Sydney – Where is it in the cycle?

[ncMember@ncJoin Date: 2007Post Count: 1]

July 29, 2007 - 11:20 am

Hi,
At the moment, I do not own any investment properties but am looking into buying one next year (trying to build up my knowledge first)
I can appreciate that actually buying property will aid my education immensely.

One thing that i cannot ascertain is, where is Sydney in the property cycle?

This has confused me quite alot..
There is alot of talk about how house affordability in Sydney is very bad. (Presumably because of high prices)
However, there is also talk that Sydney is in the lower area of the cycle (where prices are set to rise soon)

To me this would mean that prices are going to rise in the future which will make housing affordability even worse!

Is this the general idea?
Or have i missed something?
Salary's low? They will rise and help the affordability problem?

Please correct me if anything ive written above is inaccurate or just plain wrong

Thanks!!
Nathan C

[DraconisVParticipant@draconisvJoin Date: 2006Post Count: 319]

July 29, 2007 - 12:26 pm

Maybe you should check out this current thread, it is relevant to your post.
https://www.propertyinvesting.com/forums/property-investing/general-property/4321476

Regards,
Christopher Fife.

[Simon CParticipant@simon-cJoin Date: 2004Post Count: 52]

July 30, 2007 - 1:23 am

Hi Nathan

I am an ex-Sydney sider havinf relocated to Bribane at the start of 2007. Still own property there, and keep a constant eye on the markert.

I beleive the overall maket is showing signs of recovery, but is at the early stages. Some data is suggesting the action clearance rate has risen slightly and the average time a property is on the market for a private treaty sale is reduicing, allbeit, only slighlty. To me this said there is fair value in the market for investors to acquire IP's, but you still need to research the areas

Affordablility does tend to make me laugh. Most people stating this are simply not prepared to live in certain areas. The medium price across Sydney may still be 500k, there are plenty of house to buy well under that if you look and you are a first home buyer. You have to start somewhere, and I think the tendancy for most youget people is the want the 40s square home as their first home, so claim Sydney is too expensive and move to Perth or Brisbane.

I think Sydney will always be the yardstick on the property market and be the one to watch in regard to overall trends. There are pockets that are going off, and the area areas that are still reducing if vendors are listing at unrealsitic prices. That is fact if you look around and talk to agents and other investors.

Cheers
Simon