Studio in North Sydney

Hi all,
Firstly, I have been reading this site for months and months and am still as confused as I started!

I moved to Sydney roughly 4 months ago, work in North Sydney, and live in McMahons Point. I'm currently paying about $300/week in rent.

From the outset I have been looking for a house (note. I'm from Adelaide and am not used to the concept of apartments), I have used my weekends to deduct areas from my extended vision and have now settled on 2060 (Nth Syd,McMahons Point, Neutral Bay)

My question is, I am finally ready to buy, I have a budget of 500ish but would prefer to spend under 300k. I have seen many studios for about the 300k mark (mind you they are all roughly 30-40sqm)
Some of these with carparks, some without.
I would of-course, prefer a one bedroom, but I figured getting into the market at the lowest price point is the right thing to do - I could live in this place for 6 months and then use the equity to begin to expand my portfolio.

Does this sound like a good idea? Is North Sydney too expensive - or is it good just to get in, and worry about the rest later?

Thanks in advance!

ltk333 said:

From the outset I have been looking for a house (note. I'm from Adelaide and am not used to the concept of apartments),

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I think you'll find they have flats (ahem, I mean apartments) in Adelaise too , but granted it is a lot cheaper there and easier to navigate around the city.

ltk333 said:

I have used my weekends to deduct areas from my extended vision and have now settled on 2060 (Nth Syd,McMahons Point, Neutral Bay)

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OK - nice areas - but you have expensive tastes

ltk333 said:

My question is, I am finally ready to buy, I have a budget of 500ish but would prefer to spend under 300k. I have seen many studios for about the 300k mark

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You need to spend over $400K and more likely $450-500K to get something in a 2brm with a car space

ltk333 said:

(mind you they are all roughly 30-40sqm)
Some of these with carparks, some without.

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Anything under 50m2 is very difficult to get finance for AND if you can, the LVR will be restricted to something like 60%. This restriction also makes it difficult to resell or do equity draw downs from. I'd advise againt it and also whatever you buy - get a carspace.

ltk333 said:

Does this sound like a good idea? Is North Sydney too expensive - or is it good just to get in, and worry about the rest later?

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Get in by all means - if you have any intention of buying, I'd be doing it now as prices have already risen a good 8% (according to Residex) in the last 3 months and are still climbing.

All the best with your purchase.

Thanks!

I suppose expensive tastes - Yes. But I work in North sydney too so it just makes it so much easier to get to the office.

Yes, I understand the requirement. But if you want to live in one of the most expensive parts of Australia, then don't scrimp on spending some decent $'s for a place to live.

There's nothing wrong per se` with 1brm studios - just make sure they're over 50m2 for later resale. Also beware other traps of things like 1/12th shares in a title like one I saw the other day in Kirribilli - a house divided into 12 flats but each owner had to sign the contract for 1 flat to be sold. Each bill - rates, electricity etc was shared between 12. I don't know a lender who would touch it . There is a bit of company title in these areas as well - which is not so much of a concern.

I recently spoke to the bank, who limits the size to 25sqm.
You are right about spending the decent $$'s - I suppose what you are saying is that it's worth spending close to 500k on a two bedder/large one bedder with a park, than 250k for a studio.

It's surprisingly hard to find places over 50sqm here!

ltk333 said:

I suppose what you are saying is that it's worth spending close to 500k on a two bedder/large one bedder with a park, than 250k for a studio.

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For my money to live there - yes and for resale. But it is not me living there - only you can decide.

ltk333 said:

It's surprisingly hard to find places over 50sqm here!

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I dunno. My eldest lives in Cremorne on the 5th floor, 2brm + car space worth about $500K. Balcony overlooking a park. And it would be 70-80m2 at a guess.

Look harder or hire someone to look for you

Stretch to one bed and carpark IMO, Peter

I have to back Prop up on the >50m2. Don't restrict yourself for options when financing.

If you are starting your Property Portfolio keep things simple and don't complicate matters. Plenty of complications will come along once you acquire a few IP's.

Spend what you are comfortable with, especially if this is your first purchase. With 2060 you can't go wrong.

Welcome to lovely Sydney.

Regards JO

Thanks all.
I've really taken your advice to hand, and have shifted my search to Lane Cove area..
Not quite as close I understand, but I can get a 3 bedder with 120sq of space for the same price as a 1 bedder in North Sydney.

I just want to get into the market! Sick of looking. All you BA's out there, I know there are a few - You must have a passion for this job.

ltk333 said:

But I work in North sydney too so it just makes it so much easier to get to the office.

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And? I work in North Sydney too. Live at Guildford though, so does about half the people that get off at my station. It's really easy to get to the office, but not as quick as living at Parramatta or Blacktown would be as it's only one train then.

But lets be honest, we're not talking about easy here, we're talking living standards. That's fine, I'd live there too if I had the dosh (Lane Cove is a very nice, good, 'cheap' alternative too), but lets call a spade a spade.

Cheers
Greg

ltk333 said:

Thanks all.
I've really taken your advice to hand, and have shifted my search to Lane Cove area.

