Sydney Silliness Warnings 2015

[C-mac]

Windy and Gatoblanco (you Portuguese by any chance?); Chin up; like Cliff said, it is never to late to start. The first property you buy is always the hardest; but it does get easier; and much quicker too, with every successive IP buy thereafter. Use this 'saving' time not only to save, but to do your due diligence and suburb-specific data crunching.

That way, when your borrowing capacity gets to the level you need it to be at; you can strike more quickly and take action.

I believe the worst thing you can do in property investing is to remain idle. And by that I want to be clear: I dont mean 'Just go and buy everything you can, now!'.

I mean; remain active in your involvement and interest in property investing; stay active and 'lean forward' instead of leaning back and being idle.

Coming to places like SS helps; but also get proactive and start learning about markets you want to target. This will ensure you can strike more quickly, later on, when you need to. The great community on here can be a real life line! And trust me, I'm talking from experience

 

[JohnHenry]

Crash is for sure next year

To add to above we are seriously thinking of buying once more in Sydney. This would be a very short term trade while the hype is on. For example - buy a unit in eastern suburbs for say 600,000, spend 50,000 on kitchen and bathroom renovation and then put back on market in one year for 850,000 plus. Make sure sell when the market goes that 10% over where it should. Hard to tell I know but is it worth a crack?

Well based on my friend talks over the lunch and in the dinner with different ethnic communities, it seems that all of them agreed that next year or the year after that Sydney property market will be crashing down with 20 - 30% price dip to the existing market value.

Therefore, if you or anyone wants to buy in Sydney, please do it for the sake of the living in the property or PPoR not investing anymore.

look at the cycle of Sydney Property price below:

It is happening.

 

[see_change]

Now I am curious as to how old you are. My guess is approx 55-60?

Pretty close

Cliff

 

[willair]

They reckon 60 is the new 45 ..

 

[Daniel95]

Well based on my friend talks over the lunch and in the dinner with different ethnic communities, it seems that all of them agreed that next year or the year after that Sydney property market will be crashing down with 20 - 30% price dip to the existing market value.

Therefore, if you or anyone wants to buy in Sydney, please do it for the sake of the living in the property or PPoR not investing anymore.

look at the cycle of Sydney Property price below:

It is happening.

Where did you find these graphs? I'd like to have a look through some

 

[bobby85]

Windy and Gatoblanco (you Portuguese by any chance?); Chin up; like Cliff said, it is never to late to start. The first property you buy is always the hardest; but it does get easier; and much quicker too, with every successive IP buy thereafter. Use this 'saving' time not only to save, but to do your due diligence and suburb-specific data crunching.

That way, when your borrowing capacity gets to the level you need it to be at; you can strike more quickly and take action.

I believe the worst thing you can do in property investing is to remain idle. And by that I want to be clear: I dont mean 'Just go and buy everything you can, now!'.

I mean; remain active in your involvement and interest in property investing; stay active and 'lean forward' instead of leaning back and being idle.

Coming to places like SS helps; but also get proactive and start learning about markets you want to target. This will ensure you can strike more quickly, later on, when you need to. The great community on here can be a real life line! And trust me, I'm talking from experience

Superb post.
I copy and pasted that to a mate.
Couldn't have said it any better.
Luck is what happens when preparation meets opportunity.

 

[windyzz]

Windy and Gatoblanco (you Portuguese by any chance?); Chin up; like Cliff said, it is never to late to start. The first property you buy is always the hardest; but it does get easier; and much quicker too, with every successive IP buy thereafter. Use this 'saving' time not only to save, but to do your due diligence and suburb-specific data crunching.

That way, when your borrowing capacity gets to the level you need it to be at; you can strike more quickly and take action.

I believe the worst thing you can do in property investing is to remain idle. And by that I want to be clear: I dont mean 'Just go and buy everything you can, now!'.

I mean; remain active in your involvement and interest in property investing; stay active and 'lean forward' instead of leaning back and being idle.

Coming to places like SS helps; but also get proactive and start learning about markets you want to target. This will ensure you can strike more quickly, later on, when you need to. The great community on here can be a real life line! And trust me, I'm talking from experience

Hey C-Mac.. No I'm not portugese.... But the differences is you wont see any growth like what you have seen 20 - 30 years ago.
+ Our economy is So hopeless now, and looking at government like the Green want to scrap negative gearing, etc.... I doubt we'll be able to achieve the same as what has been done previously (10 - 20 years ago)

 

[see_change]

Hey C-Mac.. No I'm not portugese.... But the differences is you wont see any growth like what you have seen 20 - 30 years ago.
+ Our economy is So hopeless now, and looking at government like the Green want to scrap negative gearing, etc.... I doubt we'll be able to achieve the same as what has been done previously (10 - 20 years ago)

Windyzz

Again I've been hearing this for as long as I can remember . This growth has been going of for the last 60 years and I think for a lot longer .

