NSW Sydney Price Correction 2018 - post examples

Discussion in 'Property Analysis' started by sash, 25th Mar, 2018.

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  1. beachgurl

    beachgurl Well-Known Member

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    I know a few people living in those newer estates who consolidated debt in the past few years - had to get an Audi and top of the range Hilux to match the house and then a boat and a fancy holiday to brag about. Then realise they cant afford the unsecured loans and refi them all against the house. Won' be long before they could be in a negative equity position like kellyville in the last downturn.
     
  2. Tattler

    Tattler Well-Known Member

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    Just know someone who is selling their Meadowbank apartment at a loss after holding it for 2 years ...... It was one of the brand new ones down there.
     
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  3. ej89

    ej89 Well-Known Member

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    2 IPs in Northwest Sydney. 10 call options in Southwest, Sydney. I’m diversified into Brissy and Melb too. I’m not worried if it comes down, i’m young and am holding. I hope the top crashes tbh i’ll be cashed up in 1 yr ready to buy in Pymble haha just find it funny people talking of rate rises.. have they seen our economy lately? Market is cooling nicely at the moment which is exactly what RBA wants. The minute they raise rates they’ll drop em very quickly again cause they’ll realise half of Aus will go under, and thats everywhere, not just in Sydney lol
     
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  4. ej89

    ej89 Well-Known Member

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    Yep. And those idiots will cop it. They’re the minority, not the majority. Was a drop in the ocean really as the median didnt even change. When looking at what went under in Kellyville though, it was the mcmansions people way overpaid for.. same will happen in The Ponds. The people who paid $1.4mil for a nice home will cop it when rates rise.. I like the affordable end.. I finished my home for 600k 6 months ago and just got it valued at 940k, with market slowing a lot. There’s profit everywhere if you buy smart. Down turn helps me as I wanna go into higher end suburbs haha atm i’m looking at land in Kellyville to turn into another health clinic.. seeing stuff sit there on semi main roads for months.. eventually i’ll get 50k off it hopefully!
     
  5. sash

    sash Well-Known Member

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    Hmmmm........10 call options on the SW...hopefully you let them expire....they are going to come to much.

    It is not going well for the NW.....Melb has hit its straps Geelong is the exception (I have 5 in Melb...2 in Geelong another 1 block and 2 Geelong yet to title...another in JV land in Geelong)
     
  6. sash

    sash Well-Known Member

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    Yes ...I know what you mean people are very emotional about property...they wait and wait till it is too late.....the NW has a lot of South Asians/Asian and others who are in good jobs but with the way jobs are going they may struggle as automation cuts through their employment prospects.

    This is a reality...if you are a well set-up 50s person...then you are set but if you are starting out and have a 800k mortgage good luck!

    Yep...know that one....my broker has had a few clients buy on there...most vals are coming in 60-150k...that is if they are prepared to finance in the area. The older stuff is okay the new stuff is way over priced.
     
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  7. ej89

    ej89 Well-Known Member

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    Haha let them expire? No thanks. I’m sitting at 1000% cash on cash growth atm.. I could cut my profits in half and make a ton out of em. I’m not purchasing them. No more purchasing for me for a couple yrs til I see the bottom then will buy a house in Pymble and acreage in Horsley Park
     
  8. ej89

    ej89 Well-Known Member

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    150k? What a load of shyte..I just got a val lol came up higher now than it did 6 months ago....
     
  9. sash

    sash Well-Known Member

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    Do you own anything on Meadowbank?
     
  10. ej89

    ej89 Well-Known Member

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    Sorry I thought u were talking about the ponds haha
     
  11. sash

    sash Well-Known Member

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    Let me ask the question...so you have an option....what happens if you find no buyers?

    You must be a Rolton devotee.........saw a lot of people get burnt big time on these...just like some of the idiots i see buying heaps of land off the plan in Melbourne...they have no idea...that in most instances there is a clause they have to settle before they can on sell the land or can't nominate for a profit. A lot of developers will take them back and sell if for a massive profit...the devil is in the details.
     
