Sydney strategy

me family and I want to buy 2-3 townhouses. Don't want to do no work to fix them just be able to live in them for about 10 people comfortably... paying mostly cash so finance not issue.

Looking around south like wolli creek or Alexandria or anywhere with train station good... or maybe inner west like Leichhardt for 1 of the places but near train is best

Just want to know how long till wait till price stop dropping, seen price go down 10% in last 12 month so when ppl think price drop no more in that areas?

Thanks

 

No one has a crystal ball. 10% dropped is very large and main ly areas I feel overshot have dropped that much.

I have a house in Liverpool are 0% drop or so.

So not everything will drop.

Townhouses in Alexandria may hold from now as the area is tight with Townhouse stock.

Also when pool pricinct at Green Square finishes area may be become even more desirable.

If you are buying for long term living if the places drop 3% will it matter?

Also you have more negotiating now than possibly later as vendors may be more forthcoming.

Is their many Townhouses for sales especially 3 in a row? Or you are looking for 3 in vecinity

 

My friend from home who moved with him family last year said that because family and me are paying in mostly cash many Aussies take out big loans and this has caused Sydney to drop 10% already.... because we got cash can afford to wait while Aussies with loans will struggle in next year or two... just want 2-3 townhouse in same 10min drive from each place

 

30% drop will be problem

 

But Sydney hasn't dropped 10%

Sydneys current official drop is 4.x%


Not saying it won't.

It's just not correct to say it has.

 

'Sydney' hasn't dropped anything . Markets in Sydney have dropped X, Y and Z yes. But Sydney as a whole hasn't dropped X amount unless every single market in Sydney has dropped that amount of more.

 

difficult to say when it is going to stop dropping. but with price stablises and the current market status, you could have more bargaining power, or same money but purchasing a better quality property.

 

Hi Marcuss,

No one here can really answer the question regarding when prices will stop dropping. So I agree with Illusivedreams in this sense.

Some suburbs have bottomed already and others have more to fall - you are not buying "the market", but rather one property (or three) in one suburb.

My view has always been that this would be a slight correction but not a crash, in part because the demographics in Sydney are too strong. Plus regulations will ensue that interest rates remain low. I think we are near the bottom now, but this will take approximately another 9 months to run through the data and media releases. So even if the bottom is now, expect to keep hearing bad news.

So good time to buy.

Out of the suburbs that you mention, I would suggest Leichardt and the inner west preferable to Alexandria and Wolli Creek.

Illusivedreams, I think the drop has been more than 4.1%. 4.1% is just the average from the last year, but averages in an "up" period from last year. From the top to bottom, the drop would be higher than 4.1%.

Best,

 

China website said 5% drop across Sydney all but some 10-15% down

 

Thanking you, yes RE agents saying prices back to 2016 prices for many places and More and more Aussies will get squeezed by loans rolling to pay back principle so i be patient and wait for this.

 

Thanking you John - can I ask why prefer Leichhardt when no train line close by?

 

Thanks Marcus,

The main reason is supply and the quality of the supply as well. Inner west is still tightly held without the oversupply of new units. Whereas that Inner South area has a lot of new stock coming on board. And the stock is of questionable quality.

Leichardt is on the fringe of the city and has great transport options. If you want a rail option, check out Dulwich Hill or Summer Hill (the latter has a very desirable primary school).

Staying with the Inner West but going a bit further out, you could consider Croydon, which is a fantastic suburb and has a train station as well.

Best,

 

interesting very thank.. and agent has been sending me through properties that are selling at same price as 2015-16 in leichhardt noww... people losing money after stampduty, very high taxes fro govt in this country from property

 

Quite right. Good time to buy quality real estate in Sydney.

 

thanks but no, i think i will wait till prices stabilise unless i negotiate 20% discount with vendor who desperate

 

I'd stake my claim on 27th November.

What's the prize?

 

Hi Marcus,

I think that we will find that most pundits are wrong about this period. This is a mid cycle correction, not an end of cycle correction. These are very different things.

I would caution you against listening to people who say that this will be a sustained bear market. The period of 2008-2012 when the market lost ground simply was too recent and property markets do not drastically correct that frequently. I am confident that this is good buying, but I leave you to do your own research. Always available to help.

Best,

 

A bit contradictory, you said no one knows how far it drop but you seem to know the drop stop now so it is a good time to buy?

5% is nothing, leverage is a weapon of mass destruction in finance, when the market is hot
it power your return when it not and people are heading for the exit it has exact opposite affect

Australia is no different but many think it is, nothing changes the fundamental law of money doesn't matter where you live, it just we haven't had to experience it yet, so people think it doesn't happen.

high leverage has exact same affect every where on earth when the fall out starts doesn'tt matter where you lives

 

Thanks PandS,

Not contradictory at all.

I think we can confidently say that current conditions represent good buying because we know we are off a peak. Whether it is great buying, only time will tell. But given no one knows exactly where we are in a cycle, it would be folly to miss an opportunity because we have been waiting for the perfect time.

We also need to watch the data lag. The drop in prices hasn't hit the data yet, and by the time the data shows the turnaround, the turnaround has already happened.

 

John

I've seen five cycles and have bought and held through the last three .

Last peak was in 2003 , 2008 - 2012 was the mid cycle correction c/o GFC . After a long flat period from 2003 - 2013 we've had a 4-5 year boom during which prices have close to doubled

I'm stunned that anyone who claims to be a professional working in the RE business holds the belief that this is a mid cycle correction in Sydney . Seriously ?

If people are looking at timing the market , which the OP was asking advise on , now is unlikely to be a good buying op.


Cliff