Six figure deposit and want to get into Sydney property market

$150K deposit and want to purchase $700K Sydney IP

Hey guys,

Love this forum, so much knowledge... so hoping to get some insight into following question:

I have a six figure deposit saved up to invest in property. Keen to get into the Sydney market, however it is kinda hectic out there! So should I....

a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?

Hoping to get some guidance and advice from seasoned investors on this fine
forum

Cheers

Rob
 
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Hey guys,

Love this forum, so much knowledge... so hoping to get some insight into following question:

I have a six figure deposit saved up to invest in property. Keen to get into the Sydney market, however it is kinda hectic out there! So should I....

a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?

Hoping to get some guidance and advice from seasoned investors on this fine
forum

Cheers

Rob
Depends what number your 6 figures start and end with...
 
Hey guys,

Love this forum, so much knowledge... so hoping to get some insight into following question:

I have a six figure deposit saved up to invest in property. Keen to get into the Sydney market, however it is kinda hectic out there! So should I....

a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?

Hoping to get some guidance and advice from seasoned investors on this fine
forum

Cheers

Rob
Do not suggest nor think option b will happen. Your deposit is high enough to get in the market. Obviously, you will get less realestate for your buck in Sydney as compared to other capital cities.
If you must go for sydney in this market, then I'd suggest to go in and not wait for a future correction as noone knows when and how severe it may or may not be.
However, make sure you have a clear plan and goals before you buy.. That is more important than timing the market.
 
A bird in the hand is worth two in the bush. Don't wait for a correction that may never happen. Buy smart and buy well .. good luck!

vtt
:D
 
Thanks guys, what about using a buyers agent or investing in camptial cities outside of Sydney?

Any guidance here?
 
a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?
Rob
Rob

If its only an investment I'd say b)
However, the problem with b) is what are you going to do with your cash while you wait?

If I were to go for a) I'd buy a cheaper property yielding around 4-5%,
Perhaps a unit or a t/ house on the SW suburbs (where the growth hasn't been excessive) and put all my cash in there so at least the return on my deposit is 5%.

I hope this helps.
 
a) just bite the bullet and buy first investment property in Sydney market?

DO IT!! Buy when you can afford it ( No such thing as good timing)...EVERYONE goes through this stage... you simply bite the bullet.

Today you pay $30,000 over... tomorrow your $30,000 ahead.


b) Keep saving until 2018 and hope for massive market correct in Sydney?
"Market correct" what does this even mean??? You expect prices to go BELOW today's value?? i dont think so...

Yes 2017-2018 market will slow down...but the price you pay now will be higher in 2018..so why wait till 2018 to buy the same stock at a higher price?
 
agree with Mick c..

Also I would probably use your deposit on multiple properties rather one HUGE deposit for only one property...
 
"Market correct" what does this even mean??? You expect prices to go BELOW today's value?? i dont think so...
Mick

How do you know that prices won't fall?

I can think of a few potential causes.
At present APRA wants banks to limit investor loans and to not discount them.
At the same time the government could come up and ask us to defer -ve gearing losses for when we sell the IP.
Underemployment: Unemployment could be higher and good paying jobs are being replaced with more part time jobs.
Interest rates could be higher than today.

Also, if you are counting on infrastructure boosting prices, IMO the NW Rail link and the new Airport have already priced in.
 
agree with Mick c..

Also I would probably use your deposit on multiple properties rather one HUGE deposit for only one property...
I'd agree if it was part of your investment strategy.
and if you were at the end of a bust cycle and not at the end of a boom cycle.

Holding multiple properties at the end of a boom cycle is only going to give you pain and suffering for no short term benefit.

IMHO
 
I'd agree if it was part of your investment strategy.
and if you were at the end of a bust cycle and not at the end of a boom cycle.

Holding multiple properties at the end of a boom cycle is only going to give you pain and suffering for no short term benefit.

IMHO
Whats a boom/bust cycle?
 
Whats a boom/bust cycle?
DEFINITION of 'Boom And Bust Cycle'

A process of economic expansion and contraction that occurs repeatedly. The boom and bust cycle is a key characteristic of today’s capitalist economies. During the boom the economy grows, jobs are plentiful and the market brings high returns to investors. In the subsequent bust the economy shrinks, people lose their jobs and investors lose money. Boom-bust cycles last for varying lengths of time; they also vary in severity.


We've just had a big property boom.
I hope this helps
 
Hey guys,

.... So should I....

a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?

Rob
Hey Rob

Working in the trenches of Sydney (and Adelaide) markets, I don't see any clear signs of the "oil tanker" slowing down or starting to turn. Whilst I agree with other contributors that this cannot go on for ever, it may be a while for the price growth to grind to a stand still here...

