NSW Sydney prices still falling...

Every quantitative bit of data I am seeing is saying don't buy. Which the sprukers seem to have no answer for.

I can of course help understand the qualitative argument. Eg. Everyone needs homes.

But this data doesn't present any further confidence to the market.

 

16 Old Canterbury Road, Lewisham NSW 2049 - House For Sale | Domain

1.26 million for a 2 bedroom house on 234sqm. This house was sold to an investor. How much would a house like that rent for? $600 a week tops? Crazy.

 

Custom home market heating up in Strathfield...

43 Arthur Street, approx 4M
10 Chalmers Street, 6M
21 Wakeford Road, 5.686M

 

That would be a 2.5% rental yield. Not a whole lot better than keeping your money in the bank. With the added benefit of a lot more hassle and not even thinking about the holding costs/potential for price dip.

This is an entirely unsustainable system.

 

Rental vacancies now sitting at 6weeks average vacancy before RE-letting.. it was 2 weeks 3 years ago...

As to unsustainability... RBA is just in avoiding pain mode now, dropping rates is just to ensure leverage remains in system. Quite worrying how no one seems to want to use much more leverage though.

 

That is truly insane. The agent described it as on a busy road and needing work. And we all get to subsidise the owner who will no doubt negatively gear (it would barely generate positive cash flow with no mortgage). What a crazy country we live in.

 

Re what a crazy country we live in..



For those wanting to have a go and willing to work hard without an entitled attitude, Australia is one of the best and safest countries in the world to live in.

And unfortunately even for those ungrateful, lazy, entitled ones, not willing to have a decent go, Australia is still one of the best countries for them with endless handouts, subsidies and schemes to support them all at the taxpayer expense.

If ppl don't like Australia so much I always wonder why they don't just get the hell outta here. But nah. They choose to stay. Year in year out.

 

No, you are not subsidizing anyone. The property owner is assisting 'you' in providing alternate & cheaper housing and filling the government coffers through paying stamp duty, land tax, providing employment through property maintenance and repairs and paying tax on rental when it exceeds the threshold (as they all do at some point) and eventually when he sells down he pays CGT!

The property investor takes more risks and reaps more benefits when the values appreciate in a growing market.

And we do cop it too when the market slides. The tide is on our side now and its building momentum.

 

HAHAHAHAHAHAHAHAHA!!!!!!!!!

Yes. Australia uniquely among all countries in the world has found the secret to affordable housing...negative gearing tax concessions. The fact we've got among the least affordable housing in the world and it's become far less affordable since negative gearing was introduced is pretty good evidence of this.

 

I wouldn't go as far as that but I would think he's more akin to @DowntownBlock who created a very similar thread back in 2017 (Sydney property prices falling)

 

Since that is an unanswerable question, let me put it a different way: the cut in interest rates, is akin to an expansion in discretionary income for those already in debt. So the buyers could be anyone, but most likely people with property already.

 

Sash, so now we are going sideways for a few years? On most of your earlier posts from this year we were going lower for the next 5 years and only a fool would touch Sydney real estate. Sideways is an improvement I guess - I will take whatever concessions I can get.

 

Yep, you are quite right. I think the vacancy factor and current over supply is a real problem, but may also be recency bias. Ie it is presently a headwind, but looking into the future, with the collapse in new dwelling approvals which started 2 years ago, I can't see over supply being a problem much past mid 2020.

I would add that lower rates takes the sting out of lower rental yields. In fact, lower interest rates guarantees lower yields.

The Perth market is definitely instructive for Sydney in some respects, and not in other respects. Definitely a useful case study.

 

Prices definitely not continuing to fall state wide. Starting climbing back. Not saying boom times ahead or continued growth. Just saying prices have stopped falling and started to climb back in many areas in Sydney. The property below also had alot of illegal work done to it, no council approval. Hasn't deterred buyers.

 

I don't think it's an unanswerable question. I'd say it could be broken down into a few categories. Upgraders/downsizers, investors, first home buyers and international buyers.

Which of these segments are going to create the demand that will push up the price?

"But most likely people with property already" So people with enough equity, already riddled with debt are going to push the market higher by getting into more debt?

 

@John_BridgeToBricks I don't understand why you bother with these types of ppl. They cant be helped mate. I used to reply to them back and forth a long time ago now, and then silly me came to the obvious realisation - they truely can't be helped. I guess you enjoy the banter though.

 

Possibly those householders who's financial assets are increasing over their liabilities.

https://www.rba.gov.au/chart-pack/household-sector.html

 

I guess everyone is going to a property investor then. Makes sense.

 

John....only mad men rush in....I never say never...but only at great prices.....there are parts of Sydney which are still down....I never said going lower for 5 years..I said flat.

John...as a buyers agent...I feel you are too biased.......and way too over the top. Which would also ask how efficient your portfolio is.....

 

The Australian people had a choice. Labor were proposing changes to negative gearing. The Liberals wanted to keep the status quo for negative gearing. Australians voted for the Liberals. You get what you deserve.