Owner occupier in Sydney

Hey all,

I'm looking as an owner occupier for advice. The goal is simple - secure a free standing home in Sydney to live in.

Despite selling my unit earlier in the year the rebounding Sydney market is driving me bonkers. I'm seeing places go for 200k-300k over guide prices and even if I were prepared to play that game valuations are making it a foolish move.

Coming to this forum as a self declared property noob who wants to avoid being eaten by real estate sharks. Also keen to know if the current market demand is normal..

Free advice is always welcome.

 

What is normal, really? What did you think about the sydney market 12 months ago?

 

Welcome LTR to PC

What areas are you looking at for your PPOR?

 

Thanks. Ideally somewhere around the Inner West

 

ha nothing is 'normal' but my read is that the behavior I'm seeing first hand is abnormal. Is it normal that buyers are paying 200k above valuations? That's my question as I really don't know.
My read is that the 2018 the dip in prices that lasted into mid 2019 was a more 'normal' market in that market prices were more reflective of actual value. As for the last few weeks I'm seeing weekly gains that seem unsustainable which makes me wonder if there's a sudden uptick due to irrational behavior or simply a return to the highs of 2017 that will sustain.

 

Why did you sell earlier this year instead of upgrading straight away? (Exploring your mindset which is an important factor).

say it suddenly dropped off a bit. Would you assume it will keep cooling, and wait?

 

I sold in September due to a change in personal circumstances and seeing the writing on the wall with falling apartment prices.

 

What valuations are you referring to? Advertised price is not valuation.

To purchase the property you must have the best combination of conditions (usually least of these) and price (highest of this)

 

How close 'inner' and how far 'west'? Newtown vs Homebush?

 

Yeah I get that advertising prices are what they are. My concern is that bank valuations are coming in way under what the market is prepared to pay. I get that in a situation like this I need to be prepared to overpay but when there's a disconnect of six figures between bank valuation and market price I can't help but wonder what is going on.

 

up to Canterbury. newtown is not realistic nor what I'm after. I've noticed around there tons of eastern suburbs kids coming over with their parents acting as grantors (I assume).

 

How are you knowing what the banks valuations are?
And what type of valuation are you referring to, drive-by / electronic / desktop or full inspected/shortform?

 

Upgrade properties tend to be less sensitive valuations. But unless youve actually seen the bank vals, your just guessing.

if your looking for someone to tell you how the market is going to go, the experienced people dont know any better than you do.

 

drive-by and desktop which my broker assures me is sufficient. apparently without putting down deposits I can't secure more robust valuations though keep in mind I'm working a lot of this out being a newbie so probably no doubt some of the advice I receive may not be accurate.

 

Sufficient for what? for you to determine to buy or not to buy? If that's the case its pretty terrible advise.
I would be more interested in comparable sales report, looking at similar properties that have sold - over some electronic data.
Don't get me wrong desktops can be a good tool, but shouldn't be the sole indication of value for a property
And I wouldn't be thinking 'that's what the bank values the property at'

Q: are the properties being sold at auction?

 

these do include comparable sales and properties so it isn't solely a drive-by but my gut tells me that these alone can't possibly be entirely reliable so thanks for the advice. Most places are going to auction, one recently went 300k over the bank valuation and it had all kinds of issues including boundary disputes. Makes me wonder if it is even a good time to buy.

 

Where are you seeing this? In my experience valuations are coming through fine for purchases in Sydney at the moment. Based on transactions of existing dwellings mostly in the range of $1m - $2.5m, nothing off the plan.

 

A semi in hurlstone park recently sold 300k over valuation with boundary issues..

 

Just to confirm if someone purchased the property at auction, it's likely a valuation would be required - I'm going to say 99% chance this valuation came back exactly on purchase price.

 

Please stop saying valuation.