You know what they say about a fool and his money
Replace that with apartment owner
Replace that with apartment owner
Poor first home buyers Sydney
- Thread starter Gockie
- Start date
This is now an interesting time for the housing market.
I recall 1-2 years ago that any suggestion of a housing bubble was met with vehement opposition, now it is being accepted by our public servants and being discussed by the parliamentary members.
It's interesting to see how the media is handling this though. Specifically this:
Surely they're joking? Have they looked at the Sydney skyline recently? Cranes are up everywhere. Construction is happening on almost every corner of every arterial road - and it's not houses, it's a 10/12 unit apartment block that now stands where a house used to be. Heck, search this forum - no one is buying in Sydney anymore, and if they are it's for development purposes only! Supply is going to go through the roof!
Anyone who thinks that Melbourne is going to get hit but Sydney is going to come off lightly is either a fool; has been living under a rock for the past year; or intentionally trying to mislead readers.
My feeling is that it's the latter. By the time you're reading it in the papers it would probably be too late
I recall 1-2 years ago that any suggestion of a housing bubble was met with vehement opposition, now it is being accepted by our public servants and being discussed by the parliamentary members.
It's interesting to see how the media is handling this though. Specifically this:
unloadmymind said:
Surely they're joking? Have they looked at the Sydney skyline recently? Cranes are up everywhere. Construction is happening on almost every corner of every arterial road - and it's not houses, it's a 10/12 unit apartment block that now stands where a house used to be. Heck, search this forum - no one is buying in Sydney anymore, and if they are it's for development purposes only! Supply is going to go through the roof!
Anyone who thinks that Melbourne is going to get hit but Sydney is going to come off lightly is either a fool; has been living under a rock for the past year; or intentionally trying to mislead readers.
My feeling is that it's the latter. By the time you're reading it in the papers it would probably be too late
The article is simply saying Melbourne is higher risk of significant correction than sydney.
Just like the other country towns like Brisbane, Gold Coast & Perth will suffer a bigger correction or period of no growth.
See recent post about rents.
Sydney is the only mainland capital where rents are actually still rising.
The demand is there. The demographics is there. The economy is there. And it's a very undersupplied market. Unemployment is below the national rate, and Sydney contributes 3x to the national economy as the entire Australian mining industry combined. And Sydney's industries are all about human capital and is now the country's manufacturing capital as well.
No wonder even expensive apartments are sold out within hours. http://www.news.domain.com.au/domai...artment-launch-sells-out-20150523-gh822c.html
And FYI, big time investors don't have the time to post on these forums.
Sydney is the only mainland capital where rents are actually still rising.
The demand is there. The demographics is there. The economy is there. And it's a very undersupplied market. Unemployment is below the national rate, and Sydney contributes 3x to the national economy as the entire Australian mining industry combined. And Sydney's industries are all about human capital and is now the country's manufacturing capital as well.
No wonder even expensive apartments are sold out within hours. http://www.news.domain.com.au/domai...artment-launch-sells-out-20150523-gh822c.html
And FYI, big time investors don't have the time to post on these forums.
I don't pick on him; just argue the cases he puts - which are arguments of an armchair expert who has no skin in the game and never has. He had a PPoR for a short time if I remember.
By his own admission, he is cashed up, yet has not bought anything, and doesn't plan to until the entire street is full of green lights, yet comes on here and professes to know a lot about the game and the dynamics - all from a fist full of charts.
I, on the other hand; had at one stage 5 IP's. We bought 5 in 4 years. We have also had 5 PPoR's. Not bragging; just telling you the facts.
It's not even that good an accomplishment. If you must know; I regard our endeavours so far as pretty much a failure. We have gone from 5 down to 1, and are working like dogs and having to sell our house to get a lifestyle again. Pretty f@cking bad result I'd say.
But the point is; we have had a bloody good crack despite our limitations - unlike the Hobos of the world, and I have had a lot of skin in the game for a very long time....good and bad.
We currently only have one now, and the reason we sold off the other 4 has been due to a lot of years since our last purchase in 2005 with very low incomes for various reasons... A few of the investments have not been that flash for cashflows for various reasons, 3 years in the USA on one income, 2 more kids since coming back (more single income), saving money towards the settlement of the block of land on which our current PPoR stands, buying the business which has turned out to be a cash drain instead of a cash cow, one IP vacant for 2 years (still paying the loan) until I could save up to do the repairs required to get it signed off for a tenant again.
