Sydney and Central Coast - we have lift off

Hello there,

As per a previous post I managed to finally buy back in Sydney/Central Coast after a 7 year break.

Boy have things changed.....the last 2 months have really caused the market to lift. Houses in Sydney and Central Coast are selling like hot cakes again.

Have been to a couple of auctions....and the competition is stiff! The agent tells me he has given out 4 contracts....and 10 people register.:(

Would love to hear other people's views.

Propertunity....since you are out and about as a buyers agent...are you seeing same thing.

I was gobsmacked at the competition.....the FHB have not gone away...yet!
 
As per a previous post I managed to finally buy back in Sydney/Central Coast after a 7 year break.

Boy have things changed.....the last 2 months have really caused the market to lift. Houses in Sydney and Central Coast are selling like hot cakes again.

Have been to a couple of auctions....and the competition is stiff! The agent tells me he has given out 4 contracts....and 10 people register.:(

Propertunity....since you are out and about as a buyers agent...are you seeing same thing.

Hi sash,

I have been expecting this. Central Coast usually follows 6 months behind Sydney's growth spurt....and Newcastle too FWIW.

We have purchased a couple on the Coast recently that were "off market" (i.e. not listed), it is better with no competition. In Newcastle we are just astounded at the number of people lining up to pay $600K for a townhouse close to the water / CBD.

Anything 1/2 decent under $350K just goes like hot-cakes as you say. FHB still there but many, many more upgraders and investors from what I see.

The RBA won't be pleased ;) But the demand is huge and supply still tight so what else can happen but prices rise?
 
Yeah....I know what you mean....

Just nailed one today in Woy Woy for 263.5k - 3brm fibro in good nick.

Quick paint job and carpet will return 320pw....and potential to revalue at 310k plus plus in 6 months.
 
Sydney Market

Hiya

Just noticed that where i live (Pennant Hills), houses on the market seem to go really quickly; recently 2 houses that were selling had flyers in my mailbox and within 1 week (1 within 2 days); they were gone!

Mmmmm, wondering what all this mean...does anyone have the same experience where you are?
 
Sydney I believe so, I'm not convinced many parts of the central coast have taken off. Particularly gosford. Quite a number of mortgagee sales and a couple of units in west gosford were passed in.
 
Sydney I believe so, I'm not convinced many parts of the central coast have taken off. Particularly gosford. Quite a number of mortgagee sales and a couple of units in west gosford were passed in.

You're right 2bw, it is patchy. There are still some MIPs sales happening. Units in west gosford are about as exciting as units in the west of the western suburbs.

But 1st places to rise noticeably are the Terrigals / Copacabanas etc and then it flows out from there.
 
You're right 2bw, it is patchy. There are still some MIPs sales happening. Units in west gosford are about as exciting as units in the west of the western suburbs.

But 1st places to rise noticeably are the Terrigals / Copacabanas etc and then it flows out from there.

What were the typical yields during 2003-2004? There doesn't seem to be much rental pressure and at current prices you don't see much over 5.5%-5.8% around gosford. As you drive to the ocean it gets worse. Any spike in prices is going to see the gross yield go pretty low.
 
What were the typical yields during 2003-2004?
Near peak of the boom - thinking back I only had houses with flats at that time and was getting over 7% (still am) but normal single resi was 4-4.5% from memory. And sometimes saw adverts for 2 weeks rent free.

There doesn't seem to be much rental pressure and at current prices you don't see much over 5.5%-5.8% around gosford.
Rental vacany is less than 1% in many areas. Yields are normally 5% or a bit more until prices rises make them fall back.

As you drive to the ocean it gets worse.
I think you'll find that has always been the case. $350K house in the suburbs = $350pw rent. $700K house at the beach = $500pw rent. Its the price you pay (as an investor) for potentially higher CG.

Any spike in prices is going to see the gross yield go pretty low.
Yes. :rolleyes: This is already happening in SYD. This time last year rental yields in some parts of SYD were 6.5%. Now fallen to 5% and some I've seen lately are 4%. Rents are usually locked in for 6-12 months on leases as you'd know. When prices rise as they are now (and have been), it takes a while for rents to "catch up". But this is all part of the normal cycle, is it not?;)
 
Secured a dual occ at woy owy other day for $245k then someone came over me and paid full price...

there were 5 buyers on first day. rent was around $400pw.
 
I've been watching the inner west market for the past 2 years. It was probably the slowest around end of '08... (when we bought our PPOR :D)

Started picking up massively in 2009 when we were IP hunting!

2010 has been a different story altogether! Properties are being snapped up by the first OFI, 10+ bidders at auctions etc. Came to the realisation that we wouldn't get anywhere in such a hot market so we engaged a BA to look for a property for us, now he has secured one on the Central coast for us so at least we have a foothold in the rising market.

