Will I be able to buy in Sydney ever again?!

Hi SS Gurus,
I bought my PPOR in West Sydney 4 years back, and it almost doubled now. I bought 2 IP's in QLD. one in Logan area for 290K renting for 350. and one in Ipswich for 235K renting for 300, spent 5 K's on it (quoted for 15, but I took 1 week off, hired couple of students and did the work myself). and the valuation is now 275 in 3 months. Using this Equity, I will be able to purchase my IP No.3. and I still have some buffer to service additional loan.

Trying to look in Sydney for something around 400K (not interested in Strata), but it is very very hard. I looked at St Marys, Lethbridge Park, and the surrounding areas. the kind of auction sales are in place. you put an offer and the REA keeps calling you to increase the price, so much competition, more than 30 people in the open house, which usually ends on over valued purchase.

Spoke to an agent today about a house advertised for offers over 370, I asked him how much higher you would expect, he said around 60-80K's higher than the asked price.

My Question is, Should I buy over valued Property as the Sydney market will still have some room to increase. or go Back to QLD or SA and buy a property there. There are still good deals over there. I am planning to buy and Hold. My worry is I may not be able to buy in Sydney ever again.

I am sure there are many experts here who can advice. I am calculating my repayments on 7%, and I am keeping a buffer to cover me for 12 months without rent just in case of Crises.

Thanks
Ram
 
Hi SS Gurus,
I bought my PPOR in West Sydney 4 years back, and it almost doubled now. I bought 2 IP's in QLD. one in Logan area for 290K renting for 350. and one in Ipswich for 235K renting for 300, spent 5 K's on it (quoted for 15, but I took 1 week off, hired couple of students and did the work myself). and the valuation is now 275 in 3 months. Using this Equity, I will be able to purchase my IP No.3. and I still have some buffer to service additional loan.

Trying to look in Sydney for something around 400K (not interested in Strata), but it is very very hard. I looked at St Marys, Lethbridge Park, and the surrounding areas. the kind of auction sales are in place. you put an offer and the REA keeps calling you to increase the price, so much competition, more than 30 people in the open house, which usually ends on over valued purchase.

Spoke to an agent today about a house advertised for offers over 370, I asked him how much higher you would expect, he said around 60-80K's higher than the asked price.

My Question is, Should I buy over valued Property as the Sydney market will still have some room to increase. or go Back to QLD or SA and buy a property there. There are still good deals over there. I am planning to buy and Hold. My worry is I may not be able to buy in Sydney ever again.

I am sure there are many experts here who can advice. I am calculating my repayments on 7%, and I am keeping a buffer to cover me for 12 months without rent just in case of Crises.

Thanks
Ram

Of course you will be able to buy again, but just maybe right now isn't the right time.

Property goes in cycles.

What you currently see is a large demand, with little on the market, so of course prices have nowhere to go but up.

At some stage the tide will turn & you will have a buyers market, where there's a lot of stock available, but not a lot of buyers. When this happens it will stagnate & then prices will drop. This is when you go out on a buying spree.:D
 
You will but as Skater said wait for the market to settle, yields to improve, then you buy. If you want to buy now look elsewhere.
 
when people start asking if they can afford their own suburb, how their house is worth that much - etc - then you start getting a toppy market.

i remember vividly the day the Perth market turned - very similar scenario to what Sydney is seeing right now - it was like an EXPLOSION of 'for sale' signs - and it was over within 6 weeks.

people got their stupids out of their system and started looking at the prices thinking "hang on, I can buy within 10km of Melbourne for less than that" - and the money went East and North.
 
when people start asking if they can afford their own suburb, how their house is worth that much - etc - then you start getting a toppy market.

i remember vividly the day the Perth market turned - very similar scenario to what Sydney is seeing right now - it was like an EXPLOSION of 'for sale' signs - and it was over within 6 weeks.

people got their stupids out of their system and started looking at the prices thinking "hang on, I can buy within 10km of Melbourne for less than that" - and the money went East and North.

This time hopefully it will go north, anyone that owns dirt in Sydney must have a a serious stack of equity to boot
 
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