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NSW New PPOR with Sydney slowing

Discussion in 'Where to Buy' started by timetoact, 22nd Sep, 2015.

  1. timetoact

    timetoact Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    143
    Location:
    Sydney
    We sold our PPOR, house in Sydney's East, last month for an amazing (crazy) price and are now considering whether to buy again or wait it out and see what happens.

    I believe we are near the peak of growth rates but that prices will continue to grow at a much slower rate. Mainly due to super low interest rates and continued demand. Any contrarian views?

    We sold for more than we will purchase, therefore taking advantage of the peak.

    Rent will cost us more than interest.

    Some opportunities already presenting themselves with auctions being cancelled and price guides dropping significantly. First hand experience - not media reports.

    On the flip side if we sit it out. What are we going to do with the war chest? Stock market is too scary for that much cash at the moment. Bank deposit less tax offers very little return. We could buy a stack of investment properties in other cities but at our current stage of life we will definitely want to own our home in the next few years.

    Does anyone think that Inner city Sydney prices will be less at any point in the next 5 years than they are now?
     
    Tekoz likes this.
  2. S44

    S44 Member

    Joined:
    17th Sep, 2015
    Posts:
    8
    Location:
    Sydney
    You'll probably get mixed opinions on that but my personal belief is that prices for houses/terraces in inner city Sydney will never reduce.
    At the very worst I think they will stagnate for a while but won't drop.

    Apartments are different story obviously. With so many being developed there is potential for the market to be flooded and cause a drop in prices.

    What kind of dwelling are you thinking about?
     
  3. timetoact

    timetoact Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    143
    Location:
    Sydney
    Definitely a house.
    Agree with your sentiments on apartments.

    Also agree with stagnation, which if it was an IP would be a problem but as it will be our home I am prepared to weather that storm.
    We will also buy well, not our first time around and will not be paying top dollar especially in this market.