Sydney house prices are depressing.….. (part 2)

  1. 1.       Life style. How you want to live? House or shoe box?

Some people have said “Embrace apart­ment liv­ing. The time of afford­able detached houses is over. I would def­in­itely live in a shoe box with my wifey and some cats,” but oth­ers say “I want a garden and a chook run :( Not sure I’d be able to find a strata scheme that’d let me have chooks :P” There is no doubt that people want to live in the city for the added perks and high paid work­ers are pre­pared to pay for it even it means liv­ing in a shoe box apartment.

living in a shoe box apartment

Some people even joke “Check out this nice $300,000 Win­nebago! Boom you have cheap city liv­ing! Sure you might have to find power and water but I’m sure you can work some­thing out.”

longreach-main longreach-front-angle

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So where can you still afford to buy a house in Sydney on an aver­age income?

Well accord­ing to Census data, the aver­age median weekly house­hold income is $1,447 and the cor­res­pond­ing mort­gage value they can afford is around $430,000 to $500,000. Well you have no choice but to go west if you want to stay in Sydney.

Ok, so you have decided you don’t want to live in one of those massive apart­ment build­ings with a gazil­lion people or you have decided to still live in one (maybe rent­ing) and buy a house out of the city to save you get­ting in silly amounts of debt.

Some city people have a bad view of buy­ing in west­ern Sydney, as one com­menter said “Oh but wait, there’s a $35,000 gov­ern­ment grant, so you can buy your­self a new home at some new estate called “The Ponds” where you would be lucky enough to get any mobile phone cov­er­age and for­get any inter­net cov­er­age.” Some people even say “It takes an hour to get to the city if you buy a house past Par­ra­matta”. Obvi­ously, they’ve never driven out west before.

Set­ting the record straight about buy­ing in west­ern Sydney

You can buy a house and land for under $500,000 in;

And make it to Town Hall train sta­tion in 45mins on a Sat­urday worst case scen­ario. We have full National Broad­band Net­work (NBN) with speeds of up to 100Mbps. I have also heard people say “But all the work is in the city.” Well that is not entirely true. There are 9 indus­trial parks sur­round­ing these suburbs and more than 25% of Australia’s top 500 com­pan­ies have a pres­ence in the area, and the area also enjoys grow­ing links with China and India. There is major infra­struc­ture boom in the area which means more jobs and growth. Some people tell me there is a crime issue out west. Well I don’t think they have looked in to it that well and just taken the media’s word for it.

 Blacktown NSW crime stasts-data

Crime actu­ally has dropped over the past couple of years in these areas (under 738 cases) but I can’t say much for the south west, with 770 cases and increas­ing. Just look at the map below which shows the crime rates for the Inner West and East­ern suburbs.

 Sydney Crime Stats and data

Not enough people have a vis­ion for the future.

We have buy­ers that come to us in Toongab­bie say­ing “We have $400,000 to spend and we want a house and land. Oh, and we don’t want Lalor Park”. Most of them can’t find a prop­erty and aren’t will­ing to go up $20,000 to secure the par­tic­u­lar home they want, so they hold off for 6/7 months to save for a big­ger deposit.

Now prop­erty prices have gone up $50,000 in Toongab­bie and they are still well priced out of the area. People are now ask­ing us to see homes in Lalor Park but in the  last 6/7 months Lalor Park prop­erty prices have now increased to levels close to that of  Toongab­bie real estate when the price increase star­ted and now they can only afford a base model home there.

The sad thing is that they could have got­ten an above aver­age home there 6/7 months ago! I would sug­gest 40% of aver­age home buy­ers are in this loop and it’s a vis­ion prob­lem, not look­ing to the future when pur­chas­ing a home. I know it’s a big decision. I’m not belittling them. In fact, I was in this loop myself.

I would sug­gest in a mar­ket like this, pay the extra 1,2, or 10 grand to secure the home now because you’re not going to remem­ber the exact fig­ure you paid for it in 7 years’ time any­way, or just choose another suburb!

House prices will always go up and down. I’m not delu­sional. How­ever, if you want a home in this mar­ket, you should know what you are will­ing to pay for a home and fight to get it, or you could wait for the prop­erty cycle to come down (not sure how long that will be) but Sydney’s sub-markets can have a mind of their own and defy mar­ket averages.

Con­clu­sion

Sydney hous­ing being expens­ive is sub­ject­ive based on your mind­set. People don’t have a vis­ion for the future and how prop­erty cycles work and even how to even­tu­ally afford where they want to live. They aren’t will­ing to sac­ri­fice to get ahead in life because every­one wants everything and they want it now. For the aver­age per­son to be able to buy in Sydney they need to sep­ar­ate their wants from their needs and under­stand that Sydney is only “unaf­ford­able” if you have the wrong mindset.

You need to be creative 

You can still afford a home. Life is not over yet.

Step 1. Get edu­cated (go buy a prop­erty invest­ment magazine and go to some free seminars).

Here’s a start. It is pos­sible to buy a house with half a mort­gage. Click on this link to find out how.

About 

Jhai is an award win­ning Inter­net Mar­ket­ing Real Estate Agent for Eld­ers Toongab­bie and Kings Langley. After run­ning his own inter­net mar­ket­ing busi­ness he has now set his own sites for the real estate industry. He observed that 90% of real estate agents did not know how to mar­ket them­selves online. Jhai is now fixed on one goal. To teach real estate agents that they can mar­ket online so much bet­ter than they cur­rently are.

Since then he has been con­sist­ently quoted in the Sydney Morn­ing Her­ald and Real Estate Busi­ness online. He is a reg­u­lar guest blog­ger on TheHomePage.com.au, shar­ing his expert­ise of mar­ket­ing aspects for the Real Estate Industry. His biggest pas­sions are his wife, mar­tial arts, dogs and most of all property.

seven hills real estate agent NSW
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