NSW Sydney Price Correction 2018 - post examples

You might but it would be a very small house...and you would need to buy it a mortagee auction...and it would need work.

 

Thanks @sash -at this stage I will consider deceases estate, mortagee auction...anything as I am planning to buy put it on rent (after some work if it is required) and move in next year or after.

I see alot if stock is around 1.2m mark. Eventhough we do not have issue with our serviceability but we just do not wanna cross the million dollar mark (+/- 50k)

Any suggestions on how to find out about mortagee auction...(when and where)

I have also noticed some deceased esrate going on auctions not releasing the price range.

 

Just not possible.Even main road properties like this and this are above 1.3mil. Second one is relatively small block.

 

Well, it may just be a matter of waiting.....not a popular sentiment I know, but there seems to be a growing consensus amongst many that prices will be heading down for some time. Apparently if you had bought in 1890 in Sydney, you would have waited 70 years to break even! and if you bought in London in 1990, you paid 45% more than you could have a couple of years later.

 

If we had negative gearing back in 1890, I wonder what the negative gearers would have done. Would they have subsidized their tenants for 70 years, only to still not make a profit. That would be one heck of a loss!

For those negative gearing in Sydney now, how long do you think it will be before there is a pick up in prices. How long will you contribute to the operating costs of the property, while future capital returns fall? i.e. lose money on both the operating costs and capital/asset price.

 

Probably about 75% of Perth investors that could answer the question with many areas showing no or insignificant growth over the last 10 years.
Yet long term growth from the early 90s is still around the 6.5-7% mark.
You would most certainly be hurting if you were sitting on IO and had not touched the principle of the loan.

 

Neg gearing but pretty much cashflow neutral for the next 2-3 years I reckon due to depreciation on some young OTP apartments. Still have a few loans on IO thatll switch in 2020 which would start hitting my numbers.

A drop of 40% across the lower end of the market would be worrying (and undo my CG over the years), though so far none of my agents have seen noticeable declines this year.

 

I guess I gotta have to wait then unkess we wanna buy in other areas like winston hills etc.

1.3mil for property thrn mat be around 50-60k stamp duty. It is alot of money. Can I afford it -that's irrelevent because banks din't say NO if you tuck all the boxes but does spending 1.35mil fits with my long term strategy may be not so as @Herbert Said, Waiting may be the answer.

Edit:FYI-I have seen some good ones in Carlingford with big land around $1 to 1.1 mil

 

I also think the 1st this (from your link) may go for 900k to just under 1mil as 525 on that st went for 950k 6 months ago.

 

This was first sold in 2016 and again in 2018 at a loss.

https://www.domain.com.au/property-profile/1-2a-morrice-street-lane-cove-nsw-2066​

These 3 were either part of a portfolio or housing commission I recon.
The two sold in March were over $130k more than the last one sold in May. Yes last one was 2 beds, but identical land size, and they were all unliveable.

https://www.realestate.com.au/property/6-merinda-st-lane-cove-north-nsw-2066 - $1,458,000

8 Merinda Street, Lane Cove, NSW 2066 - Property Details - $1,458,500

https://www.realestate.com.au/property/10-merinda-st-lane-cove-north-nsw-2066 - $1,325,000​

 

That price and unlivable!!

 

Yep, that is how Lane Cove rolls.

 

Hummmm...... Grapes are sour unless I win a lotto

My wife works in st leanords and strategically it is a great location but we are not in the position to pay 1.5/6+ for livable or unlivable as we want to strike balance among having a home and still can do other things (traveling etc.)

One of our family friend bought I think it is 700sqm in 2014 for 1.2mil in lane cove and he had to do some work on bathroom, kitchen etc to get it ready if I compare with the abive -i think he got a bargain.

 

I think if you can afford something that you want/need in order to progress with your life, then sometimes you just have to make the leap.

The only major concern would be putting your family in future financial peril. If you chunk up a big inheritance, and take on a reasonable mortgage, fair enough, the money was free anyway.
Interest rate may go up, maybe even double in the near future, build than in your plans, it also may not happen, but you don't want to risk it.

