Property is a very popular topic of conversation. Certainly, everyone has a view on it, loves to talk about it and has an interest in it. There's a common thread in conversations about the "Sydney Property Bubble". I often wonder, "What bubble?"
You see, I don't believe there is a bubble in the Sydney property market. There are some areas that are over-supplied, but in areas such as the Inner West, Eastern Suburbs, Lower North Shore etc, demand will always be strong, lifting property prices.
Fueling this view of a bubble, people also complain about housing affordability. However, the alternate view is that with interest rates at record lows, housing is actually the most affordable it's been for a long time. While housing may be more expensive today (and isn't everything?), property is actually more affordable - hence the demand for it and the subsequent higher prices.
Waiting for the bubble to burst has delayed many people's purchases. They believe they're better off siting back and waiting for the market to ?? lose steam, ?? prices to drop .... I am not sure! People I spoke with in early 2015 were not going to buy just then, because 2016 was going to see prices drop, for sure. Well, they certainly haven't, and now those same people have been priced out of the market they had initially expressed interest in and will need to search further out.
What advice would I give to someone who wanted to buy?
- Ignore the hype about the bubble. There is no bubble. This is the Sydney market. We have always led Australia - because we live in an amazing City and most people agree that it is amazing - so many people want to live here and this demand drives up prices. It has in the past, it is at the moment, and it shall in the future as well.
- Buy in Sydney. Look at past record growth and compare it with other areas you may be considering. Know that past performance is a great predictor of future performance. Sydney has always out-performed other Capital cities. If you're investing - invest where it is safe (ie, where you're getting a good return on your investment - now and into the future).
- Buy now while finance is cheaper. It will save you a lot on your loan interest.
- Do not over-extend yourself. Understand that the low interest rates we currently have will not last - so be sure that you can afford your repayments.
- Buy a great property. What is great today - one with strong demand - will likely be great tomorrow - meaning if you want to sell in the future, there'll be a strong market of keen buyers for your property. Don't buy a cheap home just because it's available. If it's cheap, there's probably a reason.
If you would like a confidential discussion about purchasing your next home or investment, please do not hesitate to make contact.