Sydney house prices

I think Sydney entire economy is geared for expansion &never ending road &rail work's &that only happens if once we reach whatever its designed for is under capacity once its finished so it has to be upgraded maybe even before its finished &the only way to do that is to increase in size .
I reackon there is now more traffic controllers than teachers &nurses &probably police put together .
Let alone people doing the work .
I reckon if you worked it out more stuff would be excavated than in wa just we cant export dirt .
No way they are going to let that stop .If pushing up the price of housing is the cost were going to get it just like all these road &rail works costs and
It needs more people to keep going its a perpetual motion machine.
They cant stop it .

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barn said..
'I just sold a house to a young family who had to take out a loan of 1million dollars and they'll be in debt to a big bank for the rest of their lives but my retirement is paid for I'm a genius!!!'

Me, me, me, me.......
and me,
and me and me,
.
.
.
and me and me.

Debt fuelled consumption cannot go on forever. The 40 Year experiment is showing cracks in the damn wall.

it's only a matter of When, not If.

But for now, moving our pieces around the Ponzi monopoly board can pay dividends.

But at the expense of the entire economy, which once again will be led into destruction by the chase of property and its economic rent.

Unless of course the last 3 hundred years is different to the foreseeable future.

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barn said..
'I just sold a house to a young family who had to take out a loan of 1million dollars and they'll be in debt to a big bank for the rest of their lives but my retirement is paid for I'm a genius!!!'

Gloating can be a positive attribute.

So on the one hand you carried on about the Chinese brought about the inflated house prices, yet you are benefiting from them. It is the real world. A coin has two sides, innit ?

One of my good mates currently manages a large manufacturing building supplies company in WA. With the downturn his company has been losing money for a while but they love him because he's made the tough calls that have stopped them losing even more.

He's just accepted a large pay rise and is moving to Sydney in a couple of weeks to run the NSW division...

The housing indusrty is peanuts compared ti the road &rail &they keep expanding .
There not going to let it slow down

If it does decline in the need for tradies you will find all the interstate ones will just go home

I think you're mixing up issues here.

It's clearly not stupid to play a market successfully. It is in fact very astute.

It is however selfish if the result of that clever play is that millions of other people who through a lack of opportunity or chance do not have the option to also enter that market and have to live with all the negatives of that severely inflated property market.

The current generation of first home buyers are paying for the greed of previous generations.

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dmitri said..

The tradies will never go out off buissness ...
Need constant repair whatever they built.

My local public pool has been closed for fixing some issues for more than 4 months and it's only 5 years old.

Does it have any warranty ? Note: My own issue with shower base.

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Adriano said..

vosadrian said..

Adriano said..
I think you're mixing up issues here.

It's clearly not stupid to play a market successfully. It is in fact very astute.

It is however selfish if the result of that clever play is that millions of other people who through a lack of opportunity or chance do not have the option to also enter that market and have to live with all the negatives of that severely inflated property market.

The current generation of first home buyers are paying for the greed of previous generations.

You clearly have an issue with the generation who made the rules for buying/investing in property in Sydney. The things is, there are millions of people who are involved in Sydney property because they like to live here as for them it is a great place to live. They don't make the rules but they do have to play by them or go and live somewhere else. Yet you are here calling them selfish for thinking only of themselves. They just wanted to live in Sydney and had the means to do so. Would they have been less selfish if they lived somewhere else or rented?

I think the rules have been a bit silly at times, but that does not change anything. I can vote for a political party that makes the rules less silly, but either way I have to play by the rules that are in place. I could get on a forum and whinge about it and try to make myself look good so I feel better about myself for being the moral compass of the forum, but that will not change anything.

Anyway, I have edited you final sentence:

The current generation of first home buyers are paying for the greed of a small percentage of previous generations who changed the rules to suit them.

You're conflating the subject and the point I was making. Owning one's own house does not in of itself lead to runaway house price increases.

It's only when demand is significant;y increased by developers, investors with multiple properties and foreign buyers that it becomes a problem.

One would think from your approach, the only way to have a decent life in Sydney is invest in a property portfolio.

Not at all... I have an investment property and used to have two. They have had no positive impact on my way of life though they may for some. In my case I had interest only loans for the full value of the properties when purchased. I was putting money in until the rents increased to a level where they covered costs. Any proceeds later are returned to the portfolio. So at first they cost me quite a bit of money and lessened my quality of life. More recently they hold their own. They have made little difference to my residential property and if anything it was negative due to the initial cost. It looks like they will be quite a benefit to me or my kids much later when I cash out. I have never indicated it was in any way necessary to invest in property to have a decent life in Sydney.

My observation is that it is currently very difficult for someone trying to get a property in Sydney. I hope that changes. Plenty of people are living great lives in Sydney and the majority have no property portfolio. I would say the deciding factor is how long you have been in the market. It is always tough to start out, and now may be tougher than ever. But inflation and wage increases and hard work always make things better than when they started.

I took exception to your insinuation that I am selfish and it is all about me, me, me. There are lots like me who are just doing their best for their family and want Australia to be the best that it can be for all who live here. Maybe it is selfish to plan ahead for my family within a system that is rapidly pricing the younger generation out of living in the area they grew up in. We didn't make the rules we just play by the rules someone else made. I could sit there any whinge that my kids won't be able to buy in Sydney in future which does nothing to solve the problem, or I could do something about it within the rules imposed which at least does something for my kids.

Perhaps I am being biased and am using an extreme case to illustrate my point. My point being property investment is being able to manage your own financial future without having to go hat in hand to the government to beg for a pension rise. Sure, I am bias because I do own investment properties. These are in the crap right now in WA. But that is investment for you.

My extreme case? I walked past an old bus which resembles more of a horse float on wheels. In it live two homeless men. I spoke with one of them recently. He told me his mate whom I hardly seen out of the bus was inside betting on horses with his mobile phone. $5 a bet he told me. Not a lot of money, but homeless and betting? Surely the latter is a sure way to give your money away to some rich hombres to build more beach-side mansions.

Property investment is but another investment which unfortunately will have impact on others' affordability. I doubt any of you will knock back on rising share values?

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actiomax said..
It amazes me an architect whinging about house prices going uo .
I guarantee its the first price increase is there fees

In most cases, house prices don't really go up much more than CPI.

Land prices go up.

Learn something everyday.

As for professional fees, well increased land prices only puts pressure on people's ability to pay fees for design and so in real terms fees are going down constantly.

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actiomax said..
In my experience that might equal less jobs for an architects so the price goes up per job for them to compensate .

Nah. Not in the real world.

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actiomax said..
In my experience that might equal less jobs for an architects so the price goes up per job for them to compensate .
If you try to tell me different .
Well you would have to be the exception to the rule then .
Im a builder I know how it works .
Dont play condescending games .
I bet you did less jobs but earned more each year you have being an architect.

Architects were the first to drop their pants and cut their fees chasing each other to the bottom.

They weren't smart

lawyers and accountants on the other hand....

So question here..... My house is a bout 20 years old and the Kitchen and bathrooms are pretty tired and we want to renovate them. It makes sense to me that in a market where builders are less busy due to the market going soft, they will be more competitive on price. This being the case, if the Sydney housing market cools off would that be a good time to consider doing such work. We can live for a few years with it as is, but if I can save 20% by doing it in a year rather than now, I would do that. Of course I may have it all wrong and it may get more expensive as builders try and make the same money out of less work?