NSW Sydney to keep growing

I have been living in highly populated cities for 10 years. As long as Sydney population continue to rise, the property market behaviour will be the same as those major cities. From the case of mine, apartments near schools and CBD can be twice the price of a house in suburbs. I'm not saying houses are worthless but only those located in good locations are worthwhile. Plus if you compare data of new population growth to apartments growth it is always a supply < demand.

 

Every city is different....well located houses on land wins in Sydney. It's what most people want. While a well located unit is fine for a childless couple, when people have kids they'll look to buy or rent to live in a house on land, I.e. upgrade to a bigger space from a unit. A colleague has an Arncliffe apartment and will move to Jordan Springs near Penrith, they have recently had their first daughter. While Jordan Springs is not my cup of tea, you can't deny that people with kids in Sydney would rather live in something with a bit more space if the option is there.

 

But still houses located within 20 km radius of CBD are really popular, every property markets behave the same. Personal life style preference does not reflect the market.

 

It's just that you are pushing apartments in areas where there are heaps of similar apartments - while the market is strong, that's fine. But if and when the market changes and people decide they don't want to live there or the strata fees are biting and there's a divorce or other forced selling...
These are the properties that will be harder to attract an emotional buyer that's willing to pay over the top prices because they'll say they will go and buy competing property xyz instead because that's just as good. You may find low ball offers being accepted because the owner can't attract a better offer.

Ps. Clarity, I think you are still learning. That's fine. You have a lot of exposure to OTP
and so that's why you think it's the way to go. But if you see the long term, you may come to realise it's not a strategy that works in every market and it can actually set people right back in their investment journeys. But that's ok. Everybody has to learn.
Btw, I think you are like Young Luke Skywalker in the early Star Wars... You think you know enough, and you are keen, but a little knowledge can be far more dangerous. Master Yoda was right....

 

So what is your perfect investment portfolio then? My portfolio has commercial shops, apartments and house which are all well located (to my standard), and for the last 15 years they have never let me down. 500% CG for foreign investment of apartments located near CBD and top schools in 10 years and for the city that I have in, there is no crazy population growth, 13% CG in 1 year of house investment within 20 km radius of Sydney CBD. I can't really recall the CG of the commercial investment, could be even more. Still I am hungry to learn more about properties and that is why I am in the forum.

 

Buy properties in growing locations, in markets that are rising. Better to buy the house on land, or older apartments that can be renovated. Don't buy apartments in huge blocks but smaller ones, and not where there are simply thousands of units, because if sellers need to sell, at least the options for buyers can be minimised. Look for transport, (eg. Trains), hospitals, universities, water views. Look for areas with low vacancy rates (<2%). I know of places where the developers are renting out the properties they have developed but they have to rent it out cheap because there's not enough buyers and its better to have a low rent than no rent at all.

Sydney houses are great - for the reason of that the land supply is limited. If you have it, even better to have something with good transport, and large land is a bonus as at some point in time, your land maybe subdividable if it isn't already. That happened with my parents old place - their house on a large block in middle Sydney will house a duplex in the near future. The long term capital growth on it is outstanding.

Sydney units are less great - because there is a lot more supply to come and it's not that hard to add extra supply. Also don't buy everything in one location - Sydney and Melbourne are good as the economy (by and large) is diversified, but if one markets stalls, better to own in more than 1 market.

 

Maybe it's the fact he's selling these OTP developments as an agent...

 

Are you really kidding me about apartments in Zetland and Rhodes?

Zetland 2003 $530,000, 2015 $844,000.... 60% increase in 13 years
Rhodes 2003 $520,000, 2015 $838,000... 61% increase in 13 years

IMO, this is a poor performance from an apartment median stand point..

Anyone blindly purchased a house anywhere in Sydney in the last 3 years would've made a 60%+ increase, and didn't need to wait 13 years

 

Don't let facts get in the way of a commission

 

They gave some muppet from Melbourne a go at writing this week
Let's keep the Great Australian Dream - but downsize it

 

We can either enjoy the openness and greenery of sydney which comes at a cost of less houses per hectare or we can complain about house prices.
Everything has its Cons and its upto us how we can focus on the Pros instead.
I am pretty sure there are people in Barcelona who complain about cramped up housing and they would prefer to pay more for something like Sydney.

 

As I said before, the elephant in the room is unchecked population growth. It serves the governments well so they are are not going to do anything about it.

 

A house is a liabilities not supposed to be an asset for trading.
This is according to the investment expert: Rich Dad Scam #6: Your House is an Asset

 

So called experts