PPOR - What to do when market is crazy!!!

Hey Team, I have been reading about this for a while and everyone has different opinions. Pretty hard to guess the future, however, I am keen to hear from experienced investors. I am looking for a PPOR and the areas I am targeting in Melbourne (North-Est) are up 30% (no kidding here) in the last 4 months and this run doesn't look to stop. Not sure why but there is a bit of craziness around and a lot of people spending big $$$ on properties. As an investor, I really hate "overpaying" when I don`t see value, in hot markets everything sells at a premium.

What would you do?

a) wait for things to settle a bit with the risk of pricing settling at +XX% from now
b) go hard and get the deal done doesn`t matter what the end cost is (this is what is happening now to buy a property)
c) forget about the PPOR, keep renting and invest where you find value
d) buy a townhouse instead of a house (same location)

 

I like your last option the most. If your looking for PPOR and prices have moved too much for you for a certain stock type and area, just adjust. From house maybe look at semi. Old one and Reno. Could look amazing. Or move a suburb or 2 out.

In terms of waiting for a price correction. Well sure it's possible. But I also know folks who have been waiting for 10 years for the right price to buy their home. And they're still waiting.

 

For a PPOR - Just buy something that you can afford (Don't overstrech) that your family likes. In 20 years' time it won't matter what the market was doing in 2021.

 

C

 

I tend to think prices will pull back at some point in time!
Right now it seems like prices are totally silly.

 

I'm sure they will. The question is, will they pull back to prices preceding current prices of beyond current prices?

That's the 64 million dollar question.

 

Buy a 2 bed APARTMENT that's convertible to 3 beds. You'd have brass b*lls buying a house in this climate.

 

My money is on above. You don't pump that much money in the system without it just disappearing.

 

Thanks, everyone. Good to see everyone has different opinions.

Yep, as per point a. In saying that Melbourne (and Sydney I think but I don`t follow much) have been on the run for a while now. Did we really have a correction last year? To me was simply no much stock on the market and people buying within quoted ranges (sometimes), sometimes overpaying. We have been on the run since 2013, that`s 8 years of growth - bull market. There is no right or wrong here, no one has the crystal ball and we have examples from the past it can go either way.

Stock on the market is increasing in the suburbs I am monitoring, however, it sells quickly. Again, trying to be scientific here, however I think there will be a point where vendors wake up and think party time however the demand will not be there anymore.

Overall I am bullish and not selling any stock, just want to find a PPOR Maybe I need to move to Brisbane

 

That's what my gut says too.

 

Actually Melbourne and Sydney had some steep corrections in some places in 2018 approx. There was massive value in both Melb and Sydney at the time. I was purchasing in Sydney and Brisbane for myself and helping someone friends in 2018. I even posted on PC that opportunities in the market are amazing.

That's when you shoulda bought

Where are the crashing markets in Sydney?

 

Well unfortunately the areas I was monitoring didn`t crash much, stock under $800k. Some friends bought $1.5M properties in central suburbs, killing it now as they are also adding value.

 

Come to Brisbane.

 

Stock under 800k prices are long gone.

Those who missed that boat have missed it for good imho.

 

Yep I have been thinking about it for a while