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  • Darlinghurst Suburb Guide | Real Estate Blog – Niche Portfolio
    Wednesday, October 15, 2014
    Highlights of Darlinghurst Darlinghurst is an inner city suburb of Sydney.  Close to Sydney’s Central Business District, it is one of the m...
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  • Paddington Suburb Guide | Real Estate Blog – Niche Portfolio
    Thursday, September 25, 2014
    Paddington, Sydney living: the highlights  The sought-after suburb of Paddington, nicknamed “Paddo”, is located a mere 3km from the S...
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  • Bondi Beach Guide | Real Estate Blog – Niche Portfolio
    Wednesday, July 02, 2014
    Highlights of Sydney’s Bondi Beach Sydney’s Bondi Beach is located on Sydney’s Eastern Suburbs and it’s the most famous beach ...
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  • Top 5 renovation tips that will increase the value of your property | Real Estate Blog – Niche Portfolio
    Thursday, June 12, 2014
    The competitive Australian property market can seem like a jungle - everyone is looking for the best way to add value to their home without breaking t...
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  • DIY tips to prepare your house for sale | Real Estate Blog – Niche Portfolio
    Monday, June 02, 2014
    Do you want your home to stand out from your competitors?  If you are serious about putting up your home for sale, it is vitally important that y...
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  • Rental home hunting? Follow these 5 simple tips for a smooth transition | Real Estate Blog – Niche Portfolio
    Wednesday, May 14, 2014
    The rental property market is highly competitive at the moment, especially as more and more people are choosing to rent rather than to buy.  Look...
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  • Escape into your own private oasis | Real Estate Blog – Niche Portfolio
    Wednesday, April 30, 2014
    With all the chaos of our modern world, we all need a private haven to escape to. Nature has provided us with one of the most decadent luxuries the hu...
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  • Property prices on the rise with Sydney’s property boom | Real Estate Blog – Niche Portfolio
    Monday, March 17, 2014
    With interest rates at a record low, and high demand for limited housing stock, Sydney’s property market is set to see an increase in property d...
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  • Top Tips for Buying a Rental Property | Real Estate Blog – Niche Portfolio
    Friday, February 28, 2014
    Buying a rental property can be a very financially rewarding decision. However there’s no denying that it involves a lot of research beforehand....
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  • Sydney property and property investment news | Real Estate Blog – Niche Portfolio
    Monday, January 20, 2014
    The increase is the biggest jump seen since late August 2010, and follows a series of country-wide falls in property values in the two preceding years...
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Affordability takes its toll on property management in Sydney | Real Estate Blog – Niche Portfolio

Wednesday, March 27, 2013

Sydney property management has soldiered through some bleak periods in the years since the GFC; with housing affordability in the capitals falling dramatically across the nation, rents rising to record highs, and the government implementing some successful and not so successful plans to stimulate real estate in NSW. Let’s not forget property management in Sydney isn’t the only things that’s spiked, with Sydney taking the runner up for the world’s most expensive city to live in (behind Japan’s capital, Tokyo.)

But what’s driving this housing affordability crisis? Australia, by all accounts has come out of the GFC much unaffected, we have a very stable economy, a strong dollar and some of the best interest rate cuts we’ve seen for a while.

Arguably, state governments can claim to have set up some favourable conditions for local and international investors looking to get into Sydney property management, and they’ve certainly taken advantage of it with baby boomers and foreign investors snapping up hot property throughout the nation. But real estate watchers across the nation are concerned about the sharp drop off of first home buyers across the board as the effect of pulling the plug on first home owners’ grants and rising unaffordability take its toll. The concern isn’t without reason with the Real Estate Institute of Australia (REIA) reporting a drop off of more than 50% of first timers in Sydney property management since mid-2009:

“The proportion of first home buyers in housing finance commitments was 14.9%—less than half of that in May 2009 (31.4%) and well below the long-term average of 20.2%.”

Their list of media releases reads like a list of complaints rather than industry news; Government Action Required On Housing Affordability, First Home Buyers Not Responding To Interest Rate Cut, (followed a few days later by) Home Buyers Not Responding To Rate Cut, and topped by a particularly inspired Real Estate Calls For New Minister To Bring Common Sense To The Table.

It’s clear the representative body for professionals in real estate are just as fed up as property investors and buyers. One thing’s clear, the high barriers to entry for property management in Sydney and other major cities, is a bubble waiting to burst. The question is, when?

If it takes too long, we’ll have fostered a generation of cashed-out renters who missed the opportunity to get into property management in Sydney, and a lot of cashed-out investors whose property will be worth significantly less than what they originally paid for.