NSW Sydney is absolutely insane!

Wow. Yes the rent is crap and I'm sure land tax is horrendous on that... Capital growth though....

 

Lol the rent was crap when I bought it. Anyone paying $6m+ will get even crapper yield than me... insane.

 

My focus market is the Inner West and surrounds. From what I've seen here, Homebush, Concord and Concord West house price growth have stood out.

 

For me it's really hard to say.... I'd want to look for numbers in the back of a property mag. Take say mid 2013 to now.

 

A lot for houses like that, people seem to pay same as build cost when I have looked at large houses.

 

First one went for over 3 million. Very similar house on 200M2 larger block next door, sold in November for 2.58 Mil.

The 2nd link - isnt sold yet .

 

E73, No 1 at, say, 3mil + a bit.

No 2 probably 2.75m and a bit.

For a bit more, say 3.9m, you might be able to get something like 36 Punt Road Gladesville NSW 2111 - House for Sale #124796310 - realestate.com.au and Banjo Paterson Cottage Restaurant | Best Modern Australian Restaurant, Sydney | Banjo Paterson Cottage Restaurant, Gladesville, Sydney is about 200m walk.

What's not to like?

Edit - NOTE: I see from your post above that you had already posted the sale price of No 1...

 

if you want to get the inside track on rezoning, you could always just get to know someone from Auburn council back in the good ol days

 

haha again people chucking numbers like theyre lollipops! to those who bought in 5+ years ago - well done!!!

 

If this question hasn't been answered what would your guess be?
A chinese focussed suburb?
Near the harbour?
Or something positioned well but with a bad rep?

 

A suburb thats gone from hobotown to hipsterland. Redfern or newtown?

 

I don't think they were that hobo in 2013 though... I'd suggest maybe the turnaround in Auburn?

 

Usually.
In the late 70s they couldn't get tenants for the public housing in Darling Harbour. It was too rough. No one wanted to live there.

 

I attended an auction in Sydney's East yesterday. A house (auction) went a touch under the price guide, which is normally unheard of in my neck of the woods. I wouldn't say the buyer got the property for a steal....but I have seen worse go for more than what these guys got.

My gut feel looking at prices across Sydney is the heat is very slowly, almost negligibly to the untrained eye, dissipating. IMHO we are now past the peak.

 

lol just out of interest which suburb and did you see many chinese/asians at that auction?

The tide has to go out at some point. Pretty sure with interest rate rises, increasing taxes, tightened lending and not much more chinese money coming in, prices will start taking a hit soon.

But seems like the auction clearance is still pretty strong. Perhaps like the vendor at your auction, many sellers are ready to quickly sell and lock in their gains.

 

Based on $6m would you get a 3.4pc net rental yield ? (Net cap rate)

 

I think this could be right too. Does not mean some may not get silly prices, but will be select areas rather than basically everywhere & growing in momentum.

 

Add on the approx 1.6%*0.8 land tax on an investor (assuming 80 percent of value is land).. that's only 2.12% yield coming back into the kitty assuming 0% leverage!

 

Randwick. No, there were only 2 bidders and they weren't Asian. House went to a young couple.

I could tell the vendors were visibly disappointed with the price they got.

As I said, this is not something I've seen in the last 24 months. Could be an isolated incident but I maintain my view that the boom is losing a bit of steam atm.

 

I saw the exact same thing happen in the inner west this weekend - a house passed in right at the quoted value, which if you had asked anyone earlier in the week, they'd scoff that the agent underquoted.

I'm not sure that I agree with your gut feeling about the "heat disspiating"... too soon to tell, but it is interesting to note.