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"We had to get a home" - desperate homebuyers camp out for three days to buy in Sydney; The only way to secure a property as Sydney house prices continue their inexorable rise
Topic Started: 4 Sep 2014, 08:26 AM (9,956 Views)
Bardon
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4 Sep 2014, 10:46 AM
Quick , buy now, into the biggest ponzi on the planet.

With jobs heading to record highs, and wages decreasing and looking to decrease further, what could possibly go wrong .

Just sign on the dotted line for the next 25-40 years, and hope you get to keep your job or live that long to pay it off. ;)
I don't know what all the fuss is about paying debt of before you die, I don't intend to ever pay of any of my investment debt.
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Guest
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Guest
4 Sep 2014, 10:46 AM
Quick , buy now, into the biggest ponzi on the planet.

With jobs heading to record highs, and wages decreasing and looking to decrease further, what could possibly go wrong .

Just sign on the dotted line for the next 25-40 years, and hope you get to keep your job or live that long to pay it off. ;)
More like 10 years if your smart and know how to use an offset acc properly...
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Passionfruit
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Don't panic if you have bought recently OR fear missing out. The truth is rather mundane. Like the stock market, property it has periods of intense activity and enthusiasm and those of fear and negativity. But the ride is smoothed out by two things - property is more illiquid than shares and property provides a basic need. Too many articles don't reveal the true course of property in Sydney. I've been actively looking, buying and selling (and advising friends and family) since 1992. My long experience particularly applies to inner and middle ring of Sydney.

If I drew a graph of house prices for aforementioned area(s) across those decades, yes, it would be an overall climb upwards. Quite an impressive one. (Same for shares, but more jagged pattern.) I'm very glad I took the initial plunge in late 96. Should have done so earlier, but young me thought debt was for staid middle aged people. And there was worrying talk of bubbles when a three bedroom house in Rozelle was 150K!!!!!

BUT on the bright side for those looking for a foothold now, ALL the periods of exuberance have been followed by "hangover" of sorts - a bout of pessimism or stagnation. Partly it has to do with people feeling frustrated, partly with external events...and more mysterious factors. Sometimes extra stock comes onto the market amidst enthusiasm, and that moderates prices. This means you can lose if you buy and sell within a few years. Eg, I bought in Annandale in 2010 (a hot year) and had to sell in a down time (early 2012) for 25k less. If I sold now, maybe 150k more. Why I sold? My dream home appeared for a bargain price! Just factor in a financial buffer zone and proceed with care.
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Kerr
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This reminds me very much of what happened in Ireland. People were camping out for days to secure a block in a new housing estate. All of the media were giving out messages like "you have to get on the property ladder; any property will do". Then the property market dropped 50%. Now I'm not saying that will happen here, but you have to admit the signs are worrying. I can't afford a home at current prices so I will wait. If the market keeps rising then I have missed out, but at least I can still live within my means.
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Guest
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Enough with the silly talk. Housing prices in Sydney were stagnant for years after 2003. And even now it is not booming. The only reason we haven't had a significant housing slump over the last 10 years (as everyone predicted) was because prices were never as inflated as reported.

I often ask people if they had bought a house for $250,000 in early 2009 and sold it for $817,000 today and you did nothing to it - plus if you didn't live in you would have also been paid 5% pa in rental income - would it have been a good buy. Of course it would! - but that's what would have happened if you hadn't bought a house but bought Commonwealth Bank shares instead. They are the people who sell the mortgages!
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newjez
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noopsy05
4 Sep 2014, 10:33 AM
took the words out of my mouth. If i listened to them (bears) i wouldn't be a 27yo/m who just had my first baby with my wife and 4 years away from owning my home. Dont listen to the bears people, buy now
Go on, buy another one. You know you want to.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
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Bardon
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Kerr
4 Sep 2014, 11:40 AM
but you have to admit the signs are worrying
I have to admit that from where I sit the tell tale signs are just what you would expect to see.
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Jimbo
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Kerr
4 Sep 2014, 11:40 AM
If the market keeps rising then I have missed out, but at least I can still live within my means.
You never miss out. That is one of the great myths of RE spruikers.

I knew people who rushed to buy in 1988 in the UK because they were frightened of missing out. Same story as in Ireland. Camping out to buy flats and houses off the plan that they could have bought for 10% less, 9 years later.



Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be :?: rising.
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noopsy05
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newjez
4 Sep 2014, 12:47 PM
Go on, buy another one. You know you want to.
No thanks, already got one IP I brought 10 years ago which is nice and positively geared. Hopefully pay off my mortgage by around 30 then easy street until retirement, probley get a job at a fish n chip shop or bunnings, somewhere close to home so I can spend heaps of time with family and friends, spending all the money I'm saving on them because of my decision to buy property.
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szokolay
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Jimbo
4 Sep 2014, 02:52 PM


I knew people who rushed to buy in 1988 in the UK because they were frightened of missing out. Same story as in Ireland. Camping out to buy flats and houses off the plan that they could have bought for 10% less, 9 years later.



The business of camping out is usually a sure sign a manic top has been reached. That was the case in the US property bubble I believe. If it's happening in Sydney it's not a positive indicator at all.
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