NSW Sydney Property Hype 2017

So what is the best buying in West and S West ATM ? Are you buying ?

 

I've got max $600k to invest in. What are my options? Preferring headache free yield over anything else right now. Anything worthwhile in Sydney in the next 6 months, or do I need to look interstate?

 

lol....it is....popped up like a rash lately. I still think the SW is best, it will have planes soon, a few steps up from dunny doors or legging it.

 

Revealed: How far out typical Sydney first homebuyers have to move

 

In 2008 (10 years ago) it was possible to buy a 3br house in 2121 (Epping) for a $700k budget.

Now that is Mt Druitt prices.
Glad we got into the market when we did.

 

At that time, you could probably have done the same still in Inner West suburbs like Alexandria, Erskineville, and Newtown.

 

Actually I think Alexandria boomed later. Even in 2014-2016 it was still fairly reasonable to buy a terrace there. It just remained "undiscovered".

 

Reasonable yes. 700k? Most definitely no. In 2014, even a modest 2 bed, 1 bath terrace with no off-street parking (the norm in Alexandria) would have set you back more than 1m (assuming a reasonably up-to-date interior). By 2016, that would have been 1.3m at the very least.

 

However I think for a property so close to the city, 1.3m is a great price. Sure, a terrace generally isn't large. But you get land and location.

 

I know you're a fan of inner city suburbs and it's done well for you over the years, but I think for my own personal goals, buying an inner city investment is such an risky venture and prefer to cushion it with investments in other areas which still have land and location. But in saying that I do have a friend who has done really well with having two ips that I know of in Chippendale/ Glebe and Redfern when no one wanted to touch those areas.

 

I think the inner areas will always hold up. I'd be happy with minimal commute times (not have to get on crowded trains), walk/cycle to work and Sydney city has most of the large employers. Also trams are being put into the city - perhaps its "unfair" to the rest of Sydney and NSW, but that's what's happening. A terrace for 1.3mill isn't unaffordable (cheaper than houses 20km out), good for the professional couple - minimal gardening, just enjoy your weekends. At 1.3mill, I think you can't go wrong. Strong tenant demand too. Since a 1br apartment now tends to sell for around 700k.

 

One of my personal beliefs in property investing, consists of being able to make investment choices that I can sleep at night and using $1.3 million for one property which is not my PPOR is not going to allow me to sleep well at night. But of course for investors who prefer buying into blue chips suburbs, it's their personal choice and that's why there are investors that have all types of investment strategies and philosophy.

 

All good, I understand and appreciate that.
1.3mill is fairly typical for houses in Sydney though.

 

At todays yields 1.3 million investment would not be a smart move on any investor. Your holding costs each month would be eating into your capital growth and at the current time prices near the 1.5 million and above mark are slowing considerably.

A 1.3 million dollar house today would set you back $260,000 (20% deposit) + $58,000 (stamp Duty) + $2-3k lawyer and other fees.

Total = Approx $320k required for a house purchase.

Working couple, 1-2 kids, currently renting and all other expenses. Yeahhhh good luck trying to save this amount of money. No way even over 10 years could you do it with a combined income of lets just say $150k a year. Even on combined income of $200k its not going to happen for a very very very long time.

Affordability is number 1 now. People simply cant afford it hence the dramatic growth out in the west and south west. Money talks bullsh!7 walks.

AND affordability is going to be the main driving factor for Brisbane growth as well. The price point and the lifestyle Brisbane offers is currently unbeatable.

 

Well yes. That's why we sold the North Epping place. Land tax, terrible 2.5% yields (unless you were to do something to it like rent by room).

But I would be happy to buy a terrace in Alexandria if I was looking for a place to live (and wanted to stay in Sydney). Bigger than an apartment. Low maintenance, it has transport. CBA will house 10k of staff in ATP (which is walking distance away) in the next couple of years. I could rent out a spare room Airbnb style, it's easy enough to get to both the airport and the city.

 

Sydney Auction Results
Saturday 9th December 2017
Property Snapshot
Number Listed Auctions: 783
Number Reported Auctions: 429
Sold: 309
Withdrawn: 102 (13.2% Withdrawn)
% Cleared: 58 %
Total Sales: $334,298,501
Median: $1,300,000
% of Reported Results: 68%

Comparing to last week:
Clearance rate slipped from 65%->58%.
85 less scheduled Auction's
Withdrawn % exact same (13.2%)
% Reported: 67% Last Week vs 68% this week, only 1 % difference.

 

Thats really good clearance rate considering we are almost in the middle of December.

 

Yes of course Melbourne is ticking along 66% too

 

Last year, 10 December, was 77.4%...

 

This is not. Last year