PPOR in Sydney 2018

Discussion in 'Property Market Economics' started by hash_investor, 22nd Feb, 2018.

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  1. hash_investor

    hash_investor Well-Known Member

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    Hi guys,

    I am in the market to buy a PPOR in Sydney. I am not in a hurry and can wait for the right opportunity. My question would be is this the right time to buy PPOR in Sydney? I am looking for the 800-900K range which is the area between quakers hill to glenwood. There are sometime opportunities in Stanhope as well in that range but not many. Glenwood properties in that range are small but I am fine if the area is good. Quakers Hill has larger blocks in that range but area is not the best one.

    But this is the range we can afford. Do you guys think we should wait now or buy?
     
  2. Jacque

    Jacque Jacque Parker Premium Member

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    Hi @hash_investor we have bought for many clients in these areas as per my previous posts and only you can decide when the time is right to buy. Especially for PPOR I think you buy when you can afford personally and in this environment of low IRs you pay as much of this non-tax deductible debt off as possible when you do purchase. Lots of buyers at this price level so don't make the mistake of thinking prices are going to nosedive here. Do your due diligence, research and negotiate hard. Good luck :)
     
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  3. Gockie

    Gockie Life is good ☺️ Premium Member

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    Good point Jacque.
    @hash_investor, Can you secure something a walk to trains with that budget and in that area? That's what I'd want if I was buying.
     
  4. hash_investor

    hash_investor Well-Known Member

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    That would limit my options to Quakers Hill. No other stations there are operational yet. Some parts of glenwood can be an option because they would be walking distance to Bella Vista station on old windsor rd when its open next year. Do you think there will be further price increase in Glenwood after the station?
     
  5. Biz

    Biz Well-Known Member

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    If there is nothing really motivating your need to buy now, ie: Kids starting school, A new land release not likely to be replicated, a job requiring you to be close by, you're currently living with your inlaws sleeping on the floor. I would wait. I think cookie cutter houses will be cheaper in a year or two.
     
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  6. hash_investor

    hash_investor Well-Known Member

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    cookie cutter is not my ideal PPOR though. I won't wait for them to come down
     
  7. Biz

    Biz Well-Known Member

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    = Cookie cutter.

    VVV

    It's not a bad thing, it's just there is plenty of them very similar as they are project homes.
     
  8. hash_investor

    hash_investor Well-Known Member

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    Not really, there is plenty of larger blocks older style homes in quakers hill for that price range. Glenwood has some options as well but not many and blocks are smaller size too. Cookie cutters are available for much lower price.
     
  9. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    I guess a simple question is.

    If now is not a good time generically, when is ?


    ta
    rolf
     
  10. hash_investor

    hash_investor Well-Known Member

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    I don't know as I don't have a crystal ball. It is about consensus and what generally the market thinks.

    No one I have met thinks that market will go up in a year. That is why I would say it might go down.
     
  11. Graeme

    Graeme Well-Known Member

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    I think that there are three possibilities for the Sydney market:
    1. The government panics about the slowdown. They reverse the APRA regulations, bring in new FHB incentives, and reignite the boom.
    2. The market drops a bit, and then flat lines for a prolonged period until wages and rents catch up. This would be a soft landing.
    3. The market crashes. The fall is a lot deeper than most people expect, and could easily unwind all the gains of the last six or seven years, and then some.
    If you think that the first possibility is the likely outcome, you want to buy before Scott Morrison persuades APRA of the error of their ways. (He's already raised this point.)

    Otherwise, it doesn't hurt to wait. There has been a massive run up in prices, and a collapse in rental yields. (For Glenwood houses it's 3%.) As the market pulls back from the peak, there might be some bargains.

    The thing is that none of us know what's going to happen, and you won't know if you've made the right call until four or five years down the line.

    My feelings? Property is insanely expensive in Sydney, and I wouldn't touch it with a bargepole right now. I think that there's limited upside, and whilst I'm not convinced that this is the start of the long-expected crash, it could be. In which case, there's a massive downside risk.
     
  12. Kangabanga

    Kangabanga Well-Known Member

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    with 900k you could buy a big house with acreage 20km from CBD here in Brisbane. 300k will buy pretty much buy you an acre of land with a new house built pretty much anywhere else away from the cities.
     
  13. hash_investor

    hash_investor Well-Known Member

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    not a bad idea... I did consider that lol.

    but my simple search did not produce promising results. there were some forms available in that range a few years ago in the MBR but they have been rezoned since and are now worth millions.
     
  14. Illusivedreams

    Illusivedreams Well-Known Member

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    Imagine the house you can buy in Thailand for $900,000

    How About Darwin?

    Imagine :)
     
  15. virhlpool

    virhlpool Well-Known Member

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    All illusions and dreams. Including Sydney's un-stoppable price growth.
     
  16. KinG3o0o

    KinG3o0o Well-Known Member

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    sorry to break your bubble.. foreigner cant buy land or anything attached in thailand.

    think about the size of the apartment you can buy in thailand :)

    maybe tasmania too