What happens when markets turn?

[Jboz]

Yes...this is when Boganaires....become Boganrupts.

LOL!!

Anyone got a graph of wait for it........

Sydney Property Prices VS Interest Rates VS Rental Yield VS Income VS AUD VS AllOrds VS BoganFactor

Just kidding, thought I'd ask anyway

 

[davidw89]

So now Sydney is at the peak of its market?

 

[k88k]

not yet, well not for 2015 as IR expects to d dropped next few wks...

i expect something to happen in 2016. , which i hope it wont and sydney keeps growing

ps: this has been discussed a few times in the other topics, have a search and u will find

 

[Ausprop]

am sure it has 20 years to run, just like chinese demand for iron ore. We all get rich, nobody get hurts and we won't ever grow old

 

[greedy2000]

Nothing is immune.

Everyone assumes they will be "ok" as they are smarter than your average punter.

The sale price of your home is determined by the strength of the buyers in the market, if economic conditions deteriorate buyers will be either unwilling or unable to pay current prices and subsequently all markets will fall in value.

Those who don?t need to sell won?t but those who do will feel the pain.

 

[knightm]

Seriously how can anyone predict a GFC ?!?!?!?! Westpac predicting that Our economic should be recovering by the end of 2015. If you know GFC is coming or as predicted by R.Kiyosaki a "world deflation", might as well sell everything now and just cashed everything up ?

Who knows your property might only worth 5-10% of the current value next year right ?

No one has a perfect crystal ball into all markets.

There have been points when certain real estate markets were overheated, and in my view it is possible to see this and avoid buying at the top.

RK has rarely suggested holding cash is a good idea.

If you honestly believe that our RE will devalue by 90-95% then property is not for you.

 

[see_change]

Seriously how can anyone predict a GFC ?!?!?!?! Westpac predicting that Our economic should be recovering by the end of 2015. If you know GFC is coming or as predicted by R.Kiyosaki a "world deflation", might as well sell everything now and just cashed everything up ?

Who knows your property might only worth 5-10% of the current value next year right ?

If you think I'm saying I predicted the GFC , I'm not saying that at .

What I did know is at some stage there would be good buying opportunities . To take advantage of this we had a LOC of over 1 mill available which we had put in place a few years earlier

We watch the market on an ongoing basis . When the GFC hit , it impacted the upper echelons of society in a big way , hence we went looking for bargains in the lower north shore , and we found one in Mosman ( or should I say my wife did .. As she likes reminding me ) . We were able to make cash offers at a time when the banks were very reluctant to lend .

If my properties are worth 5-10 percent of their current value next year , the last thing I'll be worrying about is my property values

Cliff

 

[windyzz]

If you think I'm saying I predicted the GFC , I'm not saying that at .

What I did know is at some stage there would be good buying opportunities . To take advantage of this we had a LOC of over 1 mill available which we had put in place a few years earlier

We watch the market on an ongoing basis . When the GFC hit , it impacted the upper echelons of society in a big way , hence we went looking for bargains in the lower north shore , and we found one in Mosman ( or should I say my wife did .. As she likes reminding me ) . We were able to make cash offers at a time when the banks were very reluctant to lend .

If my properties are worth 5-10 percent of their current value next year , the last thing I'll be worrying about is my property values

Cliff

Yes i believed the Top end of the market is pretty volatile right now. However this is probably applied for anything over 2-3 millions. I don' think if you purchase 2 bedrooms old apartmen in blue chip suburb (say near mosman, bondi, coogee, etc) for 800-900k can drop significantly.

I've looked at the median prices for 2 bed units around blue chip suburb of Sydney during GFC 2005-2007, the price just flat for a while and i don't see any significant drop at all.

 

[vaughan]

Yes...this is when Boganaires....become Boganrupts.

I think we need to differentiate between where the properties are located, and where the buyers are. I'g wager that very very places in 2770 are being bought by locals.

 

[see_change]

Yes i believed the Top end of the market is pretty volatile right now. However this is probably applied for anything over 2-3 millions. I don' think if you purchase 2 bedrooms old apartmen in blue chip suburb (say near mosman, bondi, coogee, etc) for 800-900k can drop significantly.

I've looked at the median prices for 2 bed units around blue chip suburb of Sydney during GFC 2005-2007, the price just flat for a while and i don't see any significant drop at all.

Last time I looked the GFC hit in 2009 .

Re.com shows around a 10 % decrease in 2009 prices compared with 2008 , but bear in mind the GFC HIT TWARDS THE END OF THE YEAR and not many places sold at that time because few people were buying .
Unit prices show a small drop .

Being in the market at the time I can reassure you that some properties sold for significantly less than they would have sold prior on now .

You mention a 900 k price for two bedde unit . In late 2009 we bought two units in Musgrave street , both around 100m2 with drop dead views over the water , for 900 for both of them .

That's not going to happen any time soon and will only happen if there is a significant economic hit , rather than reaching th affordability limits .

Cliff

 

[windyzz]

Last time I looked the GFC hit in 2009 .

Re.com shows around a 10 % decrease in 2009 prices compared with 2008 , but bear in mind the GFC HIT TWARDS THE END OF THE YEAR and not many places sold at that time because few people were buying .
Unit prices show a small drop .

Being in the market at the time I can reassure you that some properties sold for significantly less than they would have sold prior on now .

You mention a 900 k price for two bedde unit . In late 2009 we bought two units in Musgrave street , both around 100m2 with drop dead views over the water , for 900 for both of them .

That's not going to happen any time soon and will only happen if there is a significant economic hit , rather than reaching th affordability limits .

Cliff

Agree with you mate Only if there's a significant economic hit in Sydney.

But i guess the 2 bedder unit in bondi, coggee, Kiribilli is so popular and there's not many new supply available, so price increased is slow but sustainable.

I wish i can afford an investment in blue chip

 

[see_change]

Agree with you mate Only if there's a significant economic hit in Sydney.

But i guess the 2 bedder unit in bondi, coggee, Kiribilli is so popular and there's not many new supply available, so price increased is slow but sustainable.

I wish i can afford an investment in blue chip

Our first investment was in Logan .

When we started , in the last cycle , Sydney had already boomed , but like now .

Cliff

 

[windyzz]

Our first investment was in Logan .

When we started , in the last cycle , Sydney had already boomed , but like now .

Cliff

to be honest.. The hope of owning my own house is VERY slim for me..... Just feel depressing....

even to own an investment in a blue chip Sydney is starting to fade away.... I don't know how many people can do it!

 

[Ausprop]

to be honest.. The hope of owning my own house is VERY slim for me..... Just feel depressing....

even to own an investment in a blue chip Sydney is starting to fade away.... I don't know how many people can do it!

don't try outpacing a stupid market. just move to a rising market (as opposed to a peaking market), then when that runs you can buy in to Sydney when it blows off some steam

 

[see_change]

to be honest.. The hope of owning my own house is VERY slim for me..... Just feel depressing....

even to own an investment in a blue chip Sydney is starting to fade away.... I don't know how many people can do it!

I wouldn't be stretching myself to buy in Sydney .

At this stage look at buying in a market that hasn't move much ., once it starts moving , you can refinance and buy more

Cliff