Sydney House Prices - Seriously Though WTF

[Noeasyday]

It's the same almost everywhere, the last 12 months has been unprecedented in the housing market.
In 3 to 4 years time, once interest rates start heading over 5% there's going to be a lot of people under mortgage stress which will see the market plateau if not dip slightly.

 

[wendog33]

I Remember in 99 when my great grandmother died 1000sq block uncle said you should buy it I says 175k bahaaha that's to expensive same block today ......yeah makes me want to headbutt a wall really hard

I can beat that. FIL was offerred a big block middle of Surfers Paradise beachfront for 50 pounds. Said no. Too many sandflies lol

 

[CroydonDog]

This might become: "my father is a bloody dickhead!" thread...

 

[B-Train]

It's the same almost everywhere, the last 12 months has been unprecedented in the housing market.
In 3 to 4 years time, once interest rates start heading over 5% there's going to be a lot of people under mortgage stress which will see the market plateau if not dip slightly.

The problem is if and when that happens, the regular people who have been living beyond their means with massive mortgages because they bought when the prices were sky high will be the ones that suffer.. While the investors with a massive property portfolio will just be able to buy more when the market is depreciated.

It will also make it even harder for those that aren't in the market to buy because it will be harder to get a mortgage.

 

[CrittaMagic69]

Just watch a couple of Grant Cardone videos, I'm basically an expert on this now

 

[N4TE]

The problem is if and when that happens, the regular people who have been living beyond their means with massive mortgages because they bought when the prices were sky high will be the ones that suffer.. While the investors with a massive property portfolio will just be able to buy more when the market is depreciated.

It will also make it even harder for those that aren't in the market to buy because it will be harder to get a mortgage.

It’s funny about that a lady I use to work for has now amassed 10x properties and not small places nice big renovated American Bungalow houses in Mosman because of taking advantage of the last downturn. It’s just stupid and very not fair but what do you do nothing I guess.

 

[B-Train]

It’s funny about that a lady I use to work for has now amassed 10x properties and not small places nice big renovated American Bungalow houses in Mosman because of taking advantage of the last downturn. It’s just stupid and very not fair but what do you do nothing I guess.

Life and especially property investment is all about timing. She did well to buy when she did. I wish I bought 10 years ago when I was in a better position to. The house that I could have bought for 500k then would cost nearly $2 million now.

 

[Noeasyday]

The problem is if and when that happens, the regular people who have been living beyond their means with massive mortgages because they bought when the prices were sky high will be the ones that suffer.. While the investors with a massive property portfolio will just be able to buy more when the market is depreciated.

It will also make it even harder for those that aren't in the market to buy because it will be harder to get a mortgage.

As a property investor I don't mind this.
Yes it sucks that affordability for those wanting to enter the market is an issue, but there's other ways around it.
If I was entering the property market today with 100k, I'd be looking at buying an investment property in South East QLD up to the Sunshine Coast. It's a strong rental market up there which means the property should pretty much pay for itself, I can keep saving at a good rate and in a few years once the property has some capital gains, take out some equity, using that along with savings buy another investment property.
If you can use equity to double investments every 5 years while saving and contributing then in time you can sell.off some of your portfolio to buy the house you really want.

 

[N4TE]

As a property investor I don't mind this.
Yes it sucks that affordability for those wanting to enter the market is an issue, but there's other ways around it.
If I was entering the property market today with 100k, I'd be looking at buying an investment property in South East QLD up to the Sunshine Coast. It's a strong rental market up there which means the property should pretty much pay for itself, I can keep saving at a good rate and in a few years once the property has some capital gains, take out some equity, using that along with savings buy another investment property.
If you can use equity to double investments every 5 years while saving and contributing then in time you can sell.off some of your portfolio to buy the house you really want.

Yeah okay but what if you are a 28 year old that works as a fully qualified mechanic get paid $1100 a week before GST pay $470 a week in rent and you are single and have $2800 in your savings? Too bad so sad?

