Sydney Silliness Warnings 2015

Older 1 bedders for 800k?? If that happens it would be time to exit the market imo

Not many older 1 bedders about. From year 2000 on they started to build a few 1 bedders.

I reckon everything has a relevance factor. If a 2 bedder is selling for $800k and a one bedder is selling in the same market for 600k then when the boom is over and the two bedder is worth 1200k then the one bedder should be worth 900k. Both a 50% return. There will of course be variations in prices for properties in individual cases but as a general rule I believe in this theory. How about you?
 
Looking at some of the discussion here lately I would say yes.

Remember this place leads the pack , so when we get really excited and over exuberant , there is still some to go , but as

NO ONE KNOWS WHEN IT WILL STOP ,

THE LATER YOU LEAVE IT , THE RISKIER IT BECOMES


I have a low tolerance for risk , so I'm happy to watch Sydney from the sidelines , while planning my next buys elsewhere .

Cliff
 
Remember this place leads the pack , so when we get really excited and over exuberant , there is still some to go , but as

NO ONE KNOWS WHEN IT WILL STOP ,

THE LATER YOU LEAVE IT , THE RISKIER IT BECOMES


I have a low tolerance for risk , so I'm happy to watch Sydney from the sidelines , while planning my next buys elsewhere .

Cliff

I just achieved my goal of this thread - which was to get see change to post.

Good advice too Cliff. Do you think we are seeing wide spread silliness yet though? I myself don't think so which is why I think we have a while to run yet especially if the trend in interest rates is down still.

To me there is no herd effect yet but I think we are getting close. Once the herd starts then I still reckon you have a year to run. What was the experience in 03/04?
 
I just achieved my goal of this thread - which was to get see change to post.

Good advice too Cliff. Do you think we are seeing wide spread silliness yet though? I myself don't think so which is why I think we have a while to run yet especially if the trend in interest rates is down still.

To me there is no herd effect yet but I think we are getting close. Once the herd starts then I still reckon you have a year to run. What was the experience in 03/04?

I think we are starting to see widespread silliness or close to it , but it doesn't ( usually ) just stop over night .

It's harder to tell in someways as the dynamics of the society have changed with much more use of social media nowadays , so everything seems to be hyped .

Wasn't watching Sydney then as it had already jumped significantly ( like now ...... ) and I saw better ops elsewhere ( like now ..... ) . My recollection is the madness sort of fizzled out . Can't remember details , but the state labour might have made some changes which slowed things , but it didn't crash until the GFC which came a while after the craziness had abated .

Cliff
 
Cliff,
You and Richard make me re-consider sell/postpone every week. I monitor the auction result with eagle eye every week. Read Skater, and other people sell their west syd makes me wonder..

Definitely open my mind more every single day
 
It is certainly interesting times.

I have just had $1.1m investment loan approved my my next property(ies). Although the timing of this cycle may be coming to an end at some point (whether it is very soon or a little later), and with interest rates lowering and banks etc toughening up on loan approvals over the coming months, it just seems too good of an opportunity for me to increase my portfolio considerably by purchasing and sitting on the new property (ies) while I can.

Owen
 
Not many older 1 bedders about. From year 2000 on they started to build a few 1 bedders.

I reckon everything has a relevance factor. If a 2 bedder is selling for $800k and a one bedder is selling in the same market for 600k then when the boom is over and the two bedder is worth 1200k then the one bedder should be worth 900k. Both a 50% return. There will of course be variations in prices for properties in individual cases but as a general rule I believe in this theory. How about you?

So, you buy something for $600-800K, and you pay a ****load of Stamps to get into the market. What will you do if the market turns before you sell?

The madness, of course, will stop at some point. I'm not willing to be caught with my pants down, so I'm not buying into Sydney at the moment.
 
Cliff,
You and Richard make me re-consider sell/postpone every week. I monitor the auction result with eagle eye every week. Read Skater, and other people sell their west syd makes me wonder..

Definitely open my mind more every single day

(Apologies if you've mentioned elsewhere) but are you considering selling because you are concerned of a noteworthy correction, or because you want to free up capital to reinvest elsewhere for what you expect to be a greater return, to simply reduce debt, to fund a retirement or something else?
 
Remember this place leads the pack , so when we get really excited and over exuberant , there is still some to go , but as

NO ONE KNOWS WHEN IT WILL STOP ,

THE LATER YOU LEAVE IT , THE RISKIER IT BECOMES


I have a low tolerance for risk , so I'm happy to watch Sydney from the sidelines , while planning my next buys elsewhere .

Cliff

My post was answering the question whether the market was entering a euphoric state in Sydney, not whether there was more growth left. You'll only know that when it's over.
 
My post was answering the question whether the market was entering a euphoric state in Sydney, not whether there was more growth left. You'll only know that when it's over.

true, plus some of the sweetest gains can be right near the end. it's the getting out bit that is the real trick... without leaving too much on the table

oh and if I had a $ for every argument I had read about population growth and structural demand holding up prices! irrational markets can flush out all such sensibilities
 
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Be very afraid ...if you are buying in Sydney.....particularly anything in the over heated markets in Inner West, Epping/Eastwood, Hills District, Blacktown/Mt Druitt.

The party will stop at some point there in a big way.....:rolleyes:
 
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