NSW Sydney Price Correction 2018 - post examples

QLD is not WA. It has a much more diverse economy.

 

I thought this was a comedy sketch as well when I started watching it
Wonder how this couple feel now about aus property market

 

This couple is seriously deluded I see this with a lot Chinese and Indian migrants....they have gotten herein the last 10 years..and have only seen stable or rising prices...they missed the period from 2003 - 2006 when it has a blood bath in Sydney.

History is about to repeat......

Anyone who bought in Box Hill over the last 2 years will be a world of hurt......

 

The 2008 mining boom was when bne last peaked

 

Lasting a long time too. Will be ten years min before any growth. easy future supply and improvements (of low quality) currently worth more than underlying land value. Same thing in Springfield lakes and Northlakes. No real movement for a long time.
These guys should have spent their million in blacktown (800k) would have still lost money but they're not going to lose as much as these new subdivisions way out in the distance

 

Yes more diverse but still needs mining to really move.

 

According to core logic bne has now moved from flat to a drop.

 

Development land has come down about 20-30% from highs and is starting to look like value. Home and land sales are progressing all be it slower and at 10% discounts to 8-12 months ago.

 

It was bad enough that they paid so much there but then they bought another block as an investment

 

What i'd really like to know is how the world can they get a $2 million dollar loan? (or heck! maybe pockets are deep...)

What kind of salary would one need ? (gulp! anyone hazard a guess?)

 

Partially also because historically in general Chinese have always had a love for real estate,

Should clarify, Box Hill Vic not NSW lol.

It's probably not only that, for the Chinese its the star public school draw card. Cheap and effective way to get good academic scores = win for most Chinese/Asian families.

The problem with most immigrants probably even dating back to the gold rush days is that they are often hoodwinked or misinformed by people who they trust/know and don't understand how to do their own due diligence let alone analyse the market. More often than not the nouveau rich would have heard about a certain good/school or suburb back from in China or Asia from a relative or friend and be told "best time to buy is now, prices will never go down, its been up up and up for god knows how long".

IMHO the only buyers who can "ride" this out would probably need to stick it out for at least 6-10 years before prices eclipse what they were at peak. Added to this probably only applicable for houses purchased 100 - 150k above market (i.e. at peak), anything more I doubt even in 10 years would they be able to recover it.

When credit was still easy to obtain, my combined income with the Mrs. at the time was $150K and maximum after deducting what I had in the bank was more or less $700K. Extrapolating this figure you'd need roughly to be on a income of $400-$450k pa. But of course, there are always external factors, back then you could leverage a ip and cross collateral, nowadays with tighter lending you're probably more or less likely to be asked to explain how you'd be able to pay off the loan in that given time.

 

if you move away from "property" loans or investment loans.

just look at credit card/afterpay or car loans (especially car loans)

you will know how easy is it to get credits.

 

Sydney boom has left a wrong impression on many investors. If you are looking for that kind of profits property is not the right asset class.

 

I’m towards this income area and I don’t think I would be able to get more than 2mil for one property. But maybe 2mil split over 2 would be possible.

Not that I’m interested in doing it.

 

The second purchase was just a block. They are building on it later. The one million price is for a house and land package

 

Yep....stupidity beyond belief...like lambs to a slaughter...they have no idea...

 

Only temporarily as a natural part of the building supply cycle. These two suburbs are still geographically awesome locations

 

12/20-22 Birkley Road Manly, NSW 2095
12/20-22 Birkley Road, Manly, NSW 2095

Sold Today - $1.19m
Sold April 2008 - $760,000

Factoring in buying costs, selling costs & a decent renovation and you're looking at maybe at most, a $300k profit in 10 years?

 

-8.31% YOY

 

"Multiple bank employees across multiple branches in the Greater Western Sydney area were accepting false documents in support of loan applications. People were stepping outside their responsible lending guidelines. There were unsuitable loans, there was false documentation...just really inappropriate lending".