NSW Woy Woy Peninsula

Renovating by 3 bedder in Woy Woy....new bathroom...paint...polish floors...I bought this for low 260s. in 2010...the agent has quoted over 600k..... now that is madness...it can't last at this level of increase...

Thinking whether to keep it or sell...rent will increase to $450...still good return on the original purchase...about 8.5%

 

Sash, yeah I would be thinking exactly the same thing.

 

watcha sayin...sell or keep....hard..because I reckon the price is insane it would have to come back 10-15% at some stage.....

 

I think Central Coast is more up and down than Sydney proper. When it goes up and times are good, it goes up. When the demand stops, if the economy turns, it will stagnate. The area was at 300k for a very long time before the Sydney ripple finally came through. Won't say whether a person should sell or hold though. It's really up to the individual.

 

No different to Epping...Ryde ...Mt Druitt suburbs or any other areas in Sydney.

Affordability will drive the extent which the fall will happen..... given the rise of Sydney and surrounds a fall is inevitable

 

I think it will always follow the Sydney property market, but it will lag. Overwhelming land demand in Sydney is just making Sydney homes very expensive. When Sydney's too expensive, people will naturally look for an affordable alternative. When the price gap becomes too big, people will buy into the Central Coast.
So its a delayed cycle to Sydney.

If Sydney becomes cheaper for whatever reason, I tend to think the impact to places like Sydney's Outer West, South West, Illawarra and Central Coast will be bigger. Suddenly people who couldn't buy in where they wanted in Sydney can move in closer. So they upgrade. I guess the question is are there buyers for the homes these upgraders are moving from? Note: I made the assumption that many of these upgraders are not planning to rent out the first home but sell instead.

But while Sydney has this huge boom, these areas will boom too.

 

I am saying, if I had IP's there, I too would be pondering on if to sell now.

I think those sort of prices for the shack shown in the link means it is also over inflated, maybe fine for a PPOR, but as with Sydney, I would be really thinking about taking money out and re investing some years after a clear pull back.

 

Thats it...I would sell at the peak, go the sure thing & realise the cash.....
The CC experiences peaks & throughs just like the gold coast. I have family living @ both.

 

Except...the baby boomers are now looking to free up equity for living expenses..will sell in Sydney and move near the sea with 1.5 hours of Sydney.....that is what is driving part of Central Coast and Illawarra...

 

Yes except..no a fan of paying a lot of tax on my CG...after expenses lets assume 320k profit. 50% discount...leaves 160k added to income. I would pay about 80k!!

 

Nice idea I'm not sure too many retirees are doing that. My parents still live in their Carlingford home, it's only the 2 of them in their family home. It's central to all the grandkids. My grandmothers are still both in Sydney's East. The inlaws (all brother inlaws parents) haven't made any seachanges either.

I think if you want a pension you would never sell a family home in Sydney, as it's all tax free and not assessed for pension purposes. Keep it and let the next generation inherit it.

Still, I can see the appeal of holiday homes on the Central Coast. I probably wouldn't buy now, however the next time they are cheap....

 

Actually lot are....no offence you parents are traditional Chinese..different mindset.

As for how long the family home remains tax free...lets say I saw the blueprints and running of numbers to impact on the federal budget if the family home is included. Sure there will be a high threshold....i.e. like $1.2m...but eventually this will happen as the pool of tax payers to retirees drawing down approximately 22k (single pensioner) or $33k (couple). So eventually the family home will need to be included...the public will have no tolerance for people in $2-$3m assets claiming the pension. The gubbermint wanted to do it this time...but are taking the slowly slowly approach...

Believe it not this pension..it even beats some of the high tax Euro countries....the pension for most people is between $700 and $2000 Euro in a lot of Northern European countries...despite paying huge amounts of tax.

 

It would have to be very slowly-slowly.... one of my friends retirement strategies was to build the biggest most expensive PPOR to store their wealth.... that home includes an internal lift...