I've personally been aware of the market since my parents paid 25,500 for a house in Davidson ave , warrawee in 1969 / 70 . A few years ago , someone paid 1.4 and put a bulldozer through it .....

Cliff

 

[windyzz]

Windyzz

Again I've been hearing this for as long as I can remember . This growth has been going of for the last 60 years and I think for a lot longer .

I've personally been aware of the market since my parents paid 25,500 for a house in Davidson ave , warrawee in 1969 / 70 . A few years ago , someone paid 1.4 and put a bulldozer through it .....

Cliff

Still wishes that I come across this forum like 2-3 years ago... It would have change my life significantly if I were more educated 2-3 years ago.

 

[JohnHenry]

Hey C-Mac.. No I'm not portugese.... But the differences is you wont see any growth like what you have seen 20 - 30 years ago.
+ Our economy is So hopeless now, and looking at government like the Green want to scrap negative gearing, etc.... I doubt we'll be able to achieve the same as what has been done previously (10 - 20 years ago)

Yes, somehow I've been affected by the cautious thinking of people like Windyzz recently.

For Example, the main topic was the far remote area in Sydney Northwest like in Schofields, Riverstone and The Ponds is skyrocketing to the expensive suburbs level when it is still being build.

So most of my friend who's just starting investing now, bought in:
Jordan Springs, Edmondsons Park, Oran Park, Airds and Panania area.
Those are the safest bet that you can buy for investment in South West Sydney at the moment.

for long term capital gain profits.

 

[JohnHenry]

Still wishes that I come across this forum like 2-3 years ago... It would have change my life significantly if I were more educated 2-3 years ago.

But at least you've bought something after you've joined this forum ?

 

[windyzz]

But at least you've bought something after you've joined this forum ?

I got something before I joined this forum... But with my lack of knowledge... I was so scared of debt and choose to pay off big portion of my IP all the way to 50% (So I'm paying of good debt) where i should instead be using interest only and invest more back in 2010.......

 

[see_change]

Still wishes that I come across this forum like 2-3 years ago... It would have change my life significantly if I were more educated 2-3 years ago.

We only started investing in the last cycle at around the current stage in the cycle . Sydney had boomed . We had equity from a PPOR.

Brisbane was starting to move but hadn't reached previous peaks and places like rocky and Townsville were still peacefully dreaming along , with the only posts about them being " I bought in Townsville seven years ago , should I sell " type posts ...

Sound familiar .

In total we've only invested in one cycle so far . Last half of last one and first half of this one .

If I was less ambitious about what I wanted to do in the rest of my life I could have a comfortable retirement now .

If I knew what I knew now in my 20's , I would have equity well into the 8 figure amount at this stage But it's happened and I'm not going to waste my time worrying what might have been .

Cliff

 

[Befuddled]

We only started investing in the last cycle at around the current stage in the cycle . Sydney had boomed . We had equity from a PPOR.

Brisbane was starting to move but hadn't reached previous peaks and places like rocky and Townsville were still peacefully dreaming along , with the only posts about them being " I bought in Townsville seven years ago , should I sell " type posts ...

Sound familiar .

In total we've only invested in one cycle so far . Last half of last one and first half of this one .

If I was less ambitious about what I wanted to do in the rest of my life I could have a comfortable retirement now .

If I knew what I knew now in my 20's , I would have equity well into the 8 figure amount at this stage But it's happened and I'm not going to waste my time worrying what might have been .

Cliff

Mind sharing what you ended up doing with that equity in your PPOR?

 

[Deltaberry]

Crashing 20-30% is pretty naive view to be honest.

 

[see_change]

Mind sharing what you ended up doing with that equity in your PPOR?

We bought properties .

First in Logan , then in rocky

http://somersoft.com/forums/showthread.php?t=11656&highlight=Rocky

Cliff

 

[Befuddled]

Thanks. Interesting read

 

[JohnHenry]

Crashing 20-30% is pretty naive view to be honest.

No, it is for real I guess.
obviously it won't be a catastrophic like in USA.

Why is it naive ?
ok, let say that it is going sideways with a slight dip or price correction into 20% below market trends

I'm still waiting for the price crash to come because so far I've been looking for 3 bedders house it is ridiculously expensive:

Westmead ~ $1.1m
Banksia ~ $1m
Penshurst ~ $1.5m
Lidcombe ~ $1.2m
Marrickville ~ $1.1m
Arncliffe ~ $1m

and for such a remote location the price in The Ponds, Schofields, Kellyville Ridge and Riverstone, they are all starting from $790k up unti $900k.

I guess when it does crash in the next year or two, those area over $1m will and must be crashing down hard to the normal price as it is defined in RPData median house price.

 

[see_change]

Thanks. Interesting read

Though , don't take that as a recommendation to buy in rocky .

From what I can see vacancy rates are high at the moment so I've looked elsewhere at this stage

Cliff

 

[Brady]

I'm still waiting for the price crash to come

quoted for future reference

I think prices will come off the boil, but crash wouldn't be holding breath