NSW Time to buy PPOR in Sydney?

Under 1mil for freestanding house in or near central will be impossible. Unless the market crashes there. Extremely unlikely imo.

 

Great thinking....I would look at the Bankstown and Cronulla/Sutherland lines...already prices have come off a lot.....your sub $1m is definitely achievable. Those areas will be new gentrification areas in the next cycle (12 years away) so plenty of time to get in and lot more downward movement of prices.

I also reckon some areas like the Eastern suburbs like Bondi/Vaucluse/Rose Bay would be good buying as there is a lot of older people....and due to the pull back of foreign buyers and lending changes that may offer opportunities....it is very expensive but you if you can get something for say $1.8 to $2.5 post correction that might be the way to go. Lots of properties with poor maintenance due to older people not being able to maintain them.

 

Here are a couple in Rose Bay and Vaucluse that you might get for a bargain

19 Bayview Hill Road Rose Bay NSW 2029 - House for Sale #121975122 - realestate.com.au

10 Queens Avenue Vaucluse NSW 2030 - House for Sale #125800458 - realestate.com.au

 

not a good time to buy PPOR yet, lots of vendors are still hoping to get the 2017 prices, it takes time for ppl to adjust their exceptions, maybe another 1 or 2 yrs.

 

Lol

 

Only if they are foreign investors who fell foul of the ownership laws.

 

Spot on Eric....it takes time...but cracks wills start showing where people who have to sell take lower prices.

Some of the market commentators have said the correction started around June/July last year. like you said...it take 18 months to 30 months to normalise a floor to the market. So from 2019-2020 it should look pretty good.

 

Even a 50% discount would still set you back $15-20 Million on that Rose Bay harbour front...

One day... one day

Not to derail the thread or anything...but PC members ; they are asking $45 Million. If you won the lottery and could get it for $20mil... would you buy it? Considering it boasts some of the best views in Sydney and wont ever have them built out ... I reckon I might! The only thing its really missing is true deep water access- ie a jetty.

 

Out my class...I was thinking where someone bought a rundown property for say $2.5-3.2m thinking they would renovate and make a motza.

Possible that it could come off 30% if the winds change severely....

 

So if PPOR is 2 yrs away, where should I buy an IP and exit in 2 yrs. Or rather not biy anything for 2 yrs and keep saving? Hard to be idle and tracking Sydney prices for that long.

What do you reckon abt regional VIC?

 

@virhlpool -I am not sure if you cane across the following

@sash did indicate a strategy but DYOR not advice.

I have gone through the SA thread here because SA is more attractive to me than Brissy but being a low income earner another IP would have limit my borrowing capacity and given nothing is crystal clear (CG in SA-It will happen but don't know when) I do not wanna put myself in a position where I be held back to enter into Syd market hence only this I can do is save save save and may buy some.LICs on the side.

 

Another thing to watch out for is lending policies...The amount u can borrow from the bank today doesn't necessarily mean that's what you can borrow in two years time.

Well, I could be wrong, but normally if the market is in its downturn, the lending policies will get loosened? Banks need to make enough revenues to make their shareholders happy...

 

A lot of people are hoping to see a 30% drop in Sydney then get a bargain...But I think the tuner is in the govs hand this time...There is no financial crisis externally, or not as yet...

Will gov let Sydney drop 30% and jeperdise the countrys economy? I dunno...But what I know is if it does drop by 30%, gov/APRA will likely to release the hand brake....

 

That's hard to say and depends on your financial structure and whether you can still buy anything if APRA tightens things again. I'm one of those types that are of the opinion that you should never sell properties but that's based on my strategy - of course this is different if you're flipper or a developer etc. From the sound of it, you do appear to be tired of the rental life, so if you really want the best chance I would sit tight.

As per my initial post, I said "as close to Central as possible (hopefully on the express line)", my implication is that it does not mean by distance necessarily. i.e. I would prefer to live in Strathfield rather than Croydon or Summer Hill because they are not in the express line and thus will take longer to get to the city even though it's closer.

Yep, I'll definitely be keeping a close eye on those lines as well for sure! For me if Sydney fails then the whole of Australia fails, so if I can get it for a decent price during correction then I'll likely be keeping it long term! Cheers mate!

 

Strathfield median is around 3 mill. Epping and Eastwood have express trains but the median is around 1.8mill, still past your budget. Perhaps Hornsby or west of Parramatta could be choices? I don't know the South or South west in terms of train details so won't comment on those.

 

Is the following is a good strategy to buy PPOR in couple of years -

At present people are still interested to buy in Western/South Western Sydney. Is it still a good time to sell:- Due to limited serviceability and available cash we may not get the required loan for PPOR in the area we want to purchase hence if we sell 1 IP ( Vila with current rent:350 pw and only $300 strata pq) and get good money for it, Mrs is not working at the moment so CG tax can be reduced and we can save that cash for deposit when Sydney Market may go down (If go down) in couple of years and keep saving in the meantime because wife will start se part time work in few months.

Not seeking advice, just opinions and if someone has experienced such thing!!

Thanks in advance.

 

19 Bayview Hill Rd would have to be one of my favourites... I like the way that it offers a level of unrivaled privacy with the lack of direct neighbours and I love that garage entry!

Surprised it hasn't sold yet but I'd put it down to shoppers in that bracket expecting perfection, and it has a couple of quirks like the street frontage (or lack of) and the fact you get lots of people walking past the house on the foreshore walks. It also isn't an enormous block. At $20m today I'd find the money!

 

Back on topic... I once heard a philosophy buy low sell high... hard to do this with property due to high entry/exit costs but sounds like you might be in a position to manage that. If you didn't sell it now what would your long term strategy / exit plan be? My key question would be what you'd be doing with the money in the interim to derive a better return vs. that scenario.

 

I've always preferred to 'buy growing', 'extract equity high' rather than sell. Unless your actively reducing debt.

 

That assumes continued serviceability... which isn't as easy as it used to be