Moving on to what? May I ask?
I thought about selling more but what to do with the money?
How do you see Sydney's Western Suburbs Growing into next year?
- Thread starter Tenex
- Start date
Moving on to what? May I ask?
I thought about selling more but what to do with the money?
Travel Bug, I was just refering to other replies on this thread about when the market is going to slow down, or when interest rates go out or when capital values go down.
In regard to the "asian" market. If we are talking about overseas money, particularly from mainland china, these people only buy a certain type of asset, usualy off the plan or premium properties in the north shore or CBD. This is because in their eyes it is blue chip and also the off the plan properties are agressivley marketed over there.
I highly doubt your overseas investor from china, malaysia, singapore etc would be looking at your 3b 1bath 1car fibro banger with granny flat potential in 2770 lol.
If you are talking about locals with asian backgrounds, I do believe they have moved their interest to the inner west areas as areas like epping, carlingfu, eastwoo and chatswong are now out of reach.
of course, this is just a personal observation from my own family and friends, I'm just a newb here.
In regard to the "asian" market. If we are talking about overseas money, particularly from mainland china, these people only buy a certain type of asset, usualy off the plan or premium properties in the north shore or CBD. This is because in their eyes it is blue chip and also the off the plan properties are agressivley marketed over there.
I highly doubt your overseas investor from china, malaysia, singapore etc would be looking at your 3b 1bath 1car fibro banger with granny flat potential in 2770 lol.
If you are talking about locals with asian backgrounds, I do believe they have moved their interest to the inner west areas as areas like epping, carlingfu, eastwoo and chatswong are now out of reach.
of course, this is just a personal observation from my own family and friends, I'm just a newb here.
I would truly avoid following the herd and going out and competing with the 50 other people making offers for the sake of picking one up.
For me, the fundamentals arent quite there for a buy and hold
For me, the fundamentals arent quite there for a buy and hold
Australian asian buyers
I have something I would like to share.
A receptionist (Chinese background) from my work just purchased a 2 bedroom (renovate or rebuild) in Epping for $1.5M at last Saturday's (25th October) auction. She plans to knock down and build duplex (one to live and one to rent).
I couldn't help but ask her how she can fund such a project on a salary of 40 - 45k. She said her families overseas will loan her the required fund. She said many of them (Chinese Australians) are buying on their families behalf, because the family member that lived here and can take out a loan (50%) from Australian lenders and the other 50% cash from overseas families.
So the effect of Asian money is more than just Asian/overseas owners, and that's what REAs knows - the percentage of overseas buyers (ownerships). Not where the Asian Australian's funds come from and that I believed it's a greater effect on our suburbs.
I have something I would like to share.
A receptionist (Chinese background) from my work just purchased a 2 bedroom (renovate or rebuild) in Epping for $1.5M at last Saturday's (25th October) auction. She plans to knock down and build duplex (one to live and one to rent).
I couldn't help but ask her how she can fund such a project on a salary of 40 - 45k. She said her families overseas will loan her the required fund. She said many of them (Chinese Australians) are buying on their families behalf, because the family member that lived here and can take out a loan (50%) from Australian lenders and the other 50% cash from overseas families.
So the effect of Asian money is more than just Asian/overseas owners, and that's what REAs knows - the percentage of overseas buyers (ownerships). Not where the Asian Australian's funds come from and that I believed it's a greater effect on our suburbs.
Doesn't seem any different to a FHB getting gifted money from their parents to buy their first home like this scenario. Happens in all cultures not just Asia
In a nation of immigrants, most of us will have some form of family overseas, and indeed a lot of money is made overseas to be used in Australia. Not extraordinary at all and the "greater effect on our suburbs" is actually pretty normal.
I was on the same line of thinking, but that was few years ago.
Take Blacktown for example, in the last 6-12months properties sold, it is evident mostly with asian surname, followed by indian surname.
This was not evident few years ago, and is trending further west to Penrith. It will not long till they see a value of knock down and rebuild in 2770.
Dundas Valley is also rough and some % housing commission, but that doesn't stop it rising closing the gap with their neighboring property.
It's really what you can afford. there are a pool of chinese/indians that can afford the 500K mark but with big families..
Hi Travelbug,
No I am giving up my investing journey now and concentrating on myself and life atm,I have a couple of properties left but they will go to market next year as i have sold all of my others so I may and will buy again but not for a while at least.
You have me confused with someone else. I never mentioned any Asian markets. The reason why I never mentioned it is because (I agree with you) it is not a contributing factor to my investments.
