NSW Sydney 2022 - Post a Bargain

Hmmm....wonder whether ASIO..has a dossier on you......

 

Keep it keeping son....

Facts are facts.... the latter sipping....vegan eating set from the Eastern suburbs might be choking on thteir cawfees about now.

I agree......by June year...Sydney would look like a train wreck if there is a 1-1.5% rise to rates.

 

Plus there were the FHB's that took money out of their super to use as a deposit on a house. There was so much stimulus from the government for property since early 2020.

 

This is exactly right...a lot have borrowed to the hilt. When rates 4.5%...they might struggle. Unlike other states a lot would have borrowed over $1m plus to get into houses.

Looking to buy back in Sydney around 2025-2026..when Perth is toppy I will bring it back to Sydney....

 

That's kind of my gut feeling about Brisbane as well I think it's going to grow further but I don't think it's going to keep going nuts it's not going to reach Sydney prices

 

Unreasonable asking price and you stay on the market for long

1 Pan Cres Greystanes – 58 days on the market
https://www.domain.com.au/1-pan-crescent-greystanes-nsw-2145-2017498074
Auction was on 22/01/2022,

Unreasonable asking price and stay on the market for long and readjust the price

74 WhalansRd Greystanes – 80 days in market
https://www.domain.com.au/74-whalans-road-greystanes-nsw-2145-2017453496
Initial price guide $ 1,590,000 - $ 1,700,000
Drop $ 140k – revised guide $ 1,450,000 - $ $1,590,000

21 Canal Rd Greystanes – 86 days on the market
https://www.domain.com.au/21-canal-road-greystanes-nsw-2145-2017437023
Initial price guide - $ 1,335,000 - $ 1,375,000
Drop $ 85K – revised guide $ 1,250,00 - $ 1,290,000

2/810 Merrylands Rd Greystanes – 98 days on the market
Initial price guide - $ 899,950
Drop – $ 50k, revised guide $ 850,000

Unreasonable asking price and eventually withdrawn from the market

22b Macquarie Rd Greystanes -
Duplex with GF, 451sqm
Auction was on 22/01/2022, passed in at auction, readvertised $ 1.5-$ 1.6m, unsold and withdrawn from the market

 

22b Macquarie duplex is interesting because they would not have made much money. I saw this post 2017...where a lot of people thought they could make a killing. You will see this in Sutherland Shire, Bankstown. Blacktown..where people spent to much on builds. They will be forced to sell when rates go up. Watch the Hills/Southwest it will be the epicentre of mortgagee sales yet again...

 

Time to ride the winnie the pooh.
I am not betting against him. You would be stupid to do so.

 

Same thing happening right now in those areas.

Buy a larger parcel of land to build a duplex with GF. However, construction cost is expensive, labour is hard to find, the material is hard to find, project delay, interest rate increases, Good luck selling those duplexes in 2 years time.

Check this out

https://www.realestate.com.au/property-house-nsw-toongabbie-136083990 - Sold for $ 1.6m - 1200sqm, no easeemnt, electrical pole relocation cost.

https://www.realestate.com.au/property/57-ballandella-rd-toongabbie-nsw-2146 - Sold for $ 1.67m. - 1050 sqm,

Land $ 1.6m + stamp duty & legal $ 100K, DA/CC/Easement/Contribution $ 100k, Interest (land and construction - 1.5 year project) $100k, Construction (duplex + GF) $ 1.4m (600sqm x $ 2300)

Total cost $ 3.3m (not included GST, selling agent's commission, Tax)

Cost base for 1 unit with 1 GF is $ 1.65m to make a profit sale price should be $ 1.8m.

Good luck getting $ 1.8m in 2 years time for duplex.

 

Madness....if this is the shoo ite people are buying Sydney could be in a for a hard landing.

 

Lol the absolute hating on the Eastern Suburbs folks by 1 member here is hilarious. They made a killing this boom mate. Many sold to realise profits, upgrades etc, many holding long term. To peddle your BS narrative that they're now choking etc...haha

If it makes you happy to believe that, go right ahead.

 

Paper profits in Sydney are exactly that...one only realizes profit when they sell. If the market turns.....then what happens.

Similar to developing or renovating or profit in the current market in Sydney. @ParraEels numbers clearly show that.

Property is a hard game ... we will see who is swimming with no clothes when the tide goes out.

 

'Paper profits' apply to everywhere then if not sold, not just Sydney. The amount of insane growth Sydney experienced (especially in the East) is absolutely phenomenal. Just because markets pull back doesn't mean those Sydney investors/ ppor upgraders/ long term holders are suddenly drowning.

