Hi,
Ive heard that the market in sydney is pumping with cashed up young couples looking to buy their first home, is this true or is all hype?
Thanks
Sydney is probably the least problematic market of Australia.
Perth , Adelaide and Brisbane are the worst ones.
Sydney houseprices have been stagnant for 5 years ( due to them being overprices in the first place ).
In recession times, business goes away from Perth / Adelaide and Brisbane and comes back to Sydney / Melbourne.
So yes, if you have to buy somewhere, Sydney might actually be the safest bet. But keep in mind that houseprices will still fall a lot, so offer at least 20% less than asking price.That said, there are not many young couples that are cashed up, so that is just hype.
Sorry to disagree Scamp, but until about 2007, prices were generally on the rise in Sydney but have over the last 1-2 years entered a downward spiral bringing prices back to 2004 levels. Hence affordability being the best that it has been in 5 years (according to all of the news articles).
Agree with Scamp regards the house price falls. But as with everything depends on where you take as your reference, IP Freely is probably correct for the houses he is looking at , but for my houses they have fallen since about 2003 and still falling in Sydney.
regards the cashed up first home buyers – yeh right – cashed up with the government grant only, how many young people do you know who have more than $100 to their name.
young couples with plenty of cash!!!!!!…. must be media hype
could be plenty of debtScamp wrote:So yes, if you have to buy somewhere, Sydney might actually be the safest bet. But keep in mind that houseprices will still fall a lot, so offer at least 20% less than asking price.That offer of 20% less only works for the upper end of the market. At the low end of the market where most of the FHBs are you put in an offer at least 20% below the asking price and chances are you'll be treated with contempt and told to go and get f***ed. The time for cheeky offers in Sydney was last Sept- Oct, now if you get a 5% off a sub $500K property you are doing well.
Quote:In recession times, business goes away from Perth / Adelaide and Brisbane and comes back to Sydney / Melbourne.And how did you figure that one out ? Someone running a factory in Brisbane would not spend money to move to Sydney in a recession. Also during out last few recessions Sydney and Melbourne were more affected then Perth/Adelaide. If business is cutting costs in a recession it will start with the unproductive dead wood in the office, so Sydney cops it most since most of the large businesses have their office there.
Hi Harb,
I just posted what I thought about the OP's dilemma. If he is going to buy anywhere, in *my personal opinion* he's best off in Sydney.
IP Freely : I don't know which segment you are talking about, but 'my segment' has been stagnant since 2003.
ie : not going up more than CPI , which means about 3-4% increase per year.
Over 5 years, CPI adjustments add up to approximately 20% extra value on the house. Houses in my segment have not gone up by 20% in Sydney in the last 5 years. That in my view means the houses were stagnant because if you would have invested in other things you would have made more than those 20% over 5 years.So yes, Sydney has indeed been stagnant.
It's ok if people don't agree with this, maybe they are in different segments of the market.
Interesting, thanks for the info and discussion
This is my thoughts anyway, (this might upset people), if you have to live there why buy?, its overpriced and unless you buy undervalued your probably better off investing your money somewhere else, often buying a house is an "emotional" decision not driven by logic.
The mortgage will be high and interest is high too, ie you need alot of captial growth to get your money back, not sure what average price is maybe 500K, you could buy 2 houses for that with rent serving the loans and you could rent and live there instead.
Re cashed up couples – a friend of mine just bought an apartment in the inner west, she swears blind that every place she went to had aline of young couples (with their check from the gov in their pocket) trying to buy a place. She made a couple of offers and was outbid on all of them but 1.
Hi guys I'm 21 at the moment and i have $7000 to my name ha-ha- i guess im weird (most of of friends don't have a dollar) i guess i just have a different mindset to my friends (theirs are cars etc vs mine trying to save for a First home/IP ) hopefully by the end of the week i will have $9000 plus FHOG $14000.
I also am looking in Sydney market. My area is within 14km of Sydney CBD (2bed units PP 280-300k) GRY of 6% near transport, avg population growth of 7%pa for the last 5 years, 5 minutes to the beach and major employment hub for the area with 5 different major industries and is also identified as Major Centre in 'Metro Strategy' (is that still going through or was that just a draft haha).
Also since the start of the year i have been going to open inspections every Saturday and it just seems like there are more and more people (young couples) every-time and the units are selling within 3 weeks when they are usually on for 70 days or so on average. I guess it really does depend on which part of Sydney your looking at so i guess it cant all be hype- I'm definetly and i MEAN DEFINETLY not an expert on this but you can't place the Sydney market as a whole, Sydney has many markets in itself right? just my thoughts…
Scamp wrote:Hi Harb,I just posted what I thought about the OP's dilemma. If he is going to buy anywhere, in *my personal opinion* he's best off in Sydney.
I don't disagree with your opinion that Sydney is the best place to buy IPs at the moment, just the reasons for it.
kind of been covered above but Sydneys three speed market has been kind of reversed.
From 2004 to 2008 the top end was still alive and well. Middle market was moving sideways with a little growth, and bottom slipped some areas a lot.
Now it is the bottom kicking along, the middle shuffling, and the top is quite unhealthy.
During this whole period the RE industry has always had good spin, by focusing on the one moving
Come June, the bottom end should flatten out, as even if the FHG continues, the fact that the expectation is that it will finish is bringing purchases forward.
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