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Thread: Inner Sydney market is booming

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    Default Inner Sydney market is booming

    Inner Sydney market is booming, but we're still waiting for top end to kick off
    Sunday, 08 December 2013
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    The demand for properties in inner city Sydney is at an all-time high. Properties are selling at record prices upon first inspection, and the huge influx of investors returning to the inner city property market, means there is a shortage of quality stock available – particularly for properties priced up to $1.2 million.

    Many vendors are holding on tight; refusing to part with investments they bought years ago that are now yielding rental returns as high as $800 per week, on a property they purchased for just $400,000 10 years ago.

    There was a time during the early 2000s that investors shied away from purchasing properties in the inner city. Banks tightening their lending requirements and only financing between 60-80% of property values meant that many investors were cut out of the market and properties under 50 square metres were very hard to finance at all.

    This was a tough period for investing in inner Sydney. Hundreds of new apartments were released to the market each year, but heavy finance restrictions fuelled lots of bad press about investing in city apartments. At the time, many experienced city agents were managing 30-40 listings simultaneously, and the time-frames to sell these apartments would span up to 12 months.

    How times have changed! If anything, the financial crisis has helped the city market by giving buyers the confidence to invest in property again, as opposed to other high risk investments and shares and stocks which can be volatile.




    New developments have been selling out in just hours upon release, and command exuberant prices – including Barangaroo, which completely sold out in hours despite prices starting at $1 million for one-bedroom apartments, and most recently York & George, another inner city development which sold almost 90% of its apartments on the first day of release.

    Self-managed super funds have also gained momentum, buying up investments in the inner city market; yields are so good with the guaranteed reward of long-term capital growth.

    We’ve also seen a growing number of tenants who have chosen to buy into the market so as not to pay the ever increasing rental prices. It’s all part of the shift toward more and more local and international residents embracing our fabulous inner city lifestyle, and just wanting to be in it to enjoy it. It’s no wonder why the city of Sydney is one of the most in demand property markets in the world.

    While it is encouraging to see our once tough inner city market experience such a boom, properties at the higher end of the market are still harder to move. This is particularly true for those who bought off-the-plan for properties priced over $1.8 million in the past four to five years.

    These properties are still averaging 12 months on the market and there is a much smaller pocket of people who can afford to spend $2-$6 million on apartments in the city. The higher end is predominantly owner occupied and over time we look forward to this end of the market picking up.

    As we say goodbye to 2013 we are excited for the year ahead and once again look forward to a buoyant inner city market place.

    Carlie Ziri is the director of*Lifestyle Property Agency.

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    looks like affordability is still the key even in Sydney. The super ex homes are still taking a while to move.

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    And u can only sell to a local not foreigners. So I wonder how investment grade is that
    “Nothing in the world is more dangerous than sincere ignorance and conscientious stupidity.”
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    Quote Originally Posted by minority View Post
    And u can only sell to a local not foreigners. So I wonder how investment grade is that
    Local only reselling is similar to absd. The different is absd is paid in front and fixed, local only reselling is paid in the end and its not fixed.

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    Student visa qualify to buy as a local

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    This the resale market is very limited.
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    A China Chinese van driver who had been living in Sydney for more than 10 yrs told me this. When too many non-angmohs esp China Chinese bought houses within a suburb, local OZs would move out one by one.

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    Quote Originally Posted by minority View Post
    This the resale market is very limited.
    Time value principle is still effective. The longer you hold, the greater the value. At this moment the financing part is very reasonable, thus enable a long term holding.

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    Quote Originally Posted by Wynyard View Post
    A China Chinese van driver who had been living in Sydney for more than 10 yrs told me this. When too many non-angmohs esp China Chinese bought houses within a suburb, local OZs would move out one by one.


    they afraid it turns into CHINA TOWN...

    unfortunately all China towns throughout the world are the same ... DIRTY

    traditionally most original Chinese immigrants to NYC China town were from HK... as the Mainlanders moved to USA east coast ...china town was already 'packed' ... so they bought into Brooklyn.. those Italians who lived there all their lives saw these Chinese coming in wanting to buy their properties and paying in CASH...so happy and sold their houses...

    guess what ... they couldn't afford to find anywhere cheaper except to move further away from Manhanttan..

    problem is .. further east Long Island it becomes more expensive .. as it gets closer to Hampton...

    so these poor Italians end up buying and living in Staten Island ...


    they didn't expect Chinese came in in truck loads ... buying everything up...


    so before their Aussie town turns into a suburb china town ..they better leave ASAP ...

