Sydney Investors, what are you doing.

[nww]

After reading much doom and gloom on here and SMH etc.
I would be interested to know how active our pro's are looking to buy now.

I'm at the point where I'm not sure whether to pick up another property just yet.
Have an area in Sydney I watch constantly and seeing large price drops,
Properties are being listed for months instead of weeks.

These news stories are making me think more price drops to come.

Interested to know if you are being influenced by the stories to hold off for now.

Thanks team.

 

[Rixter]

I'm purchasing - just settled on a Sydney property 4 days ago.

Doom & gloom in the media is the ideal time to buy.

If you're waiting for boom times in the media, it's too late - you've missed the boat!

 

[JustRent]

With a very low vacancy rate in Sydney at the moment and a drop off in buyer demand, it does look like a great time to be buying.

 

[MTR]

I am also looking at this market closely, waiting for the next rate increase and then jump in.

Cheers, MTR

 

[MTR]

I'm purchasing - just settled on a Sydney property 4 days ago.

Doom & gloom in the media is the ideal time to buy.

If you're waiting for boom times in the media, it's too late - you've missed the boat!

Hi Rixter
can you share where you are purchasing?
Cheers, MTR

 

[Nathan]

I am still actively buying and always continue to buy good value. If the numbers work, why not buy?

I plan to buy 9 more in sydney next year + Regionals + Build a PPOR.

Then again I was buying in Sydney in 2007/2008 when rates were going up at 8%....

 

[Rixter]

Hi Rixter
can you share where you are purchasing?
Cheers, MTR

Hi MTR....

What I bought in Sydney, where I bought it, how much I paid & the rental return I am receiving I have posted here..

 

[gronk007]

If all the supposed "doom and gloom" translates into softer prices, then doesn't that make this period a good buying opportunity????

 

[evand]

Missed the boat for what?

I'm purchasing - just settled on a Sydney property 4 days ago.

Doom & gloom in the media is the ideal time to buy.

If you're waiting for boom times in the media, it's too late - you've missed the boat!

 

[evand]

Not if prices keep falling. Particularly if you're neg gearing.

If all the supposed "doom and gloom" translates into softer prices, then doesn't that make this period a good buying opportunity????

 

[Rixter]

Missed the boat for what?

Using your imagination.

 

[chilliblue]

Adding to the share portfolio and looking at buying an additional IP in 2011

 

[BV]

After reading much doom and gloom on here and SMH etc

The D&G here is mostly by new members who feel they've missed the boat.

Such posts and rookie media reports shoudn't influence our investment strategy. The right time to buy would depend on individual circumstance and it depends on what you want to buy and the location.

However, generally speaking, the right time to buy is now while interest rates are still low because as interest rates go up the amount we can borrow reduces.

Currently I'm in the process of restructuring my portfolio and reducing my PPOR loan which will help my serviceability. I'll be buying again in January or at the latest in February because after that time interest rates are likely to be higher.

 

[bluestorm]

However, generally speaking, the right time to buy is now while interest rates are still low because as interest rates go up the amount we can borrow reduces.

Very smart BV. So all the FHO who went out and bought at record low interest rates are in fact financial geniuses then. I'll be happy to pick up the scraps from these financial geniuses when things turn in 2011/2012.

When interest rates go up, the amount you can afford to pay back also reduces.

If you don't overextend, buying at higher interest rates is good, because the markets are generally flat, or falling at the same time. If you can't afford 10%+ rates comfortable, you have overextended.

 

[Propertunity]

Very smart BV.

I'd wager that BV has puchased more IPs than you've had hot dinners

So all the FHO who went out and bought at record low interest rates are in fact financial geniuses then.

They did show some financial smarts - yes. They collected $14K cash as a FHOG + FHOB, they did not pay stamp duty, if they got in early they purchased well under market as it is now and they had some CG if they purchased in or around SYD or MEL.

I'll be happy to pick up the scraps from these financial geniuses when things turn in 2011/2012.

I think you're going to be hungry. There won't be any scraps as the market continues to grow in2011/2012. Nothing has changed.

When interest rates go up, the amount you can afford to pay back also reduces.

Well der! Unless as a LL you put up rents.

.....buying at higher interest rates is good, because the markets are generally flat, or falling at the same time.

What the?

See attached pdf file. In the last 20 years when IRs went up 5 times in 2000, capital growth also went up. When IRs went up 5 times in 2007/8, capital growth also went up. When IRs went up 5 times in 2009/10, capital growth also went up.

Rising interest rates are an indicator of a growing economy where more people buy property and push the prices up. Again looking at the last 20 years for SYD (LGA) I cannot see one example of rising interest rates leading to "generally flat or falling" property prices.

 

[jacbmw]

good facts and well said Prop...

 

[bluestorm]

See attached pdf file. In the last 20 years when IRs went up 5 times in 2000, capital growth also went up. When IRs went up 5 times in 2007/8, capital growth also went up. When IRs went up 5 times in 2009/10, capital growth also went up.

Rising interest rates are an indicator of a growing economy where more people buy property and push the prices up. Again looking at the last 20 years for SYD (LGA) I cannot see one example of rising interest rates leading to "generally flat or falling" property prices.

That's just really lazy research Propertunity.
It's just a sign of your property spruiking that you pick one graph (Sydney LGA) to represent your argument. You could just easily pick 10's of other graphs that happen to correlate the other way across Australia, when prices have fallen with interest rate rises. IR are not Sydney CBD specific.

What you also fail to take into account in the impact of other factors (such as access to easy credit, government stimulus, etc), for a portion of the rises.

Lazy research Propertunity. Keep spruiking. This argument is even dumber than the people who look at the Sydney median price and say that's the Sydney market as a whole.

If all BA's are like this, then I'm happy I don't use them ;-).

 

[evand]

How cryptic. And profound

Using your imagination.

 

[Rixter]

How cryptic. And profound

Yeah sorts the players from the spectators

 

[chilliblue]

That's just really lazy research Propertunity.
It's just a sign of your property spruiking that you pick one graph (Sydney LGA) to represent your argument. You could just easily pick 10's of other graphs that happen to correlate the other way across Australia, when prices have fallen with interest rate rises. IR are not Sydney CBD specific.

What you also fail to take into account in the impact of other factors (such as access to easy credit, government stimulus, etc), for a portion of the rises.

Lazy research Propertunity. Keep spruiking. This argument is even dumber than the people who look at the Sydney median price and say that's the Sydney market as a whole.

If all BA's are like this, then I'm happy I don't use them ;-).

Why all the negativity.

Propertunity is Sydney based and works within the Sydney market and as such is giving his comment based on his knowledge and experience.

If you are going to want a detailed commentary for all states and territories including regionals, then go ahead and place forward your detailed information.