Stay away from Western Sydney?

Ahmad Azimi said:
The big issue here is that the people living in these areas, most of them are lower to middle income earners. As interest rates rise; they just cant't afford to keep up with the higher repayments. That's why repossesion rate is very high in these areas.
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Ahmad,
The repossesions were largely due to dodgy lending with Lo or No doc loans given to people who couldn't get a normal loan.
The majority of those loans would have defaulted by now.
Cheers
 
My theory is that higher food and petrol costs hit lower income earners more. While it's easier for higher income earners to divert, say, eating out money or bar money to make up for higher prices at Woolies, it's harder for people already on the edge to cope.

If it's your PPOR, you'd think people would do everything to keep the property. So I think repossessions will come in dribs and drabs. It isn't over, especially as there is the possibility for more rate rises in the near future.
Alex
 
alexlee said:
My theory is that higher food and petrol costs hit lower income earners more. While it's easier for higher income earners to divert, say, eating out money or bar money to make up for higher prices at Woolies, it's harder for people already on the edge to cope.

If it's your PPOR, you'd think people would do everything to keep the property. So I think repossessions will come in dribs and drabs. It isn't over, especially as there is the possibility for more rate rises in the near future.
Alex
Click to expand...

I agree with Alex...
Its a case of, yes the values seem good when compared to OTHER areas .. But the fact remains the IR rises will continue to sub-due this area.. The IR rates (todays and August) havent even hit yet.. it takes months for them to filter thru and start affecting defaults etc..

I totally agree, its a matter of when not IF this area will rise.. just that now is prob not the best time.. there will be better times to purchase in future..
 
I've decided to go South West sydney once i can get finance.. looks like i have to wait a few more months now grrr..

Anyway, found some great houses out that way and yes they are selling FAST. I dont care what anyone says about the area, the decent houses are selling quickly and half the ones we wanted to look at had been recently sold.

I noticed after some time that there's distinct definition in the way a home is priced.
I came to realise what to expect from a $269k home, a $279k home and a $289k home. And i used to think that those numbers were just chosen out of thin air ;)
 
I live in Western Sydney - in Glenwood.....I can vouch for the quality of life here - we know all our neighbours well enough. Have street bbqs every friday evening, karaokes, cards night and what not! Kids just love the atmosphere, growing up where each one other looks out for the other. Its a great community feeling. We built our neighbour's pool - all of us over the winter weekends and now we splash in on the ocassional Sunday afternoons over a beer!

I will never trade up to move to the Eastern suburbs, pardon me but its very snobby. Neighbours are known to each other by the cars they drive in but not the people in those cars!

OK for investments, if you are looking for growth in Western suburbs, it need not be along the train lines. Its a common misconception that everyone travels to the CBD. Nope! There is enough and more jobs around West itself. Parramatta, Norwest, Rouse Hill are taking the cake. Commbank has made a strategic decision to move 3000 jobs to Norwest. Woolworths National hq is also around. Many of the govt depts are shifting to Parramatta as the Sydney plans to decongestionise the CBD by 2011. One of Australia's largest hospitals is coming up on the Norwest business centre. Penrith is being groomed to be the 4th CBD of Sydney (after Syd, North Shore & Parramatta). In the west, Castle Hills & Bella Vista are the higher end of the market with houses of 1-3 mio $.

By the way Sydney CBD is only a 40 minute bus ride along the M7. Every 1/2 an hour you have a bus (mornings and evenings) and the newly operational T-Ways (elavated bus specific roads) are a bonus with all Western suburbs being connected to Parramatta and ride time around 15-20 mts.
 
If you select 'Western Sydney' in domain after clicking on the nsw map, it does bring up the hills district as well, including Castle Hill, Bella Vista, Kellyville, Glenwood and upto the Seven Hills. But however it does not include Pennant Hills, Thornleigh and other Hills district suburbs.
 
Mr. Swan is playing the blame game now:

"They suggest we need to prepare for a period of elevated inflation - that's the legacy that Peter Costello has left the Australian people,'' Mr Swan said, in an exclusive interview."
 
tiger said:
3br, brick, garage, 550sqm+ in decent condition
Click to expand...

Tiger,

There is plenty of stock but I guess it depends on where you look and how much you are willing to pay.
I've decided to wait for a while because of the subprime problems in the US.
I also want to see what will happen with world stockmarkets.
I am suspecting that money will now flow out of the stockmarket and back into property.

Cheers
 
BV said:
Tiger,

There is plenty of stock but I guess it depends on where you look and how much you are willing to pay.
I've decided to wait for a while because of the subprime problems in the US.
I also want to see what will happen with world stockmarkets.
I am suspecting that money will now flow out of the stockmarket and back into property.

Cheers
Click to expand...

Subprime aside, aren't you going against your suspisions by not buying now? When do you think people will be pulling out of stockmarkets?
 
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stumunro said:
Subprime aside, aren't you going against your suspisions by not buying now?
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No, prices won't double overnight so I will have time to buy.
stumunro said:
When do you think people will be pulling out of stockmarkets?
Click to expand...
I don't have a crystal ball but the way things are going
some people will sell their stocks so that they don't lose all of their gains
and others will be forced to sell through margin calls.

You can see it coming, in fact you could have seen a stockmarket crash
coming 6 months ago. The only thing people couldn't tell then is how big the fall would be.
cheers
 
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BV said:
You can see it coming, in fact you could have seen a stockmarket crash
coming 6 months ago. The only thing people couldn't tell then is how big the fall will be.
Click to expand...

Or when it would hit. I read an article saying a prominent economist had been predicting a property crash as early as 2002 or something. That doesn't help much.
Alex
 
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