Real Estate Sydney MarketBuying in real estate Sydney market can be the biggest purchase you will ever make in your life. Buying a property to live or to rent is an investment decision for the future. Historically over a period of time, real estate Sydney properties double in value every seven years, and rental income from properties double every nine years. Knowing the pros and cons will therefore help you to make an informed decision when buying or selling real estate properties. That does not mean that Sydney real estate industry was not immuned to effects of the recent global economic meltdown of 2007-2009. The Australian media and real estate Sydney investment publications have reported a 3.3% decline in the value of Sydney property market.
Thanks to the stronger Australian economy, the decline in real estate Sydney market was not steep as those experienced in the United States, United Kingdom and a number of other European countries.
When we we came to Sydney from the Philippines in the late 1987, Sydney real estate median house value was $92,000. Then in late 1989, we inspected a house in an inner city suburb of Lilyfield. The asking price was $160,000 which was below the median price during that time because the land was bit small. We thought it was still a good buy. We just have to make a decision to buy or to have our first holiday visit to our families in the Philippines. We had chosen the latter. In today's market, that property could easily sell for $700k to $800K.
Our first home after we sold it. It was not until three years later that we were able to buy our first house. By that time, prices and interest rates had gone through the roof...so to speak. We can no longer afford to buy in the area where we were renting because it is an inner city suburb just across the bridge from the city and close to where we worked. But we made a goal that we will buy as close as possible to the city and where we worked...and importantly, we can afford it. Actually, my sister Rescy's family was looking for a house too at that time. We were thinking of joint ownership if possible to make it affordable for both of us since we were buying as close to the city.
We built our second home two blocks And we did found a property in Top Ryde, five suburbs away. It was a two storeyed building of first and second floor apartments with join backyards. It has a water view too of the Parramatta River. We did not think twice as the price was very affordable. We gave our deposit to the real estate Sydney agent. We did our own maths and we reckoned we can pay the house loan in five years time. Our high hopes and plans were crushed a few days later.... We were gazumped!
The front fence was my first project...
followed by the retaining wall around the gum tree We thought that by paying a deposit, we were guaranteed to buy the house on the agreed price and the property taken out of the real estate Sydney market. But that was not so. The real estate agent came back to us that another buyer had offered a higher price. Can we therefore offer a higher price? We had mixed emotions that the agent was just playing one on us... and we did not want to lose the property at the same time.
My wife Yoli, daughter Romenda and hubby Dave We decided to stick to our original agreed price...and we lost it. After making some inquiries and complaints, we learned that it was a common practice during that time. Property was booming and realtors were taking advantage of the situation. As a result of many complaints from the public, an anti-gazumping law was passed by the government to protect the buyers. It was my sister who found a property for us in the the same suburb of Rydalmere that they had bought theirs after a few months. It was a block of land and we built a modest three bedroom house. When we moved in, there was no drive way and landscape. Everything was dirt. We didn't even have a Hill's Hoist clothesline to hang our washing! Though the bank has loaned us 80% of the total cost to buy the land and construction, we still have to come up with the 20% deposit. We have some savings but we still have to borrow some money from a friend and my sister to have our deposit and the other cost of buying. Once we paid them off and had saved some money, the first thing I did was paved the driveway as it was hard to keep the house clean with a dirt driveway. Much later, I builta deck and a pergola and a carport. I was becoming a "handyman".
That's me on the step ladder! Measure twice, Twelve years later, that is 2005, we sold that house for more than three times we paid for and built a larger home in the same area. This time , the transition was easier as it was our second home and we have gained experience from buying some investment properties. I also became a seasoned handyman...laying the wooden floorboards, did the fence, driveway, retaining walls, awnings, deck and landscaping of the new house. I enjoyed doing it and it saved us lots of mullah! So if you need a handyman, you know who to call...
My 'supervisor' giving me instructions... The Sydney property market fared comparatively well in the storm of the property crisis. But signs of a phenomenal comeback are already evident with several real estate agents reporting growth in 2009 and 2010. The demand for real estate in Sydney are projected to even exceed the highs witnessed in 2007 when the real estate market had peaked. What makes this even better is that the demand for property in Sydney cuts across the entire spectrum of property sizes with property prices expected to continue to rise both in the short and long term. This scenario makes investing in the real estate Sydney market very lucrative both for property speculators and long term buyers. As the population of Sydney grows and land becoming scarce, the real estate market in Sydney will always be robust. It will go in an up and down cycle but it will always go up from its previous high.
The unpaved western side of the house with the awning So are you ready own a piece of Sydney real estate? Here are some important things to consider:
Please note: This article is for general information only and no person should rely on the information provided in this real estate Sydney guide without getting professional advice. The information in this article is current at the time of writing of this guide and is subject to change anytime without notice. Return from Real Estate Sydney to Sydney Walkabout homepage.
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