Best Time to Purchase Property

crazyboy on 06/06/2023 - 20:03

We are a family of 3, myself, wife and our 2 year old. We are looking to purchase a unit in the Sydney's upper north shore or nearby areas. Budget is $700k to $800k. I am looking at 2 bedroom or 2 bedroom plus study. I have loan pre approval ready. Is it a good time to buy a unit? I am a first home buyer. Any specific suburbs you can recommend?

I have started looking at properties and I can see a difference is prices up to $50k - $100k for similar properties. Do you guys recommend brand new builds, builds in last 5 years or older builds? How do I ensure the build quality of the units? Any reputed builders to look out for who have developed these properties? Strata is mostly $1k per quarter for standard units and for higher floors its approx $2k per quarter.

Any other tips on buying would be appreciated?

Financial

Comments

      • jeeg on 08/06/2023 - 18:23

        Thanks bro. My mate mentioned a brand name but that escaped me. What do you call (brand name) these copper lined plastic water pipes?

    • rumblytangara on 08/06/2023 - 18:41

      these days most sparkies just embed the wirings directly within the wall and then plaster over them;

      What? Pretty sure that would be against building codes in practically all first world nations.

      • jeeg on 08/06/2023 - 19:56

        That's what i thought too but actually it wasnt against building codes. I was shown this particular diagram from apparently the Australia Standards wiring codes - the diagram shows cables that are embedded directly in plaster - so apparently it is allowed! Still I think it is a poor way of running cables in the house - the wirings becomes no longer serviceable.

  • Unacceptable on 08/06/2023 - 07:02

    https://www.news.com.au/finance/real-estate/sydney-nsw/sydne…
    Op I wouldn’t consider buying a unit whatsoever.

    • ForkSnorter on 08/06/2023 - 07:38
      -1

      I don't know why anyone would cough up $620k for a one-bed apartment, unless it was right on Bondi beach or something.

      • Brianqpr on 08/06/2023 - 07:52

        I've lived right on Bondi Beach. Trust me it isn't all that. Too many hoons in the evenings and the area itself just isn't that nice.

        • ForkSnorter on 08/06/2023 - 07:55

          the area itself just isn't that nice.

          I guess it depends what you're comparing it to.

    • stjep on 08/06/2023 - 17:07

      Wouldn't she also have to pay levy when buying a house?

  • drfuzzy on 08/06/2023 - 07:05
    +1

    Do not wait to buy a property. If you can afford, buy it now.

    My friend inherited 150k in 2008 and could afford to buy a very nice place. Instead he believed the housing market would crash and banked it waiting for lower prices.
    Fast forward to 2023 and he is renting in Canada and home ownership is out of his reach.

    I bought my first in 2005 and continued buying. I would still be buying if I could borrow more money.

    • ForkSnorter on 08/06/2023 - 07:54
      +4

      I had $0 savings and $0 income and close to zero employment history in 2008. Now I own my own house with zero debt. Absolutely do not plan to buy an investment property, because I wouldn't want the hassle of looking after it, worrying about it or even thinking about it, and I think it's unfair to put more pressure on the housing market. All my future income will go into improving my own house.

      • ReaperX22 on 08/06/2023 - 09:19
        +4

        I like this approach. I know that investments can be lucrative for people.. But putting people/families homes out of reach just to grab your 3rd or 4th investment property is scummy.. Affordable housing for all plz.

  • IMadeYouReadThis on 08/06/2023 - 07:45
    +3

    If I were you and renting, I would probably pull a trigger and buy it now. From July onwards, you'd be competing with people who don't need to pay Stamp Duty which may increase demand and prices of units are unlikely to fall much given they didn't increase crazily during Covid like house prices did.

    Just do you due diligence, check strata report and make sure there is a decent capital fund etc for any unexpected costs in the near future. All the best!

    • Weezle on 08/06/2023 - 08:55

      Username checks out

  • Brianqpr on 08/06/2023 - 07:53

    Usually the answer is as soon as you can. Trying to time the market may see you left behind.

  • capslock janitor on 08/06/2023 - 09:16

    it might not be your forever-home lets put it that way

  • thaihoangaus on 08/06/2023 - 09:27
    -1

    Sydney woman shell-shocked by $60k bill for Alexandria apartment
    This is why I avoided buying apartment

    • stjep on 08/06/2023 - 17:11

      Are those levies not paid on houses as well? That's hardly an argument to not buy a unit.

