Would you buy a house now in Sydney?

mandrake04

Tigerandahalf wrote: »

Reading the comments on that article is interesting. Some say it is only a matter of time. Others saying we heard this 5 years ago.
One guy's comment makes sense when he says it will all continue on as long as peole are in employment and interest rates don't go up.
Already there are signs that unemployment is creeping up and how much employment in Sydney must be based on construction and services around it.
If the Chinese sense an oz dollar collapse there would be a flood of property on the market.

Also factor in the supply, there's about 13,000 new apartments due to be completed in inner Sydney around the same time around Christmas this will soften rental market in those areas and prices in the unit market. Same if there is an over supply will drive prices down.

I definitely can see some faltering in some markets in the medium to near future

mandrake04

Tigerandahalf wrote: »

That is a crazy income/mortgage ratio. It wasn't that bad in pre bust Ireland.
Edit: it does say price/ratio.
What deposit is required to buy a house and is there an income/loan limit?

So the average house price has increased nearly 13 times its then price while the average wage has increased just under 4 times.

You need 20% deposit to avoid mortgage insurance otherwise 10%. You can borrow up 3.5 your household income.

Also a lot of people already own property outright, I think Australians tend to have smaller families and more properties. Baby boomers downsizing from large houses to a few smaller houses/units living in one renting the other one out to fund retirement.

Mellor

Goat Paddock wrote: »

Yes but over 400 apartments? Surely they should have built 399 or 500 to avoid the nr 4?

mandrake04 wrote: »

You need 20% deposit to avoid mortgage insurance otherwise 10%. You can borrow up 3.5 your household income.

Some lenders are going below 10% now.
95% mortgages possible, with various additional conditions

catbear

There were hopes the 12 square metre fingernail of land would fetch $50,000, which not that long ago would have elicited guffaws from incredulous residents. By the time bidding stopped, however, the former lucky owner had collected a cool $120,000.

That's not the record either. A couple of weeks back, a Potts Point car space fetched $260,000.

.......... but that didn't help our banks in 2008. The laughable myth in the aftermath of the financial crisis was that Australian banks sailed through the storm in tip top shape. Nothing could be further from the truth.

When the crunch came, they couldn't refinance their huge offshore debts. And it was the Rudd government that rode to the rescue, extending the nation's AAA credit rating that allowed them to limp through.

http://www.abc.net.au/news/2015-06-15/verrender--a-ponzi-scheme-that-could-ruin-us/6545316

ceekay74

Tigerandahalf wrote: »

Very possible. I wonder how many parents have remortgaged the house to help out the kids and maybe go on that holiday the neighbours went on.
I wouldn't like to have a lot of savings in oz money or waiting on a pension lump sum/retirement package in the next 5 years.

http://mobile.news.com.au/finance/real-estate/will-housing-bubble-pop-in-2017/story-fndban6l-1227365483287

F**cking hell. Have a read of the comments sections after the article. Sounds exactly like Irish people about 8 years ago. Unbelieveable!

catbear

'The influence of immigrants on the Irish house market cannot be underestimated. We are taking in about 60,000 immigrants each year, who will go on the rental ladder, then get the "Irish bug" and buy. It takes two years for non-nationals to get approval for a mortgage. More and more, this is an important element in the city market."
http://www.irishtimes.com/life-and-style/homes-and-property/2007-the-property-pundits-predict-1.1035209
December 2007, Irish Times opinion pieces about the future of the Irish property. Does any of resonate with Sydney-siders?