NSW Is it the right time to buy in Sydney?

We are planning to upgrade our current residence to a 4BR house with at least 500m2 land. Looking at current property market in sydney norwest area such houses cost at least 900k and such properties seems to be out of our reach as we will be burning all our earnings in repayments.

So wondering if this the right time for upgrade or should we just wait for a while for the housing market to cool down?

Looking for some insights and suggestions from the property experts here.

 

I would have thought you already know the answer to your question. Can you afford to upgrade? Will upgrading alter your lifestyle? Will property market in Sydney slow down? Probably it may still mean the prices are slowly increasing at a slow rate. If drop, by how much? I think it's fair to say no one really knows.

If north west is out of reach will you consider West?

 

I dont think the norwest house would fall from 900K to 600k unless there is a massive economic mishap.

However, u may find house of your requirement in a different suburb in western sydney. All the best.

 

As larrylarry said...Sydney market is at peak..

It's better to look at other markets that are now growing and then bring back funds to purchase in Sydney once the market stagnates

 

Lots of good questions, but answers are really tough. Thanks for the insights.

 

Just be careful not to over extend.

 

Yes I was also thinking along the same lines. Thanks for the prompt response.

 

I would go against the grain here and say buy if it is for a ppor. You sell high you buy high now, later you might buy low but also sell low. Unless you're happy to sell now and go rent until (if?) prices come off but that is a hassle.

 

I'm with biz
If it's a ppor and fits in with your plans and what you want to then do it. The 900k properties aren't going to magically drop to 600 as mentioned. It will just be still worth 900k in 5 years time (+10%). So you either pay 900k now or later.

 

I'd say it is better to wait and watch. As an investor, all that an individual thinks is how and when, what suburb to target.

Fortune favours the brave. The brave here keep there options open. Target multiple suburbs, multiple properties, open to renovations, negotiate hard.

If the above things not what you are planning, you can buy now or later, it wont make any difference. You need to do different things (than what you have been doing) to get something different (than what you already have).

Regards

 

I guess buying PPOR is a little bit different cos it's for yourself. If a large percentage of your earnings go into repayments then you will have to weigh up other things like lifestyle... I have seen people pile up heaps of debt on PPOR and they're not necessarily happy even with a big house in a nice suburb, the rat race.

 

Would it be financially viable to rent a 4 bedroom house to live in and free up cash to invest elsewhere? Is the place you live in now suitable to be a good investment property.

 

I agree with Biz.
If you are buying and selling then do what you need to do. But don't over extend yourself in the current environment. I would say if you can't comfortably cover payments and reduce debt now and are not expecting a substantial rise in income in the next few years then it is probably too much.

We sold last July / August at arguably the peak of the market madness. Things then dropped off a bit so we waited in the hope the market would level out and some bargains start to appear. This didn't eventuate and prices if anything continued upwards. We have just this week secured the perfect PPOR at what we believe to be under market, although the market doesn't seem to agree

Good luck

 

Agree. If you buy and sell in the same market thats fine. Note that I have a friend who sold her inner west apartment in about 2012 for a good price, intending to buy something better and more spacious in the same area as they just had a new son. They (temporarily) moved in with parents while they looked. So far so good. But then every week prices were rising.

Soon enough, even comparable properties in Parramatta overtook their Inner West sales price. So they ended up on the sidelines...

 

Hi Angel, thanks for your response. Yes it can be converted to IP, but I was just wondering if I should wait a little bit to see if the price drops and get the property that meets my criteria then. Having said that, the property market in Sydney is so hot, it doesnt seems to be cooling off anytime soon.

 

Hi All,

I really appreciate everyone's great inputs here for my first question on the site. As a new member of this site, I really feel that the members on this site are genuinely interested to help each other. Really glad to see great vibes here.

Thanks,
Satya

 

If I thought I would stand to make (or avoid losing) $50-100k+ to rent for a year or two I would do it, despite the 'hassle'.

 

There is no gaurantee properties will be cheaper in a year or two. Last peak to bottom in Sydney was around 6 years. That's a long time to be hanging on. I suppose if I was single it wouldn't bother me but when you have to juggle kids, school, work extended family etc you really need a base. Maybe I'm just differnt but when it comes to my family I don't look at It as a way to make money, I go for what's best for them.

 

$100k would buy a lot of [insert whatever kids are into these days].

 

Hi @Satya,
Do you already own in Sydney? Just wondering what and where that is and how much would you get if you were to sell it?