What will stop the BOOM in Sydney and Melbourne

Ok so you used to always post. ... Brisbane.... "Boom inevitable".
Now it's "Sydney is justified to be 4x the price of Brisbane for many"?

Big change of tune.

Btw, I want both to do well.

I just read the Sydney Domain for this weekend and while it's nice to have a 2mill PPOR, I look in the Domain magazine and the ones I see in there are more likely to sell for ~ 5mill-ish. Life is just not fair

 

Do you know anyone who does?

 

Actually no...a boom for Brisbane is intact inevitable- might take 4x longer than for it to arrive in Sydney ...Syd might do a full cycle even before the boom comes in Brisbane.. I've always been a fan of cities worldwide (eg Sydney) as opposed to country towns.

 

Does what? Own a 2mill PPOR? Try all the home owners of my middle ring street. 16km out from the city.
The most recent house sales:
Ps. It's a tightly held street.
And... if the owner that's got the land registered as "general rural" can convert it to something like single res dwelling, they'll make a killing.
Apparently this house went cheap because it's currently not developable and can't be knocked down... otherwise it would have been a few extra hundred K more.

 

Yep such a huge #fwp when your house is only worth $2m. That's practically poverty line

 

So where do I find these $500k paying jobs in Sydney for what I do now.. and where I can work a 40 hour week like I do now? Whole thing doesn't make any sense..unless you are a Sydneysider of course.

I would have to at least make $250k to make living in Sydney worthwhile.. and for my line of work there is no way I would get that salary in Sydney, Melbourne, or Timbuktu!

 

I know right. You think it's pretty neat having a 2 mill home but then the weekend Domain brings you right back down to earth when you see the 5 mill homes...

#aimhigher?

 

Sydney jobs only pay a bit more than Brisbane, but I believe there are more professional job opportunities here than in Brissie.

Most people buying the 1.5mill homes or more are upgraders. First home buyers tend to buy 1 or 2 Br units... which if well located can still be up to around 850k. Or they buy a house or townhouse quite far out from the city for a more affordable price.

 

Don't knock the Timbuktu economy.. It used to be called the city of gold.

 

Yes..the main difference is not dollar wise in salary...it's the sheer number of professional jobs between the two- it's a huge difference. That gives Sydney workers more options amd security not necessarily in the individual job but rather knowing that should they decide to get a new job for any reason, yhey can and quickly and will likely be as good as the previous one...in Brisbane, that kind of safety net/sanf / assurance is not there..hence why Sydneysiders can also feel more confident on large purchases such as real estate than their counterparts in Brisbane, Adelaide, Perth etc.

 

One of the best and most humbling moments was when an applicant for one of my IP's in a low socio area burst into tears upon hearing her app had been approved and wanted to buy me a present in gratitude though she could barely afford to waste money on a gift.... she was just desperate for a roof over her head for her kids and nobody else would give her a go. Puts a lot of thing into perspective when we talk about houses which are outside the wildest dreams for many, but still we want more and more and more...

 

Yep. For me, plenty of opportunities!
I haven't tried too hard in getting a job but i've been offered a role which I'd be happy to take.

But also I want to see if I get offered a different role (which I'll know the outcome of within about say 3 weeks). Seems like it's a job I would really be happy to do.

If job role B falls through I'll take job A.
Both with a base salary 15-20% higher than my current.
#cityofgold....

 

Yeah, the salary/contract rate has been pushed higher and higher over the last a couple of years. Never meet experienced person hard to find a new professional job..
Big banks, telecommunication companies, governments, startups from USA or UK,,, so many opportunties..
#cityofopportunities

 

All you Sydneysidera who think the streets are paved with gold and there are emeralds growing on trees, just remember that these times won't last forever. Have a plan as to what to do when the music stops in thr party.

 

It's all ok at my end... PPOR nearly paid off... loan repayment (P&I) only $1500 a month...
In the meantime I love my house, we could chuck a short term let into the backyard (got a corner block so the guests have separate access). Good equity just sitting in the other Sydney properties too.

It's just the Brisbane ones I have a bit more concern with... they need to grow.

 

I was at an open house at Parramatta about 6 months back talking to the seller who was chilling on his sofa while a half a dozen groups walked around the place. He was selling as he had to relocate for work and wanted to buy in Melbourne, and knew he couldn't buy back in to Sydney should his work shift back here.

 

There are a few indicators that the boom times over
One is the repeating trend in the periodic surveys that investors are not looking at Sydney and Melbourne but instead looking at Brisbane. The second one is now that mainstream financial commentators / agencies are predicting price drops in Sydney.
The other one is just the ongoing non-stop media coverage of issues around housing affordability things have just gotten too far out of hand so all together these factors don't provide a lot of confidence for Sydney and to some degree Melbourne and when that sort of mentality gets out and about it affects the market things will come around again in another couple of years and we'll have a bit more of a boom in Sydney and Melbourne but I get the feeling that this run is definitely nearing peak

 

I'm not sure. I think the other places especially Brisbane and maybe Perth will have to be reasonably close to Sydney amd Mel to take their spot as they come.doen in the cycle. Brisbane and Perth and Adelaide are no where near Sydney amd Melbourne. I'd say there is another 2-3 years before this changes.

 

Just need to look at the drivers that start a boom cycle and work from this. Has nothing to do with Perth being too far from Syd/Melb IMO. I posted figures/ population growth this is one factor that drive prices up which is exactly why Syd ad Melb did boom

 

Come on we were calling this rate rise for months already.