Tuesday, October 29, 2013

Buying a property in Sydney...

Finally I reached the moment in my life where I strongly considering of buying a house or an apartment in Sydney. But after some reading I'm wondering - is it the right time?

According to RP Data Sydney housing market update for October, Sydney house prices are rising the most in all Australia:
Capital gains across Sydney's housing market have accelerated over September with values moving 2.5 percent higher over the month and 5.2 percent higher over the quarter. since the market reached a low point in May last year, Sydney values have risen by 12.2 percent. The typical Sydney home is selling in just 34 days. Vendors discounting the prices by an average of just 4.9 percent and clearance rates have consistently been around the 80 percent mark over past month. Clearly this is a seller's market. Buyers have less stock to choose from, competition with other buyers is much more intense and there's less time to make a purchase decision and negotiating a lower price is becoming more challenging.

Sydney Key Statistics

Change in dvelling values

Three months: 5.2%
Twelve months: 8.0%
From peak: (at peak)

Median prices (based on sales over past three months)

Median dwelling price $588,000
Median house price $665,000
Median unit price $517,500

Rental rates and yields

Weekly rent, houses $577
Gross rental yield, houses 4.0%
Weekly rent, units $505
Gross retal yield, units 4.8%

Selling time and discounting

Time on market, September 2013: 34 days
Time on market, September 2012: 54 days
Vendor discount, September 2013: -4.9%
Vendor discount September 2012 -6.5%

Stamp duty and other costs

And you have to remember other costs involved in buying property, such as stamp duty. According to this NSW stamp duty calculator I will need to pay around $32,000 just in taxes for the government. And then extra expenses, such a conveyancing, pest and building inspection, home insurance, etc.

Hmmm, am I really ready to buy a property?