NSW Sydney prices - stupid crazy from two years ago ....

It's interesting looking back to see what was happening in 2013 . Stupid crazy , and it's still going .....

Here are ms ali's thoughts at that stage .

Western Sydney/Parramatta region market is stupidly crazy
Been looking at the market around the Parramatta region. Houses in Toongabbie selling for close to 100k over what you would have paid a year ago. Each open home has in order of 50+ viewings...

Even clad homes in liveable condition are selling for 600k odd. Just saw a listing range between 600k-650k. It's a single level 4br brick home. There is just one lounge in the home. Are they kidding?

Further rate cuts will probably push people to pay more. A local agent I was speaking with said that it's difficult for them as well as there are a lot of hostile buyers.

Last weekend a double story house sold close to 700k mark (asking price was offers over 600k - same people had failed to sell this home a few times in the recent years when asking 650k). It was on 1000sqm land, needed 50k renovation. The most interesting part is the street is full of housing commission at the end of it. Saw some interesting characters when we drove through the street and there are burnt cars in the front yards.

What are people really thinking? Either they have loads of cash to not need LMI and get the valuations they want without issues, or they think the repayments are cheap now. But what if when rates go higher?

Me and my sis are on strong incomes yet we aren't really sure if we are stupid enough to pay $650k for the latest listing of a brick home (extended with clad at the back) on a < 600 sqm corner block, that can't even currently be sub divide??

Same with Pendle Hill and Wentworthville.

It's a joke.

Is this sustainable??

I know there is proximity to Parramatta that is helping. But will there be a correction at some stage?

Should be pleased that we have several IPs which are getting decent capital growth. But not happy with competing with several First Home Buyers/Upgraders...



At some stage it will stop and then go sideways for a while and at some stage in the future it will all start again with a new group of experienced investors who've seen it before and a new group of newbies .

Cliff

 

We definitely know how to make a dent next time .

In August 2013 I thought it was stupid to pay $650k...but we paid $20k more than that but the block was bigger than the average block 6 months later. 55% gain 16 months on since contract date......

40% annualised return.

 

haha!

Wow!

Next time we will be better prepared to buy when the prices eventually do stabilize.

 

SHOTS FIRED

 

You'll be going in with a nice amount of equity .

But to keep it in perspective , we only started investing at this stage in the last cycle . There's plenty of opportunity to make more in the rest of this cycle . Sydney is the starting point .

Cliff

 

Do you mean this is the start of the new 7 - 10 year cycle?

 

Historically the cycle starts in Sydney , then moves to Melbourne and then on from there .

When you have a circular cycle the starting point is arbitrary but from my perspective the current Sydney cycle started in the trough after the GFC .

Previous peak in Sydney was in 2003 , current one ??? So that's at least 12 years .

IMHO , Some time in the next few years Logan and similar places will reach the same price point as 2770 .

Cliff

 

really?

 

But you were not buying in Logan this time Cliff, does that mean that you expect your areas to have even stronger growth or is it to do with high competition in Logan and not so high in your area of interest?

In the last cycle, where you buying houses only in Logan or was it a mix of houses and townhouses?

 

@See Change , @MsAli , @monalisa

Thanks for the sharing and insight, yes, I've been going around from suburbs to suburbs in Sydney and you are right, it is way too hot right now. People dare to put in +$100 - $150k above market price at the moment.

I've just visited Campbelltown as well today to get a decent CF+ property (no auction), but somehow the market is as hot as Sydney as well. I've had to compete with some Sydney based Chinese buyers again today in all of my property that I inspected... and sadly I lost them all since those buyers are able to put on +$100k more on the asking price.

What's on their mind ? by getting those IP at +$100k from the asking price the rental yield is lower than 4%.

 

@Tekoz Good for you, you lost You will be grateful looking back in a few years!

 

Yes, the article that you both published in 2013 is very inspiring. It does helps.

I still can't believe that the crazy asking price does exist since 2013, so now in 2015 it is even crazier

Thanks.

 

What's on their mind you ask? Most likely how to clean some foreign funds..so +100k and less than 4% isn't a real concern if they can find a relatively easy way to convert from one asset class to another.

 

Yyes @JDP1 you could be right. Their cars: BMW, Mercs, Range Rover discovery while mine was just Toyota Swift .

I guess it was because the AUD$ weaker and Interest Rate is lower they are now willing to buy aggresively.

 

What's a toyota swift?

 

Kinda like an Isuzu Colorado.

 

This should now be worth $1000,000+ given similar lots sizes with much older homes are selling for $900,000. The buyer was on a mission and must be laughing........

http://somersoft.com/forums/showpost.php?p=1069490&postcount=47

http://www.realestate.com.au/property-house-nsw-toongabbie-114413411

 

@beachgurl @virgo

What is this worth now: http://somersoft.com/forums/showpost.php?p=1090907&postcount=96

http://www.realestate.com.au/property-house-nsw-greystanes-114975259

 

It's been a fun ride, over half of our portfolio value is in Sydney. Although these days we wish it was even more.
Have been too scared the last year, thus only buying interstate.

Some of these yields now are so low, you wonder how they can hold more than 1 IP

 

We went to an open in Shalvey yesterday. Three bedroom, stock standard ex-commission house. It had been clad and the renovation on it was outstanding. Agent told me the highest offer they had received on it so far was $525k.