The Sydney market is very much in full peak of cycle. It is a time for portfolio builders to perhaps consider selling an IP or two (if they are in a later stage of their investment journey), not to be acquiring property in this market.
There are other dynamics at play that are influencing values, yes; especially the influx of local and foreign investors. The ones I feel for are home buyers. Specifically; house buyers. First home buyers are usually getting units, not houses. Well, in a couple of years in sydney when all those dozens of cranes in every compass direction come down, and in their places, new unit towers stand complete, first home (unit) buyers, so, singles, Dink's, and the like, will have their pick of well priced units in great locations (that's my personal belief, totally happy to be refuted and challenged on that!).
But not all FHB's are unit seekers. Some genuinely need houses with land. Those with more than one kid, big dogs, or a yearning for more space and a garden etc., those buyers will have a tough time, no matter how many new apartments flood the market.
Sydney is a unique market because of geography. The greater city limits in every direction, meet national parks. This is a physical barrier to making more land available. It just can't keep sprawling forever because it'll eventually hit the 'fences' that are national parkhis makes the scramble for 'land' fierce. It is a finite resource in this city (a la Singapore). Whilst other capitals have their fair share of national parks, they aren't literally ring-fenced with them like Sydney is.
Add to that, the massive chunk of land now designated to Badgery's Creek Airport (god I hope they give the actual airport a better name than 'Badgery's Creek' in the end), which has just swiped a big chunk of greater suburban available land, and land will continue to be the expensive, scarce resource that it is, in Sydney.
Investors should tread carefully, and FHB's.. Well I dont know what advice to possibly give them in the Sydney market other than 'um... Request a transfer from work to say Brisbane or Adelaide and live a happier, less stresaed, better quality, and cheaper life there instead'
There are other dynamics at play that are influencing values, yes; especially the influx of local and foreign investors. The ones I feel for are home buyers. Specifically; house buyers. First home buyers are usually getting units, not houses. Well, in a couple of years in sydney when all those dozens of cranes in every compass direction come down, and in their places, new unit towers stand complete, first home (unit) buyers, so, singles, Dink's, and the like, will have their pick of well priced units in great locations (that's my personal belief, totally happy to be refuted and challenged on that!).
But not all FHB's are unit seekers. Some genuinely need houses with land. Those with more than one kid, big dogs, or a yearning for more space and a garden etc., those buyers will have a tough time, no matter how many new apartments flood the market.
Sydney is a unique market because of geography. The greater city limits in every direction, meet national parks. This is a physical barrier to making more land available. It just can't keep sprawling forever because it'll eventually hit the 'fences' that are national parkhis makes the scramble for 'land' fierce. It is a finite resource in this city (a la Singapore). Whilst other capitals have their fair share of national parks, they aren't literally ring-fenced with them like Sydney is.
Add to that, the massive chunk of land now designated to Badgery's Creek Airport (god I hope they give the actual airport a better name than 'Badgery's Creek' in the end), which has just swiped a big chunk of greater suburban available land, and land will continue to be the expensive, scarce resource that it is, in Sydney.
Investors should tread carefully, and FHB's.. Well I dont know what advice to possibly give them in the Sydney market other than 'um... Request a transfer from work to say Brisbane or Adelaide and live a happier, less stresaed, better quality, and cheaper life there instead'
I think for 500K mark, most people have a budget for this, regardless of whether they are Chinese/Indians. A lot of Caucasians can afford this. Unless you are thinking of gentrification of Blacktown.
I am looking at Dundas Valley/Telopea with all the new townhouses being built right now. That area will definitely be transformed sooner or later. The only thing go against it is the complete lack of decent transport and also not as good schools. That's why Chinese sticks with Eastwood/Epping and Carlingford.
With the Sydney prices going up so much, sooner or later, every Sydney suburb will get gentrified.
It would be good if there are jobs in Brisbane and Adelaide. Unfortunately it is not the case, especially in Adelaide. It is a shame as it is a nice and affordable city to live in.
I noticed a number of Asians have moved at Hills area to live in, pretty much all along the NWRL line, even to The Ponds as they love their new houses.
As a PPOR'er and a investor in Western Sydney I'd recommend staying out of the market at the current time. As previous people have stated its just too hot and not with just investors but with first home buyers. Going to an auction in the western Sydney area is a waste of time at the moment I know a real estate agent personally and he said he had 3 offers above 40k on the asking price of a property already overpriced at the first inspection. As soon as interest rates start heading up that's when you should strike. I predict a chaotic period in a few years from now. Just my two cents, Either way good luck with your endeavours 
