Cutting through the white noise of the Sydney property market is tough right now with every media source both nationally and in Sydney talking about how we currently have the lowest auction clearance rate since T-Rex roamed the earth and how the RBA is “watching closely” at the levels of pain and gain in the market to monitor macroeconomic policy.
Put simply, its credit crunch 2.0.
Access to credit has dropped off a cliff and serviceability criteria of mortgages has all but reduced the borrowing capacity of mature local Sydney residents and investors to first home buyer status.
I hear my expat clients say “well now you know how I feel!” as expats have been left behind in the mortgage stakes for a few years now by the big four Aussie banks. Sydney locals now a feeling the expat credit frustrations that we all have been dealing with for some time.
So what’s the deal with Sydney property? Well, its pretty simple. Locals are finding it very hard to buy property now. So let’s strike while the iron’s cold.
Most of my savvy clients that have made their highest returns from Sydney property in a down turn. Parts of Sydney that have experienced strong annual growth over the last 2-4 years in some cases are down in value by double digits. That has just happened this year but this window won’t last forever.
Now is the time to buy in Sydney for the highest returns. As a buyers agent, I am being swamped with great deals at the moment from agents that are finding it hard to move properties and do not want to tell the broader market that the owners have to sell. Its the perfect time in the cycle to get a great deal.
By: Michael Radovnikovic