NSW Sydney going OTT

Discussion in 'Where to Buy' started by Propertunity, 20th Feb, 2017.

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  1. Biz

    Biz Well-Known Member

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    It can be done sure. I just feel at this stage of the cycle in Sydney debt reduction needs to be paramount. Hard to make a dent in a big mortgage when you need to pour that amount in every month.

    If you have a monster mortgage now in Sydney and you're only paying the minimum, in 5 years it's still a monster mortgage. In 5 years though a persons situation and the financial climate could and probably will look very different. Young couple would likely want to get married, start a family etc. Rates will likely be higher and prices could be lower than they are now.

    If you're already established and have a lot of equity behind you it's not as big a problem. You still have options. When you are only stumping up 10-20% on a million dollar home you're in **** if the market or your situation changes. The higher the value property the higher the buffer you need.
     
  2. Dan Donoghue

    Dan Donoghue Well-Known Member

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    I guess that is the thing really, yes I pay that amount but any rate movements and I still just pay that amount, anyone who has leveraged themselves up the whazoo will be screwed with the smallest of rate rises.
     
  3. Hwangers

    Hwangers Well-Known Member

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    I like Katy Perry ... alot AHEM anyway if everything comes crashing down - would like to see what the catalyst is, would assume it is a global phenomenon and syd being most globally connected would be impacted the greatest in aus - general population would be focusing on retaining their jobs and employment much less worried about purchasing investment property, banks bunker down the hatches and liquidity freezes, would assume rates are cut like theyre going out of fashion , annnnnd to paraphrase a rothschild quote - time to buy is when there's blood in the streets

    conversely if rates rise there must be an underlying reason for rates to rise whether an improvement in economic conditions or inflation increases past the comfort level of RBA - would assume again that it is a byproduct of wages growth (hooray!) but of cos plenty of other factors , wages growth means increase in general sentiment (as we aren't a nation of savers traditionally let's spend spend spend) and consequently an argument could be put forward that other cities in aus would see their price levels increase

    anywho just hope we dont have stagflation (uh oh)

    that leaves us with the present whereby people are chucking down numbers like theyre playing monopoly - hard to really tell who will be over leveraged when the market turns , would imagine there are plenty of people who have extremely low LVR positions despite big chunky loan limits and others who think theyre fine despite 50% of net income chucked into their IO mortgage to meet mthly interest repayments

    father time will reveal all !
     
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  4. Lacrim

    Lacrim Well-Known Member

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    Honestly just rent for now. It's affordable to rent, and absolutely ludicrous to buy in Sydney at present. There will be a better time - just be patient.
     
  5. Kangabanga

    Kangabanga Well-Known Member

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    Yep IMHO we will be heading there pretty soon.
     
  6. Jello_B

    Jello_B Well-Known Member

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    Thanks, thoughts on duration of wait time? Don't really like paying $1k a week rent.
     
  7. Gockie

    Gockie Life is good ☺️ Premium Member

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    What is it that you rent?
     
  8. Peter P

    Peter P Well-Known Member

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    Could the investors extend the IO period for another 5 years?
     
  9. twobobsworth

    twobobsworth Well-Known Member

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    Depends on lender. Many require full application and new assessment rates.
     
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  10. Lacrim

    Lacrim Well-Known Member

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    Don't know but at some point in the next few yrs, the music will stop = your chance to dive in
     
  11. dabbler

    dabbler Well-Known Member

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    I think there are still affordable options too..... out West, or SW

    I do not know, I must be getting de sensitised, to me 1.5, 1.8 mil is same as 2 mil, but the loans will re sensitise when rates climb.
     
  12. Jello_B

    Jello_B Well-Known Member

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    Hi, 2 bedroom apartment in Mosman. Quiet nice.
     
  13. Jello_B

    Jello_B Well-Known Member

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    Oh well that isn't good for me. Any ideas?
     
  14. Jello_B

    Jello_B Well-Known Member

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    Sorry could you please elaborate I have minimal vibe btw.
     
  15. Jello_B

    Jello_B Well-Known Member

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    Thanks mate and fair enough. I only just moved here 2 weeks ago from Perth. I have property in Adelaide where I'm from. It's a tough gig here and I knew it was expensive but underestimated.
     
  16. Gockie

    Gockie Life is good ☺️ Premium Member

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    Ok. If you don't really want to pay $1,000 a week for rent (that's 52k per year!! A full salary!)... do you know what you could do?
    A. Buy elsewhere.
    B. Rent elsewhere.

    Personally..... I'd go B.
    I can't justify throwing away $1,000 a week in rent! I'd spend it on a holiday rental, but not for my normal place to live.

    Anyway, just my opinion. However, you did say you don't like paying $1,000 a week in rent....

    Edit: just saw your post saying you've only been here 2 weeks. Ok, forgiven!
    Get yourself into a normal, more reasonably priced rental. Rent for a while. I wouldn't buy immediately if I were you. (Takes a bit of time to settle anyway).
     
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  17. Jello_B

    Jello_B Well-Known Member

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  18. Jello_B

    Jello_B Well-Known Member

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    Yep, I'm where I am for 12 months to review the market and then want to buy. I like area over house quality. Would always buy 10 minutes closer to town and sacrifice house quality as I can do that up as I go. I am an owner on my business and do 60+ hours a week at a minimum, don't want to be driving 2 hours a day on top of that, I'm used to Adelaide, used to Perth (was undercover car park to undercover car park in 5 minutes living in West Perth).
     
  19. Jello_B

    Jello_B Well-Known Member

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    I will say as well thank you to everyone with their advice, I know I'm new and have a lot to learn about Sydney property. I sincerely appreciate all of the advice.
     
  20. Gockie

    Gockie Life is good ☺️ Premium Member

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