Sydney prices back to hypergrowth or is it a bubble?

Sydney’s property market recovery accelerated over the June quarter, with Domain’s latest house price report finding the city’s house values gained $77,000 (5.3%) in just three months. 

 

That’s four times faster than the March quarter and is the steepest quarterly gain since late 2021.

 

Taking the two consecutive quarters of growth together, Sydney house prices have now recouped $97,000 of the $151,000 value they lost during the recent downturn. 

Where to next? 

This is a link to a poll 

This is a link to a poll 

𝗜𝘀 𝗶𝘁 𝗯𝗲𝘁𝘁𝗲𝗿 𝘁𝗼 𝗯𝘂𝘆 𝗮𝗻 𝗼𝘄𝗻𝗲𝗿 𝗼𝗰𝗰𝘂𝗽𝗶𝗲𝗿 𝗼𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗽𝗿𝗼𝗽𝗲𝗿𝘁𝘆 𝗳𝗶𝗿𝘀𝘁?

I have been asked this so many times - 

Buy to Invest or Buy to Livein ?

My answer? 

Both options are good and it depends on your circumstances , what you can afford, goals , view of the property market on 20 years and propensity to take risk !

When we decided to enter the property market , we could only afford to buy a 1 bedder, but wanted to live in a house! 

My wife wanted to buy

• a home for emotional reasons . a place to call her own, pride of ownership
• a home to create cherished memories. 
• a place that she could not be asked to leave - a feeling of security
• Pay the home off as quickly as possible 
• Financial predictability (although interest rate hikes have been a killer of late!)
• Freedom to renovate

I wanted 

• To live in a property we couldn’t afford to buy 
• A property that would grow in value 
• A property that we could afford to buy
• Flexibility (renters are free to move and are exempt from home maintenance)
• A property that we can rent out and get negative gearing 
• A property in an area that has maximum growth potential 
• A property that if we had to sell - there would not be emotional heartache 
• A property that we could gear to the max (best to grow wealth is to leverage)

We decided to buy an investment property 35 years ago . And over the years - instead of paying off the loans - we have acquired a portfolio of properties - all geared -  and still rent !! 

The retirement strategy - sell a few to pay off the mortgages and live off the rents of investment properties!  

Is this the right strategy ? 

Not sure - but it was a plan - we made a decision and we took action ! 

This strategy has enabled us to buy our own home if we so desired (however, we are happy where we live) 

Are we financially better off with buying investment properties ? 

I think so :) 

Both strategies need the following priorities 

•  location, 
• amenities,
• proximity to schools and workplaces, 
• potential for capital growth and 
• market demand.

If you are looking to enter the property market these are the 5 things you need to do

• do your research, 
• evaluate your options, 
• assess your goals and create a plan
• seek expert advice, and 
• make an informed decision and take action!!!

Buying your home is an exciting adventure and  it’s potentially the most expensive and potentially valuable decision that you will make! 

I would be delighted to sit with you and help you model a few scenarios - and of course help you find the right loan !

  Ask me  a question . I am  here to help

#property #realestate #investment 

#buyersfirst #10x 

Is inflation a bad thing - surely growth is good???

Picture and interesting article in afr

The stunning turnaround in house prices hides some worrying issues in the housing sector and the broader economy says James Thomson of afr

Property has increase 3pc since February

Does this mean the economy is in a healthy position?

Immigration

• Lack of stock 
• Higher interest rates and serviceability and
• house prices have locked buyers out of the market 
• Building approvals at there lowest 
• Building company’s are collapsing - higher prices - can’t honour fixed price contracts
• Banks are conserving cash for uptick in bad debts

James Thomson  is saying that property prices is not reflection of the economy - which seems to be struggling - but a result of Immigration led demand,  low listings and Ltd supply of new stock ……

And yet 

• employment seems at an all time low, 
• travel agents have never been so busy and 
• people seem to be partying big time . 

Isn’t this a good thing??

Is inflation so bad?

Inflation is not seeming to stop the spend !l- so government is increasing interest rates to try and stop the spend !!!

Is inflation such a bad thing? Is it not just a reflection of growth? 

Not sure why the government is trying to stop inflation and growth? 

