Hello everyone We happened to purchase our PPOR at peak price and now when we see the market cooling we feel about paying more. Any directions how the market can move.
As long as you bought a reasonable asset, in an area that ticks some of the property investment fundamentals boxes, isn't 50km from the cbd, or OTP, and has a reasonable amount of land content, you should be ok. Might find the value may be stagnant for a couple years, or even a slight decline, however Sydney is the largest capital city in Australia with the highest level of incomes and great livability and culture, so good market to be in.
You only realise your losses if you sell. As long as the property has good fundamentals, you’ll be fine.
Any market can go up, or down. You can sell now and make a loss or profit, hold and make a loss or profit. I would not expect Sydney to keep booming but it continues to surprise. The main issue at the moment is whether you can pay any mortgage off.
Basically - do you have some problem? What is the fear or issue you have? Are you afraid something will happen to the house or you if the price goes down? Do you feel angry because you paid too much? We can't really offer any opinions because there is not enough detail. The Y-man
Buying a home is a personal family and emotional decision. Sydney market is likely to go sideways given it's peak.. As The Y man asks, what is troubling you about the purchase?
Due to transaction costs (stamp duty, legals when buying; Commission, marketing and legals when selling) you need a property to go up 10% or thereabouts to get your initial purchase price back. If you hold for 10 years that’s only 1% per annum.
This sounds like buyers remorse. May be you waited as the market climbed, then finally bought and now suddenly the negative news? Work on the mental aspect, not the financial. You have a ppor that you can decorate and cant have a lease terminated on you. Focus on that. Long term as long as you can pay the loan, will probably be ok.
It’s your PPOR - enjoy it! It doesn’t matter what the market does as long as you can afford to hold it.
Agree with the others. Just buyers remorse. Long term, it is a very solid location. (Around 12-15km from city). And next boom you'll be laughing. In the meantime, I don't think prices will come off too much in the area, there will always be a very good demand for it.
