Hmmmm....based on your handle.....you are 26 years old correct?
Next question...how many down turns in the Sydney market have you seen play out?
In relation to the posts:
1. Really....you are listening to brokers about banks and APRA...lets say that I have senior level contacts within the banks and they are concerned about a contagion and asset quality....you will see this play it initially in the Big 4 and associated entities (i.e. BW, BoM, BoSA, STG) and then move down to the smaller lenders.
2. Never said the market will stop now. But ask the question....the market is based on psychology...what will happen when the news papers report someone paid 800k for a 2brm apartment based on a IR of 4.5% with a settlement date of say 2017-2018. Repayments on 4.5% will be 40k pa...repayments on 7.5% will be 65k....and then god forbid always what happens if the valuation comes in at 650k for the apartment?? Bankruptcy?...a few stories like this will panic the natives.
3. Yep....lambs to a slaughter....they have no idea of the Australian market fundamentals. Happened with the Japanese in the 80s...sadly looks like it will happen again. The party never goes for ever. The NW is severely over valued...look at what happened to Kellyville in the 2004-2007 down turn.
4. Yes some regions of NSW are okay just now Sydney. Newcastle is ok..so is places like Albury...Wagga Wagga...etc.
5. Pay attention to share market...some opportunities opening up....
Hi Sash,
I agree that you are spot on for point 5. I bought into the Brisbane RE market early this year. I am deciding whether to do the same again or invest what I can into the share market. I think the share market is due for an upswing considering it is still way down from it's peak of late 2007. I think once we have a series of good economic news then away it will go.