Try not fall for the 'you're just renter scum", not a real man if you don't own , etc etc pushed by the vested interests in the market. Most Germans don't own, never been a problem for them.
I've been both, renting can be a welcome break from council taxes and maintenance, and if correctly negotiated can give you security, and flexibility. Your own home can also give you a valuable asset and commodity, in some conditions the real price will outperform sometimes you will lose in real terms, in general, price in real terms, will match wage growth, after the money you put in over the years. Generally it is an extremely good way to force yourself to save money you otherwise would not.

 

No inheritance $$$$$$ here, just hard work lol

 

Very small for Dural. Very small for surrounding suburbs as well, such as Cherrybrook or Castle Hill or Kenthurst or Glenorie

Nice enough home... looks all shiny and new - although the kitchen is a little cheapish looking ( only 1 x benchtop GPO , cheapish kitchen mixer, cheapish rangehood, cheapish oven/cooktop, no island GPO/USB and no feature/pendant lighting . These little extras make all the difference ) and they have skimped on low profile skirting so it looks a little "kit home" for mine. Adding a higher profile skirting is one of those inexpensive,simple (and always overlooked) things that makes all the difference between attaining an average kit home look and a classier custom home look.

So yeah, very nice home but its on a busy road and the land is small. especially for the Hills.

In these sorts of locations in the Hills - Dural, Cherrybrook etc - decent homes with land between 800-1000M2 can be found in the sub 1.5 Million range. They'll be @ 20 years old but you'd save a bit on stamp duty and if you spent 150- 200K to renovate kitchen, bathroom, laundry, paint, flooring, landscaping etc for the same money as these guys are asking you would end up with a larger, similarly new feeling home but nicer fit out and and much larger land... away from a busy road too

 

Yeah, $1.2 around here is def a bit of a bargain (for a house to live in), but yield is pathetic. So there is nothing here for investors apart form CG. With Investors MIA, given CG will be hard to come by in the sort term, I wouldn't rule out some good opportunities to present themselves, they would have to be forced sales.
You seem very diligent so I am sure East Ryde is on your radar already, if not I would look there.

 

Much appreciated @Numbers_man_numbers will check it out.

 

Dural is a very different suburb to Cherrybrook. There are no or very little 800sqm+ houses in Cherrybrook. For a 4 bedroom single level unrenovated entry level house, you are looking at 1.45mil+ unless it's directly under powerlines or on a hilly impossible to build location. There are no or few houses there that aren't atleast 30-40 years old. On a higher end (renovated 4+ bedrooms, two levels), you are looking at 1.8+ even in this market.

Disregarding acreage blocks (or anything over 800sqm+), you will be looking at 50-100k discount in Dural versus Cherrybrook prices (same house specs).

Above house is centrally located and Kenthust road is not terribly busy other than Hills grammar school pick up and drop off rush. Even at the busiest times, you won't have an issue with noise because traffic is very slow here due to 2 round abouts and shops in close proximity. This house would certainly appeal to an affluent buyer who wants everything within a walking distance (shopping, cafes, city bus, library, a prestige school, kids park) but its renovation puts it in the same price bracket as most of the entry level acreage properties in the area.

 

My biggest regret so far has been not spending that 1.5/6+ on PPOR (or 700K when I started the journey) much much earlier.

Good desirable suburbs with PPOR demand keep on growing in value in Sydney. Your first PPOR sets the tone for your next and the last one. It might be better to put most of your wealth in your PPOR purchase in Sydney for two reasons: 1) there aren't any other real estate investing alternatives available anyways, I am not too sure if subsidising renters in Brisbane or elsewhere has the upside of giving you so much wealth to help you get back on Sydney property ladder 2) the more you delay stretching yourself in Sydney, the more you would have to stretch in future.

I bought my first property in Sydney in 2008, an innerwest apartment. I could have stretched more and could have bought a house in many desirable suburbs in Sydney where I still can't afford to buy (without disrupting my overall portfolio) despite now owning multiple investment properties in both Sydney and interstate.