Don't disagree family homes should be subject to some assessment for pension purposes... Storing millions of dollars of wealth in homes and then claiming the pension or part pension is pretty ridiculous.
No idea of if/when.

I believe homes should also be used more efficency too. Too many older couples living in big homes but not downsizing to something lower maintenance and right sized. But at the moment there are barriers to doing this such as stamp duty for purchases (which can run to the value of full years salaries in the case of Sydney) and the exclusion of the PPOR from means testing. The current environment is not favourable to strategies like this.

Anyway, this is off track and can be talked about in another thread.

 

...maybe...one of the other things in parallel they are considering is a landtax on all properties based on asset value to remove stamp duty....this will help affordability...but people who own expensive homes will pay more tax.....

Perhaps you should start another thread.....

 

Land tax would be much more efficient! If they can figure out how to bring it in without disadvantaging home owners who have paid an arm and a leg in stamp duty recently, and without leaving the state government with a revenue hole.... and without putting mortgage stressed/tight budgeted homeowners offside....

And no... won't start a thread because it probably would just go round in circles and go nowhere lol

 

Well, you gotta pay sometime & it is your fault you earn so much I can hook you up with a low paid job if you like, but you would probably still be on the high rate.

Tax is what it is, at least your making money & you would know about what you can do to lower the impact.

Thing is, if they are at 700k, a 10% drop wipes out that concern. So the question is, at any point in time, are things in any one area inflated by 10%, 20, so on etc.

 

Just make sure you include capital gains tax concessions and negative gearing and you will have yourself a complete roundabout... lol

 

Absolutely mate....I reckon my Woy Woy one will easily drop down to 510-540k when the music stops...this sort of properties houses at 600k near Sydney are considered low end.

That is why I said the houses at 430k in Bidwell or Tregear will drop to 360-380 comfortably if not more..as these are primarily investment suburbs.

The people who are saying Sydney is bullet proof are very naive....let me tell ya I have been through 3 cycles...Mt Druitt satelite suburbs dropped like a lead ballon every cycle.

The interesting thing is...this time around it won't be the Druie...I reckon the ones which drop the most are apartments..particularly high density...and areas where the Chinese pushed values far too much...i.e. Eastwood, Chatswood, Epping, Hurstville, etc.

Some of these suburbs would have had median suburbs like 650k in 2009...now they are sitting around 1.6- 1.8m

What goes up will come down...always does...the ones which went up the most come down the most...... for example certain Druie satelites went from 200k to 430k or 125% increase....Epping went from 650k to 1.67m....or 253%

So lets say the Druie drops back down to 365k...that represents down to 365k..still a 81% gain assuming you bought before 2010.

But if Epping drops from 1.65k down to by say 20% gain......that is down to 1,320...still doubles...but 320k drop.

What usually happens is the people who sell bought very early..so when it does drop they don't feel it as they still make a profit. It is the desperate sellers who get clobbered...lets hope there is not a meltdown in China...from my perspective only a matter of time.....

 

All good. Epping has great transport, you can easily get to Parramatta, City, Chatswood, Hornsby, Strathfield. Throw into the mix connections to the North West. Macquarie University is in the next suburb. There's the M2 nearby if you choose to use it (I'd use it only to go west and use Epping Rd to go East) and it has easy access to the North. Having said that, it's still a leafy suburb. People living here generally have no reason to want to move.
Most people have made a heck of a lot of CG in the area - including us. Bought the first house for under 700k 8 years ago.... that money only gets you a 2 Br unit in Sydney now.

With my new house, I don't see it falling in value - its unique and with huge land (potentially subdividable on a corner too). Lots of appeal. They aren't making 100+ year old stone houses every day of the week anymore. Unlike the new cookie cutter housing.

Stressed sellers - I reckon there aren't many FHB in Epping and people have plenty of money even before they buy their homes. Apartments could be made up of FHB though. But apartments are a different proposition to houses altogether.

 

Big big number for what is essentially a 1 bedder

99 Australia Avenue, Umina Beach, NSW 2257 - Property Details