The amount of uber wealthy folks in the East, and more importantly the CF they generate from other businesses etc is significantly enough to insulate most from major financial issues.

Yes markets correct. So what? Most folks holding RE in the East and broader Sydney will still have made tons of equity post correction. Some (peak buyers) will sell and make a loss. Nothing new.

Anyway back to bargains, I do reckon 12-18 months from now will see the best buys after the pullback from the peak. I'm looking forward to buying again in 12 to 18.

 

Good luck selling those mansions In Wahroonga

60 Grosvenor St Wahroonga – 91 days
70 Burns Rd Wahroonga – 60 days
44 Kintore St Wahroonga – 94 days
81 Kintore St Wahroonga – 86 days
12a Rutland Place Wahroonga – 92 days -
125A Edgeworth David Ave Wahroonga – 95 days

 

WHAT, properties in God's country taking longer to sell and failing at auction.

44 Westmoreland Ave Collaroy – 95 days
106 Pringle Ave Belrose – 84 days
3 Middle Harbour Place Belrose – 107 days
7 Timaru Rd Terry Hills – 106 days
2 Canara Place Frenchs Forest – 106 days
2 Laurie Place Belrose – 108 days
5 Bindook Cres Terry Hills – 38 days
59 Iris St Frenchs forest – 86 days
59 Condamine St Balgowlah Heights – 101 days
25 Clarke St Narrabeen – 85 days
23 Bertana Cres Warriewood – 38 days
1 Iramir Place Warriewood – 73 days
38 Valley View Circuit Warriwood – 78 days
18 Marinna Rd Elanora Heights – 93 days

 

As I said... sugar hit And they always wear off, and sometimes when they do there's a bit of a crash. I don't particularly feel that is imminent. I just think the era of big growth was already over and it took exceptional amounts of policy and fiscal manipulation to resuscitate it for a year or so of craziness, and now that bag of tricks is almost empty . I say "almost" when others might say "definitely/absolutely/certainly" because there's that slim slim slim possibility of APRA abandoning any controls over servicing or introducing 40 year / inter-generational loans.
I suspect neither will be happening though , so we will be back to the same sort of conditions as post APRA /pre COVID, where servicing ceilings will be delivering years of blah and where cash flow and debt reduction will remain king for everyone who is not deep pocketed enough that the servicing calcs dont impact them... and thats a very small minority.
I also suspect that rate increases of themselves would need to be significant to bring havoc. . Some here seem to believe 50-100bpts will trigger things. I suspect it would need to be 200bpts + to bring real pain as loans have been assessed with 250bpts of buffers.
My wider concern is the rapidly arriving inflation/living cost issues the country is sleepwalking into, which is being imported not created domestically. Shipping costs are stratospheric and it may only need 100-150bpts of RBA action PLUS big living cost inflation combining to unravel some people..... It's why I have some reservations about whether the RBA will follow the text book and lift rates in the way many are expecting/predicting. I guess we will see....

 

Greystanes is suburb to watch.

supply coming strong and auction results very soft.

Brick home with 550sqm land now started selling under $ 1.1m and some property now started selling under price guide.

22 Rosewell St - Auction guide $ 1,250,000 - Sold for $.1.2m (4% cheaper)

Auction on 29/01, I also notice that vendors readjusting price due to lack to interest on auction day.

 

I don't think it has softened here yet. Lots of undesirable properties on the market asking for top dollar and some are getting it. The Rosewall house was weird and on an angled block. Surprised it sold for that much. There really isn't much of good quality in Greystanes atm. A duplex home sold for over 1.4 yesterday. When duplexes are selling for crazy money here it shows there are still people looking that have money to spend.
When a basic brick house on a quiet street on a.standard rectangular 556sq block sells for under 1mil then it will be time to watch the market.

 

15 Yaralla Crescent, Thornleigh
https://www.domain.com.au/15-yarall...tm_source=Android app&utm_medium=sharelisting

Sent via the Domain App

Sold for 1.61
Asking price was 1.7 initially, then had to adjust expectations
However, not the best street or location

 

Another one

36 Bowness Court, Kellyville
https://www.domain.com.au/36-bownes...tm_source=Android app&utm_medium=sharelisting

Sent via the Domain App

Asking price initially was above 1.7
Adjustment by Vendor to come back to normality, sold for 1.63
Have inspected this one and is a good buy