al dente

We've been away for a while and don't have our ear to the ground anymore. Of course, we get the estate agent emails but of course they sales are rising through the roof, as usual.

How is it going over there? Are rentals going up or staying the same as the past 5 years?

Are sale prices settling?

commonwealth

going going up.
it's one of the most in-demand places in Australia.

the troubadour

Over inflated for most Australians but overseas especially Chinese buyers are for the moment buying a lot of prime stuff from all accounts.

Hopefully though don't hold you breath, legislation will come through and be enforced to stop the rot.

bcworld

RBA's Glenn Stevens warns on Aussie dollar, Sydney house prices

Read more: RBA's Glenn Stevens warns on Aussie dollar, Sydney house prices

al dente

Really! It's just so expensive already. We've got a worst house best street scenario and are trying to work out whether to keep it or not. Best stay put, iguess.

What are rents like? Are they at the same levels as the past 5 years. The yields must be plummeting.

commonwealth

1-bed $530 per week

the troubadour

The more the bubble rises.....As for Glen Stevens he's calling bets both way. If a crash materialises he can claim the punters were warned.
Sydney another London. No room at the inn for the locals. A wickedly sad state of affairs.

al dente

The dollar shift is interesting. Something will have to trigger the movement though.

commonwealth

it's called gentrification.

Swerv-o

It certainly is. Even Redfern has now turning - 10 years ago there were riots there and some good bargains to be had. Now there are very expensive houses, coffee shops, hipsters and art galleries.

I live in Chippendale, and the current market here is about $10k per m2 renovated, $8k per m2 needing love, if that helps.


S

sr71

I considered moving to Sydney from Melbourne, just like the place more, but the rental prices are very high, particularly if you want to be in the zone of a good public school.

Beoz

You are asking about rents and yields right?

Well to be honest, I haven't seen a great deal of increase in 3 years in rent in inner Sydney. Maybe a touch, but not much. In some cases I have seen rent coming down. The rental market is not what it was 3 years ago. 3 years ago you had to get in with the agent, perhaps offer $10, $20 a week to get the place. Now you can most certainly offer less than the asking price.

So here's my take on recent experience. I just rented an apartment that sold in Feb for over 1.3 mill. I pay a bit over $800 a week in rent. The strata charges are a bit over $2000 a quarter. Plus the other costs associated with it, this yield is looking about 2%. If the owner is paying a mortgage then this is pretty high risk in my opinion.

Of course there's negative gearing, but that means the owner is banking on property price increases - fine, yep, that may work it may not.

I'd certainly want be at least breaking even on mortgage vs rent payments.

So for mine this just doesn't stack up as an investment.

spottydog

I'm in Balmain and have seen sale rices go up 15 to 20% in the last year (e.g. A one bed house on the peninsular that was bought at the beginning of 2013 for $615k has recently sold for $815k with no major Reno work) but rentals are at most about 10% higher than when we rented nearly 6 years ago. I have noticed that many of the properties that are sold are offered for rent shortly after and can take a while to be let, I'm reckoning the return on purchase price alone is less than 3% so it amazes me people are still buying.

Beoz

For what its worth, the rent in my last place went up once in 3 years. It was a 4% increase. Or 1.3% per year. I should have probably asked for a reduction.

The apartment I rent now what advertised 2 years ago for $60 per week more than I currently pay.

paulry

I bet you're glad you bought when you did