Today's SMH paints a pretty optimistic picture
http://www.smh.com.au/nsw/property-boom-a-strong-tip-to-put-your-house-on-20100220-omph.html

Would be pretty interested to know where the next couple of years is heading! Anyone have a crystal ball?
 
i have been looking around the parramatta area and most good properties are selling within a week of listing. It is very frustrating...as you have to try and get first viewing of the property otherwise you will have little chance of securing it.

reminds me of how things were in 2001.....have to be very quick and agressive in getting a purchase.
 
Sydney area

Hi Eyespy

I agree the Parramatta surrounds are in great demand at the moment. Gosh! i really did not expect areas around P. to be so expensive. Anything decent house for 400K gets snap up really quick (must be the "elusive" migrants coming to Sydney)

I just secured a 3bedder fibro with a granny flat for 385K; cooling off next Friday...and the agent is snapping at my ankles!
 
I know that area like the back of my hand (and have had property there for a long time) and its a very low income area where they don't pay much rent. Or more accurately cant. You'll be very lucky to get 6.32% gross yield there.

The Woy Woy peninsula has loooong periods of stagnate growth as demand is usually very low there.

Which areas specifically are you seeing houses selling 'like hot cakes' again?
Which street is your purchase in?

The price you bought that fibro for is a low, probably bottom of the market for a 3br that needs work. But there are plenty of them around the peninsula like that. I cant see any rise in prices there and your purchase price confirms that.

Yeah....I know what you mean....

Just nailed one today in Woy Woy for 263.5k - 3brm fibro in good nick.

Quick paint job and carpet will return 320pw....and potential to revalue at 310k plus plus in 6 months.
 
We just nailed one in Sydney as well Sash, the other week.

Bit of a box, no kitchen and laundry, not kid friendly at all.

Pretty reasonable for Pitt St smack bang in the middle of the CBD.
 
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Hello there,

As per a previous post I managed to finally buy back in Sydney/Central Coast after a 7 year break.

Boy have things changed.....the last 2 months have really caused the market to lift. Houses in Sydney and Central Coast are selling like hot cakes again.

Have been to a couple of auctions....and the competition is stiff! The agent tells me he has given out 4 contracts....and 10 people register.:(

Would love to hear other people's views.

Propertunity....since you are out and about as a buyers agent...are you seeing same thing.

I was gobsmacked at the competition.....the FHB have not gone away...yet!

Just purchased in Syd, am focusing on Newcastle, lower end I believe this market is quite hot, lots of competition. Time to buy, signs are all good, nothing better than buying property when the market is rising, easy money.

Cheers, MTR
 
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There's plenty cubicles selling for under 200k on Pitt St and all over Sydney.
10% was everywhere 6 mths ago, and I don't it's any better now.
You just have to sift throu the gunk to find a long term viable lease and bargain hard.

And of course welcome to Sydney!
 
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I think I know the one...was that the one at the corner of Paton and McMasters Road marketed by Wilson's RE

Was just talking to him about it the other day...if this was the one. It was listed for 260k.....and could be rented as a cabin and house. I think the rent was 150pw and 240pw.

Secured a dual occ at woy owy other day for $245k then someone came over me and paid full price...

there were 5 buyers on first day. rent was around $400pw.


Evand....you should have told the buyers there. I wanted to pay 245-250k...but had to beat the competition off. The area has really changed....the riff raff seem to have moved to Wyong. Lots of young families from Sydney moving in. Want to take a bet in 1-2 years there will be nothing under 300k??
I know that area like the back of my hand (and have had property there for a long time) and its a very low income area where they don't pay much rent. Or more accurately cant. You'll be very lucky to get 6.32% gross yield there.

The Woy Woy peninsula has loooong periods of stagnate growth as demand is usually very low there.

Which areas specifically are you seeing houses selling 'like hot cakes' again?
Which street is your purchase in?

The price you bought that fibro for is a low, probably bottom of the market for a 3br that needs work. But there are plenty of them around the peninsula like that. I cant see any rise in prices there and your purchase price confirms that.
 
Mate, i was born there and spent the last 9 years living between there and Sydney's inner west and still own property there. I know a couple of agents there and i keep my ear to the ground property and socially wise.

I said i know the area like the back of my hand.

The place is absolutely full of rif raff.

Evand....you should have told the buyers there. I wanted to pay 245-250k...but had to beat the competition off. The area has really changed....the riff raff seem to have moved to Wyong. Lots of young families from Sydney moving in. Want to take a bet in 1-2 years there will be nothing under 300k??
 
Yeah...yeah...I know....you said that about Granville, Merrylands, Guildford....they have gone up betweem 80-120k since early last year.:p

I will go with my gut......you can always tell me I told you so if I am wrong!;)

Mate, i was born there and spent the last 9 years living between there and Sydney's inner west and still own property there. I know a couple of agents there and i keep my ear to the ground property and socially wise.

I said i know the area like the back of my hand.

The place is absolutely full of rif raff.
 
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