NSW western syd/blue mountains

hi everyone, was hoping to get peoples opinion on buying a ppor in the penrith/lower mountains area. i sold my previous home about a year ago and achieved quite a good price, probably 15% higher than what it would fetch now. i am looking to upgrade to a better spot/larger home for around the 850k - 1 mil price. i have been renting for the last year and by luck prices have come down a fair bit, my question is does anybody think buying now in this area/price bracket would be a mistake ?

just incase someone recommends getting closer to cbd just note i do not want to do that, i like living in the outer west/lower mountains area, im more asking if anyone feels this area and price range will experience greater price falls ?

thanks to anyone who gives there 2c

 

In @ 1 year

 

It sounds like you’ve done well regarding timing on the sell side. Common consensus is if you’re buying and selling in the same market you’re net equal in real terms as both assets are deflated. Though if you’re buying a more expensive place than you sold a 15% drop in the new place gives you a better raw number outcome.

I was reading today about vacancy rates going up and there’s still uncertainty for buyers. Perhaps not a bad time to rent for another year, maybe closer to the place you’d like to live, and test the waters? My crystal ball is cloudy; however my 2c is that people will be gun-shy to rally hard again within ~12 months even if prices stagnate and don’t continue decline. You’ve got the benefit of time.

 

thankyou both for the perspective.i think i will try to bargain hard with anything i like for now but if none accept the reduced price i offer just sit tight and get more proactive in a year or so.

 

That is exactly the right approach. There's nowhere near as many buyers at the moment, so you can bargain hard on anything that takes your fancy. If the vendor won't move on price, just move onto the next place, although easier said than done with a PPOR as it can be an emotional purchase.

 

yeah thats right, we did get pretty attached to one place, we agreed on the vendors price (probab ly 10% -15% less than peak price) and then the day of contract signings the vendor pulled out and took property off the market. had to maintain discipline not to offer them what they wanted, which was another 10%. i just kept thinking that i shouldnt as im lucky enough to be buying at the rare time in the last 6-7 years when its actually a buyers market, i should take advantage of it while its here and i have liquidity.

we are looking at one now in a great location but house is dated and abit worn, the house has been on market for 6 months, 2 different agencies and 2 cancelled auctions. they initially wanted offers over 950k, eventually reduced to 870k, ive offered 800k but agent says it wont happen, im just gonna sit and wait, either they call me back or i find something better in 12months for same or less cost.

i dont think theres many buyers in penrith area for that million mark at all really.. greater penrith area in general has really taken a slide. basic 3 bed 1 bath homes were selling 650-700k now going 500-550k