I have been looking actively for property in the east and inner west of Sydney for the last 3 months. Today rang an agent to arrange an inspection for a 3 bedroom house in the eastern suburbs only to be told contract was signed and deposit paid this afternoon. I asked how much for and he told me $575k. The original listing was $680k. They had just brought the asking price down to $640k (meaning it turned up on my home alert). The 575k was the only offer received, so the vendor jumped at it. I did not ask how long it has been on the market, but I do drive past this property every day to work and have been aware of the for sale sign for some time. I did not look at it before as this street always too expensive, but I would have bought it for that. That's a big drop.
Are other people experiencing Sydney prices going down to this extent?
- Thread starter eastside
- Start date
Got a link for the place? Not seeing prices drop that much... yet. The good stuff is not really coming on the market. The ones where the vendors are forced to sell aren't really the ones you'd want to be buying anyway, even if you do get 20-30% drop in prices - small backyards, irregular block, needs lots of work, main roads, no transport, shops, infrastructure..etc.. If you're looking around the beaches, north, east or inner city, you'd have to wait for unemployment rate to hit 10%+ before you get the bargain mortgagee sales. Theres still a fundamental shortage of premium properties in areas of Syd where people want to live.
Sub prime crisis or a recession won't be enough, but a global pandemic might.
Sub prime crisis or a recession won't be enough, but a global pandemic might.
This place needed work, bank foreclosing.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007215025
Others I have looked at have been taken off the market but put back on after bank finance not forthcoming after offer is accepted.
http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007215025
Others I have looked at have been taken off the market but put back on after bank finance not forthcoming after offer is accepted.
All my properties have dropped in the last 12months. All in Queensland
Eagleby 2007 - 280K 2008 - 260K
Kangaroo Point 2007 - 305K 2008 - 260K
Nanango 2007 - 230K 2008 - 210K
Mackay 2007 - 245K 2008 - 210K??
I have just had them all revalued, was thinking about selling as I have a business that has turned sour.
But at the prices at the moment, I would have nothing after commisions, capital gains etc.
Eagleby 2007 - 280K 2008 - 260K
Kangaroo Point 2007 - 305K 2008 - 260K
Nanango 2007 - 230K 2008 - 210K
Mackay 2007 - 245K 2008 - 210K??
I have just had them all revalued, was thinking about selling as I have a business that has turned sour.
But at the prices at the moment, I would have nothing after commisions, capital gains etc.
Not a bad buy at $575k but I wouldn't say a bargain unless you were a builder or had connections to do it all up, add a deck, maybe 2nd storey for less than $50k, which is going to be your materials cost but bought well through auctions..etc... But without tradies connections, you're looking at adding another $150k labour cost at the minimum. $800k end cost will barely get your money back in this sales environment cos of the small block size and no onsite parking.
If you could do it up cheaply and rented it by the room to students, you might get it close to cash neutral though.
Something like this bought for around a $1M would be a bargain. Somehow its not really going to happen though for these type of homes. First time offerred in 49 years = no loan = no distressed selling. I mean does granddad even know what a loan is??
http://www.realestate.com.au/cgi-bi...r=&cc=&c=65353999&s=nsw&snf=rbs&tm=1225282896
If you could do it up cheaply and rented it by the room to students, you might get it close to cash neutral though.
Something like this bought for around a $1M would be a bargain. Somehow its not really going to happen though for these type of homes. First time offerred in 49 years = no loan = no distressed selling. I mean does granddad even know what a loan is??
http://www.realestate.com.au/cgi-bi...r=&cc=&c=65353999&s=nsw&snf=rbs&tm=1225282896
I was reading in the Mosman Daily how they are reducing the prices of the dearer homes. Not the most expensive (talking about the 20 million bracket) but the next price range down, anything 1.5 to 3.5 million, they are reducing the prices by lots, i.e. 2.5 million now on market for 1.5 million, 1.5 million now marketed at 1 million.
This has been reported in the Mosman Daily for several weeks. Due to margin calls and loss of superannuation. Also saying that they have never had such a glut of pricey homes up for sale. Of course this is not the average price range, but still keep your eyes open!
This has been reported in the Mosman Daily for several weeks. Due to margin calls and loss of superannuation. Also saying that they have never had such a glut of pricey homes up for sale. Of course this is not the average price range, but still keep your eyes open!
Thanks for the heads up. I bet they were the exceptions that make it to the media. Just like something I saw on TV about graysonline and buying $180k BMWs for $60k due to sub prime fallout. Couldn't find those kind of giveaways when I got on the site. But thanks for the heads up. Will keep looking for that illusive bargain, just wished everyone else would stop looking too! 
Thanks for the heads up. I bet they were the exceptions that make it to the media. Just like something I saw on TV about graysonline and buying $180k BMWs for $60k due to sub prime fallout. Couldn't find those kind of giveaways when I got on the site. But thanks for the heads up. Will keep looking for that illusive bargain, just wished everyone else would stop looking too!
ha ha - I had a look too.... fancied that cheap bentley. all i saw was a clapped out holden for a price that i wouldn't have given you amidst the boom of 2006!
maybe my attentions is misdirected and i should be looking at a cheap luxury home in sydney.
you only need a couple of homes to to be reduced in an area , and add the media hype and theire goes the market, if we are set for recession and it only lasts for 6 months , selling is crazy unless you have too!
the up side perhaps the rates could reach 5% and then we could lock'em in eddie?
the up side perhaps the rates could reach 5% and then we could lock'em in eddie?