  • Hangryuman on 08/06/2023 - 09:48
    +14

    'Do you guys recommend brand new builds, builds in last 5 years or older builds? How do I ensure the build quality of the units?'

    I've lived in about 26 different types of housing, and also worked as a real estate salesman for a year where I learned a lot.

    We live in an inner-Sydney unit in a 40yo Meriton 4-storey walkup in a great walkable location on top of a rise so it has no damp problems.

    I've also been on the strata committee for over 25 years where I have kept a close eye on avoiding unnecessary expenditure on things profit-seeking individuals will 'strongly suggest'

    another nearby similar complex I know about spent over a $$$ Million more last year that we did - on stuff I wouldn't have approved - AFAIK because that committee is comprised of people who don't pay attention and simply say OK to suggested works with 'you're the professional'

    one thing I'd look for - shrinkingly available in new high-rise blocks - is cross-ventilation. Windows at both sides - so natural air movement can keep the air fresh and remove smells and prevent mould.

    Aspect - seek north-facing living and south-facing sleeping, and avoid west-facing glass as too hot in summer afternoons, and try to avoid east-facing bedrooms if you don't want blinding sunlight to wake you at something like 5am on summer mornings.

    Noise - avoid busy roads - may be cheaper to buy, but traffic noise (trucks after midnight!) will only get worse over time as traffic increases and they widen roads - quieter locations increase in value relative to noisy ones over time so are worth the difference.

    I'd do a personal strata search - pay something like $30 to book a 30-minute appointment with the strata manager, and visit there to sit down with the strata records for 30 minutes and do a quick scan of the expenses and meeting minutes to get a sense of how well it's managed and maintained. Paying someone else to do that won't give you the same depth of knowledge.

    Location - assume anything other than absolute waterfront is going to have a bigger lump thrown up in front of it blocking your view or sunlight in the foreseeable, so consider sites with that in mind.

    Anything near a train station will be premium priced simply because it's always worth more for the time-saving in commuting. Anything more than 400m walk most people are going to drive so consider that. And AFAIK North Shore is all about people driving expensive cars in heavy traffic to get to the local shops. Walkability is a premium - and North Sydney steep hills are a pretty significant deterrent to walking, unless you're a fitness enthusiast which other residents won't be.

    Try to avoid lifts - as when they need repairs or replacement, costs tend to start at a $MILLION each, and that's special levy time, which every unit owner tends to hate.

    • xxau on 08/06/2023 - 10:40

      any idea how far you need to be away from the busy road to minimise traffic noise?

      • ForkSnorter on 08/06/2023 - 15:57
        +3

        Depends on a few factors.

        1. Is there direct line of sight to the busy road? If yes, then that noise will carry a long way, and may be clearly audible hundreds of metres away. If there are buildings/trees/hills in the way, they will significantly mitigate or even block the noise.

        2. Is it road noise (produced by tyres on the road at high speed), or is it engine noise (emitted from engines as cars accelerate from zero)?

        Road noise becomes a background hum that you don't notice after a while, especially if coming from multiple roads.

        But people who get excited accelerating their loud car engine will create noises that can pierce through the thickest double-glazed windows, even from hundreds of metres away. Again, it depends if there are buildings/trees/hills in the way, which can block most of the noise.

      • Hangryuman on 09/06/2023 - 09:51

        I grew up in the country – where a farmhouse 100m back from the road would still be constantly disturbed by the sound of hotted-up V8 farmer’s son utes or a neighbour’s chain saw trimming a few trees, from a kilometre away.

        Now walking distance from Sydney Town Hall, we are on the crest of a rise between two major inner Sydney roads - 135m one way, 155m the other way - and we don't hear that traffic - unless it's the silence broken after midnight by maybe a Lamborghese wanting to impress people he doesn't like with how much he spent on his new toy - WAAAAH !!!

        fortunately, since we moved here over 30 years ago they closed off our block on two sides with cul-de-sacs so there is no through traffic in front of our unit

        during weekday working hours we hear traffic noise of delivery trucks or tradies and such pulling up outside to service units here or opposite - as expected during working hours

        at night or weekends it can be dead quiet - like 30dB on my smartphone noise meter app - that's quieter than in the middle of the outback with a wind blowing

        the main disruption is inconsiderate groups at the cafe nearby wanting attention by laughing loudly, and occasional jump crash noises from skateboarders who are usually respectful and move on - unless they want to act tough and argue - until they're told police are on their way.

