The five things on the agenda for Sydney’s property market in 2017

Just saw this on domain.
What's on the agenda for the Sydney market in 2017?
by Jennifer Duke
Essentially:
1) Interest rates going up
2) Apartment building to decline
3) Property price trends to continue
4) Investors to head interstate
5) It will be more difficult to get a mortgage

1. I agree. It's quite possible and back up plans need to be in place for an eventual interest rate hike.

2. I agree. The forces of supply and demand will determine that. Can already see oversaturated rental markets around Sydney, Central Coast, Brisbane with 'free month's rent'. This will in turn drop yields, sales prices, settlement prices and therefore increase foreclosures.

3. I agree. Markets within markets. Ideally I'd like to see my whole Sydney portfolio grow at the steady rate of 6% this year but I doubt it.

4. I agree. PC is well ahead of the general pack on this one. Wondering how long it'll be before new headlines read 'Perth is back and booming.'

5. I agree. Whether that stops someone from obtaining a loan is determined by their motivation and willingness to hustle. I'll just get my broker to sort that one out.

 

4. PC members well ahead of the pack have already jumped in and made their gains and either moved along, accessed equity or sold in the markets mentioned above.

Perth, will not boom unless we see jobs, no job, no boom, we have yet to replace mining. There are currently no triggers that remotely come close to what is required to achieve a boom cycle.

 

Seeing signs of 4. Plenty of "percieved [actually 'real'] value" in Brisbane. Will be interested to see how popular BNE gets when the mainstream jump in.

 

1. is already with us. some OO too will be hit.

 

1. Many speculations from friends of mine saying that better lock in a fixed rate around 3.7 - 3.9%, because interest rate is likely to go up in the next few months, and already happened in some banks.

2. agree
3. Of course it will continue, depending on the location
4. Many of us already has a portfolio across different states, so I am not suprised.
5. Slightly disagree. If you can find a good broker, borrowing is not a matter (of course you need to show your serviceability)

 

I disagree with your point 5. Even if you have a good broker, you still have restrictions in place ie unfavourable interest rate (Liberty), number of deals and equity release at 90% and the higher stress test.

 

Yes, this is significant

 

Perth seems to be on a lot of lips lately though, just quietly. PCers have done their SEQ buying in the last 2 years and are now looking for the next best bottom perhaps? You think this will lead to disappointment? Mining can not be the ONLY employer in Perth. Sure it drives high wages but there are people who will work for less than 80k.

 

I am only basing on 80% LVR, and need to have a good structure when you are setting up the portfolio
I agree it would be difficult for early investor.

Be strategic on applying loans, and try to have an offset for each loan. Also, try to go with different lenders... i.e. do not put everything in the same basket.

 

I know, they are in a real rush to lose money, I don't get the logic.

I have yet to meet anyone who has made money in a falling market.

The logic is get in while prices are low it won't last, beat the herd?

Problem is there is an oversupply including rentals, prices still falling

Me, I will buy in Perth when I see the signs of recovery, stocks tightening, developing starting to make sense, market sentiment changing because economy improving. Trick is get in when you see these triggers and market starting to rise, guarantee you will make money

We are a while off yet