Alienfeet

We're (2 adults + 2 kids) contemplating the move to Sydney. I have a job offer (ENS 121 so no school fees required and also qualify for Medicare) for $100k.

The one thing preventing us from jumping in with both feet is the property market. I think a lot of people on here will agree houses in Sydney are unrealistically priced. They have to come down in price and I thought I'd read somewhere recently that this has started to happen.

Anyone have any thoughts on this?

bra_boy

The Sydney housing bubble is about to pop, so don't buy a house unless you are certain that you won't want/need to sell it for 10 years. For a discussion, see http://bubblepedia.net.au/forums/.

As for school fees, there are places in Sydney where you wouldn't want to send your kids to the local public (govt) high schools.

asprilla

That forum looks like it will contain some really well balanced, thought out debates and advice.

Personally I reckon prices in the housing market (on average) will go sideways for approx 5 to 10 yrs. Within that, I reckon Sydney on average will dip a little. But you always have to remember, those are averages. Some suburbs will go up, and some go down. On top of that- some houses can be bought for below their real value. And some numpties pay way way too much.

If there's one thing you can take from my words of wisdom, it is this: there's certainly no need for you to rush to buy a house when you get here.

If I were in your shoes, I'd rent for a few years.

cheers

Margaret3

I've been waiting almost 5 years in Melbourne and still no pop admittedly i would say prices have stabilized slightly, but still outwith my price range. Also check out the facebook page 'Don't buy Now' , although i dont have FB anymore, but i did enjoy reading this page when i did.

Zen10

My personal views:

1. Australian housing stock (SA) is better value than Southern England, but if you come from a cheaper part of the UK and are heading for Sydney I presume you lose this advantage.

2. Housing stock in general in both countries is grotesquely over-valued and in dire need of a major correction to bring it in line with average wages. Since 1980 Australian wages have risen 400% and house prices have risen 1900%. If this trend continues one will have to borrow 30 times one's salary to buy a house in one more generation's time. We know this is impossible so a correction must happen at some point.

3. This correction might not be a bursting bubble, but more like letting air out a tyre. Australia still has room to cut rates over a long period in order to keep prices artificially pumped up. I do not expect a crash any time soon for this reason. The UK economy basically collapsed in 2008 but house prices have been kept unaffordable by rate cuts. Australia might do the same thing.

Anecdotal - Adelaide prices dropped 2.5% in July - which annualized is starting to make houses look tasty again, but rate cuts will slow this down and maybe reverse it.

moneypenny20

Oh please, please don't.

Amazulu

I looked into my housing crystal-ball and I saw nothing

eddie007

The only thing crystal clear in any response you get to this thread is that it will be a load of balls....

Margaret3

you know you love it

Margaret3

or people spouting what they read in the housing forums, which is even bigger balls.................and yet i cant get enough of it????

Bermudashorts

My first thought is that people have been saying that house price crash is around the corner for years.

I think it is illogical to say that house prices in Sydney are unrealistically priced. They definitely are high but they are priced according to what people will pay ... and as people are paying then how can it possibly be unrealistic?

Unless you have a big deposit, a $100K salary will not buy much house in Sydney. Nothing wrong with renting though.

Alienfeet

Thanks for the insite guys.

I own a property in UK which has about £40k equity in it. Don't know whether to sell it and use equity for deposit (in a year or two) or keep it on and rent it out.

The real issue is having something for when I retire to help toward my pension.

moneypenny20

Well I wouldn't take advice about that from people on here. One third will say go for it, another third will say don't and the final third will tell you to ignore the other two thirds.

eddie007

you're forgetting the one that will manage to turn the thread into a UK versus Australia thread

moneypenny20

As well as the ones who see the title and walk away fast but I couldn't be bothered to list all the different groups.