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    Quote Originally Posted by Wynyard View Post
    A China Chinese van driver who had been living in Sydney for more than 10 yrs told me this. When too many non-angmohs esp China Chinese bought houses within a suburb, local OZs would move out one by one.
    Like Meyer road ?

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    Quote Originally Posted by indomie View Post
    Time value principle is still effective. The longer you hold, the greater the value. At this moment the financing part is very reasonable, thus enable a long term holding.
    they going to build a new casino in Barangaroo right...

    bro, what do think of the area like chatswood?

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    Quote Originally Posted by taggy View Post
    they going to build a new casino in Barangaroo right...

    bro, what do think of the area like chatswood?
    Chatswood is popular among asians and well connected by train. I think its a good choice because of the vibrant business activities.

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    Quote Originally Posted by indomie View Post
    Chatswood is popular among asians and well connected by train. I think its a good choice because of the vibrant business activities.
    Its a Chinese enclave. Chatswood.
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    Quote Originally Posted by indomie View Post
    Chatswood is popular among asians and well connected by train. I think its a good choice because of the vibrant business activities.
    thanks bro.
    i understand foreigners can only but new units.
    do they have concept of sub-sale? is sub-sale consider as 2nd hand/established property?

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    Quote Originally Posted by minority View Post
    Its a Chinese enclave. Chatswood.
    not only i see many chinese, but i also see as many koreans in chatswood

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    Quote Originally Posted by taggy View Post
    thanks bro.
    i understand foreigners can only but new units.
    do they have concept of sub-sale? is sub-sale consider as 2nd hand/established property?
    foreigners can only buy first-hand be it completed or new launch. Pretty hard to find any first-hand now below 1m. That said, foreign students can buy in resale mkt due to their visa.

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    Quote Originally Posted by newbie11 View Post
    foreigners can only buy first-hand be it completed or new launch. Pretty hard to find any first-hand now below 1m. That said, foreign students can buy in resale mkt due to their visa.
    so if someone have PR.... should straight away buy 2nd hand property for better price right?

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    Quote Originally Posted by taggy View Post
    so if someone have PR.... should straight away buy 2nd hand property for better price right?
    For a PR u may qualify for a first home grand of 15K if u buy building under construction.

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    Quote Originally Posted by indomie View Post
    For a PR u may qualify for a first home grand of 15K if u buy building under construction.
    i see... thanks for your reply.

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    Quote Originally Posted by indomie View Post
    For a PR u may qualify for a first home grand of 15K if u buy building under construction.
    bro, i m looking at the buc directly above chatswood station: 7 Railway St, Chatswood...
    1 bedrm going for >700k....
    let say rental 500 per week, gross yield = 500*52weeks / 750k = 3.7%

    can briefly share with me the running cost involve? like maintenance fee, utilities, water, tax, agent fee...

    given the higher interest rate in AU... rental confirm cannot cover interest cost right.... do you think worth it?

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    Quote Originally Posted by taggy View Post
    bro, i m looking at the buc directly above chatswood station: 7 Railway St, Chatswood...
    1 bedrm going for >700k....
    let say rental 500 per week, gross yield = 500*52weeks / 750k = 3.7%

    can briefly share with me the running cost involve? like maintenance fee, utilities, water, tax, agent fee...

    given the higher interest rate in AU... rental confirm cannot cover interest cost right.... do you think worth it?
    take note of size as financing could be limited. 1br 500k only?

    council, water, strata fees.

    can take SGD loan or even interest only.

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    Quote Originally Posted by taggy View Post
    bro, i m looking at the buc directly above chatswood station: 7 Railway St, Chatswood...
    1 bedrm going for >700k....
    let say rental 500 per week, gross yield = 500*52weeks / 750k = 3.7%

    can briefly share with me the running cost involve? like maintenance fee, utilities, water, tax, agent fee...

    given the higher interest rate in AU... rental confirm cannot cover interest cost right.... do you think worth it?
    700k with downpayment 30% tenure 30 year and 5% interest = 2600 monthly payment. Maintenance 300 dollar + council 75 dollar. Total = 2,975 dollar a month.

    For a 700k property monthy rental should be at least 700 per week.

    I am looking at least break even in monthly cash flow. If u can get 5% capital gain each year, your 30% downpayment is actually performing very well.