They probably dropped when interest rates were high.
People are now scared to buy but if there is work around and the area is still growing then demand should continue and therefore prices shouldn't fall much.
cheers
I bet they were the exceptions that make it to the media. Just like something I saw on TV about graysonline and buying $180k BMWs for $60k due to sub prime fallout.
I went and had a look as well but there were no bargains to be seen.
Isn't annoying how they make up a story only for to get free media coverage?...
That's an amazing price for a house in a blue chip Sydney eastern suburb.
I have been studying the Sydney inner west area for the last 6 months, looking for a 'bargain'. Specifically Marrickville, Petersham & a lesser Stanmore/Newtown but mostly Marrickville.
I have been holding off making offers as i have seen things slowing down & prices falling in the last 2-3 months especially.
I'd say houses in the $500 - $600k are 10% - 15% cheaper then 6 months ago which is amazing for the inner west as there is pretty much always some demand. But i havnt seen any distressed/mortgagee sales as yet.
I'm at opens most Saturdays and have seen the numbers of punters falling dramatically in the last month. Last Saturday was real slow according to a few agents.
I always have a chat with them and make sure i look at the pad they write peoples details on to see how many on there. Not many at most places.
I have been studying the Sydney inner west area for the last 6 months, looking for a 'bargain'. Specifically Marrickville, Petersham & a lesser Stanmore/Newtown but mostly Marrickville.
I have been holding off making offers as i have seen things slowing down & prices falling in the last 2-3 months especially.
I'd say houses in the $500 - $600k are 10% - 15% cheaper then 6 months ago which is amazing for the inner west as there is pretty much always some demand. But i havnt seen any distressed/mortgagee sales as yet.
I'm at opens most Saturdays and have seen the numbers of punters falling dramatically in the last month. Last Saturday was real slow according to a few agents.
I always have a chat with them and make sure i look at the pad they write peoples details on to see how many on there. Not many at most places.
Problem with generalisations is that they are generally wrong.
I can assure you that Townsville has plenty of work, the area is booming with a diverse economy and rental returns are good (by Syd standards) but sales are falling dramatically. Prices are only sliding a little ..... Yet! (Anecdotally, "motovated" sellers are hurting)From our local paper:
I'm a bit old fashioned I guess, but I still see falling prices as exactly that when I am already invested in a market, not as an "opportunity".
Me to. If falling prices means falling personal equity and rising LVR then the thought of picking up a bargain seems pretty distant.
Doncaster Avenue is a very busy street. Runs from Alison Road to Anzac Parade along side Randwick race course. There would probably be race track outbuildings adjoining the back of this property (looks like its one of the houses on the racetrack side). Race days would be very busy in this street. I'd make the best use of it on these days by inviting my mates over with a few large scorecards and judging our own beauty contest on the front lawn (you'll appreciate how stunning some of the race goers are).
Ha that is funny! I have a relative living in Doncaster Ave, and it amuses her no end as the race track advertises with 'Princesses Welcome' but after too much alcohol (ie binge drinking) the Prinsesses have been seen to take a dip in the Centennial Park Ponds (the ones with blue green algae warning signs) or proposing to hapless police officers on duty. It is a busy street, but this price is definitely a lot cheaper than before.
Now I have just seen a property re-listed in Enmore with a 30k less asking price, I was assured by the agent that the property was off the market over a month ago and had been sold. What is going on out there? Is it the bank finance? Has anyone on this board actually bought a property recently and experienced this bank finance issue?
Now I have just seen a property re-listed in Enmore with a 30k less asking price, I was assured by the agent that the property was off the market over a month ago and had been sold. What is going on out there? Is it the bank finance? Has anyone on this board actually bought a property recently and experienced this bank finance issue?
After seeing the Kath & Kim episode at the racetrack, I cannot watch anything about Melbourne Cup without picturing Kath & Kim in the background, vomiting in the portaloos and Sharon getting some action in another portaloo.
I find it highly amusing to see on the news after Melbourne Cup all the princesses and older princesses, all trying to look classy, but failing miserably after the seventh reisling or rum & coke
Sorry about leading the tread off topic, but couldn't help myself.
I find it highly amusing to see on the news after Melbourne Cup all the princesses and older princesses, all trying to look classy, but failing miserably after the seventh reisling or rum & coke
Sorry about leading the tread off topic, but couldn't help myself.
So true......just look at the Domain in the SMH....3 pages of Mosman houses!
Looks like some of our financial market friends are in trouble.....but middle class suburbs like Willoughby, Crows Nest, and Lane Cover seem to be holding their own!
Looks like some of our financial market friends are in trouble.....but middle class suburbs like Willoughby, Crows Nest, and Lane Cover seem to be holding their own!
That house on Doncaster is priced about right IMO. Its only on 190 sqm and no parking on a busy-ish street. Big land for Inner West but ny Kenso standards, that's small. However, one could rent out for about $600 once spruced up...so not a bad buy, but I would rather buy one of the larger houses on 500 sqm + on the quiet side of Doncaster (in Kingsford direction) for under a mill. Havent seen one yet.
Eastside I am a broker in WA and it is definitely not that hard to get finance if you're buying at a decent price. No doc clients who owe $2m + who still think they can borrow money like they did off Rams and Macquarie in the old days are struggling. But people who owe around a mil or less are easily getting finance.
I do deals all the time at 90% or 95% no problem if there's no CRAA defaults etc. I think the customers at the margins are probably struggling, but those with a good history and are smart about their structures can still get money, and we finance plenty of properties on the East coast.
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