Would you buy in Sydney now?

[eastside]

This is a very general question. I know it depends on suburb, property, is it a bargain - but am just wondering. The signs are confusing, are we now near the bottom of the market if rates go down more, or will the market still go down further? I read somewhere that lots of fixed terms are coming to an end causing a glut of properties to be offloaded, but prices just seem to stay the same. Last time I bought close to the peak, so am only just learning...
Any advice appreciated.

 

[ok180]

The best time to buy is when you've got a deposit.

 

[twobobsworth]

Some find many reasons not to invest, only a few find a reason to invest.

 

[Nathan]

The smart money is already going in sydney.....

prices fell in 2003 and interest rates have kept going up.

interest rates are falling, rents are at record levels, there are some steals (under construction cost) in sydney atm, cost of building going up, and record immigration, with record lows of building.

sift through that and find your answer.

i am optimistic on sydney property fyi.

 

[devo76]

I spent the afternoon in the bank doing some financial organisation in preparation to do just that.I am not diving in but. just watching and waiting. I dont think anyone is sure enough to call on when Sydney will turn but there is one thing most people agree on. And that is that Sydney will be next to move into its upward cycle. This could be one year or ten, i dont know.I have decided that 6 months should be enough to tell if Australia is going to follow The USA in falling house values. If we do fall i will wait longer.If we are still just tracking sideways. That will probably be enough for me to comfortably buy in Sydney. It may go lower but at least i will not be buying in at its earlier peak and im thinking of a 20 year plan anyway.

 

[troyhunt]

Last time I bought close to the peak, so am only just learning...

No chance of that now if you buy in the right area, there are suburbs around with plenty of properties that have come down 25% or more from their original sale price a few years ago.

 

[boomtown]

If I didnt have a big belly full of resi atm I would be considering it.

 

[Nathan]

found many props 40-60% under previous sale price in 03-04

 

[eternit]

found many props 40-60% under previous sale price in 03-04

Which area did you find such properties

 

[Nathan]

many areas...

mainly west syd, however hilsls to central coast areas have got deals aswell...

there out there.

easy to find 10% returnswithin 25kms from sydney cbd.

12-14% easy in regional areas(10-40k populations).

 

[craigb]

having done work and visited syndey i think it is a nasty place to live,commute,breath, and i wouldnt let my 7 yo go to the park with a friend alone. but as people put up with all of this and will for years to come yes i would buy there!
i have family live in the central coast, i can see awsome opps their but untill the underprivledged folks move on i wouldn't consider it for a few years yet.

 

[Zhouse01]

Looking for my first PPOR --> IP in sydney.

So hard to find a decent property though!!!!

 

[Pogi]

I just reached final settlement yesterday for a property in Sydney. Got it at a decent price, the Sydney market looks like a good one to buy into.

 

[Nathan]

pogi where u buy?

 

[Tman]

I have spoken to few people (mortgage brokers & conveyancer) they told me investors are selling to reduce their debts, alot of first home buyers are coming back in the sydney property market (because the rent keeps rising)
if you are looking as an IP i strongly recommend to wait for 3-6 months to see the direction of the credit crisis in the USA & the plannings of MR REES
cabinet

At the moment, Rental market looks very attractive in sydney's outer west
Fairfield has been mentioned on news as best rental yield in Sydney

 

[grossreal]

hi all
interesting question
and on this one I will being having bet each way.
first is it a good time to buy right now the answer to that for me is no.
am I in the middle of buying
the answer is yes.
but mine are with the developers and there banks so a very different kettle of fish.
the market is flat at the moment and is not going to go worse so they say and for me that always tells me that its going to get worse.
if you read my post
I always listen
and when people that say
its going to get worse
I look at it getting better
and the opposite when they say its going to get worse
I look at it getting better
as I like to swim against the stream not with it.
I'm looking at the current market because I have a specific market but without that market
I would not be looking at resi at all at this stage.
yes the market is cheap but I think it will get cheaper.
the banks have not released the stock they are holding and the real credit crunch has not hit for me
we are just feeling the small ripples but thats me.
if you are looking for a real bargain then yes the west in sydney is the place to look
but really I would keep my money in my pocket for about 6 months.
and yes sydney is a good market to buy
but I think you have missed the boat by about 6 months the real negotiating deals have gone
as all the pain is there but now the sites are held by the banks
and you need to negotiate before they get there grubby hands on them
so the best place for me to watch is the gold coast and the strip to bris and buy as close to bris as possible
and watch as that takes I think a 25 to 30% hit
and then get in before the banks take the sites and do a deal.
if you want growth, a secure investment and are going to go for a long haul hold
then for me anytime is a good time to buy in sydney
if you are good at picking a market then wait.
and if doing a bit of spec investing watch the gold coast.
but that just my crystal ball and don't use any of it for anyform of investing advice