What do you 💭 🤔 think?

Is the Australian Residential real estate market set to fly higher again ?

Signs that banks will soften lending standards and a return of China-based buyers are combining to push property prices higher again.

James Kirby of the Australian  7:41pm May 22, 2023

• banks loosen lending rules
• China buyers return
• Tight rental vacancy rates

In my view, this bodes well for increases in Australian property prices over the next 10 years 

The question to ask is

• what to buy?
• Where to buy ?
• what it will cost ?
• What are the projections ?
• Do you buy 1pm of 100 properties ?
• Do you buy an investment property ?
• Do you buy your own home?

If you believe property prices will increase 2pc per annum or by 10pc in the next 5 years…. You should look at buying an investment property.

REA Group Senior Economist Eleanor Creagh says selling conditions have “picked up this year” amid stronger housing demand and four consecutive months of home price increases. Auction activity is relatively strong with around 2000 properties going to auction per week with clearance rates at a 15-month high of 75.3 per cent

National Australia Bank’s Market Research desk reports this week that “property prices continue to rise with some degree of acceleration

The latest CoreLogic figures for the residential market show that Sydney residential prices are now up 4.8 per cent since the beginning of February 

Over the next 6 months, we will be hosting a series of property companies, builders and developers to share there opportunities with you. 

Let me know if you would be open to being invited to these forums! 

Have a great weekend !

Australia to 2030 - an exciting place to be! (In my view!!!)

• Have Interest rates peaked?
• Is Property on the March upwards?
• Is Australia heading into a Purple 7 year patch? 

Some indicators of the Australian economy from Ark Total Wealth’s Chris Magnus 

Trade 

Aussie Exports may have a windfall - with China easing restrictions on Aussie exports -  Coal, Barley, Wine and Timber - Particularly as most of them have found other strong markets over the last few years, exporting to India, Japan, South Korea instead, so any extra exports to China will be just a bonus. 

Job Market 

Currently at an all time low … less than 4% 

Property Market 

Fewer people are selling - immigration growing - pressure on rents dues to  lack of property supply … indicating property prices will increase with inflation 

Superannuation pot 

 Continuing to grow - with SGC rising to 11% 

Share market 

Global shares - hitting a peak of 4,818 in aug 2021 before dropping down to 3,636 at the lows. It has then since recovered back to 4,151 today. 

Asx200 - hittkng a peak of 7,632 dropping to a low of 6,407 recovering to 7,345 today.

Where to from here ? Up or down ?

Taking care of our planet and people 

Corporates and Government listening to our Children -  becoming more Focussing on Climate change - diversity equity and inclusion - and being human - seems not only to be the right thing to do but the smart thing to do 

Chris Magnus’s gem 

Increase your income, spend less, save more and invest the difference to build your future wealth. 

Here is Chris Magnus’s  article 

https://mailchi.mp/arktotalwealth/financial-planning-update-april-23?e=cf6b747540

Where to from here ? 

Are you well placed to take advantage of the potential opportunities that Australia has to offer over the next 10 years? 

If you want a referral to Chris and his team - for an obligation free chat let me know 

Good time to buy, sell or hold property in Oz?

Contact me for a free chat about property and finance 

Is this the right Time to invest in Property?

Click link to vote 

Tell us what you think!!!

Will property increase of decrease in next 5 years ? 

James Kirby of the suggests  that Property Prices are on the rise !

Property prices have been rising in March! 

Foreign  investors are coming into the market 

And yet Australians are highly geared into property!!

Mortgage stress seems to be minimal with households being able to pay their commitments even at higher mortgage rates 

However - The RBA estimates that about 16 per cent of owner-occupier mortgage holders in Australia are unable to refinance just now because they do not meet the current serviceability rules. That is, they may have fixed a mortgage at, say, 3 per cent, and now find they must pay a variable of 6 per cent (which would be “assessed” at 9 per cent if they tried to change banks). This segment is stymied financially but there is little to suggest they will push prices much lower.

Rents are rising up to 30pc per annum !!

There have been the biggest flow of migrants - where are they going to live? 

The weeks jobless rate is less than 3.5%

Here is article