Would you pay crazy prices.. even in Sydney?!

Lol at "getting a lot of mixed economic data".

Suggest you really get back to the basics. Very simple stuff that will help you both make money (and prevent losing it).

-Net yield (ie gross minus costs including interest).
-Where the market is in terms of an overall cycle.
-And lastly apply a very simple rule as stated by Buffett "be very nervous when others are gready and be very gready when others are nervous"

The sad thing is that your "research" is probably the exact thing that causes many suckers to lose money in assets that are a bubble (and prevents them from making money on assets that are cheap).

Sorry to be so blunt but I'm here to help.

 

-Brisbane is a really great city don't get me wrong, and I love the people from Brisbane. Net yields are higher in Brisbane for a reason.
-Nobody can accurately predict the cycle and make the right timing calls. Investment is not really about timing. Timing is more speculation.
-You can make the argument that people are being "greedy" in both Sydney and Brisbane.

At what point did I encourage people to invest in Sydney? Let alone anywhere at all? Yeah exactly I didn't.

 

Property Chat....chat.

Good thing is, we all pays our money and gets what we want.

Plenty of people buying up as investment in Sydney, it really does not matter, as there will always be for an against & no one has to follow the mob or sentiment, even from PC.

 

Wishful thinking. Melbourne is THE best city in all of Australia. There's a reason we were voted as the most livable city in the world for 6 years in a row. Sydney certainly has its positives but it doesn't even come close to Melbourne.... not by a mile!

We are in agreement however that Changi airport is easily the best airport in the world. None of ours come close to what Singapore has.

 

After selling, you must not have at least a net $2 million in your bank.

 

Damn. I failed. It was just shy of $2mill.

 

Hi. I didn't say you encouraged people to buy in Sydney. Not sure why you said that?

In terms of making the right calls and "timing" I believe it is very doable. And indeed I have a track record of doing it pretty consistently and successfully over the last 25 years. It is doable if you look at objective data and don't get caught up in hype and sentiment. (The approach Buffet takes is really what I model my own approach on).

Ultimately this is one of those discussions where the answer as to "who was right" will only be clearly be determined in hindsight. Anyone buying in Sydney at current prices will be severely burned. Wait and see.

You think this dude looks unhappy now making is first mortgage payment? Wait until interest rates rise just a tad, buyers default, banks tighten up on lending and foreign off the plan buyers "hand back the keys", with prices dropping 20-30% hitting especially those hard who have little positive equity. It will happen ...

Do not buy a house in Sydney

 

Hang on. I should have said you will have at least 2 million in your bank. Nicely done @Gockie

 

I can't comment on prices but can be quite sure that there are still plenty plenty of those who want / need to buy in Sydney. Demand is unique here and simply won't go away.

 

You are stealing my lyrics

 

No a panic situation, just a reality check. Prices can't go up forever, & it is actually buyers who determine the market. So many people say it is not affordable, yet so many are forking out the big $$.

 

Not completely priced out, I can afford to buy 45-60 minutes from the City, but if prices continue to go up, then even tat will be unaffordable, not just for me, but for anyone,

 

That was the crux of my original question. And also to make people aware that in some parts of Sydney, the market has been flat, even went slightly backwards at the end of last year.. but a couple of people have properties listed at prices that suggest they think there was double digit growth. Do your research when buying, check local sales & compare apples with apples.

 

Well then, Sydney must still be affordable if people can still afford to buy there.

 

45-60 minutes away is fine. U get used to it. I love western Sydney, the ppl are so much nicer.

 

But demand did go away -- for 10 years between 2002 and 2012. It's easy to imagine things will keep going up forever when you're in the midst of a bull market. It worries me how often I hear people saying Sydney will always go up. How fun will it be owning a million dollar investment with a low yield that goes sideways for a decade?

 

Sounds like
1) you missed the boat on purchasing earlier and are now bitter and hoping for a crash
2) your expectations are too great if your looking at $1m+ range for 2 bedroom units. The are far far more affordable 2br units in Sydney at least 1/2 this price. Christ. I can get a 3br house in St Marys for $700k. Maybe looking at 2br in the inner city is your problem. Start cheaper abd work your way up over the years.

 

There is always a bull market somewhere in the world.
Be it property, shares, currency etc,
If you focus on only one particular market? Then its your decision to ride that particular Rollercoaster for good or for bad.

Its a personal decision,
Nothing more......nothing less.

 

Not really. I could pay reasonable prices in NY, Tokyo, HK or Paris. And yes I've been doing exactly that lately in two of these cities. Or I could buy a mine with a few hundred thousand ounces or tonnes of extractable whatever for similar prices, yes also looking at that.

There's always a way to make exponential returns if you look outside the narrow window we see things through on a daily basis, Syd was just that in 2012.

 

Actually ithe demand is not unique

lol. Yes exactly. There is nothing "unique" about Sydney that justifies a bubble. It's this kind of nonsense thinking that gets people into trouble. In simple terms houses are places to live. Value is governed by what people are willing to pay to live there. And that payment can be made via renting or buying. The concept of arbitrage will determine which payment option people will choose long term and that in turn will govern intrinsic value. Nothing "unique" about this whatsoever.