 

[WinstonWolfe]

do some fundamentals research.

consider why the NSW State Govt is a basket case, and how they are going to solve their problems. One reason they've got issues is their stamp duty income is down significantly.
talk to a lot of local business people, ask if business is up or down.

also have a look at
the NSW unemployment trend
tightening credit, whether RBA interest rate drops will be passed on by lenders.
trend of days on the market
auction clearance.
zero in on a couple of suburbs, and track the no. of house listings under 400k (or whatever the bottom end is). a good time to buy is when this is coming down and days on the market are decreasing, though allow for seasonal trend.

keep in mind an IP is a business proposition. you are in the business of providing accomodation, and preferrably to an undersupplied market. check the rentals in your target areas...the no. and the rent for similar properties (no. of bdr etc)

 

[eastside]

Interesting replies!
I should have been clearer and said it is for my own home. I had not planned on buying again but the rental market is the pitts, if I have to rent again next year in Sydney I would rather leave my job and switch careers. All that stuff that you see about the rental situation is as dire as it is - if you move out west it improves but anywhere within acceptable communting distance, say eastern suburbs, inner west, north shore, St George, it is totally feral at open days. And people say 'don't be so fussy and snobby about where you live' or 'compromise and move out west, we compromised and that is how we got ahead' but they don't realise some people are on call 24/7 for their jobs; part of the job contract and are unable to move out to cheaper start up parts of town as the traffic situation is so bad you can't live there and still make it to work in time.
So I have just been waiting and watching and wondering when to buy and posted here to see what others thought. I am ready to buy (have a deposit and approval) and looking in the inner west at the moment. I have little faith in Nathan Rees or Kevin Rudd fixing the Sydney situation, but it would be nice, I don't know where they are planning to get their workforce from if this continues.
We beat 30 people to this place we rent now. On open house after presenting the cash deposit and filled in application form to the estate agent we were told 'oh no you have to lodge this at the office, and whoever gets there first gets this place'. So 'Survivor' or 'Race around the World' and we race in the car down the road with 10 other cars, we won, we got a home. That was after being told by same agent the previous day that we had to give him the cash at open house! If he had been honest he could have said you have to give the cash at the office, that way you have your partner at the office while you look at the open and ring them and tell them to put the cash down. These agents are out of control.
Anyway thanks to all for your replies, and luckily I am in a position to wait a bit longer (lease expires June next year) so might just wait and see what happens with the market. I have investment properties elsewhere I could always sell if need be, I had not planned on buying a house in Sydney in near future but I just cannot face renting under these conditions, it's buy or a career change.

 

[WinstonWolfe]

hey I like that idea of having a friend or partner back at the office ready to hand over cash (and signed application), in addition to having the same on site at inspection.

 

[eastside]

Things people do to 'win' at rental open houses:
Offer rent up front, say 6 months, or a year, as a cash deposit. Some people actually bring this to open house (insane, imagine if you lost it).
Offer to paint/carpet/put in a new kitchen (handy if you are into trades anyway).
Offer a resume complete with photo's of family and pets.
Cry loudly and say how hard it is.
Offer to date the agent (handy if you are good looking).
Offer gift vouchers, bribes or something in kind to the agent.
I have(sad but true) witnessed all of the above in the last couple of months. I have seen an agent walk away, at one open house, with over $5000 in holding deposits from lots of different people, with no receipts issued.
Sad but true. This is how desperate and gullible some are.
And to househunt effectively, you need a minumum of 3 people, so one can do the round of the agent's office and parallel track the person that is out in the field, and the third person is the 'spare' who covers late appointment turnups so that you don't miss the next open.
That is the 'premier' state, courtesy of years of labour state governments.
Enjoy