Is it too Early to bargain hunt now?

Discussion in 'Property Market Economics' started by Illusivedreams, 26th Apr, 2020.

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  1. Illusivedreams

    Illusivedreams Well-Known Member

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    I’m looking for opportunities in Sydney.

    What is everyone’s opinion?

    I have a few options investment With add value and or upgrade family home?

    My wife is worried and is of the opinion it will get worse . I feel now is not a bad time to start looking.
     
  2. Duck1234

    Duck1234 Well-Known Member

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    I mean you can start looking but way too early to be honest.
     
  3. Peter2013

    Peter2013 Well-Known Member

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    Last edited: 26th Apr, 2020
  4. Illusivedreams

    Illusivedreams Well-Known Member

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    Are you in the same position?

    Im really interested in people who are in the same position.

    if so what are you doing?
     
  5. Illusivedreams

    Illusivedreams Well-Known Member

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    @Sackie
    Hey mate how are you going in terms of opportunities out there?
     
  6. Barny

    Barny Well-Known Member

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    I would start looking now, you don't have competition as most people are at home locked up staying away due to the virus.
    There are people that need to sell, must sell. Get in there now and start putting in low offers and see what happens.
     
  7. KevinJ

    KevinJ Well-Known Member

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    Not a bad to time to start looking and low balling offers, however I do believe prices still have a way to go. I was looking around Ryde-Epping area last year before the recent mini-boom.

    Most knock-down rebuild blocks of land on 700sqm and 15.24m + frontage in Epping and Ryde were sitting around 1.15M to 1.3M during late 2018 and early 2019.
     
  8. Sackie

    Sackie Well-Known Member Premium Member

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    HI @Illusivedreams,

    tbh I havent seen anything i like yet. I am not seeing massive bargasins (yet), despite all the doom and gloom. I am waiting longer and monitoring. But i am also very busy with a new venture atm so i have not been following that closely the RE markets.
     
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  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    1260 buy for a Livable house in Five dock, 3 streets from the water

    full and desky vals between 1260 to 1730

    My client went in at 1225 and got pipped at 1260

    Deceased estate so the kids just wanted the $

    Thats not a market thing per se

    ta
    rolf
     
  10. MTR

    MTR Material Girl Premium Member

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    agree 100%
    Wait till the unemployment figures come out, we will see a massive hit in property and shares

    Way too early.
     
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  11. Kid hustlr

    Kid hustlr Well-Known Member

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    I think players need to be careful predicting exactly where the property market and (especially) the share market will go. There's a trend but no one knows what can happen.

    In terms of buying right now, it's a cliche but it depends on your situation.

    If you were looking to purchase a PPOR and are still comfortable with your financial position, I would think buying 5-15% below the price of 3 months would be a slam dunk. It's case by case how stubborn you should be on price but your level of stubborness should be directly linked to how much stock is for sale in the area.

    Similar story for a cashed up investor, if the numbers stack up, why wouldn't you have a go.

    Those who were on the side lines and are happy there should be in no rush in my view.

    Ultimately there are so many variables I think it depends on your situation and a base case of caution is probably correct at this point.
     
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  12. tonyvooz

    tonyvooz Active Member

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    I think it's still early but doesn't hurt to keep an eye out for any new listings in your prefer suburb. Since you are also looking for a PPOR, finding the right property is more important than finding a bargain.

    I'm looking and have seen few small bargains but the only one that meet my requirements was sold for ~15k above my final offer, but still 50k under what I think it could have fetched in Feb.
     
  13. Peter_Tersteeg

    Peter_Tersteeg Well-Known Member Business Member

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    Right now there's an advantage because most people aren't looking. This is offset by the lower numbers of properties being listed at the moment.

    Distressed sales aren't really happening yet. People in distress are taking the repayment holiday, that won't come due for another 3-4 months. Then they'll have another 90 days to try to work with the bank and get back on top of things before you see those properties being listed.

    Overall I'd say there are likely to be some opportunities right now, but it's not the crash that some have predicted (hoped for). That may still come later.
     
  14. C-mac

    C-mac Well-Known Member

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    One other variable to toss into the mix here... (well, specific to nsw and vic only...). The likely introduction of the removal of up front stamp duty and it's replacement with a more horrible, annualised, land tax instead (which will no doubt work out much more expensive over a 10-30 year hold, compared to paying the one-off lump sum up front).

    The risk here being, you see deals and jump in (paying massive stamp duty up front now). But then in 6 to 12 months the state gov r3palce with land tax. We don't know what (if any...) land tax 'grace' purchasers will be given who purchased in the last couple of years. How cruel it would be to have to pay stamp duty and THEN be forced into land tax from year #1 onwards, on top of that. **** that. And I am personally doubtful that these states will offer many concessions here. Both states will need the money badly as they lose so much revenue from both bushfire costs and state health costs due to covid.

    Don't mean to be a Debbie downer but the numbers would really need to stack up for me to risk buying any property, anywhere in the world, right now. I would need big discounts up front to offset so much of the risk from the outset.
     
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  15. Peppas

    Peppas Well-Known Member

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    My wife and I are the same but the areas that we are looking (not far from Liverpool) the pricing seems to have stayed the same. We've been to a few opens in the last few weeks but those have either been priced much, much higher than we've expected in moving from auction to a sale price, or have sold quickly (and possibly higher than we were expecting). Market is so weird right now...
     
  16. Illusivedreams

    Illusivedreams Well-Known Member

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    Would the hit to property not occur before the employment numbers come out. Shares 100% will react to numbers.

    I don’t see correlation between employment number releases and prices.

    Further share market had a a ver aggressive rebound as well.
    In my area of search I’m starting to see small opportunities. I’m not sure if I early or another 5/10% is possible.
    Thanks for the advice thus far.

    I appreciate it albeit just as confused.
    Picking a bottom is always impossible.

    Maybe I should speak to Martin North? ;)
     
  17. MTR

    MTR Material Girl Premium Member

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    Its probably hitting markets already. I believe 35% sales falling over

    I see further drops as more supply comes to market
     
  18. K974

    K974 Well-Known Member

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    now is not the time
    That’s not how recessions work
     
  19. Jana

    Jana Well-Known Member

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    Mkt didn’t come yet, May be 3-4% less than peak price. The interesting period would be 5 months time when bank holiday period ends. More distress will come to mkt without any doubt..
     
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  20. Illusivedreams

    Illusivedreams Well-Known Member

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    Thank you for advise.

    I’m deciding on a site .

    why I’m interested, I’m in the market all the time with active or just interested.


    In January we decided to make a few offers.
    Due to our relationship with China I had. Stood understanding of what was going on there and speak to many counterparts in China.
    I made a decision late January early Feb that this was going to hit us.
    I sold some shares and put site purchase on hold as I believed it would be really bad.

    What I’m seeing a site similar to the one I let go in Jan for $1,600,000 I can now pick up around $1,400,000

    In so my question when fear is the greatest and uncertainties reducing competition in market is it not the time to buy.

    I put to you what happens when in 6 months bank holiday ends but people start working again. Or government comes up with stimulus V2 ?

    Uncertainty is driving me mad ;)