Spotlight on Sydney

"The Sydney market has received a lot of negative attention, however in recent times it appears that the Sydney market recovery is well on track.

Price growth has been evident in the market since early 2007. Since the beginning of the year Sydney house prices have increased by 8.1 per cent and unit prices have gone up 9.9 per cent. The price increases reflect the broad Sydney market, however when we drill down we can see that the market is far from homogenous. While the inner city and coastal areas of Sydney are performing exceptionally well (Inner Sydney up by 18.2 per cent and the Eastern Suburbs up by 15.7 per cent) the outer areas of Sydney are still struggling. Fairfield-Liverpool has faired the worst, with prices falling by 5.4 per cent over the year.

These outer areas may be in for a change, however, with the rental market showing very competitive yields and more investors starting to circle as the market bottoms. The median value of a house in the Fairfield-Liverpool region is now just over $361,000, having fallen by 18 per cent since prices peaked back in December 2003." Extract from RP Data reports
 

A survey conducted by Ashe Morgan Winthrop Property Investments has reported that 73% of property professionals expect the residential market to experience growth over the next six months, the highest number reported since the survey commenced 11 years ago.

This confidence comes in the face of the expected future interest rate rises.  Property professionals have factored these in.

The results of the survey was as follows:

• 55% of respondents now prefer investing in residentail property over other types of property
• 71% expect another interest rate rise in the next 6 months
• 64% intend to buy a property in NSW in the next 6 months
• 63% believe the Sydney property market will improve over the next 6 months.

The Sydney property market has turned the corner, with strong growth expected due to increased demand. 

One common request from vendors or their solicitors is for the purchaser to waive what is known as the “cooling off period”. That’s Section 66W of the Conveyancing Act (1919).

The Act allows the purchaser to rescind on the contract anytime with 5 business days.

These 5 days can be used to finalise finance, and complete checks and investigations on the property. If the purchaser decides not to proceed, they pay a small penalty fee but do not have to proceed with the purchase.

As the property market in Sydney's Eastern Suburbs and Inner West, starts to heat up, the real estate agents and vendors are increasingly putting pressure on purchasers to waive this cooling off period. 

I don't like this at all as purchasers, keen on a property, are forced in to a situation where, if they really want the property, the need to exchange without having time to do any searches.  This can be a really costly mistake.

It is unnecessary pressure.  In almost all cases, when an exchange occurs, the sale will complete.  The agent and the vendor will get paid.  All it does is seriously stress the purchaser. Why??