Sydney - Northern Beaches
- Thread starter Cheetah
- Start date
Hi Cheetah,
I currently live at Dee Why after buying a unit in at the end of 2004 (although lived on the Nothern Beaches my whole life). Being a Northern Beaches local yourself you probably have a pretty good idea how Dee Why is perceived by other NB locals. I often come across alot of other people who own in Dee Why when i'm out and all agree that we like people thinking badly of it cause it keeps the area 'local', not 'tourist' like Manly.
Considering the number of units in Dee Why, the number currently for rent is really low (about 45 today) so there is rental demand. I have heard that alot of units are being bought by owner occupiers, in my block alone we have gone from 3 out of 14 in 2004 to 8 out 0f 14 today, being more affordable than Freshwater etc thats probably why.
I personally do not think you can go wrong if you buy, the beach is just beautiful and they are planning alot of work around the town centre in the next year. One bedders, or unrenovated two bedders east of Pittwater Road and not on Pacific Parade would be my pick.
A
I currently live at Dee Why after buying a unit in at the end of 2004 (although lived on the Nothern Beaches my whole life). Being a Northern Beaches local yourself you probably have a pretty good idea how Dee Why is perceived by other NB locals. I often come across alot of other people who own in Dee Why when i'm out and all agree that we like people thinking badly of it cause it keeps the area 'local', not 'tourist' like Manly.
Considering the number of units in Dee Why, the number currently for rent is really low (about 45 today) so there is rental demand. I have heard that alot of units are being bought by owner occupiers, in my block alone we have gone from 3 out of 14 in 2004 to 8 out 0f 14 today, being more affordable than Freshwater etc thats probably why.
I personally do not think you can go wrong if you buy, the beach is just beautiful and they are planning alot of work around the town centre in the next year. One bedders, or unrenovated two bedders east of Pittwater Road and not on Pacific Parade would be my pick.
A
Hi Cheetah,
I think I already responded to your PM with my thoughts, but basically I agree with Agenda in that you can't really go wrong with Dee Why. There's a lot of infrastructure investment happening there in the next few years due to the state strategy denoting Dee Why - Brookvale as the major city centre for the North East sub-region. Ultimately I expect they'll link Dee Why to Chatswood by rail or metro but I wouldn't hold your breath.
Cheers,
Michael.
I think I already responded to your PM with my thoughts, but basically I agree with Agenda in that you can't really go wrong with Dee Why. There's a lot of infrastructure investment happening there in the next few years due to the state strategy denoting Dee Why - Brookvale as the major city centre for the North East sub-region. Ultimately I expect they'll link Dee Why to Chatswood by rail or metro but I wouldn't hold your breath.
Cheers,
Michael.
That will be the day mate, we'll all be 80 by then and have to pay $500 for a return ticket.
Tomorrows Real Estate section from The Manly Daily is up on the website. Main story for this weekend is how soft the Northern Beaches is at the moment, looks like it could be a long cold winter with alot of excess stock on the market.
How do you think the next six months are going to pan out? Michael?
I'm picking a 6 - 10% drop in the short term with a big surge mid next year as interest rates start to come off. Good time to buy.
How do you think the next six months are going to pan out? Michael?
I'm picking a 6 - 10% drop in the short term with a big surge mid next year as interest rates start to come off. Good time to buy.
Hi Agenda,
Sounds about right to me, but I wouldn't be surprised to read about 30% price drops in some suburbs though. Remember, they report stats, and the lower end are more likely to be mortgage stretched into distressed sales. This means these sales distort the median as the equity rich upper end just sit tight and ride out the slowdown. The actual true median can never be guaged, as its only the median based on recent sales which is misrepresentative.
But I do agree that flat and falling price reports for the next two years are to be expected. And I also agree that buying opportunities abound for the cashed up and equity rich crowd.
