Sub 500K properties

[alokahuja]

I have been looking at the sub 500 K properties in the Hills area in Sydney Metro.

Looks like they are at a peak now. Houses selling for 440K in the last 2 years are now being advertised for above 500K mark. Some are asking for 550K.

do u see a market correction in the near future?

Also , how can one calculate the value of a house based on contruction and land cost with minimal impact of the market. I want to offer, even if its outrageous, to the vendor a price that what a property is worth.

I know the market drives the prices but i think we are in the midst of a bubble and it may blowup sooner than later.

i dont want to be in a situation where i have seen one of the vendors not bringing the property price down because he paid an absolute fortune for it 4 years ago.

alok

 

[BV]

alok

It's not a bubble, it's prices returning to their previous level.
Remember that we've had price falls due to high interest rates and loan defaults for a couple of years.

The conditions for a fresh price correction are no longer there,
and it's unlikely that we'll see those conditions reappear again for several years.
Additionaly, even if interest rates increased up to 10% as they were before,
low supply plus inflation will contribute in keeping prices stable.

So I wouldn't wait for prices to come down because they won't.
I think we'll see prices slowly creeping up from where they are today keeping up with inflation.
So IMO if you can find something cheap buy it now or you won't be able to buy it in the future.

my 2c

 

[Propertunity]

do u see a market correction in the near future?

Yes, I do see a market correction happening now - prices are going up. So price growth - which has been stagnant for pretty much the last 6 years in Sydney is on its way reverting to trend.

I agree with BV - buy now or pay more later.

Just my 2c.