This is my unbiased view on the Sydney bubble:
The reason why property prices in Sydney are so high is simply because:
– Interest rates in Aust are at record lows with the official cash rate @ 2%. The government wants people to borrow, just not for property, but that temptation is too hard for everyone.
– Buyer demand is more than supply of properties available for sale.
Without complicating things, the main thing to watch is the interest rates. If there are indications of rates rising then the property market will deflate but not necessarily “pop”.
It would be very bad for the Aust government & economy if people were to start losing $$$ which means the RBA would need to keep interest rates low.( A bit of a vicious cycle here!)
If you are looking to buy Sydney property now, then you will need to think longgggg term and factor in an extra 2-3% in mortgage repayments if rates do rise, so you do not become a forced seller.
My advice always to people wanting to buy especially when the market is “hot” is: If you can afford to buy then do so. If not, then you’ll just have to wait till you can afford it.
Basically, for the time being I do not see the bubble popping – at least not until rates rise!!
So don’t be confused – If you have a good job, lot’s of money and are in it for the long term, then there’s no reason not to buy now. In 10-15 years time you will look back at current prices and say “Wow, that looks cheap now!”
If you would like to discuss your options with the purchase or sale of a property, please call me on 0412 608020 or email: firstname.lastname@example.org.
Professional Licensed Real Estate Agent