NSW Sydney Update Please

I received a call from an agent today from the Druitt way who's ringing through an old database. I last made an enquiry with them over 18 months ago. Definitely a sign that the market is changing if they're doing the old ringaround. She asked me about the properties I own and then said I was "lucky" for buying properties so long ago and that no one would be able to build a portfolio like mine now. Trying to keep my cranky in - I hate the word lucky - I mentioned that at nearly 10% interest rates it was quite difficult to hold a reasonable portfolio size back then. Perhaps she might rephrase her words the next time she speaks with an 'old' investor.

 

so.... did you give a very low ball offer off the cuff?

 

lol no, she wasn't alerting me to a listed property, just ringing for a chat and whether to keep me on their database.

 

She must have some down time then.

 

Would be interesting to see what happens on the next few years as there could be a lot of bargains around.

The questions is whether banks would automatically revalue all your properties (and demand cash) if the market drops significantly as it would significantly impact my ability to purchase next IP. I pulled out whole bunch of cash at 80% LVR in my last revaluation in April this year.

 

Is

Is now the time to make any offer? We're a couple of years ahead of Sydney here in Darwin...I didn't buy in the boom and seriously dodged a bullet...

Prices down here by at least 25 percent and still dropping fast... Rents the same..

No idea if Sydney will do the same but maybe giving it a little time wouldn't hurt?

You can win a yacht race with the anchor out if the current is strong...

 

I dont think you can compare sydney Vs Darwin at all,

 

Yep......my email is now being spammed again with buys in the Druie...Baulkham Hills....

Got send a txt about one n the Druie...where it has now offers over $375k....

 

BUY!!! Are these houses or apartments @sash ?

 

No way...it is a house..no floor on the price has been set..more to fall definitely...contract fell through...sorry price is offers over 379k...will not be advertise like this from Jan 1 as the rules change.

6 Weisel Pl Willmot NSW 2770 - House for Sale #121003334 - realestate.com.au

 

I really can't wait for Jan 1 to come. All properties are advertised over $XXXK. yeah some properties I looked at were under contract 2 months ago and now some of them are back on market due to finance issues.

 

Patience grasshopper.....I foresee...prices in low 300s and maybe even as low as high 2s for the desperados...

 

In my area there's a heck of a lot more stock than there ever has been really for the past couple of years... we generally have no more than 5 properties for sale in my suburb but now its 17 houses (a fair proportion (probably just under half) are still listed as being for auction though)
And while riding the lift to leave work tonight I overhead two staff members at my work place saying that they are having trouble selling, one in Revesby, the other in Minchinbury....
The owner of Revesby says she is going to rent it out instead of sell.
Knowing that Minchinbury is just the other side of the Great Western Highway to Mt. Druitt that one shouldn't surprise me.

 

Somebody's going to get hurt. I think in 6-12 months time, investors will start reviewing their portfolios more deeply and conservatively.

 

Never heard of this happening in the residential field , but I know someone who went from a multimillion dollar commercial / industrial portfolio , never having missed a repayment , the bank demanding extra equity , not having it , to bankrupt in the aftermath of the GFC .

Cliff

 

What's happening as of 1 Jan?

 

Underquoting reforms - NSW Fair Trading

 

Agents can't quote from $xxx dollars any more....

 

It's a little bit too late though because now without much buyer competition and the fact that people automatically think that the price will be 50k+ the asking price then they don't bother with it.

But the problem was low pricing and not specifically the wording "offers over". It was the buyers that offered way over. Agents can still do what they did before but just not use the words offers over.

This is because they can still use a lower true price estimate on the agreement and use data that supports it. They can use other properties which have the same stats but totally different value.
They can't be penalised if it really is their true estimate. Even though it really wouldn't be, they will use selective data to backup their estimate.

Then for OFT to do anything they will somehow need to prove that it isn't their true estimate. All they can prove is that they are bad at estimating.

So the only way to fix the real problem here is to force independent valuations prior to selling to establish a price estimate. It wouldn't happen but still a better solution.

 

Might see more auctions as the sale method post Jan 1. It would be tougher to get a significantly higher (>10%) price with the regulations...in a private sale method.