NSW why people are still investing in Sydney when market is near to high?

Ahh, Lorry or maybe Laurie as in Laurie Oakes.

No, I wouldn't say it's the holy grail. The orchy bottle is the closest thing to that. It's revered out here in the Druitt.

Now, for retirement. Say the average rent for a house in the Druitt hits $800 pw. So, you could theoretically retire on two or three properties.

Look, I know some people will read this and say "datto, you are dreaming". $40K pa rent at 5% yield means you're paying $832K for a house out there!

But cast your mind 10 years ago when you could pick up a house under $200K in the Druitt (maybe even less than 10 years ago). And look at the prices now.

I know this won't happen overnight. But give it 5,6 or 7 years.

 

Perhaps they will create incentives for new build investors/developers to increase stock, while leaving the existing home property investors out in the cold?

 

Who is going to buy them and at what price? They would want to be cheap because its hard to get finance and you need right size deposit.

Might work if govt subsides 50% of the purchase price for first time home buyers lol.

 

You won't see those sorts of rents until the public housing estates in the area are redone and the existing population "redistributed"
I think Lakemba will gentrify before the Druitt - sorry, but I think the brothers have it over the housos.

 

Reckon it'll go back up due to the first home owner buyers. Maybe be good for the developers to offload the bad stock that they had trouble selling.

 

I hate to say this...investor behaviour is like lemmings...they have read that Sydney is powering along...but fail to look at where it is in the cycle. They keep jumping in for 1-2 years after it has peaked...and then something pops and they alll jump off...guess what happens next.

I would suggest Outer Melbourne/Geelong...Brisbane/Sunshine Coast/Gold Coast...and Adelaide and Hobart and even Perth as these areas have not peaked.....

 

Really? thats your reply?

You have posted something that says "prominent Sydney REA". It doesnt matter who John McGrath is or what he had for breakfast that morning.

A prominent Sydney REA would never ever say "Hey don't buy in Sydney, come buy in Gold Coast" unless if he had a vested interest in it.

In other words this is a marketing ploy, using someone's name to entice the gullible to buy something. Much the same way you might consider buying a Kardashian brand of perfume. Think about it for a moment, why would he promote Gold Coast if he is a "prominent" Sydney Real Estate Agent?

 

Cheese and Macaroni, if I take the word "Cycle" from you Sydney haters, will you still be able to post?

You have talked about this for years now, Give it up already.

 

Tenex..... I don't hate Sydney...but I do believe in diversification....NO market can go up forever.

There is growing evidence that Sydney and inner Melbourne is significantly slowing..no amount of denial can fix this.

Here is something I will leave people with...a lot of people bought in Sydney with interest only loans...some I know bought 3-4 place for around 500k and now they are 800k-900k plus.......I know they they see the $1.4m gain.

But what they don't see if what happens when the market stops growing and I/O loans stop...do you realise how much additional repayments on a P/I on a $2m loan is like......if you are paying 90k....it will be more like 120k ...once the I/O period expires...interesting times indeed....

 

Is inner Melb sloeing I hope so

 

The link you have posted is extracted from a blog. I did read his blog, his rationale for saying people are leaving Sydney and are going to Brisbane is that Sydney is expensive and Brisbane is cheap. However he conveniently ignores all the other places such as Adelaide that have had a negative of what he calls "Internal Migration". Provided his logic was right and his numbers were right, wouldnt it not make sense for Adelaide, which btw is cheaper than Brisbane, to at least gain some of these people that are for some reason leaving Sydney due to "internal migration"?

So not only I read the links I post, I also read the link you had posted and with due respect, that link isnt worth anything.

 

I like your avatar...going purely on what I can see

 

100% agreed but diversification where you make money based on tangible facts. Buying elsewhere just because it is cheaper and you "think" its suddenly gonna get hip is not a fact. Its wishful thinking.

Significantly Slowing? Wow, tell me Where?

I am not going to comment on inner Melbourne but I keep a close eye on different areas of Sydney. What used to cost 1.3 Mil at the beginning of the year is now 1.6 Mil and thats just mere months. There is far more demand for land than there is supply.

Significantly slowing means houses should have at least a 5 to 10 % drop. Where is the evidence for "significantly slowing"?

So what? do you think IO loans appeared recently?

IO loans were around back when interest rates were 9%. There is a lot of cashflow happening right now in Sydney. IO loans are not indicative of anything.

Rather than telling bedtime stories about who is on an IO loan, you should look at demand, infrastructure, employment, Universities, Ameneties.

There is billions of dollars going into Western Sydney alone. Have you even heard about that?

 

Yes Ivanka Trump.

 

He has a vested interest in being credible and correct. Do you really not know who John McGrath is? McGrath real estate? You might have heard of them ... (and I can tell you for sure their Sydney business is bigger than their Gold Coast business ...).

But either way, your own brain and research should tell you Gold Coast is far better placed for gains than Sydney at current levels.

 

Lassie are we a wee emotional are we?

Noticed any properties being passed in?

Let me ask a question...when was the last time you saw market correction? I heard this in other markets ......also.....

The bottom end in Sydney is protected a bit as the FHB grant kicks in...but what I am seeing is that will benefit areas like Central Coast, Wollongong, Newcastle a lot more.

The trouble is people only look at past stats....look through windscreen....

 

Latest data shows both Sydney and Melbourne should slight declines in value recently. Learn more here : Tsunami has hit? Syd and Melb -1.1%

 

Politics aside, I think everyone can agree on quality when they see it.

 

Yes...her mother was was "I wanna your money"