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Spooked?

Discussion in 'Property Market Economics' started by balwoges, 25th Oct, 2015.

  1. balwoges

    balwoges Well-Known Member

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    My daughter and her partner had their first open a week ago [house at central coast], over 40 people went through, yesterdays open - less than 6

    Luckily they got an offer which they accepted, it was $30,000 less than they were offered last week but a more realistic price - seems the market is spooked by the interest rates rise.

    Went to a first 'open' yesterday and only 8 people were there - am noticing more houses being passed in at auction. Time for me to pounce as I am cashed up and dont need finance. Here's hoping :rolleyes:

    PS Have to remember when I sell my house I will be at the mercy of the market :D
     
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  2. DaveM

    DaveM Adelaide Buyers Agent & KFC Strategist Business Member

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    Went to an auction up the road from my house in western sydney, was packed and the bidding went to the normal silly prices.

    I am seeing a lack of interest in rental level properties where I live but still very strong demand for owner occupier/higher end.
     
  3. euro73

    euro73 Well-Known Member Business Member

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    Yeah its not like people aren't buying. It's just not as frenetic and the prices aren't being pushed to the same levels as they were. This is only to be expected when the amount of money people can borrow has tapered off or diminished. We have to be careful not to think the post APRA environment has created an either /or situation of UP or DOWN. There is a 3rd option... where stable and sensible takes over.

    Borrowing capacity has diminished, but it hasnt disappeared. There are just fewer buyers in general, with less money in general. But owner occupiers havent seen servicing diminish- new money was always assessed with buffers. It's existing OFI debt that has seen the biggest change. It's the froth that's been stopped, not the core market
     
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  4. TMNT

    TMNT Well-Known Member

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    So who on earth are buying thewe western syndey properties?

    Cant for the l I fe of me work out who would?

    Terrible yields
    End of cycle
    Rise in interest rates
    Fierce competition
    Better alternatives

    Are they herd followers who finally think that its so hot its time for them to buy?
     
  5. Property Twins

    Property Twins Mortgage Brokers - Australia Wide Business Plus Member

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    There are people who want to live in Western Sydney :) so there are owner occupiers.
     
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  6. dabbler

    dabbler Well-Known Member

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    @TMNT They wont be looking at things the way you do.
     
  7. Mumbai

    Mumbai Well-Known Member

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    And they shouldn't. Else, what will we poor investors do!!
     
  8. Natedog

    Natedog Well-Known Member

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    Don't forget roughly 70% of buyers are owner occupiers who don't really care about yields/cycles.....

    They just want a roof over their heads
     
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  9. See Change

    See Change Timing Lord

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    Time from last peak , to trough 6 years ....

    Cliff
     
  10. York

    York Finance Broker Business Member

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  11. JDP1

    JDP1 Well-Known Member

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    allow me the opportunity to hype Brisbane in those 6 years.:D
     
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  12. sash

    sash Well-Known Member

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    Agree with you there....the people getting in now...are about learn a hard lesson...

    True....but the OO will be crying when the music stops...happens every cycle. The people who buy with the heart instead of the head irregardless of whether they are investors or not...will feel some pain...
    York....some people don't believe the storm clouds are on the horizon... ;) Waiting 6 years....for another upturn is about right....
     
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  13. See Change

    See Change Timing Lord

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    Slow down a bit . Sydney didn't go Gaga until around 2012 .....

    So that's nine years from now . 2009 -2011 was a good time to accumulate .

    Cliff
     
  14. Tranquilo

    Tranquilo Well-Known Member Premium Member

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  15. Tranquilo

    Tranquilo Well-Known Member Premium Member

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    I hate when the Quote does that lol:p
     
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  16. York

    York Finance Broker Business Member

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