Western Sydney/Parramatta region market is stupidly crazy

Been looking at the market around the Parramatta region. Houses in Toongabbie selling for close to 100k over what you would have paid a year ago. Each open home has in order of 50+ viewings...

Even clad homes in liveable condition are selling for 600k odd. Just saw a listing range between 600k-650k. It's a single level 4br brick home. There is just one lounge in the home. Are they kidding?

Further rate cuts will probably push people to pay more. A local agent I was speaking with said that it's difficult for them as well as there are a lot of hostile buyers.

Last weekend a double story house sold close to 700k mark (asking price was offers over 600k - same people had failed to sell this home a few times in the recent years when asking 650k). It was on 1000sqm land, needed 50k renovation. The most interesting part is the street is full of housing commission at the end of it. Saw some interesting characters when we drove through the street and there are burnt cars in the front yards.

What are people really thinking? Either they have loads of cash to not need LMI and get the valuations they want without issues, or they think the repayments are cheap now. But what if when rates go higher?

Me and my sis are on strong incomes yet we aren't really sure if we are stupid enough to pay $650k for the latest listing of a brick home (extended with clad at the back) on a < 600 sqm corner block, that can't even currently be sub divide??

Same with Pendle Hill and Wentworthville.

It's a joke.

Is this sustainable??

I know there is proximity to Parramatta that is helping. But will there be a correction at some stage?

Should be pleased that we have several IPs which are getting decent capital growth. But not happy with competing with several First Home Buyers/Upgraders...
 
You are effectively describing every single market in Sydney under $1mil.
But why so much insanity? I am sure a lot of these people don't invest and possibly buy 1 big home for 30 years or till they change to another PPOR...It doesn't make sense to me.
 
i would often think the same thing. but i guess at the end of the day house prices arent getting any cheaper and the average buy looking to buy around the 500 -700k mark will go further and further west.
 
1. Every boom, people who missed the boat will call crash. A few years later, things trod along, and another boom comes (aka now)
2. During every trod along period, people who called crash will say they've been vindicated, when they should be buying (aka last year)

As always, buy when you can afford. Build some contingency. But don't over think things. What if rates rise to 10% and you can't afford the interest blah blah blah? Well try this one. What if rates fall to 2% as like overseas and straight away every property sells for 2% net yield?
 
Delta we have been consistently buying over the past couple of years.

But it doesn't make sense how valuations are currently stacking upat 20% above asking price?
 
But why so much insanity? I am sure a lot of these people don't invest and possibly buy 1 big home for 30 years or till they change to another PPOR...It doesn't make sense to me.
Seen it all before! If there isn't anything you want, can afford, or you feel isn't overpriced, then maybe start looking elsewhere, because that craziness is going to get worse (or better, depending on which side of the fence you're sitting.)
 
1. Every boom, people who missed the boat will call crash. A few years later, things trod along, and another boom comes (aka now)
2. During every trod along period, people who called crash will say they've been vindicated, when they should be buying (aka last year)

As always, buy when you can afford. Build some contingency. But don't over think things. What if rates rise to 10% and you can't afford the interest blah blah blah? Well try this one. What if rates fall to 2% as like overseas and straight away every property sells for 2% net yield?
Which happens to be the Jan Somers recipe for residential property investing!
 
The point is, ladies and gentleman, that greed, for lack of a better word, is good.

But why so much insanity? I am sure a lot of these people don't invest and possibly buy 1 big home for 30 years or till they change to another PPOR...It doesn't make sense to me.
One word answer: moola

people want to make money and then tell their friends about it. Spreads like a grass fire.





"The point is, ladies and gentleman, that greed, for lack of a better word, is good.

Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.

And greed, you mark my words, will not only save Datto, but that other malfunctioning corporation called the Australian economy. Thank you very much."
 
Delta we have been consistently buying over the past couple of years.

But it doesn't make sense how valuations are currently stacking upat 20% above asking price?
Hi Ali . It's called a boom . It's what every one on this forum has been waiting for and vindicates everything you , I and everyone else has been doing over the last few years .

We're close to calling it quits on buying in Sydney . ( we have two houses and four units ) and just got gazumped last weekend ...

But I've got a list of opens to go to today . I have to be back home for tonight . My son offered our house as a venue for a friends charity event . She organising a lingerie party to raise funds for an overseas orphanage and my son said he and couple of his friends can help them ... sigh . I'll be hiding in my studio . Much as I'd like to help , I don't think it's a wise move :eek:

Cliff
 
One word answer: moola

people want to make money and then tell their friends about it. Spreads like a grass fire.





"The point is, ladies and gentleman, that greed, for lack of a better word, is good.

Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit.

Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.

And greed, you mark my words, will not only save Datto, but that other malfunctioning corporation called the Australian economy. Thank you very much."
LOL... Love it.
 
Delta we have been consistently buying over the past couple of years.

But it doesn't make sense how valuations are currently stacking upat 20% above asking price?
Talking to an agent in Baulkham Hills and he said that's the problem. People were getting knocked back on valuations. Our house sold and was knocked back on valuation. Buyer went to another bank, no problem. Just had to extend the cooling off (which was worrying).
 
Our IP in that location is advertised for $500.00 per week now. It is a 4/2/1. So far 6 groups walked in and 4 applications received.
Granny flat at the back (fenced off) with a car spot is renting fro $355 per week.
So demand is there.
 
Our IP in that location is advertised for $500.00 per week now. It is a 4/2/1. So far 6 groups walked in and 4 applications received.
Granny flat at the back (fenced off) with a car spot is renting fro $355 per week.
So demand is there.
$855/week from one site. Sounds great. May I ask your outlay (purchase/build costs etc)?
 
Our IP in that location is advertised for $500.00 per week now. It is a 4/2/1. So far 6 groups walked in and 4 applications received.
Granny flat at the back (fenced off) with a car spot is renting fro $355 per week.
So demand is there.
How many bedrooms is the granny flat?

I guess a lot of ppl want to live here especially because of the selective school.
 
$855/week from one site. Sounds great. May I ask your outlay (purchase/build costs etc)?
Bought this property as PPOR about 7 years ago. I bought it for the land (~735sqm, 18m frontage, front sloping, no sewage issues & 11 min walk to train). Wife bought it for the house (brick, kitchen & bath) - So it was a costly 495K.
Then we moved out and built a granny flat for $112K all up.
PM fees are 5.5%.
Rent includes water which is about $400-450 a year.

Since we already had the suitable property, the granny flat worked well. I tried to repeat the same but numbers never stack up well if we need to buy a new property.
 
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