NSW Is it the right time to buy in Sydney?

Discussion in 'Where to Buy' started by Satya, 7th Jul, 2016.

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  1. HUGH72

    HUGH72 Well-Known Member

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    You are buying and selling in the same market so I don't see the problem providing you aren't overextending yourself. Increasing PPOR debt isn't ideal but if you have out grown your current place then do it.

    Prices may drop, but they may continue to rise and if you are out of the market renting you may get left behind.
    PPOR isn't only an investment decision.
     
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  2. Satya

    Satya Active Member

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    Hi Gockie,
    We do own a townhouse in Quakers Hill. My estimate is about 600k if we sell the townhouse.
     
  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    That's not too bad. :)
    I'm going to be conservative.
    I'll say if you really think you have outgrown it, its ok to move (sell it and move to a 900k property) but I hope you've managed to pay off a sizeable amount of the debt.

    If not, i'd actually try to continue to pay the townhouse down to near zero, (using an offset account or the loan itself, this is assuming you're not planning to be using the townhouse as a future IP). I feel an 80% or 90% loan on a 900k PPOR is personally too high for my own comfort levels, you'll just owe the bank a sizeable amount of money, the property is not earning income and is not tax deductible.

    I think if the property values in the Hills continue to rise, you arent doing too badly anyway since you already own a townhouse in the area and they will remain popular (cheaper buyin than a house). So you already have a foothold.

    Another alternative is to buy a house in Blacktown to live in, you can do that now, you can just buy an older one there for about 600k. If an older one doesnt appeal then increase the budget but dont go too high. I like Blacktown for the reasons of it has good transport and is a lot cheaper than the Hills.

    The question is, is your partner ok with that, and will your kids be able to attend good schools?
     
  4. Satya

    Satya Active Member

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    Hi @Gockie,
    Thanks for your suggestions. It does make sense amd I also have similar thoughts about buying the expensive property.

    Not in favour of moving to Blacktown yet though.

    I may just hold on for few years and see if the situation changes.
     
  5. C-mac

    C-mac Well-Known Member

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    Hi Satya, based on what you've mentioned about your situation and choices, I'd recommending holding tight for at least the next year, possibly two. How the wider Sydney market will play out once all coming apartment builds are complete, is unknown as yet. Could be worth watching on the sidelines and being ready to pounce should opportunity come up, later on?
     
    Satya likes this.
  6. Sam Yue

    Sam Yue Well-Known Member

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    Hi @Satya , how is things going? have you end up buying the ppor?
     
  7. JDP1

    JDP1 Well-Known Member

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    Is it the right time to buy in Sydney?
    I'm gonna take a contrarian view and say yes.
    Why? There is no other market in Australia that has as strong and sustainable fundamentals as Sydney. Also because of supply limitations that are more severe than its competitors.
    The combination of the economy /jobs and the limitations of supply (which won't get much better in the future) will ensure strong long term performance (no idea about short term-thats speculation)..
    However, that does not mean Sydney is thr market with the highest cg potential in the next 10 years
     
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  8. Tattler

    Tattler Well-Known Member

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  9. bob shovel

    bob shovel Well-Known Member

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    The housing minister just declared sydney prices will continue to go up! The boom continues indefinitely! !! o_O time to buy. ...
     
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  10. Gockie

    Gockie Life is good ☺️ Premium Member

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    Woot woot!
    "Set for life"!!
    Love it! :D:p
     
  11. Bunlee

    Bunlee Well-Known Member

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    Not so sure that those buying in Sydney now are "set for life". Perhaps more like ' set for a life of focusing on future interest rates and grappling with eventually paying off a huge amount ".

    Perhaps those that bought in Sydney in the last 5-10 years or earlier would be closer to being " set for life ".

    I still believe that buying in Sydney now, will in the future, be regarded as a prudent move but it will come at a cost at many levels and is far from being set for life.

    My view is not prescriptive in nature as people's circumstances are very different. However the premise of being set for life is problematic in my mind.

    All the best
     
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  12. JDP1

    JDP1 Well-Known Member

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    Yes. Anyone who owns in Sydney is set for life...unlike us toothless hicks driving in Ute's with confederate bumper stickers in Brisbane.
     
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  13. Biz

    Biz Well-Known Member

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    set for life taking out a million dollar mortgage? More like FML.
     
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  14. sash

    sash Well-Known Member

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    You forgot to add snorting and squealing like pigs.....and yee haa'ing....

    One a more serious note.....Brisbane about to jump to the next step in the cycle shortly...I am seeing all the FOMO crew jump in now.....I am shaking my head....they are going to get burnt big time!

    I reckon that Outer North and West Melbourne/Geelong and Brissie are the safest markets to invest from a risk perspective.
     
  15. virgo

    virgo Well-Known Member

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    Are you kidding ? (in answer to the OP's question)...definitely a FOMO feeling in the sydney mkt atm

    Sure, it will trend upwards in the years to come, but that is NOT your question is it?
     
  16. Tink

    Tink Well-Known Member

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    Or as @sash the right time to sell?
     
  17. MTR

    MTR Well-Known Member

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    Ditto
    Buy and Sell in same market is fine. Also primary residence? different rules apply
     
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  18. Harry Marcus

    Harry Marcus Well-Known Member

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    This also happened to me. A painful lesson learnt.
     
  19. Sam Yue

    Sam Yue Well-Known Member

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    note it down
     
  20. Sam Yue

    Sam Yue Well-Known Member

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    agreed, Just sell and buy for the ppor upgrade is a quite safe bet.