What will stop the BOOM in Sydney and Melbourne

Interesting as FWIW Bernard Salt in podcast suggests North Melbourne as the next hipster hotspot similar to Richmond for transport & close to city access.
New Metro also as Melburnian mentioned.

 

WTF?

North Melb was hipster about 5 years ago. Now it is just like the rest of inner-melbourne ugly developments for foreign students and families.

 

Clearance rates dropping in Melb as well according to this article.

Market sentiment is a strange thing

We just received another sign Melbourne's housing market is slowing down

 

So is the south west and west booming or what?

New suburbs drawn on the western Sydney map near Badgerys Creek airport site

 

I have little faith that the airport will bring prosperity or acceptable infrastructure to surrounding areas. Very happy to be proven wrong though. I can't help but think the old plan for panthers to become a casino should be resurrected. Not much interest in the west for visitors other than it being gateway to the blue mountains.

 

Not exactly an apples vs apples comparison there. Penrith Panthers RSL club vs a large international airport + billions and billions in supporting infra?

 

Very true....people are rabbitting on about the airport..little do they realise it will be a gradual process for it to be a very large airport. Initially it will be mostly freight..maybe some budge airlines...it will take 40 years for it to even resemble something like Gatwick in London....people should read the govt material.....

 

Yeah I'm a bit all over the shop with that post but to me there is no appeal to Sydneys west as a visitor. People will land at badgeries and make a bee line to city (some business people may go parramatta) infrastructure created will be to suit these needs of airport to city and will likely be high cost to use and little benefit to those living in the west.

The gains will be in blue collar jobs related to freight and logistics and of course construction jobs in getting it built in the first place. I don't see much gains for local businesses. To get full benefit out of the airport the west needs to become a destination and not just an arrival departure point

I actually see the airport making the southwest less appealing in the long run and the gap between northwest and southwest properties will widen

 

Lets see. Not everyone needs to appeal to living in the west and south west. The people on PC have probably ZERO influence on the market.

All we need is a few 10's of thousands of people interested which there are plenty of people especially immigrant population love living in the west and south west. That alone is enough to drive the market. And at the end of the day no matter what anyone says its price point.

Dont forget avg income for a family is like $80k. Raising 2-3 kids, mortgage, deposit, bills, insurance, cars and all the other costs of living - the simple fact of affordability will drive the outer suburbs.

Like I said before try saving $50k raising a family and all the bills that come with just living a basic life. It will take a bloody loooooonnnggggg time for the average person/family to save that.

Even on $100k a year - save $50k. See how long it will take you.

 

Agreed! I just got a new tenant and they jointly earn 90k after tax I believe and they have 3 kids, have been renting for years and intend to as they cant save a deposit. I think they have high spending habits as apparently their car is hotted up and been resprayed etc

Theres actually a few high income earners out west and s/west but don't save or know how too, and have come to the conclusion they will rent for the rest of my life and enjoy.

 

There is a lot of negative talk around but it will blow over soon and Sydney will bounce back, to prices being achieved 6-12 months ago for most suburbs. 2019 the pain will start coming to reality and wipe/or wipe some the gains achieved in 2019 depending on suburb... then the cycle starts again!!!

Question I ask myself is will yields be just as good before this boom for the next???

 

Yeah, the South West is on fire.........soon to be fire sale........I know plenty of people up to the eyeballs in McMansions....airport already had everything priced in long ago.....anyone who bought recently will be in trouble if they need to sell.

 

Everyone is thinking it will be an international airport and bought in the area, they are so wrong and there will be major pain! I heard agents had to drop rent out that way to get tenants in and up to 30 dollar less a week...

 

Yep....Crabbler...it 'appens every cycle.....punters jump in before the top....

Must be Oran Park....lots of rental discounting going on....

 

And others... seeing the same in Wsyd starting to happen...

 

Yes...that is canary in the coal mine....investors have pulled back...when FHB realize it is much cheaper to rent...its game over...

 

Investors still around but not as many and FHB are being picky on what they buy and not in a rush.

The rental will straighten out by February for SWsyd and Wsyd and increase slowly!

 

Not that far out......you also have housing estates out wollondilly shire way...must be a pleasant drive to the city on M5

 

Tough ask renting out at top dollar too much similar stock being completed at once. Might be tough to sell for top dollar if a decent percentage of investors decide to bail out at once.

 

Yes if there is an oversupply of rentals you will rents fall, what has happened in Perth