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Should I wait or jump in to buy a PPOR in Sydney?

Discussion in 'General Property Chat' started by FirstTimeBuyer, 21st Aug, 2016.

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What would you do?

  1. Buy a PPOR now

    51.7%
  2. Don't buy now

    41.4%
  3. Other

    6.9%
  1. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    Last year my wife and I decided to wait out Sydney and invested in Brisbane instead. In hindsight we should've bought in Sydney first. We're still waiting for the Sydney market to drop before buying a PPOR but it looks like Sydney will continue to rise at least till end of this year, or possibly next.

    Wondering what the savvy investors of PC would do in our situation. Would you buy a PPOR? Would you give up on purchasing a PPOR in Sydney and just invest elsewhere? Looking for options and reasoning behind them.

    Thanks
     
    Whitecat likes this.
  2. Inov8ive

    Inov8ive Well-Known Member

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    It really depends on where and what in Sydney. Can you elaborate on your criteria?
     
  3. Steven Ryan

    Steven Ryan Mortgage Broker Business Plus Member

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    I'll just leave this here.

    syd.png
     
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  4. albanga

    albanga Well-Known Member

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    PPOR is a lifestyle investment. It needs to be looked at much further than purely money.

    IMO Sydney will sit around where it is for the foreseeable future. O/O rates and competition will continue to see demand but APRA has cut down a lot of people's servicing which will restrict further high price increases.
    If you plan on waiting it out I would expect you to be waiting a long time.
     
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  5. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    I suppose troughs in Sydney aren't too long... 2004-2008 was flat, no growth. Looking at the graph of over the last 18 years, Sydney rises much more than it tends to fall. Whether or not buying now is a good time... sorry, I can't say.
     
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  6. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    We would be looking to purchase a house or villa with access to public transport around the Marsfield. Macquarie, North Ryde etc area.
     
  7. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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  8. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    I'm slowly beginning to think that maybe we should set a criteria for our ppor and buy it now rather than later as long as the criterias are met. I've been hoping for prices to become subdued or drop, but the historical graph Steve posted paints a historical picture of prices increasing much more than prices dropping.
     
  9. larrylarry

    larrylarry Well-Known Member

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    A lot if people would be waiting for the price drops significantly as numerous articles and papers suggested, I think majority of those people are still waiting to buy their ppor.
     
    Whitecat likes this.
  10. Inov8ive

    Inov8ive Well-Known Member

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    Very good location, right type of property. If you can get a house or town house in a good location with walking distance to train you will do very well in the long term
     
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  11. +men

    +men Well-Known Member

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    I can't see any of this area will drop in value regardless of what stage of the cycle. If I am looking to buy PPOR in these area, i will do it now.

    When people talk about house price drops when the cycle turn, its more likely to happen in lower socio-economical area (eg. western sydney). As if you don't expect bondi house price will drop at any time.
     
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  12. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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    My friend wants to upgrade from her villa in Eastwood to a house. But sje doesn't have the money
    Agree with this.
     
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  13. Shawn

    Shawn Well-Known Member

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    I have got a budget of ~ $570,000.

    I am struggling to decide between a 2 bedroom apartment in somewhere like Campsie or a house out West in Kingswood/St Marys.
     
  14. albanga

    albanga Well-Known Member

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    I think people who buy a PPOR with a focus on investment are short changing themselves (and families). Money is important, lifestyle is more important.

    I know for myself I am building an overcapitalized house that probably wont value stack off versus if I stripped it right back (as the land carries the value more than the home).
    But what do you ultimately think is going to make my family and I much happier? Happiness then drives every aspect of your life, including other investments such as that in yourself, business, work.etc

    Remember to look at bigger picture stuff than just "What is going to be worth more money in 5 years time". Do that with pure investments, not lifestyle.
     
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  15. FirstTimeBuyer

    FirstTimeBuyer Well-Known Member

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    Thanks. Some wise words there.
     
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  16. New Town

    New Town Well-Known Member

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    Prices in Sydney are well above an already steep trend line. But the problem is also that ownership and holding costs are very high - Interest repayments, rates, insurance, repairs and maintenance etc etc. Unless you use as an IP and rent out on a very high yield you need values to always move up. If they don't you are losing money hand over fist and would be better off renting.

    Though who can say prices in Sydney will stop increasing - buying has lost touch with reality
     
  17. New Town

    New Town Well-Known Member

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    It may still make sense for foreign buyers as the factors affecting foreign purchasers are mostly unrelated to those affecting local buyers.
     
  18. standtall

    standtall Well-Known Member

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    Using this argument, one should spend the deposit on a long European holiday and then rent for the rest of the life. After happiness & lifestyle is more important.

    For most of us, real estate is the only path to wealth (stock market is no longer a path to anything) and the more you delay your ideal PPOR, the better PPOR & better retirement you will have. It's all about delaying the gratification as far as investing goes.

    I am contemplating splashing good money on a dream PPOR (with the downside of being unable to invest further for a few years) versus living in a modest PPOR and continuing to invest and the difference in your potential networth in 5 years with either option is staggering.
     
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  19. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    The sooner you commit to a PPOR, the sooner you'll figure out how to pay it off.
    Sometimes this creates the extra motivation one needs to pay down non-deductible debt ASAP.
     
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  20. radson

    radson Well-Known Member

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    aside paths to franking credits, diversification, liquidity and so on and so on...
     
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