there gonna drop very soonDoes anyone know what's going to house prices once they peak? At this rate, will they keep increasing or will the bubble pop?
The only time sydney property prices dropped was due to the GFC. They only dropped 5%.It'll pop eventually. As long as there is demand for housing though, it'll keep going. Demand and supply at its finest
yeah, after having double digit growth for 2 years straight.It's already starting to drop a little
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you have to do a lot of research. you just have to buy 'at the right price' and don't get into a fear of missing out and overpay for the value.If you have saved the money for a deposit on an apartment/house, is it still competitive/difficult to buy a house? e.g. would you be competing against other people who want to buy that house and is the competition fierce
Wrong. Just because people have family or funds overseas doesn't make them foreigners. Even FIRB for off the plan properties aren't even more than 20% of total off the plan sales. After all, 25% of aussie citizens are born overseas. Not exactly hard to have overseas networks. The reason why housing prices have been on the rise recently is mostly because of lowering interest rates and lack of supply. You got cheap credit flooding the market with a demand outstripping supply which naturally causes prices to rise.Majority of houses are being bought by foreigner's as investments so demand is high and supply is demand, houses are competitive.
If you're planning to live in a house for 5,10,15 years or even likely your whole life time and you see that it fits your description in everywhere, why wouldn't you want to pay a bit more for comfortable living - I would not pay 50-100k less just to live in a house with maybe slightly better growth prospects but knowing you'll be renovating it either way some time in the future cause you don't like this or that. Everyone has their own plans in mind with things like family, convenience etc.., it's not as simple as looking at it from a growth prospective, that's what you look for in an investment property instead.you have to do a lot of research. you just have to buy 'at the right price' and don't get into a fear of missing out and overpay for the value.
A lot of people lost or haven't made any capital gains because they paid above market price at the time.
The biggest mistake people make when buying a house is an emotional attachment. A lot of people think that 'oh doesn't matter about the price coz i live in it'. That's a dumb way to look at it. A house is an asset whether you like it or not and why would you not live in an asset that would be growing?
People are stupid at looking at only off the plan pricing. There's two bedders selling for 800k+ off the plan in western suburbs, when you can get a better place in the north shore for the same price.
London is even worst
http://www.theguardian.com/business...s-need-to-earn-77000-a-year-to-live-in-london
77k pounds a year, which is roughly 150k aud per year.
There's major implications when buying in an area that isn't growing. For one you're putting money into essentially a depreciating asset. Secondly, its much much harder to get an equity loan.If you're planning to live in a house for 5,10,15 years or even likely your whole life time and you see that it fits your description in everywhere, why wouldn't you want to pay a bit more for comfortable living - I would not pay 50-100k less just to live in a house with maybe slightly better growth prospects but knowing you'll be renovating it either way some time in the future cause you don't like this or that. Everyone has their own plans in mind with things like family, convenience etc.., it's not as simple as looking at it from a growth prospective, that's what you look for in an investment property instead.
And so what? I find it funny the Chinese are being singled out when most australians have families overseas. How many friends are willing to give their mate or family member money to invest in housing where they have 0 legal title and claim. There is quite a few purchases by new citizens/PRs who have parents from overseas who are buying property for their children. How is that any different than an aussie family whose doing the exact same thing? in fact it's BETTER for Australia since there's more capital inflows to the country.a lot of these are bought through a subsidiary, family here etc.. so whilst stats say they aren't bought by them, they actually are