NSW Sydney prices still falling...

Lending standards have loosened up (Westpac had a big win yesterday), and rates are down.

True rents are falling, and we would ideally like to see rents rise to confirm the supply demand equation has tilted back towards sellers. However, to be honest, with rates lower, the hurdle rate for investors is much easier to clear, and properties that previously didn't make sense to invest in, now do. With near-zero interest rates, yields matter less.

Sydney has been moving up for 3 months after 2 years of steep declines. I wouldn't call seeing value in this market "la la land".

 

Help a brother out it sold in March 2016 near the top of the market at $870,000

It got passed now $870,000 2019

Sash assume 2 years ago which is August 2017 the property would have sold for$1,050,000

Not bad 1.4 years $180,000 capital gain 21% ? Really or may be not.

**** load of assumptions little fact about this property.

 

Yep

 

Mate even a rudimentary level natural language word processer could determine the difference, let alone a human brain...

I know it’s easier for people to think that the sensible people providing warnings are in the minority but it’s not the case.

 

Everyone - be careful of taking advice from people who bought in western Sydney at the peak... they are Hope hope Hoping the market has stopped falling.

 

Take a hike.

 

Hiking will help your anger management issues Speedo! All the best

 

Great chat with two property skeptics. I believe they are presenting a really strong case for house price weakness.

 

I think the biggest risk to crash the party for Sydney would be a continuing oversupply of rentals and further job losses for N.S.W, although the latest figures for jobs were good.
Recessions are not good news either for immigration, but that really depends on the clown currently running the U.S.
A big jump in rental vacancies can crash rents and also make older properties very difficult to rent out , which can also make them of no use to investors if they are sitting empty.
But that really depends on what happens over the next 12 months and if it skyrockets like the Perth rental market did a few years ago.

 

Yes that is is what I am seeing also.....

 

Well....you seemed to think that prices would not drop 15% in Sydney over 3-4 years...you were one of the key nay sayers...

As for data....too many people look at current data which is out dates...you need to keep ahead of herd....

 

You might need to discuss with @Simon Hampel ...he would know... but I do acknowledge he too has some views which are similar to mine thought not all.....

 

Mate .... how well do you understand lending policy...it is a bit easier...but not by a lot.....

A move up for 3 months is not a recovery......I see this as just a floor and more sideways movements for years to come. You would be much better off in other states....if a recession hits Sydney will take the largest hits....

 

@hash_investor ... another case of not drinking too much vodka...it rots the brain...

 

With Opal, Mascot, Clempton Park and other new builds suffering from defects and issues, do you & others think the apartments built 8yrs+ will enjoy a bit of a upswing in rent or at least less listing days, as people become wary of the new build issues and media surrounding them.

 

Yep, these won’t be the last building defects we see... happens every cycle, will have more sad stories and rhetoric around regulation before cycle turns

 

I concur. I actually think the old 60s/70s red-brick walk-ups will be even more desirable again. They have proven the test of time and yes they are ugly on the outside, but the inside can be updated and made desirable. Plus, a lot of them have low strata due to no frills in the complexes (i.e. no pools lifts fancy gardens etc.)

 

Who are the buyers going to be that give it said value?

 

They might be desirable to investors , but they can become very undesirable if you cannot get tenants or you see big drops in rents.
Put aside the new apartments with structural issues, there are still plenty of new builds that would have no problems attracting tenants at the expense of the older apartments.
You can dress mutton up to look like lamb , but at the end of the day its always going to be mutton.

 

Longest time on market in Sydney for 5 years at 90 days.... just one year ago it was 56!

Sydney houses reach five-year high of 90 days on market as old stock finally moves post-election