It's one of those times where my expectations of " Value " are changing .
It doesn't seem too long ago when some friends paid 600k for a house in Billiard Ave in Warrawee and we thought they'd over paid . ( ok it was over 20 years ago ... ) , but when you've had a long flat period and prices start changing it takes a while for people watching on a regular basis to get used to the fact that prices change and aren't coming back down. ( unless you live in Keen land ).
When we talk about affordability problems ,I 'm thinking that by daughter who has been only saving for a short period of time , is not on a large wage, is able to buy her first property in a good area of Sydney. Going back to a different era , when my sister bought her first property ( her husband was a doctor and she was a Vet ) they were only able to buy in Prospect. When we bought our first property , ( doctor and physio ) we were only able to buy a very run down property in Concord ( it had an outside toilet ....
Currently , the Sydney market is relatively affordable and you can buy older properties well below replacement value . We will get to the stage where older property is more expensive than replacement . This has happened with each cycle that I've seen.
Prior to getting involved in property investing I've normally watched this happen in retrospect , however in the last cycle I saw this happening while investing , in particular in Brisbane and Rockhampton. When we were buying there , the local agents thought all the buyers were silly and if we waited the market would settle down and we'd get better buys .
Yesterday we had a similar comment from an agent. Wait until spring and you'll get better buys . Maybe he's right , but I don't think so. Given the affordability ( with the current low rates ) I don't see anything stopping it any time soon.
Cliff
It doesn't seem too long ago when some friends paid 600k for a house in Billiard Ave in Warrawee and we thought they'd over paid . ( ok it was over 20 years ago ... ) , but when you've had a long flat period and prices start changing it takes a while for people watching on a regular basis to get used to the fact that prices change and aren't coming back down. ( unless you live in Keen land ).
When we talk about affordability problems ,I 'm thinking that by daughter who has been only saving for a short period of time , is not on a large wage, is able to buy her first property in a good area of Sydney. Going back to a different era , when my sister bought her first property ( her husband was a doctor and she was a Vet ) they were only able to buy in Prospect. When we bought our first property , ( doctor and physio ) we were only able to buy a very run down property in Concord ( it had an outside toilet ....
Currently , the Sydney market is relatively affordable and you can buy older properties well below replacement value . We will get to the stage where older property is more expensive than replacement . This has happened with each cycle that I've seen.
Prior to getting involved in property investing I've normally watched this happen in retrospect , however in the last cycle I saw this happening while investing , in particular in Brisbane and Rockhampton. When we were buying there , the local agents thought all the buyers were silly and if we waited the market would settle down and we'd get better buys .
Yesterday we had a similar comment from an agent. Wait until spring and you'll get better buys . Maybe he's right , but I don't think so. Given the affordability ( with the current low rates ) I don't see anything stopping it any time soon.
Cliff