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Good on you, Lane Cove is great, bus will get you to North Sydney in 15 mins. Price is probably the cheapest in lower north shore.

However, the same price that will buy you a 3 bed room apartment in Lane Cove will buy you a big house in Guildford with a good block of land.

Again, welcome to Sydney - a tale of many cities.

ltk333 said:

Thanks all.
I've really taken your advice to hand, and have shifted my search to Lane Cove area..

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Have you thought of Cammeray, N.Bay, Cremorne for 1 bedders? i too work in N.sydney and leave at Cremorne its around 20mins walk. and if you decide to rent it after 6 months, its easier to find good tenants. rents are on higher side compare to other suburbs.

ltk333 said:

Thanks all.
I've really taken your advice to hand, and have shifted my search to Lane Cove area..
Not quite as close I understand, but I can get a 3 bedder with 120sq of space for the same price as a 1 bedder in North Sydney.

I just want to get into the market! Sick of looking. All you BA's out there, I know there are a few - You must have a passion for this job.

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Personally, I think this is a smart move. Good for you.

Regards JO

ltk333 said:

I just want to get into the market! Sick of looking. All you BA's out there, I know there are a few - You must have a passion for this job.

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Love this job

Hire a BA by all means if you get tired of searching

You can get a 2brm with a car space in Lane Cove close to the Express Bus etc (and not on Longueville Rd either!) for $420Kish. Present time you'd get about $400-410pw in rent for it too.

I just can't do it!...

I went out today, saw a 3 bedder, 120sq with 2 bathrooms and a carpark in Lane Cove. Need a bit of work, but pretty good price right?

http://www.domain.com.au/Public/PropertyDetails.aspx?adid=2007901234

Anyway, long story short, I got a taxi there from work, got the bus back. After waiting 20 minutes for the bus and then another 20 on the ride I decided I just can't get out of the city.

Shoebox in North Sydney here we come

At least you now know what you want and where you have to go to get it.

ltk333 said:

Hi all,
Firstly, I have been reading this site for months and months and am still as confused as I started!

I moved to Sydney roughly 4 months ago, work in North Sydney, and live in McMahons Point. I'm currently paying about $300/week in rent.

From the outset I have been looking for a house (note. I'm from Adelaide and am not used to the concept of apartments), I have used my weekends to deduct areas from my extended vision and have now settled on 2060 (Nth Syd,McMahons Point, Neutral Bay)

My question is, I am finally ready to buy, I have a budget of 500ish but would prefer to spend under 300k. I have seen many studios for about the 300k mark (mind you they are all roughly 30-40sqm)
Some of these with carparks, some without.
I would of-course, prefer a one bedroom, but I figured getting into the market at the lowest price point is the right thing to do - I could live in this place for 6 months and then use the equity to begin to expand my portfolio.

Does this sound like a good idea? Is North Sydney too expensive - or is it good just to get in, and worry about the rest later?

Thanks in advance!

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Hi there

Speaking from the perspective of a BA who's bought for several clients on the LNS area now, can I humbly make some suggestions?

1. Don't limit yourself too much to suburbs, but rather those along the train line. Easy as pie to hop on a north shore train anywhere between Hornsby and North Sydney really. Consider the non-mentioned suburbs in between- the popular Waverton, Wollstonecraft, St Leonards (and include Greenwich in this as you can walk to St L from some blocks) Crows Nest, Naremburn (both within walk to St L) Artarmon, Chatswoo then all the way to Hornsby, though a lack of medium to high density dwellings between Roseville and Wahroonga is going to affect your choice in units up here. Limiting yourself will result in fewer choices and probably much teeth-gnashing when you can't find what you want

2. Lane Cove is great and I like it too, but if you're a train fan then only consider those blocks within true walking distance of Artarmon station ie: Mowbray Rd Stokes St end. Anything further is fast city bus (and they are popular and run very regularly) and it won't take long to work out the timetables.

3. Agree with others to stretch to afford min 1 bed with parking. My advice is always to include parking, as with a city like Sydney the spots are becoming fewer Naturally avoid shoebox units but still consider less than 50sqm as it also depends on layout, balcony and carpark space as well.

4. If you're serious about building equity then you need to initially buy well, so invest the time and research (or have someone do it for you as Alan has already suggested!) and look for a unit that has capacity to value-add immediately. There are some fabulous units out there in older blocks that scream 1980's and come up a real treat when renovated. Look for light and airy, secure blocks, quiet locales, well-managed buildings (most important) with reputable strata managers and the smaller the block the better, due to increased land value content.

5. Don't make the mistake that other buyers do and purchase simply because you're getting "sick of it". If you don't want to engage a BA to do the work for you, take a break, re-assess and come back with fresh eyes a few weeks down the track. You might be surprised at how much new stock has come onto the market in such a short period. It's very easy to get frustrated with the lack of quality stock but, believe me, there's always another property very soon down the track....

6. 2060 is nice part of the world but don't become a Sydney snob and reject other suburbs simply because they're not deemed as equal. The area that you're also looking in is very small and constrictive, especially with parking (McMahons Pt and Kirribilli in particular)- think outside the perimeters and you might just be pleasantly surprised.

Best of luck!!