OTP in the news again

Discussion in 'What to buy' started by Kashmir, 31st Aug, 2015.

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  1. sash

    sash Well-Known Member

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    Zetland 3 bedders...selling for $1.5m..here I come....in 2019....perhaps 800k???

     
    sash, 1st Sep, 2015
    #21
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  2. Kangabanga

    Kangabanga Well-Known Member

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    sorry guys, wasn't online. Please refer to full article I printed out and copy and pasted. business spectator is a bit like WSJ, some articles can be viewed in full from a google search but not from links.

    heh off for dinner of sage and onion pork sausages from superbutcher.
     
    Kangabanga, 1st Sep, 2015
    #22
  3. sash

    sash Well-Known Member

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    Yum...can you share that on line.....

     
    sash, 1st Sep, 2015
    #23
  4. Sackie

    Sackie Well-Known Member

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    @sash its going to be a bloodbath for the cashed up investors in Syd when the overpaid properites start tumbling down..... I cant wait for the deals that will be on the market.
     
    Sackie, 1st Sep, 2015
    #24
  5. Tekoz

    Tekoz Well-Known Member

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    @sash I thought that you don't like to buy apartment mate ?
     
    Tekoz, 1st Sep, 2015
    #25
  6. Tekoz

    Tekoz Well-Known Member

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    @Leo2413 That won't happen mate. Mostly it will be at market price not 50% discount or so.
     
    Tekoz, 1st Sep, 2015
    #26
  7. Sackie

    Sackie Well-Known Member

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    Being market price, and having people willing to pay market price are too different things ;)

    There will be desperation, negative sentiment, fear, finance issues from over stretching etc etc.

    In many cases they wont get 'market price'. That's where the buying BMV kicks in ;)
     
    Sackie, 1st Sep, 2015
    #27
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  8. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Do you think this will be restricted to the OTP/apartment/unit market, or do you think the whole market will be affected?
     
    Ace in the Hole, 1st Sep, 2015
    #28
  9. sash

    sash Well-Known Member

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    Yep..can't wait fro that wonderful building which sold out for $100m to come to settlement...you have to love Specufesters!
     
    sash, 1st Sep, 2015
    #29
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  10. sash

    sash Well-Known Member

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    What you talking about WIllis...30% of my portfolio is units/TH..
     
    sash, 1st Sep, 2015
    #30
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  11. Sackie

    Sackie Well-Known Member

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    I think some OTP and unit markets may be hit harder but I just think any market where people got caught up in the hype and paid too much for. If any of them become distressed sellers then we all know what happens. I don't see Australia as a whole, in all markets tanking. I just don't. But that's just my opinion only.
     
    Sackie, 1st Sep, 2015
    #31
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  12. Ace in the Hole

    Ace in the Hole Well-Known Member

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    Ace in the Hole, 7th Sep, 2015
    #32
  13. sash

    sash Well-Known Member

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    Aahhh....hilarious....happened last time too...might be Karma for the developers if they dud the original people...and find that their over the top sales fall over in droves down the track.

    Ladies and Gentlemen....the seeds for a fantastic crop ripe for the picking are being sown...in Sydney as we speak. 2019 looks good....
     
    sash, 7th Sep, 2015
    #33
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  14. Ace in the Hole

    Ace in the Hole Well-Known Member

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    I'm after a nice city apartment as a 2nd PPOR in the coming years.
    Didn't think I'd ever buy an apartment, but the prices may be too good to refuse.
     
    Ace in the Hole, 7th Sep, 2015
    #34
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  15. Tekoz

    Tekoz Well-Known Member

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    Well @sash I hope that you are right, at the moment I'm priced out in Sydney thus can't buy anything to invest.

    Looking forward to that year to buy the OTP in Pazzamatta :cool:...
     
    Tekoz, 7th Sep, 2015
    #35
  16. Sackie

    Sackie Well-Known Member

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    Harvest time.....mmmmmmmmmmmm....waiting......:D
     
    Sackie, 7th Sep, 2015
    #36
  17. JDP1

    JDP1 Well-Known Member

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    Doubt this will happen. The fundamentals of Sydney are too strong for this to happen. Maybe moderate to minimal declines but that's about it...looking at more of a stagnation for a lengthy period of time. Instead of big price drops, I think what will frustrate investors/owners is the opportunity cost forgone by their Sydney investment not going anywhere.
     
    JDP1, 7th Sep, 2015
    #37
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  18. Sackie

    Sackie Well-Known Member

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    I am talking about people who paid waaaaay too much of OTP and the like. Oh we will see a nice decline in that market, I have no doubt.
     
    Sackie, 7th Sep, 2015
    #38
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  19. skuzy

    skuzy Well-Known Member

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    so what would force owners to then sell these overpaid units/apartments when properties start tumbling down? why not just hold and wait. assuming loans can still be serviced at these rates.
     
    skuzy, 8th Sep, 2015
    #39
  20. Sackie

    Sackie Well-Known Member

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    In boom markets, many people buy emotionally, some overpaying and others super overpaying putting them in tight situations. The following can happen:

    1. More sensitive to IR increase due to massive loans
    2. More sensitive to job losses,
    3. Divorce, then single income (say goodbye to property)
    4. Death, have to sell
    5. Maintenance issues or massive strata then they realise they cant afford it
    6. Business going south then have to sell

    Those are some of the things that will happen and when they try to get what they paid for it....ahhh...a shock awaits them. Its sad, but that's just life, imo.
     
    Sackie, 8th Sep, 2015
    #40
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