I can play it two ways:
1. Flog my Mona Vale development site to a cashed up builder and realise a tidy capital gain then go bargain shopping in distressed times for the next 12 months; or
2. Just sit tight and wait the 12 months before I develop Mona Vale in the next rising market.
I'm tending to the latter at the moment simply because it requires less effort and energy to transact. I'm sitting on a great site with a DA in place which can only do well in years to come. That bit of land is fantastic, and there ain't that much of it around. "They ain't making any more of it". So, why bother selling it just to try and buy more quality growth stock. No net real gain really.
But expect doom and gloom. It sells papers.
Cheers,
Michael.
Sounds about right to me, but I wouldn't be surprised to read about 30% price drops in some suburbs though. Remember, they report stats, and the lower end are more likely to be mortgage stretched into distressed sales. This means these sales distort the median as the equity rich upper end just sit tight and ride out the slowdown. The actual true median can never be guaged, as its only the median based on recent sales which is misrepresentative.
But I do agree that flat and falling price reports for the next two years are to be expected. And I also agree that buying opportunities abound for the cashed up and equity rich crowd.
I can play it two ways:
1. Flog my Mona Vale development site to a cashed up builder and realise a tidy capital gain then go bargain shopping in distressed times for the next 12 months; or
2. Just sit tight and wait the 12 months before I develop Mona Vale in the next rising market.
I'm tending to the latter at the moment simply because it requires less effort and energy to transact. I'm sitting on a great site with a DA in place which can only do well in years to come. That bit of land is fantastic, and there ain't that much of it around. "They ain't making any more of it". So, why bother selling it just to try and buy more quality growth stock. No net real gain really.
But expect doom and gloom. It sells papers.
Cheers,
Michael.
A bit of a repeat to my last post, but I absolutely agree. Choice picking at the moment. Here's two I know of:
1. Mona Vale, Pittwater Rd. Freestanding house on 600m2+ $550K (normally would have sold for $750K but distressed seller)
2. North Narrabeen, Nareen Pde. Freestanding house on 800m2+ $450K (normally would have sold for $600K but distressed seller).
The latter is a few houses down from my PPOR, but a much shabbier little older place. Was a private seller so didn't make it onto RE.com or others so limited interest. Still, if I could have afforded it, I would have bought it. Awesome buying at $450K and will only do well for the new owner over the next decade. Should easy see $1M in that time.
Cheers,
Michael.
Hi TAG,
I don't think you'd be neutral with IRs at 9.5%, but you'd probably pull $650-$700pw comfortably on each. Maybe a bit more for the Mona Vale one. My quick math shows about a $10K shortfall before negative gearing deductions at current interest rates. Peanuts really.
Not a bad yield (7.5% odd).
Cheers,
Michael
I don't think you'd be neutral with IRs at 9.5%, but you'd probably pull $650-$700pw comfortably on each. Maybe a bit more for the Mona Vale one. My quick math shows about a $10K shortfall before negative gearing deductions at current interest rates. Peanuts really.
Not a bad yield (7.5% odd).
Cheers,
Michael
Can't say. This one was mentioned to me by an REA that I am dealing with at the moment. He didn't give any more detail, except it was a distressed sale and that he's been dealing with a few of late which is very unusual for their sales office.
But I agree, seems like land value only.
Cheers,
Michael.
about 2% - 3% above inflation. Nothing spectacular.
Still a tidy profit, better than a kick in the ars* I suppose. But it does really reflect how much a financial and emotional burden a PPOR really is.
Say $900k in 2003. Interest, maintenance and rates cost each year would be roughly $65-$70k. Multiple by 5 + recent rate rises = $350k ish. So doing the maths of $900k + $350k = $1.25M. I would go back to the bank and ask the difference to be bumped up. How dare they short change you. Plus ask em to approve more loans cos in the 5 years you had a PPOR debt, it limited your serviceability to accumulate IPs at a faster rate.
PPORs = love em, hate em!
I don't know, may be I got this whole property thing all wrong,
Purchased '98 250k, 180k Reno in 2002, Now a conserviative $1,175 mil.
Thats better BigTone. I thought you purchased in 2003 for $950K and the bank valuation came in the same. That is a more reasonable rate of return.