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    Quote Originally Posted by newbie11 View Post
    take note of size as financing could be limited. 1br 500k only?

    council, water, strata fees.

    can take SGD loan or even interest only.
    hi newbie11... 500aud per week, i m referring to the rental rate.

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    Quote Originally Posted by indomie View Post
    700k with downpayment 30% tenure 30 year and 5% interest = 2600 monthly payment. Maintenance 300 dollar + council 75 dollar. Total = 2,975 dollar a month.

    For a 700k property monthy rental should be at least 700 per week.

    I am looking at least break even in monthly cash flow. If u can get 5% capital gain each year, your 30% downpayment is actually performing very well.
    500aud per week, i based on the current asking rental of Regency which is 3min walk to Chatswood station.

    Maintenance 300 aud is not water and electricity? water and electricity is pay by tenant seperately?

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    Carlton student accommodation sells for $160,000, reflects 10.76% yield
    Tuesday, 10 December 2013
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    A one-bedroom apartment in a student accommodation building in Carlton was the weekend’s most affordable auction sale in Melbourne, according to Australian Property Monitors.

    Located at 449/800 Swanston Street, the apartment sold for $160,000 through Barry Plant Brunswick.

    Prior to this sale, it last sold for $237,000 in 2005, according to RP Data records.

    Listing agent Troy Constantine told Property Observer that there were two people present at the auction, and the successful bidder was an investor.

    He revealed that the reserve price was $160,000.

    He added that student accommodation properties were in demand at the moment.

    “I generally sell student accommodation and properties similar to that, and my average days on market is around 25 days,” he said.

    Constantine noted that the property market in Carlton has “pulled back a little bit” in the last fortnight.




    “I think that’s because of supply and demand – more supply than demand, and more choices for buyers to make,” he said.

    According to RP Data records, the unit was listed for sale from Dec 2011 to January this year, at an asking price of $199,000.

    Constantine added that the $160,000 price is “consistent with what’s being sold at the moment”, and that the vendor “needed to sell quickly, that’s why the reserve was set at that range”.

    According to its estimated asking rent of $331 per week, the price reflects a 10.76% rental yield.

    According to the latest RP Data report, the median unit price in Carlton is $270,000, down 6% on last year. The average discount required to sell a unit is 7.1%, while private treaty sales average 86 days on market.*

    The median asking rent for units in Carlton is $370 per week, while gross rental yield currently stands at 7.1%.

    [email protected]

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    Quote Originally Posted by indomie View Post
    Carlton student accommodation sells for $160,000, reflects 10.76% yield
    Tuesday, 10 December 2013
    Home > News

    A one-bedroom apartment in a student accommodation building in Carlton was the weekend’s most affordable auction sale in Melbourne, according to Australian Property Monitors.

    Located at 449/800 Swanston Street, the apartment sold for $160,000 through Barry Plant Brunswick.

    Prior to this sale, it last sold for $237,000 in 2005, according to RP Data records.

    Listing agent Troy Constantine told Property Observer that there were two people present at the auction, and the successful bidder was an investor.

    He revealed that the reserve price was $160,000.

    He added that student accommodation properties were in demand at the moment.

    “I generally sell student accommodation and properties similar to that, and my average days on market is around 25 days,” he said.

    Constantine noted that the property market in Carlton has “pulled back a little bit” in the last fortnight.




    “I think that’s because of supply and demand – more supply than demand, and more choices for buyers to make,” he said.

    According to RP Data records, the unit was listed for sale from Dec 2011 to January this year, at an asking price of $199,000.

    Constantine added that the $160,000 price is “consistent with what’s being sold at the moment”, and that the vendor “needed to sell quickly, that’s why the reserve was set at that range”.

    According to its estimated asking rent of $331 per week, the price reflects a 10.76% rental yield.

    According to the latest RP Data report, the median unit price in Carlton is $270,000, down 6% on last year. The average discount required to sell a unit is 7.1%, while private treaty sales average 86 days on market.*

    The median asking rent for units in Carlton is $370 per week, while gross rental yield currently stands at 7.1%.

    [email protected]
    wow 7% to 10% yield...
    maybe chatswood properties already rose too much

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    Look at Central Park. Latest darling.

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    Quote Originally Posted by newbie11 View Post
    Look at Central Park. Latest darling.
    i go look look liao







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    Aust$ is weakening against other currency. Good time to review this place.

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    Quote Originally Posted by DC33_2008 View Post
    Aust$ is weakening against other currency. Good time to review this place.
    wait until 1 aud = 1 sgd then buy ?

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