NSW Noob Analysis and questions NSW

Discussion in 'Where to Buy' started by raymondK, 25th Feb, 2022.

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  1. raymondK

    raymondK New Member

    Joined:
    29th Nov, 2021
    Posts:
    2
    Location:
    Sydney
    1) Oct - Nov 2021 I could afford an established property upto 1.45 million.

    2) Got latest rates today from my broker and the jump in fixed interest rates + future interest predictions and uncertainty my broker recommends staying 1.3 mil and below. Even though banks are ready to give me upto 1.7mils.

    Btw i found tictok offers and rates to be quite competitive. Do people go for that? Why not? Lol

    3) how do these REA work? Are they all dodgy or is it me? Their so called "already have an offer for x changes everyday". I am sure they are adding at least 100-150k on top looking at recently sold and similar prices. I am looking at Marsden Park area atm.

    4) can't see how the market is hot? Maybe it was last year. I had 70% of the agents call me back and talk me into putting in a better offer or someone else would. Well 90% of the properties i inspected in last two weeks remain unsold. Now all set for next inspections. Some have been on market for 30+ days.

    Learning from all of you here and as general rule the best time to buy is today and now. But my limited experience in this market i am already predicting 10% correction. Just give me 6 % and ill pull the trigger :D. Or should i just do it now? Am i overthinking this?
     
  2. KingCantona7

    KingCantona7 Well-Known Member

    Joined:
    8th Apr, 2018
    Posts:
    281
    Location:
    Sydney
    You are right, there has been a clear shift in market sentiment in the past few weeks.
    The market is not hot , agents are struggling to meet seller expectations and the number of properties accepting an offer prior to auction has risen significantly.

    I am not a financial expert, so please use your due diligence.
    If possible, attend auctions in your area of choice to see the pulse.
    Also read other threads "sydney q1 q2" in the property market economics section.

    Sydney is not expected to explode up from here. It is either likely to plateau for a while and correct, or drop by 10-20% over the next 2 years.
    While there is no guarantee on any of the above, there are the more likely outcomes.

    If you have time on your time:
    A. Wait until election results are out in may/June. If Labor forms the government, it is going to significantly change the sentiment of investors. ( remember it has Liberal who ruled Australia since 2013)

    B. Visit local auctions and monitor key data pointers such as Corelogic daily index. ( which I think indicated 0% growth in February till date )

    If you do not have time to wait. Make sure you negotiate hard for properties. The last few weeks have seen some properties sold for a bargain ( visit the thread "sydney post a bargain")
    Play hard ball with any property where they failed to sell at auction or had to exercise "vendor bid". This indicates weakness and they are there for the taking


    Good luck.
     
    Shawn6334 likes this.
  3. Aspect

    Aspect Well-Known Member

    Joined:
    16th Jan, 2022
    Posts:
    76
    Location:
    Sydney
    Is this an investment or a house to live in? Never trust agents, they will use a variety of tactics to get the best outcome for their vendor and themselves.

    Don't feel pressured into buying something if you aren't 100% on it, you have time on your side. Ultimately you should form your own view on relative value, and negotiate hard to get it under this level if you can. Best of luck.