  12. sash

    sash Well-Known Member

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    Well it also happening in the Ponds....the vals are not stacking up....were you aware some banks are not happy to lend there?

    He has a lot of clients trying to buy in there....but can't get the loans.....

    The issue is what people can borrow has been dramatically reduced. When the credit scoring systems where peoples debts are clearly visible less dodgy loans. He also said that the level of checking for compliance is huge due to the Royal commission..so the dodgies which people did before is being closed off.
     
  13. ej89

    ej89 Well-Known Member

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    Rolton? You realise options existed long before he did right lol
    Thanks for being so caring and looking out for people... I have a solicitor I pay a lot to do that for me lol they’re call options, no purchases or put n call options... My pricing for optioning each lot is 150k less than current market... i’ll be right. Worse comes to worse I lose 50k. I’ll sleep at night..

    Melbourne estates though.. thats a real worry. Every Indian and his family has bought 4 lots to re-sell and now they’re all sitting there cause of what you mentioned with clauses... good times ahead. They’ve screwed it.. bs demand by speculators and an endless supply of new land.. scares me as a Werribee owner..
     
  14. ej89

    ej89 Well-Known Member

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    Thank God for that haha Don’t want em in the suburb if they cant afford it.. The vals aren’t the issue unless people are buying overinflated shiny stuff here thats like 1.2-1.4mil..the top end of the ponds has come down.. except 1 house which I was surprised sold for 1.5mil last week after a week on the market
     
  15. sash

    sash Well-Known Member

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    Yes. ...been around the block.....lets see what happens...assuming you can develop it.

    As for Melbourne estate...yes there are quite a few families who have done that...but the developers are quite smart their clauses will take back some of the land and sell it for a large profit

    Have a look there is very litte titled land but agreed I would not buy a the current prices.
     
  16. ej89

    ej89 Well-Known Member

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    Yeah the smart developers do that but then these people try to get them to settle at the price and pay the difference in cash lol its so stupid. So many have bought without even looking at contracts properly hey
     
  17. Illusivedreams

    Illusivedreams Well-Known Member

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    To be honest good homes.
    Wishful thinking.

    $1mil you are buying crap house or horrible location or both

    97 Garden Street Alexandria NSW 2015 97 Garden Street, Alexandria, NSW 2015 - Property Details

    Think about the one above $1,370,000 this is Alexandria 2 bedroom 1 bathroom.

    Alot claim to be around the block.

    Good stock in good neighbourhood is holding.

    6 months ago i got one in SW Sydney i went to a. City meet up and was lectured and was told i. Would loose what was around 10% in. 6 months.

    6 months later i had a valuation im up 3% i dont care about that as i building on Site but its the point.

    As Jack Ma says you have to be smart but eternally optimistic. Most extremely successful people are optimistic.
     
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  18. KingCantona7

    KingCantona7 Well-Known Member

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    Any examples around Hornsby, NSW/ North shore?
     
  19. standtall

    standtall Well-Known Member

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    I spoke to 2 agents in The Ponds today (both cumulatively sell over 80% off all property in The Ponds). They both said they actually had better than normal buyer demand at the moment with the surge coming from people reducing exposure/downgrading from closer to city suburbs. The only weakness they mentioned was in the top end (houses priced around 1.5 million). I was not surprised about that price range houses being slow but the fact that some of The Ponds houses are getting close to 1.5 million itself is quite interesting thing to happen considering unanimously poor view of The Ponds on these forums.
     
  20. jins13

    jins13 Well-Known Member

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    I'm very confident that I can manage to snag a townhouse in a good street at a reasonable price or may even stretch to a house in the current market for the hills area as I am seeing some good reductions happening at the moment. Even though I really like the area, I personally thought it was ridiculous with some of the asking prices in a hot market and also with some of the houses that's asking for the same price as a house in the Northern Beaches, for me it's a no brainer that I would prefer the Northern Beaches area.
     
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