NSW Where to buy in Sydney - advice needed

@WinDyz.: So do I , So I guess based on @sash comment, we should buy when the market is at the bottom or going down as in the year 2005, 2009 and 2012 on the graph above.

But if you are buying it for PPoR, then it is a different story for you, buy anytime shouldn't be a matter since you need a proeprty to live by.

 

Well the way i see it...
In The last cycle i did see price drop slightly and within 2 years it recovered quite strongly....
I'm not saying Brisbane or other state are not good to invest. but if you don't know the area well, you might be buying something really bad. For me seeing 4-5% growth per year is good enough already.

 

Consider this graph:



Is this relevant now or it is just to broad for Sydney in particular ?

 

Graphs mean nothing...it is only a reflection of the overall market......some sub-markets took a larger hit.

So you would have seen what happened in the Hills, Western Suburbs, Central Coast, Bankstown areas during the downturn?

 

It does not work like that.....property goes up in spurts...it might have 3-4 years of say 10-15% growth and then 2 years of negative say 5-7% growth...and then a couple of years of no growth or small amounts of growth. What I am saying is that the growth has happened and it will probably experience negative growth within the next 2-3 years.

 

You need to treat your PPOR as an investment as well - at least until you are established.

PPOR (being tax free) can be a very good way to climb the property ladder.

 

Yeah seen few stressed sale in the downturn and some bargain, but Sydney is not the only one that was hit in the downturn. every other state was affected too.

 

probably right... If interest rate stays low for a while. we'll see flat growth for 2-3 years. Nothing wrong with that. Rent will catch up.
Or if interest do spiked up in a very short term, then we'll see a correction throughout Australia (Not only in Sydney).

 

Thanks Gockie.

 

Hi Seal, curious to know what Residex mentioned about Meadowbank and how it ranked it as I have IP there..could you please share the snippet of the report on Meadowbank ?

 

I'm waiting good time to buy First PPOR unit in Sydney, my budget is so tight around 380k. So I have a dilemma of better wait next boat or buy far away unit from city.

 

I bought in 2005 and that was a bad time as Sydney had done its boom 2000 to about 2003/4. 2005 it had already peaked and property prices did nothing for the next few years. In my local area I may as well have bought 3 years later and then got the start of the next boom.

 

problem is no one has a crystal ball and trying to time the cycles exactly could end in tears....

 

Wow! Some great experience being shared in this thread! Thanks to the contributors!
Questions:
How far behind Sydney market do you think the Central Coast is? I'm thinking 9-12mths at present for 4bdrm houses.
Sell or keep 5 bedder plus study in latest Terrigal estates, currently it is tenanted and positively geared with a passive income $25K and I can take out loads of equity to fund another buy in Sydney. I am wondering if I should sell in Spring and purchase something better nearer the water in Terrigal or in Sydney.
Thoughts on future growth for Rhodes/Wentworth Point seeing they are now talking about developing the rest of the toxic waste dump area with units?
Thanks in advance everyone.

 

I'm curious. How do you get to the conclusion of 25k passive income on this property. Have you paid it off? If you haven't, then it sounds like you have a money tree. Don't get rid of it!

As to Rhodes and Wentworth Point, I don't see them doing any better than any other parts of Sydney. Still heaps of apartments with little differentation imo. If they add more apartments, I can only see them all getting less growth (more supply, same number of buyers --> less pressure for prices to rise as there's less competition for each property)

 

I wouldn't touch Rhodes and Wentworth Point with a 10ft pole.

Don't know much about the planned redevelopment but if it turns out to be true then the above statement holds even more true.

The missus has an apartment in Rhodes. It's seen about 25% growth in the last 3yrs which is sub-par compared to the rest of Sydney. Rent's hardly moved in that time as well

 

Thanks for the replies.
Gockie, I haven't had to leverage against this property for a while in order to invest and it's really shot up in value of late, and I don't have much finance against it (only $125K). Just not sure if I should sell it and purchase somewhere else (e.g. closer to water, inner city Sydney or keep it and hope for more growth over the next 9-12 or keep it for long term hold.

 

Good questions! I'm going to say what everybody else is saying. Look at Brisbane.

With your Terrigal property, if you can sell and avoid/minimise CGT its not a bad thing... it's possible it may have done its dash and now is a good time to cash it in.
But i'd get a few more forumites opinions before acting. Terrigal/Central Coast is not an area I have focused on at all and I am no expert in it. But I do feel it is more volitile than Sydney's market as there are a lot of holiday homes in the region and less jobs than say in Sydney.

 

If it's producing a tidy income, and you'll have CGT in selling, chances are good that it is worth hanging on to. Over time, rent and its value are both likely to climb.

 

As you said, the Sydney cycle is ahead of the Central Coast. Doesn't make sense selling up only to go buying into a market further along the boom.

If you're going to sell don't go buying right next door or in the same market. All that exposes you to is purchasing/selling costs.

You have plenty of equity in the Terrigal property. Why not make use of it?