We have not been in a position to do anything since the business purchase back in '09.
60% of purchases - if they were all concentrated in one City would have an effect, for sure. But see; just the mention of that number conjures up an image of all these sales made to greedy investors who are in a feeding frenzy with each other to buy. The only times I have ever seen that is in areas where the rent yields were really terrific (above interest rates of the day), and the price of the properties was really low...such as Tassie back in the mid-Naughties, and many of the mining towns before the booms and during; until the yields disappeared - never a major city where housing is expensive and yields are low, and getting lower as the boom progresses.
I have never said that investors don't have any effect on price.
But I always argue back at the Hobos of this world who continue to blame the investors all the time for all of it....folks who are dead quiet when the markets are flat, and folks like him who own nothing, have done nothing, but are suddenly an expert.
I don't deny the fact that investors are out there - they are always out there.
But I will continue to deny that it is them and/or their NG status as the sole cause of the lack of affordability and price rises.
Folks who say that have no idea what they are talking about, and are usually not even in the game.
Yes, it would appear to be a crazy purchase. I would like to know some more numbers and plans for the property though; would any FHB or PPoR buyer have bought it though? It's not a good example to use for any of this FHB/affordability/BG stouche.
Lol.
Sanj, please give it a rest. If I was sensitive about you, I would have already sooked to the mods and reported you, or sent you a childish personal attack message like I have received by others, or put you on ignore.
I find you amusing, and have come to expect a completely contrary stance to whatever I say.
I will however, call you out when I feel you are having a potshot - which is often, but that's fine with me.
That's not sensitive; that's just putting you on notice that I know what you are up to.
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It was purchased as an investment, lived in as a PPOR.
I don't profess to be an expert.
I do have skin in the game. I don't have to own property at a specific point in time to have an opinion on it. Just as the many here who choose to take a dig at Gold don't need to own any to have an opinion. Often putting your money where your mouth is can include not owning an asset.
I don't "blame" investors. Investors paying silly prices for housing (as do many OO's) is what it is. It's currently a frenzy fueled by government policies (not just NG), government is to blame if they don't reign it in as I have stated and you've ignored in the past.
I have never claimed this and never seen anyone else on this forum do so.
You are so emotionally caught up in this topic and your position that you read what you want to and lash out BayView. You're entitled to your view, but you would come across much more rational if you kept the personal attacks out of it.
See recent post about rents.
Sydney is the only mainland capital where rents are actually still rising.
The demand is there. The demographics is there. The economy is there. And it's a very undersupplied market. Unemployment is below the national rate, and Sydney contributes 3x to the national economy as the entire Australian mining industry combined. And Sydney's industries are all about human capital and is now the country's manufacturing capital as well.
No wonder even expensive apartments are sold out within hours. http://www.news.domain.com.au/domai...artment-launch-sells-out-20150523-gh822c.html
Exactly.....and don't forget a population growing at 80,000 pa just in Sydney.
Supply and demand. Very simple equation. I'm sick of people saying that interest rates are driving this boom, if that's the case why is capital growth in some other states going backwards - they have access to exactly the same interest rates.
I believe the roll of the NSW State Government in this Sydney boom has been severely understated. People and big business have confidence in the government, Mike Baird and the infrastructure that they are delivering.
I heard a figure of $5 Billion for the year on the news, the state govt doesn't want to lose that.
When you are building the country's largest infrastructure projects while the rest of the country (read: ALP states and bankrupt WA) is trying to save money, every revenue source counts.
Westconnex and related extensions
2nd airport
2nd harbour rail and road crossing
Sydney, Newcastle and Parramatta light rail
Public schools modernization
Various train line extensions
International Convention Center
Sports stadia modernization
While subsidizing the GST shortfall of other states.
As you know, Labor neglected NSW's infrastructure since the Olympics, and I can't understand how they hung on to power for a decade ever since.
Couldn't agree more.
spoken like a politician, such conviction in delivering such a ludicrous statement
To be fair he seems fairly adept at talking nonsense with conviction
Spot on. It's not the so called "fundamentals" a fuzzy term used to justify the current Sydney bubble.
It's true. We get less than a dollar for every GST revenue we produce.
I'm just telling the truth.
Jealousy makes you Ignore the data.
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A nice war chest with which to deliver new First Home Owner Grants, when the time is right.
Jealous of who? You??