 

[Noeasyday]

Yeah okay but what if you are a 28 year old that works as a fully qualified mechanic get paid $1100 a week before GST pay $470 a week in rent and you are single and have $2800 in your savings? Too bad so sad?

Unfortunately pretty much yes.
It does take a big chunk of upfront cash to get started.
I'm very fortunate to be in a relatively high income job (not that I didn't start at the bottom and work my arse off for it) and have a missus that's good at saving.
It took us a while to save the deposit and our first house purchase ended up being a really good investment that has steadily gone up in value, allowing us to utilise equity to invest further.
My brother was a mechanic, he went to the mines as a FIFO for just over a year to get himself started off.
Where there's a will there's a way.

 

[Wahesh]

I've said for a while that there should be "Foreign Investors Tax" and Stamp Duty should only apply to foreign investors as well. They killed the ability for people to purchase a house in their own city.

Pretty pathetic work by the government.

 

[N4TE]

I've said for a while that there should be "Foreign Investors Tax" and Stamp Duty should only apply to foreign investors as well. They killed the ability for people to purchase a house in their own city.

Pretty pathetic work by the government.

I agree mate 100 percent

 

[Dogzof95]

So we just got a letter in the mail saying yah some fuckwit real estate agent who looks like he is a 22 year old cock head just sold so and so in your street for $2.8 million..

Granted it was a nice house but nowhere near a beach or water views and I love the inner west I do but if I’m almost paying three million for a fucking house I want to at least be able to see water if I stand on a ladder on top of my roof.

Sister in law sold up maybe 18 months ago in a house which she admits was a shithole on the princesshighway in Kogarah Bay but on the main road. New owners came in didn’t do any Reno’s (she found out because still in contact with old neighbour) and sold it 18 months later for $300,000 more….

So what’s the story every house is going to be worth $30 million in a few years????!???????

And how since every fucker lost their job in the last two years are people still paying $1.3 million for a house. What am I missing?

Money laundering!

 

[wendog33]

And the more of the first home buyer grant schemes they come up with,the further the house prices go up with the resultant increased demand. Add investor tax breaks and incentives and bam.

Needs a new way of financing starter homes for young people and securing their future of a roof over their head.

 

[CroydonDog]

Abolish negative gearing on existing properties TBH.

 

[Kung fu man]

My kids went to Canada for two years worked thier asses off but had a ball, came back with a deposit for a house bought for 630,000 12 months ago its now worth 780,000 plus not bad for thier first home.

 

[SPEARTAKVIDREFS]

One of those beach huts on the Mornington Peninsula down in Melbourne sold for I think it was $650,000 just recently. No water and you cant live in it, its basically a small wooden shed.

I feel for any young family trying to buy in Sydney.

 

[Natboy]

It’s just a cycle and artificially inflated for several reasons including record low interest rates.
The market should start to slow as supply rises and demand falls. Personally, I didn’t buy anything in lockdown because I need to see a place and area in person but mainly because the market is inflated. Follow the cycles, buy low sell high.

I do feel sorry for young people looking to get into the market but many also want everything right now without making sacrifices & working their butt off and think they can go from Villawood to Vaucluse overnight.

 

[N4TE]

It’s just a cycle and artificially inflated for several reasons including record low interest rates.
The market should start to slow as supply rises and demand falls. Personally, I didn’t buy anything in lockdown because I need to see a place and area in person but mainly because the market is inflated. Follow the cycles, buy low sell high.

I do feel sorry for young people looking to get into the market but many also want everything right now without making sacrifices & working their butt off and think they can go from Villawood to Vaucluse overnight.

I agree with the last point but now the difference from what our parents experienced to what young people do now is so different. So paying $70,000 was massive in the 60’s but doable if you had a decent job and saved now paying $2.3 million is only for some people.

 

[BELMORE]

I agree with the last point but now the difference from what our parents experienced to what young people do now is so different. So paying $70,000 was massive in the 60’s but doable if you had a decent job and saved now paying $2.3 million is only for some people.

100%. A house in Sydney is only attainable by double income no kid households. With both incomes being above average. You need over 300k combined annual income if you want anything.