Browse Forums Real Estate Re: Real Estate Dilemma - opinions please 5Jun 09, 2015 2:00 pm Wise words travelbug! I think you have the right strategy for Sydney at the moment. I hate to think what people are borrowing. I have worked out my finances to be able to cope with repayments at 7%. Could still pay at 8-9%. Can't wait for the market to drop. I am a few years off transition to retirement. To wait would mean I cannot borrow. Also, I would have to rent in Sydney in the meantime which not only is expensive but the is little out there to rent. So to move where I would like to be when I actually retire is a financial as well as a lifestyle choice at my age. Perhaps forced into it earlier than I would have liked due to the current Sydney market - but thats how it is! Leaving Sydney I can work full time to pay down the mortgage. Go to part time work for a while. Then, all things being well, retire! In the past people with average mortgages cheered with joy that they had an extra $25 in their pockets when interest rates dropped. With the huge mortgages that I imagine people take out now because of low rates, I do wonder how they will cope with extra going out of their pockets if interest rates rise. I lived through the 16/17% interest rates of the late 80's. Only got through with the charity of family and friends - even for food. I know of people who lost their homes and never financially recovered. Though I do not think interest rates will ever reach such heights again, I do know the pain of just a small increase to repayments when you are already stretched. Wouldn't wish it on anyone! Thanks for your input! Cheers Re: Real Estate Dilemma - opinions please 6Jun 10, 2015 9:22 pm You've answered your own question in your 4th,5th, and 6th paragraph. your weighing up the pros and cons of getting in over your head mortgage-wise to have the convenience/proximity to work, as opposed to being further away yet being in a better financial situation. When you have worked that out and struck the balance that suits you, you'll have your answer. At least you are thinking about it, that's the main thing. On a side note, the property bubble in Sydney is going to burst soon, it cant go on much longer, factor this in to your calculations. IMHO, its best to rent, or buy as cheap as you can if you insist on owning - if you want to weather the impending crash. Re: Real Estate Dilemma - opinions please 7Jun 12, 2015 10:50 am Thanks for your reply qebtel. Though I don't doubt that the Sydney market will continue as it is, I do doubt that properties will bounce back to their once affordable levels in the areas I have been looking at. In the suburb I was focusing on, prices have spiralled upwards as fewer properties have come onto the market. There are few rentals available in the area and watching the market in this suburbs, I notice that few of the houses that sell are rented, as opposed to surrounding suburbs. Interestingly in some suburbs houses that have sold to investors are still awaiting tenants! Would hate to have taken out a large loan to fund these $1M prices, only to find that no one is willing to rent them, at least not at the prices they are asking. I cannot rent as I have pets and finding a property that will allow pets is almost impossible and with many people having pets means fierce competition. Now if I had an investment property, a house, I would be advertising as pet friendly then asking a slightly higher rent. Almost guaranteed you will have interest! Renting in Sydney would cost me too much. Am relying on bunking down with family at the moment. If I did rent, I would still look outside of Sydney where I could get a three bedroom house for the price of a two bedroom unit backing onto a railway line in Sydney. That is of course I could find a house with the pets! To wait for any bubble to burst could cost me finding any house within 2 hours of Sydney as I am approaching an age where lenders would not be willing to lend enough to purchase anything! And should I gamble on pricing dropping soon and they don't, then the ripple effect that is already being experienced by those areas just outside the metropolitan area will probably turn into waves and I would not be buying for much less! It is great to get feedback on my situation from those who can see the problem as it is and without personal influences. Though I don't expect anyone to make up my mind, I do appreciate ideas and musing of those who might put themselves in my position. Re: Real Estate Dilemma - opinions please 8Jun 12, 2015 5:48 pm Hi strata struggler. It sounds like you've made up your mind. You are right to consider your borrowing power and not hold off. I'm at that stage too. Getting my finances in order before I retire. Finding a nice place to retire too sounds like a great plan. Then just sit back and enjoy life. Re: Real Estate Dilemma - opinions please 9Jun 17, 2015 12:43 pm stratastruggler To wait for any bubble to burst could cost me finding any house within 2 hours of Sydney as I am approaching an age where lenders would not be willing to lend enough to purchase anything! And should I gamble on pricing dropping soon and they don't, then the ripple effect that is already being experienced by those areas just outside the metropolitan area will probably turn into waves and I would not be buying for much less! Then these things are extra factors for you to consider that all become part of your equation. And its not a gamble of whether prices will drop - they will, Sydney median prices are not sustainable, you only have to look at our household level of debt . The gamble is just when prices will drop. Re: Real Estate Dilemma - opinions please 10Jun 17, 2015 9:30 pm qebtel Then these things are extra factors for you to consider that all become part of your equation. And its not a gamble of whether prices will drop - they will, Sydney median prices are not sustainable, you only have to look at our household level of debt . The gamble is just when prices will drop. You forgot to add "in my opinion". Don't get me wrong, I agree with you but there are those that don't too. After the last boom there were those that said prices would not recede and others who predicted a 40% drop (haha!). It varies by area as well. I've sold a few that I think won't sustain their price but others I doubt will drop much so holding. I'm keeping the money liquid to take advantage of drops. Time will tell (4 years I reckon). You can drag this up in 2019. Re: Real Estate Dilemma - opinions please 11Jun 23, 2015 2:04 pm travelbug qebtel Then these things are extra factors for you to consider that all become part of your equation. And its not a gamble of whether prices will drop - they will, Sydney median prices are not sustainable, you only have to look at our household level of debt . The gamble is just when prices will drop. You forgot to add "in my opinion". Don't get me wrong, I agree with you but there are those that don't too. Its not so much an opinion , as an interpretation of a multitude of economic indicators. It is going to happen, our government doesnt have the guts to implement radical reforms needed to prevent our economy going into complete doldrums. 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