Sydney: Home buyers line up for three days to purchase property
- Thread starter Humphrey
- Start date
And what about the holding costs and living costs required during the build process.
Don't know how much money they have to commit to the deal at the start and throughout, but it can only hurt if you're already tight.
Why not just buy existing and be done with it?
it depends on how hot the market is and which areas etc. Sydney is a different beast compared to melbourne market and the average cost is like a mil to be anywhere close to the inner city surbub. In retrospect, docklands apts in melb is a area no one would invest into
It also depends if you are developing or holding onto land as it each has its own strategy. There is no point thinking land prices rises rapidly in the dev holding onto it for years only to find at the end you can't sell it for what you think it is worth. Spending a good 2 years planning etc. Even in the good suburbs - my friend did sub div in kew and no bids passed in and still on the mkt.
It also depends if you are developing or holding onto land as it each has its own strategy. There is no point thinking land prices rises rapidly in the dev holding onto it for years only to find at the end you can't sell it for what you think it is worth. Spending a good 2 years planning etc. Even in the good suburbs - my friend did sub div in kew and no bids passed in and still on the mkt.
But maybe if MT DRUITT gets surrounded by nice areas , maybe Mt Druitt will move more upmarket .
Datto , break out a case of long necks
. I'll bring some of my home brew .Cliff
I think they're very similar for the suburbs on the outskirts. My parents (and lots of relatives) live in the outer west of Melbourne and there are people who have spent close to a million on houses there - never mind anywhere closer to the city.
A lot of the buyers seem to be over eager for big, new and shiny and pay through the nose for it. Unfortunately, so is every other buyer looking in that area, so when it comes time to sell, there isn't much interest in the now 5 or however many years old house as prospective buyers can just build their own to their specifications. I now plenty of people living in new estates and not one purchased an existing house - they all built themselves.
Cliff, haven't we already had the upswing?
Anyone who bought in Sydney in the first half of 2013 would have received 15-21% growth in a 9 month period! Hard to see how that is sustainable. I honestly expected a flat line. Sure clearance rates have been high, but it seems the price range has remained quite consistent.
Good for sellers but it's going to end in tears for the buyers.Unsustainable,the future looks bleak with job losses and so on.
Whilst The Ponds is miles away, it is not close to Mt Druitt at all. I think it won't really drop significantly given that North West Rail Link is building now (to open in 2019), and is terminating around there. That would continue to drive demand there and give another uplift in prices.
I remembered when Rouse Hill Town centre first opened, the carpark was empty. Now it is full of people and it is hard to find parking there. There is room allocated to further expand the shopping centre, and I think they will in the long run.
I think there is a bigger trend for people to have "low maintenance" (ie less backyard) homes without paying strata fees. People don't have time to deal with backyard but still want a roomy house. It could be a Sydney thing as people are time poor but want everything new.
If you look at Kellyville, a lot of new houses are sold north of $1M.
The whole Sydney seems to suddenly wake up and buy everything there is available. A lot of old houses in average suburbs went way over what people expected. So they may as well buy a new house instead ....
I remembered when Rouse Hill Town centre first opened, the carpark was empty. Now it is full of people and it is hard to find parking there. There is room allocated to further expand the shopping centre, and I think they will in the long run.
I think there is a bigger trend for people to have "low maintenance" (ie less backyard) homes without paying strata fees. People don't have time to deal with backyard but still want a roomy house. It could be a Sydney thing as people are time poor but want everything new.
If you look at Kellyville, a lot of new houses are sold north of $1M.
The whole Sydney seems to suddenly wake up and buy everything there is available. A lot of old houses in average suburbs went way over what people expected. So they may as well buy a new house instead ....
It's not exactly the first time where people camped out for the ponds, couple of years back they did the same thing except it wasn't for 3 days though. For the money spent, they might be better off buying an existing house over in Stanhope Garden for 700k?
Or am I missing something
Actually, a lot of 4 bedrooms at Stanhope Gardens have been sold north of 800K .....
there are many diff types, in the west - it is more land estates - and there is no way someone would pay top dollar for such an expensive house when he can just buy land and build another one himself. have a friend who paid like 680K for home land package? just to be on a big block in the inner west 25kms. last 3 years i don't think any growth at all
then there is the developers (some just want to get a block and although we only do hear of all the wins then there are also some that spend years on blocks and barely make enough to justify it in the first place (stress, toil) but obviously they gain experience.
however, there are some who do it very well, one guy i know who specializes in quick turnaround in sub-division blocks who does doncaster, doncaster east and blackburn. Does like at any given time 6-8 places and turnarounds 300-400K per year.
Hi Aaron_C,
I'm down in here on a work assignment,does the same apply to doncaster?I see alot of high rises going on.Also they've mentioned on media a further 80,000 in fisherman bends and also the old pub in cbd that was left vacant for 20yrs,had a 1 million refurbishment and has now been bought out.Concept is a highrise glass building on that site.
Thoughts?
Thanks in advance,
Kind regards Shovelhead.
But maybe if MT DRUITT gets surrounded by nice areas , maybe Mt Druitt will move more upmarket .
Datto , break out a case of long necks
Cliff
That's how I make my money (the first paragraph, not the second. Although, now you mention it...)
Yes it does but time will tell. Not a real fan of the area actually.
Yep, there have been cases where big, double storey houses that are 5-10 years old have sold for a bit more than land value
not that much in melb inner west though. if u say glen waverley, kew, balwyn, toorak yeah -you see an article abt james hird selling his IP in toorak for mil more etc after a couple of years. Depends on the area.
I think you're misunderstanding me. I said some people (that build) are often overcapitalising and together with the land, spending 700-800k or more on their house. This is for the outer west.
The comment you're quoting was regarding these people who then try to sell their house several years later and find they can only get ~500k for it as no one wants to buy an existing house in these areas.
The comment you're quoting was regarding these people who then try to sell their house several years later and find they can only get ~500k for it as no one wants to buy an existing house in these areas.
These people are called sheep; one lines up and everyone follows. Like a coffee shop where you see so many people waiting for their coffee. Do they actually enjoy that much or just like standing there like the rest and get noticed like they are part of something.
Speaking about this with my work mates now in the office who all live out west. They gave me an example of a couple who bought here 2 years ago, sold after 6 months and rented in the city. They spent 1.5 hrs each way travelling to work, paid 60 bucks each a week on bus and train fare.
I guess my point is that some of these buyers paying and lining up for such overpriced land out west don't take into consideration the way of life, travel to work time and costs to also build after buying the land. They just like the idea of having land, build and having dream home. I guess there is nothing wrong with chasing the dream on having a brand new house, but please also consider other factors before committing and not just following everyone else.
If the so called bubble pops, the ones out west will get hit first.
Speaking about this with my work mates now in the office who all live out west. They gave me an example of a couple who bought here 2 years ago, sold after 6 months and rented in the city. They spent 1.5 hrs each way travelling to work, paid 60 bucks each a week on bus and train fare.
I guess my point is that some of these buyers paying and lining up for such overpriced land out west don't take into consideration the way of life, travel to work time and costs to also build after buying the land. They just like the idea of having land, build and having dream home. I guess there is nothing wrong with chasing the dream on having a brand new house, but please also consider other factors before committing and not just following everyone else.
If the so called bubble pops, the ones out west will get hit first.
Similar threads
