NSW See Change and Steven Ryan - lets hype Sydney thread

Bear in mind that Sydney prices basically went nowhere in real terms between 2003 and 2012.

By 2013, Sydney's house price to income ratio was still lower than it had been in 2003, a decade earlier...

http://i187.photobucket.com/albums/x308/LPShadow/Sydney-Bubble-01.png~original

So this current boom is partly catchup after ten years of relative stagnation.

 

If history repeats itself there will be another long period of stagnation. Eventually when interest rate rises we will see an increase in foreclosures as was the case in the late 2000s, particularly around the mortgage belt suburbs of Western Sydney.

 

What not to do:

http://news.domain.com.au/domain/re...the-sydney-property-boom-20150722-giidt8.html

"Currently on a base salary of $75,000 a year, plus benefits, as an international services officer at the University of Sydney, he began looking for a home in 2010 when he finished university and had finished travelling.
At that time, he was 25 years old with $20,000 in savings and the Sydney median house price was about $640,000.
While he initially looked in Wollstonecraft and Waverton, he extended his search further north to Hornsby.
"I could look to the west, where it's cheaper, but it will take a lot longer to get to work, all my friends and family are on the north shore and you really have to ask: How much is your time worth?"

Now he can't even afford a house at Mount Druitt

 

There is a difference between foreign investment vs foreign money bankrolling local buyers ( fhb and/or investors).I suspect the latter is happening a lot, and Sydney and Melbourne are the preferred homes for that.

 

My view point is that you can't necessarily explain or predict price changes on the basis of fundamentals ....

Just because you can't do that , doesn't mean that these and similar changes haven't or won't happen .

Over the last 15 years , every time people start talking about which areas are likely to start moving ( in particular if it's a lower socio-ecomonic area ) a minority of members will come out quoting data on why there are no economic reasons for that area to move .... Yet to see them right .

It comes down to herd psychology . Hence my faith in the forum to predict upcoming changes . We are a small ( but relatively observant , informed and engaged ) sample of what's happening out there .

Occasionally the timing maybe slightly out . Obviously Brisbane is all the go at the moment , but I won't be surprised if we see more growth in Melbourne before Brisbane really moves , but my view point is that now is a good time to get into Brisbane at a time where prices ( certainly in the areas I"m looking at ) haven't moved much . It's also warmer in Brisbane and who wants to go to melbourne in winter ...

Cliff

 

I agree with this. I have a work colleague who has huge savings coming from India and was able to pay with a 20% deposit for a property in Baulkham Hills in 2013. Serviceability for them is also very good (both spouse and her are in IT). They bought a property after a year of staying in Sydney. At that time, market was not as crazy as it is today.

 

I took 2 weeks leave from work in Sydney and I am loving this Brisbane winter! Not cold at all.

 

Actually there are migrants who know that they needed to prioritise buying a PPOR after arriving here and saving a good deposit. They know how to save money and live frugally. When we first came here, that has always been the advise I'm hearing from friends, that it needs to be a priority above all else, and that would mean not going 'home' for a couple of years as every dollar you save counts. Some people coming from India, Singapore, Middle East etc would even have 50-100K in their pockets.. So it's not just the Chinese..

 

Yup, and I think the next big wave will be from India ..The pop and $ there are both large as is the 'economic structure '... Similar to Chinese in these respects..But very different in many other respects. Ie culture, political governance etc...

 

I used Kissing Point Road to get too/from work today. Amazed by the amount of development that has gone on since I lived in Telopea in 2002. Much of it is new townhouses and much of it seems to have been in the last 2-3 years.

New developments about to start too. There are some large fenced-off blocks. The largest next to the BP service station in Dundas Valley. A big development will be going in there.

 

Interesting! I used to live at the top of Brothers St and our neighbours at #2 Brothers St got a great offer - their house got sold to a developer in about 1998 for 700k I think which was a lot of money since house prices in the area were less than 200k then from memory. That developer bought the house facing the BP on Quarry Rd too. But nothing seemed to transpire on all that land over so many years. I don't know why.

Also, the land behind the BP, that was just screaming "use me", if it's only being developed now I can't believe it took that long.... (I used to walk in this area all the time to get to the bus stop for school).
I'll have to go and see what's going on.

 

With the media all over the $1mil median..... I eagerly await the clearance rates data tomorrow evening.

 

This is the land info. Was unable to find a current DA, other than for removal of trees in 2008. Might be a government site. Either that or someone has been holding it as a land bank.

• 
  Lot 100 Plan DP852724

 

Yea, will be interesting to see what happens now that the psychological level of 1mil has been reached.

 

I intend on getting out sometime early next year. Ill be putting my money into mostly managed fund's.

Or maybe ill be greedy and hang on for another 10-15%? lol.

 

Now this is amazing...... sold for $1.53m above reserve in Granville for $2.8m. Owners didn't know until recently that their property had been rezoned R4 recently:

http://news.domain.com.au/domain/re...-rundown-granville-house-20150725-gikc9t.html

 

Sydney clearance rate for we 25th July (from Domain):
Number Listed Auctions: 715
Number Reported Auctions: 553
Sold: 470
Withdrawn: 37
% Cleared: 80 %
Total Sales: $438,762,080
Median: $980,000

Its gone down slightly

 

82.7% according to realestate
https://www.realestate.com.au/auction-results/nsw

Found two in particular quite a good deal i think :
1. Marrickville 2/1/1, very close to station sold for 670k
http://www.realestate.com.au/property-apartment-nsw-marrickville-120163501
2. Maroubra 2/1/1, Water view renovated apartment sold for 788k
http://www.realestate.com.au/property-unit-nsw-maroubra-120067241

 

How the heck do these numbers work?? # sold... hmmm...

 

No idea!