2011-2012 was a great time to buy in Sydney, but it's getting a bit late in the current boom to jump in now. There were a quite a few panicked sellers around in 2011/2012 (people who had been sucked in by all the bubble/crash gloom peddling from the likes of Macrobusiness and Steve Keen). There were plenty of bargains to be picked up at that time, and prices have subsequently experienced over 30% growth since then.
We could see another $100K added to the price of a Sydney median house over the next year or so, but after that I think there will be a lengthy period of prices doing nothing, or even declining by 5-10%. So while Sydney prices do have a bit further to run, the best of the gains are over.
Although if the RBA cuts interest rates again then prices could keep growing past 2015.
Personally I wouldn't buy an IP in Sydney right now, but I would consider buying a PPOR if planning to hold it for the long term (if I didn't already have one).
I agree with this. If I didn't own a ppor I'd buy one now. In fact, there is a reasonable chance I'll be upgrading in the current market and just moving local.
It is important to understand — and I have to keep reminding Australians of this regularly — that house prices can go up and down. I should repeat: house prices can go up and down. It is therefore essential that, as a prospective buyer, you conduct proper diligence prior to making a purchase. All of that out of the way, residential property is an excellent asset to invest in, a wonderful place to store personal wealth (certainly much better than the low rates on offer from a term deposit) and with the gradual winding down of the mining investment boom, residential property is now the Bank's preferred transmission mechanism for monetary policy.
It is important to understand — and I have to keep reminding Australians of this regularly — that house prices can go up and down. I should repeat: house prices can go up and down. It is therefore essential that, as a prospective buyer, you conduct proper diligence prior to making a purchase. All of that out of the way, residential property is an excellent asset to invest in, a wonderful place to store personal wealth (certainly much better than the low rates on offer from a term deposit) and with the gradual winding down of the mining investment boom, residential property is now the Bank's preferred transmission mechanism for monetary policy.
Thank you Glen. Those where my thoughts exactly. You keep subsidising residential property now. I do agree that every Australian should have the opportunity to own their own home. I disagree that investors should own more than 2 homes. 1 for holidays and 1 to live in. It is only the government policies that make that possible.
i am new here. can someone explain why it is now a good time to buy PPOR?
The best time to buy a PPOR is when you have steady jobs, a good deposit and a good idea of where you want to live. The rest of the chatter is just taking gambles on whether the market will rise or fall over a given period of time. The chances are very good that prices will rise over the long term if you are living in a city with a growing population.
In my life I have seen both sides, I have missed out and I have seen lots of capital growth. My logic that I use today is that I can always wait out a downturn but I can never catch up a market that rises quickly.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
In my life I have seen both sides, I have missed out and I have seen lots of capital growth. My logic that I use today is that I can always wait out a downturn but I can never catch up a market that rises quickly.
I've seen both sides also.
Skamy, would you buy right now if your situation matched the position outlined in the op?
I value your take on things, so please answer honestly. I know you're an optimist, but I believe you can be quite level headed if you choose to.
There's 2 markets really....never changes with time.
That's what's my reality ...how I watch the market.
1. Owner/occupier 2. investor
In both cases, the principle goal is the SAME for people in these situations.
Buy & hold for the long term.
The best time to buy R/e is now as long as YOU have the margin in the deal so you don't get pressured to sell if it doesn't work out the way it's expected.
Newjerk? can you try harder than dig up another person's blog. My first promo was with Billabong and my name in English is modified with a T, am Perth born but also lived in Sydney to make my $$ It's Absolutely Fabulous if it includes brilliant locations, & high calibre tenants..what more does one want? Understand the power of the two "P"" or be financially challenged Even better when there is family who are property mad and one is born in some entitlements.....Understand that beautiful women are the exhibitionists we crave attention, whilst hot blooded men are the voyeurs ... A stunning woman can command and takes pleasure in being noticed. Seems not too many understand what it means to hold and own props and get threatened by those who do. Banks are considered to be law abiding and & rather boring places yeah not true . A bank balance sheet will show capital is dwarfed by their liabilities this means when a portions of loans is falling its problems for the bank.
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