Therefore, I would agree with Mick C, assuming your strategy is buy-and-hold. However, if you fancy for example development, then other cities may provide better opportunities. For example in Adelaide you could buy a property suitable for a future 1 into 3 development in good suburbs, near the coast and 8-10km from CBD.
 
Hey guys,

Love this forum, so much knowledge... so hoping to get some insight into following question:

I have a six figure deposit saved up to invest in property. Keen to get into the Sydney market, however it is kinda hectic out there! So should I....

a) just bite the bullet and buy first investment property in Sydney market?
b) Keep saving until 2018 and hope for massive market correct in Sydney?

Hoping to get some guidance and advice from seasoned investors on this fine
forum

Cheers

Rob
Welcome to the greatest Investor forum Rob,

as pere this news: http://news.domain.com.au/domain/re...ers-will-be-disappointed-20150623-ghv7x2.html

You'll see that buying a house and land package in Northwest Sydney will surely a winner:

The government will spend $77.6 million to support infrastructure for new homes in The Hills and Blacktown local government areas.
From the website above, somewhere in the right hand frame, you'll see that Schofields is the blue chip suburbs that was once a neglected area.

Now it is the top number 1 Fastest Growing Suburbs in Sydney.

Code:
RANK SUBURB	MEDIAN PRICE * AND TREND
1	Schofields	$780,000	+43%
2	Sylvania Waters	$1,600,000	+37%
3	North Ryde	$1,260,000	+34%
4	Ryde	$1,250,000	+33%
5	Burwood	$1,691,000	+30%
I predict the next area will be Riverstone , Ropes Crossings and Marsden Park in the Northwest, this is simply because of the ripple effect of the neighbouring suburbs like The Ponds, Kellyville, Baulkham Hills, etc... they are all multi million $ suburbs.

In the Southwest, there is also area which can grow to be like that such as:
Glenfields, Edmondson Park, Airds, Oran Park and you can also buy existing property (house) to be redevelopped in Ingleburn and Campbelltown.

If I were you, I'll be buying one in each region (one in Northwest and one in Southwest) to diversify the risk and profits.

I've been long enough in this forum and that's what I can see from the fields over the past 2 months going around to each area display house.

Happy Hunting.
 
as pere this news: http://news.domain.com.au/domain/re...ers-will-be-disappointed-20150623-ghv7x2.html
The government will spend $77.6 million to support infrastructure for new homes in The Hills and Blacktown local government areas.
From the website above, somewhere in the right hand frame, you'll see that Schofields is the blue chip suburbs that was once a neglected area.
The infrastructure spending has already been priced in (property prices increased for this reason).
Schofields is in a flood zone, when we have heavy rains you will be looking to find your underwater house. There are some high streets but I think they've already been sold out.


You'll see that buying a house and land package in Northwest Sydney will surely a winner:
IMO not in the short term, people will be stuck with a high mortgage in a Price declining or Price stagnating environment.
 
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Welcome to the greatest Investor forum Rob,

as pere this news: http://news.domain.com.au/domain/re...ers-will-be-disappointed-20150623-ghv7x2.html

You'll see that buying a house and land package in Northwest Sydney will surely a winner:



From the website above, somewhere in the right hand frame, you'll see that Schofields is the blue chip suburbs that was once a neglected area.

Now it is the top number 1 Fastest Growing Suburbs in Sydney.

Code:
RANK SUBURB	MEDIAN PRICE * AND TREND
1	Schofields	$780,000	+43%
2	Sylvania Waters	$1,600,000	+37%
3	North Ryde	$1,260,000	+34%
4	Ryde	$1,250,000	+33%
5	Burwood	$1,691,000	+30%
I predict the next area will be Riverstone , Ropes Crossings and Marsden Park in the Northwest, this is simply because of the ripple effect of the neighbouring suburbs like The Ponds, Kellyville, Baulkham Hills, etc... they are all multi million $ suburbs.

In the Southwest, there is also area which can grow to be like that such as:
Glenfields, Edmondson Park, Airds, Oran Park and you can also buy existing property (house) to be redevelopped in Ingleburn and Campbelltown.

If I were you, I'll be buying one in each region (one in Northwest and one in Southwest) to diversify the risk and profits.

I've been long enough in this forum and that's what I can see from the fields over the past 2 months going around to each area display house.

Happy Hunting.
JH

you really have no idea what you are doing .

so some where has jumped 43 % and now you want someone to buy there .

Seriously

WTF !!

Cliff
 
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