  • Drakesy on 08/06/2023 - 12:09
    +3

    Australia's had a decade of financial mismanagement (THANKS SCOMO N CO) and now we're in the position where house prices are high - as they're an investment vehicle. Supply is cooked - due to government handouts ramping up construction on an industry that couldn't cope. To top it all off those that are the richest generation have already paid off their mortgages and now have the liquidity to screw over those that are struggling to even get a deposit together.

    But that's ok, because we're giving you an exemption on your LMI if you have a 5% deposit until you're in a negative equity position and are trapped. Anything to prop up the housing market!

    HOORAY!

  • mitt on 08/06/2023 - 12:31

    I am about to pay off my first townhouse & will immediately be building up a deposit to buy a house. I aim for about 6 months away at the earliest to be ready. I am hoping the interest rates spike hard enough to really push up the forced sales of people that over-leveraged. I fully intend to profit off someone elses broken dreams.

    Go RBA go!

  • OzzyOzbourne on 08/06/2023 - 15:39

    Quality /= units
    Quality /= new builds
    Reputable /= builders
    Buy any time, prices will keep going up as the ponzi scheme is too big to fail so government will keep stimulating it…high immigration, low building, tax incentives, foreign purchases, lax lending rules and if all that fails, which it won't, hand out cash

  • FlyingMiffy on 08/06/2023 - 16:47

    Anything with strata will have problems, and it strips control and decision rights in some capacity from the owners. That said, my first property was an apartment and it was great for my circumstances then. With a growing family though, might be better to look for a townhouse. Picking the market is a waste of time, better to look at it as a longer term asset.

  • Weezle on 08/06/2023 - 18:31

    There is no best time.

    Buy when you are ready.

  • bmxr on 08/06/2023 - 19:52

    Won't comment on when to buy as that's up to you. However, worth considering that as the weeks and months pass, a number of prospective buyers with pre-approvals are reconsidering their positions with the recent rate hikes (yes most pre-approvals consider higher rates, but some of the purchases are reconsidering even with pre-approval)

    Location though, Hornsby or surrounds like Waitara, Asquith, Hornsby Heights.

    Things that will help your place hold/gain value: Two train lines, (future Faster Rail location), good bus services, TAFE, aquatic centre, Hornsby Park (new 60ha park next to the Town Centre), access to great public schools (and private if that's your thing), hospital, Westfield, eat street, surrounded by national parks.. and a Council led master plan to significantly increase amenity and vibrancy in the Town Centre in the very near future.

  • Yaren24 on 08/06/2023 - 22:10
    +1

    I wonder how average household incomes family afford houses?

    • Venustrap87 on 09/06/2023 - 08:05

      Save up in the beginning for the deposit not that hard. Was on 50k when I bought my first IP, slugging it hard for years and finally paid off

  • RADICALIST on 09/06/2023 - 00:25

    700-800k can get you a decent house and good size block in Adelaide

  • HenryGalilei on 09/06/2023 - 20:09

    There is a 2 bed 1 bath 1 car park apartment in the heart of Bankstown central for $600k, or a 2 bed 2 bath 1 car park for around 800k at wolli creek if you are interested

  • cupcake on 14/06/2023 - 15:16

    I am sure you have heard of the horror stories of the Opal Towers in Sydney Olympic Park and Mascot Towers at Mascot. Just look it up.
    Very difficult to see the quality of the builds if you buy off the plan so be sure to inspect everything if you can physically view the unit.
    You must do your research and make sure you pay for building and pest inspections.
    You should also ask your strata manager how much is in the sinking fund to cover repairs of older dwellings.

    https://www.smh.com.au/property/news/don-t-buy-lemons-any-mo…

    I would try and buy from a quality builder, well known, and not your local Lebanese developer lol My real estate agent told me to steer clear of newish developers and only buy from Aussie builders.
    I quite like Mirvac, Meriton, etc.

  • crazyboy on 14/06/2023 - 22:34
    +1

    Thank you everyone for your wonderful insights.

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