Sydney - the coming correction 2018-2022

They can't when so many high-rises are coming up in the next 2-3 years. Government will need to stop giving rampant approvals for high-density developments counsciously for rents to go up.

 

Not all rentals are 2 bedroom apartments.

 

...based on the assumptions...would you sell and cash up and wait in the side line or what is the strategy? Just I am trying to be constructive here....which will be much more useful.

 

I am holding just about all my Sydney and surrounds stock. Have sold in regional NSW.

 

What do you see as the cause of the next boom

 

Don't know ...that would be quite some time away...based..could be another 10 years away..I believe it will be shallower.....and units/villas/TH will go up the most in between particularly anything near infrastructure and transport.

Within then next 6 years over 90% of the Baby Boomers would have retired...Gen X has mostly bought property...the Millenials and Gen Z will not have the money to buy large houses.

Already I am seeing large houses worth over $1.2m sit on the market...that will be driven down even further. What is interesting..is all the generations are now competing for well priced properties near infrastructure.

 

Thanks for your insight. Another random question. If you think the market in Sydney won't do much for the next 10 years, why buy in a few years rather than at the end of the 10 years.

 

Because....the best prices will be in in the next 2-3 years.

 

Looks the Sydney ..is doing what is expected...

Sydney suburbs with house prices set to plunge

 

Hi how much longer do you think price will fall in Sydney?

 

at least the next 2 years if not longer. There are still a heap of IO loans to be rolled over to PI, many will be unable to sustain the sudden jump in repayments and choose to sell, especially when sentiment is bad.

It also seems the trade war will impact China quite a bit which means bad times for our economy are just on the horizon.

 

Australian household's are also the world's 2nd most indebted. I doubt prices will recover while interest rates are rising, so I suspect it will also be very dependant on the interest rate cycle. Some people are suggesting it could take 10 years for interest rate to return to normal due to the amount of debt we have.

 

Why do you say that? Is it because of interest rates?

Many are saying the first interest rate rises will come as a shock as many investors never though interest rates would ever go up again. (yes, I don't know how some investors can be so dumb, but that's another story) After about 2-3 years, rising interest rates will be a normal part of life and borrowers will factor this into their purchases?

 

I reckon at least 2 years......

 

No ....more like when interest only terms come off ...a lot of people in Sydney borrowed I/O on actual home loans. Suddenly 30-40% more in rates and prices not going up..boom...boom....

If rates also go up...the Wilderbeast may panic!

 

Ditto on point one......I can't the level of dumbness of some investors...have seen in on this site also...when people were in denial about a correction in Sydney....absolute noddys......can't say I feel sorry for them...

Some of these Sydney investors...got very cocky thinking that Sydney would never correct...well that is have been proven incorrect.....I have enough evidence to show that more bad tidings loom for Sydney...and Melbourne.....inner city....its now all about affordability....

 

Oh, come on Sash, don't be so harsh. They're not dumb, just inexperienced. Some gain experience by listening, and learning to those in the know........others by thinking they know it all and doing the opposite. The difference is that the second lot have to PAY for their experience.

 

Hmmm.....inexperience is when no one tells you and you learn the hard way......

But being dumb is when the facts are on hand but people are in denial.....so people on this site who continued to put money into Sydney fall in the latter category. I have seen in the last cycle never recovered.....

 

Th

it seems many aussies are stressed from loan amounts potentially and need price higher otherwise big problem... those of us with high cash and time on our hands as prices keep falling will be in position good!