Most Sydney property investors ask this question: Will property prices go up and, if so, by how much?
A recent article by Caroline James at realestate.com.au notes that Sydney, compared to other capital cities, has been the star performer over the past five years. But will it continue to do so?
I also noticed a particularly surprising outlook for Canberra.
Phil McCarroll writes a piece for the website Your Investment Property where he talks about the tightened state of Sydney’s rental market. For the month of March, the vacancy rate has remained where it was in February. The Real Estate Institute of New South Wales’ (REINSW) Vacancy Rate Survey put the rate at 1.7% for March.
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There is a feeling among many that the flurry with which Australian baby boomers are going to retire will create a big demographic shift and lead to the collapse of its real estate. Baby boomers have been equated with the elephant in the property market room. There have been widespread discussions about what may happen when this group sells properties in bulk.
Given that there are 5.3 million baby boomers expected to retire in the next 15 years, this should be a sure cause for worry. So, is it? Let’s find out. I will also tell you about that one particular lifestyle choice of the baby boomers which hasn’t gotten any press and remains a secret. Read along.
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If you think we are done with the ancient transaction method called Barter, just take a look at what’s happening in Perth. Perthites are swapping beer for goods and services. Facebook’s Perth’s Beer Economy page has 56,000 members and counting. They encourage more and more people to barter beer for goods and services.
Over the last few years, Australia’s economic growth hasn’t been anything that’s worth talking about. Australian housing market, however, has made many investors very happy. A year to end-Quarter 3 2015 analysis reveals that house prices shot up by 11.4% across the eight chief capital cities of Australia. This ‘nominal’ rise can be seen as a 9.72% ‘real’ or inflation-adjusted rise.
This year to year increase, says the Australian Bureau of Statistics, (ABS) is the highest recorded since the second quarter of 2010. All, however, may not be good with Sydney real estate in particular and the Australian housing market in general. Let us dissect the residential property market and also find out that one major threat which may especially push Sydney further down a number of steps.
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Each property cycle has certain typical characteristics. While there are a few aspects which do not change, there is bound to be a factor Y that is unique to each property cycle. Each cycle goes through a peak and a trough phase, a downturn and a recovery phase but where one cycle may be marked by excess liquidity (its unique factor), another may be peppered with lack of consumer confidence.
Without delving deeply into what separates one property cycle from another in general, let us focus on the major differences between the present and the last property cycle. I am sure some of them will surprise you and one such difference in particular may change the way you look at the coming property cycles.
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Has the Sydney property market run its course? Are we nearing a property bust? For some time now, the doomsayers have been warning of a bust at the top of their voices. They feel that the property market in the Harbour City does not have anything more to offer. Prices are at their peak value and the Sydney property bubble may burst any time now. There is a saying that goes, “intelligence is full of doubts and fools are always cocksure”. When it comes to real estate, it is good to travel the middle path. So, without sounding either too sure or too doubtful, let me dissect the idea of the impending property boom.
I am about to share a few pointers that I think are crucial to understanding the present property market scene in Sydney and I will also ponder over that one special aspect which can be the single biggest determining factor.
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While there are definitely a few stand-out property investment options, many properties do not quite make the cut. At best, they return poor profits when resold and at worst, you just run up losses on them. What do you think differentiates a good property from a bad one? To answer the question, “where to buy investment property?”, we should work towards finding the sweet spot of the real estate market.
It is true that each market can have its peculiar characteristics and may present a different dynamic but it is also true that as they’re lying within the same growth cycle, most of their characteristics remain the same. So if you have a great idea for locating the sweet spot of the Sydney market, it is likely to work (with certain deviations) for Melbourne, too.
Let us then search what makes for a property sweet spot and how we can figure it out. Don’t we all want higher ROI? There is also that one special characteristic of a great investment suburb you will so want to know. Read along!
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In an article for the website Property Update, Kevin Turner talks about the real estate market of Sydney and advises investors not to panic in the wake of falling property prices. It has not dawned on us any recently that Christmas brings with it a lot of property adventure.
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Sydney At Risk Of ‘Housing Bubble,’ Says Report
The Property Observer featured a recent report from UBS Wealth Management, stating that Sydney is at the risk of a “housing bubble.”
“Housing bubble risk zones” are cities in which property prices within that zone have increased by 50 per cent on average since 2011. There’s been a risk of the bubble popping since the 1970s because of the real estate boom in Australia, and it continues to overheat to this day.
What could be the possible scenarios for Sydney?
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