Council should give you a medal for upping the reputation of Logan to many people

 

Depends where.. The boom only just begun in Perth.

So it's a great time to buy.

Sydney? Ehh..

 

There's lots of different ways to invest and as you can see above , different opinions . We've made money from subdivisions , but the easiest money we've made has come through boom times .

There is not one market ....

So while there is a general perception that the market is peaking , that mainly applies to Sydney , Melbourne and probably Canberra / Hobart . There are lots of places in Australia that haven't boomed to the same extent .

Last Cycle , Sydney peaked around 2003 and Brisbane didn't stop until 2008/ 2009

There are areas in Brisbane that have only recently moved above their peaks from 2008 / 9 and there are opportunities to buy there . There are other places that haven't boomed to the same degree as Syd / Melb.

Two of my Kids are looking at buying their second IP's .

If we weren't maxed out I'd be looking to buy now and even then , once we've finished our PPOR and organised a development , I might have a look around to see if we can see value for a couple more .

Cliff

 

Fair points.

I just have a left wing communistic problem with rewards to 'haves' via sitting on assets, whereas hard working ppl are value adding.

But you have done both.

My advice is add value, always insures against bad times. Easy money comes and goes, work for it, stays forever.

 

I put in my hard work , sitting on my butt , talking to agents / looking at the screen , working out which places are going to boom timing the market . Either buying at the bottom when very few others are buying or when I think a move is closer . The difficulty getting finance make timing more important now days.


Cliff

 

How did u ever find time for all those whinging patients.

Medicos are ( rightly) our modern day heroes.

When looking at screen u probs have a pic of someone's perianal fistula!! That is hard work. Agents have hernias too, so that's fair enough too. And I'm not sure a digital protate check CAN be done sitting down.

We know u work.

 

When I'm not at work i tune out to work .

Screensaver was a perfect sunset at our weekend , but that's now been replaced by a cute Moodle called Billy .

Cliff

 

@boganfromlogan

IMG_2567 by See Change posted 1st Dec, 2021 at 3:36 PM

Sunset at the Cove

Cliff

 

@boganfromlogan

IMG_2290 by See Change posted 1st Dec, 2021 at 3:36 PM

Billy

Much nicer images to what you suggested

Cliff