NSW Time to buy PPOR in Sydney?

Agree. Moving forward many will need to manage debt levels a little differently to the past.

 

@Morgs - If we don't sell now then we may not have funds to buy PPOR hence leaning towards this option.

If we do sell.and after all the expenses, cgt etc. Leftover money can go into offset of our current PPOR (Which will become IP when we move to new PPOR).

We did think about buying shares etc but at this stage high interest savings and offser is winning due to risk involved in shares and importance of these funds to buy PPOR.

Note: We do have a small portfolio consists of LICs which we are trying to increase regularly.

 

@Leo2413 -we did extract equity to buy an IP in Melb in 2016 and was planning to buy in SA this year but if we do that then buying another house as PPOR in Sydney may not be possible down the track.

Being Mrs not working-we may need to pay less CG tax as well

 

If you haven't already, speak to a good broker and run some number scenarios. If your goal is to buy your PPOR then its not worth buying another IP now and risk losing the opportunity to get your ppor.

 

Hence planning to sell so use funds accordingly in 2020

Is it a good strategy then?

 

If its inline with your primary goal and gets you to achieve it in the timeframe you want, then its a good strategy.

 

Where exactly? Prices haven’t fallen in Cronulla - they are still at record highs.

 

not what i am hearin'

 

Sorry, I follow the Cronulla market very closely and that’s simply not true. As with the rest of Sydney, there are less people at opens (following APRA’s actions in mid 2017) - but prices actually increased in 2017. Houses have increased by up to 15% and units by up to 10%. However, I wouldn’t be too surprised to see discounts on OTP sales as some of the asking prices have been truly sensational eg $3m for a standard size 3 bedroom apartment with no views.

Median prices in the rest of the Shire have also increased.

Perhaps you are referring to OTP sales due to unrealistic vendor expectations?

 

@craig s mate how is your Cronulla unit going....are prices holding up?

 

I finally sold my unit in Cronulla for $770K.
I found out straight away it was clearly a buyers market, not sellers anymore.
I had people offering $720k-$740k, trying to bid down my agent.
I also struggled to get people through the door for inspections. 1 Saturday no one showed up for the open. If I had put my unit up mid last year I am very confident I would have got $800k.

 

The median price hasn't changed, in fact I agree with @Dave777 with the stats as I used to watch RP data like a hawk.. But a property is only worth as much as someone is willing to pay and I found in my case that there was no demand. Speaking to agents in the area also, I have 2 close mates who are agents in Cronulla, who agree.. the buyers market has begun.....

 

Thanks Craig ...yeah agree a buyers market out there...great you got a result you are happy with.

 

Interesting to see how Sydney falls flat quickly.. I am witnessing Sydney fall for the first time as I moved to Australia only during Sydney boom days

 

Yes it seems Apartments going down in Surry Hills and Darlo too !!

I remember a few years ago hundreds of people a lot of foreign buyers too turning up at nearly every Saturday sale and offering over the price , now lucky to get one turn up.

I think we need more immigration into Sydney

 

Thanks for all the valuable posts... Noob here, and learning a lot from this forum.

Just wondering, wouldn’t the property in hills district actually go through a mini-boom when the north-west link opens? If that happens wouldn’t the prices in Castle Hill etc actually go further slightly up as oppose to @sash ‘s and other members predictions here

 

Benefits of the infra would have been factored in years ago, so already built into current prices ( and then some).

 

A school of thought is that the future rail has already been priced in.
The other important thing is how much overall demand will there continue to be in Sydney?
Yes, the Hills is well known for schools, a good place for families, leafy streets, and very low crime.
But then again, a lot of other parts of Sydney are good to live in too. Imo, long term the Hills should generally be cheaper than Epping and North Ryde. These suburbs already have trains and they are closer into the city. A buyer, if given a choice, will tend to go for a home closer in towards the city if the price is the same. In any case... very good homes in Castle Hill on around 1000sqm could be bought under 900k in 2012. Now... you're looking at around 1.8mill for the same thing. A benefit I think will be the Hills will be more livable than it had been... less reliance in cars. Which is fantastic.

Ps. People on the North west rail link will have to change trains at Chatswood until they finally build the new city line. Expect to see chaos/packed platforms at Chatswood and Epping.

 

just to add to what @Gockie had said, I think most of that the benefit of the north-west link are already builded into price as is. There were also OTP apartments build and sold in anticipation of the the new rail line last time I checked so I don't think there will much to be gain there I can imagine.

 

Agree with @Leo2413 here with the PPOR buying. Buying one's home is very different to making decisions on investment properties, and you have to be in the market to take advantage of opportunity. In this market, I'd have the cash or loan good to go on standby so that you're ready to jump in when that opportunity presents itself. Sure, there are vendors who have to sell, including this current cooler Sydney market, but you've got to be out there searching, on top of agents and keeping a micro eye on the particular areas you're looking in to actually buy well.

What we are finding now is that, in those areas likely to cool most, selling agents are already on board with re-educating vendors about realistic values and getting some of their heads firmly out of boom expectation clouds and meeting the market. The next 3-4 weeks data and sales results will be crucial in ascertaining the level of change in the Sydney market. It's certainly not across the board, however, as the market is very much segmented and reliant on demand/supply. Keep in mind, too, that established properties are their own market and cannot be lumped with OTP and new stock- different rules, different buyers.

Best of luck with your PPOR search