Sydney Market at top - calling a severe correction in 2018-2019
- Thread starter sash
- Start date
Better than a kick in the d1ck.
That's an excellent return for 3 years by any measure even if they come off by 10% down the track. I don't mean this the wrong way but its not the stock market.
That's 12-18% per year increase, and is inalign with Sydney increase for last 3 years. Some suburbs did better, some did worst. This increase can be demonstrated in terms of median increase for a suburb
As for Melbourne, a $550k to a $1m+ in 3 years. That is an exceptional result. Are there one of few suburbs you could share with us that achieved this great result?
As in that's the reality of it, not X2 or X3.
Hi Delta, I haven't seen many properties in the inner north with this kind of growth. You have any examples pal?
There's many many examples just a question of whether investors stick their heads in the sand or not.
A fair few outer suburbs in Melb say Vermomt South Burwood East etc have had growth like that
If we really wanted to, a vague example is I bought something 800k last year, last month something identical but in worser spot sold 50% more than mine. 3 years ago it wouldve been 650.
Correct. Oversupply of building , not enough renters.
It will happen again - like Sash says wait until 2018.
David
So in 2018, does the median house price will ease down in those over supplied suburbs with OTP apartments ?
I know Macrobusiness has a mixed reputation on here but there was an interesting piece over the weekend about the housing bubble.
One of the author's central arguments was that Australia has become a nation of lazy landlords, spurred on by the housing boom of the last 15 years. Why invest money in manufacturing, education, innovation when you can plonk down $500k on a property, do nothing and get a $250k return in 3 years. This argument really resonates with me.
DB - you implying that a $250k capital gain in 3 years (15% p.a.) is inadequate (!!) is strange and possibly highlights the mentality of many Australians.
If we (as a nation) think that a $250k/15% p.a. return over 3 years for essentially doing nothing (as a landlord) is inadequate, then how is this country supposed to ever build an economy that is diversified away from rampant property speculation or insatiable foreign demand for natural resources as its 2 main drivers?
Haha of course not. I am at heart an economist before a banker and speculator.
But unfortunately one doesn't make enough money as a economist, so I supplement that with speculating and working in banking.
I completely agree. Any country that forgets the basic rule of creating something that is useful for the world (clothes, cars, oil, whatever) and relies on asset appreciation to make money, will soon come crashing down like you wouldn't believe.
A bit of economics helps keep you sane and helps you avoid these bubbles. That doesn't mean I don't speculate though. When I put my speculator glasses on, yes, $250k return is considered mediocre.
But unfortunately one doesn't make enough money as a economist, so I supplement that with speculating and working in banking.
I completely agree. Any country that forgets the basic rule of creating something that is useful for the world (clothes, cars, oil, whatever) and relies on asset appreciation to make money, will soon come crashing down like you wouldn't believe.
A bit of economics helps keep you sane and helps you avoid these bubbles. That doesn't mean I don't speculate though. When I put my speculator glasses on, yes, $250k return is considered mediocre.
What's happens to sales like these if
there is a correction!
www.realestate.com.au/119976013
www.realestate.com.au/119983869
there is a correction!
www.realestate.com.au/119976013
www.realestate.com.au/119983869
They will take ar$e whooping...most will be bought by smaller developers who have NFI...they usually end up in bankruptcy or have to sell their PPOR! 
They will take ar$e whooping...most will be bought by smaller developers who have NFI...they usually end up in bankruptcy or have to sell their PPOR!
Sash, you're probably right but I have to say I find that emoticon at the end of your post distasteful.
I personally take no pleasure whatsoever in watching others make financial mistakes of this magnitude...
Distasteful maybe, but it goes back to what I always say.
In early 2012 when the market was soft, no one wanted to hear about properties or auctions. In 2015, they're all piling in.
What more can I say, except that people seem to like paying triple the prices?
In early 2012 when the market was soft, no one wanted to hear about properties or auctions. In 2015, they're all piling in.
What more can I say, except that people seem to like paying triple the prices?
Well if you're in this deep you'd surely do your DD?
Edit to add: Even the REA have listed this
- Potential buyers should rely on their own searches
Clearly they haven't. If that was the case no-one would ever lose money. As sash and Delta are saying, these appear to be ridiculous financial decisions for reasons that are obvious to us. I just don't enjoy watching it happen, that's all - I fully accept that it is happening...
HiEquity,
I do agree with you BUT just as sure as people will make money out of RE people also lose money out of RE. It the informed that succeed and the uninformed that are also greedy that usually lose out. As the stock market legend Warren Buffett has said ?Wealth is the transfer of money from the impatient to the patient.?
Read the magazine first before deciding where to buy
Therefore, we shouldn't be buying in suburbs classified in or as extreme seller's market:
Conclussion, do not buy in Sydney suburbs in genera this year.
Credible Source: http://www.smartpropertyinvestment.com.au/news/14293-top-5-buyers-and-sellers-markets
PS: I've read through this page before and print that on my desk:
http://www.creonline.com/blog/13-warren-buffett-quotes-for-real-estate-investors/ Hopefully that will helps to inspire people in Real Estate investing.
Therefore, we shouldn't be buying in suburbs classified in or as extreme seller's market:
Conclussion, do not buy in Sydney suburbs in genera this year.
Credible Source: http://www.smartpropertyinvestment.com.au/news/14293-top-5-buyers-and-sellers-markets
PS: I've read through this page before and print that on my desk:
http://www.creonline.com/blog/13-warren-buffett-quotes-for-real-estate-investors/ Hopefully that will helps to inspire people in Real Estate investing.
