450k to spend in Sydney where would you buy?

[Just starting]

Hi everyone,

My partner and I are looking to buy our 1st property and want to buy somewhere in Sydney. The reason for this area is we want the FHOG and other benefits for the 1st time buyer but only plan on living in it for 6 months before moving back to a unit in Cronulla my mum owns where we don't have to pay any rent

With 450k to spend on a place I can't decide whether to buy a unit closer to the city or look further out for a house.

I would really appreciate people's thoughts on what they would do if they were me.

Thanks

 

[karina]

Hi Ben,

for 450k you may be able to get a 2 bedroom terrace close to the city, alexandria, newtown , those sorts of areas, with rents rising it could be an ok return and well positoned for growth.

or a nice house maybe in the hills district.

 

[peterg]

Ben
what area do you want to buy in

 

[Just starting]

Anywhere where there is an opportunity for good capital growth

 

[FrankGrimes]

Unit I would say closest to the City you can get. North Shore, Eastern Suburbs or Inner West.

House

Upper North Shore (Hornsby, Asquith etc)
Hills
Sutherland Shire (cheaper suburbs like Engadine etc)

 

[Just starting]

In terms of capital growth what would you expect to do better though? A unit close to the city or a house furhter out?

 

[luce.rocks]

In terms of capital growth what would you expect to do better though? A unit close to the city or a house furhter out?

that's a bit of an eternal question. like the CF vs CG question. lots of experienced people round here have different thoughts on it. i don't think there's any real consensus. maybe do a search and read through old threads on this topic.

 

[johnno]

Where to buy

Anywhere where there is an opportunity for good capital growth

I stubbled onto a website called www.nmddata.coim.au it lists Mortgagee & deceased Estate properties throughout Autsralia. There are some great bargains around inner sydney Check it out

Johnno

 

[LearningMan]

Hi everyone,

My partner and I are looking to buy our 1st property and want to buy somewhere in Sydney.

Thanks

Your question reminds me of the Philosophy final exam question: "Define the universe. Be specific. Give two examples."

 

[Just starting]

useful site. Thanks johnno

 

[wish-ga]

I have prolly missed the boat on these price-wise but my shortlist of suburbs to investigate was;

Summer Hill ====> apartment
Rhodes ===> apartment
Melrose Park ====> free standing
Ermington ====> free standing

 

[luce.rocks]

summer hill is really cute, on the south side of the train line (south? i mean the smith st side, not the carlton cres side). my bf and i went there randomly a few weeks back on a fri night and there was a brass band playing on that paved area off the main strip, and locals milling about and little kiddies dancing was really cute. i think it'd be a lovely place to pick up a cheap place to live, but maybe it's a little too isolated as a pocket, like it doesn't have any borders with any mid to up market suburbs? so less chance for growth? cos it's already the nicer than ashfield, lewisham, etc? mind you, there's a few streets around the lewisham train station that could easily turn into a similar little 'summer-hill-village-esque' pocket with a bit of sprucing up.

i wouldn't mind picking up a cheap unit in either area if i were looking for somewhere cheap for a PPOR, maybe not so much for an IP tho?

 

[lowb]

excellent website jonno, cheers

hi, i did this a year ago; to me, it was a balance between convenience (prox. to friends and family) and cg/cf. for convenience, i would not suggest buying in the north as it would take ages to travel to cronulla.

for 450k, perhaps inner city would be nice. another thought is to buy 2 cheaper ones (spreading the risk and the effect of better experience on the 2nd purchase)

anyway, all the best!

 

[FrankGrimes]

In terms of capital growth what would you expect to do better though? A unit close to the city or a house furhter out?

Much the same over the long term. Units close to the city have high land value, houses 20km + have larger land, but the value is less. Neither here nor there if you ask me. Buy what you need if its a PPOR. < 20km will move first in the next cycle though.

 

[peterg]

What I would do

I would probably control as many properties as I could afford,looking for low entry price,affordable payments & even use someone elses loan,thus freeing up my cash for even greater returns on the same money.I just feel I have made a lot more money in this enviroment by a way of control rather than ownership.

 

[peterg]

Think of this(

I would probably control as many properties as I could rather than own them.In this current enviroment Ive found control more useful than ownership.It frees up your cash to invest in multiple investments & the Cash on Cash return is greater.Your entry price is a lot cheaper than normal /conventional approaches & the opportunity to acquire more properties for the same price is abundant.Your Exposure is considerably limited
giving a much safer form of liability.

 

[Just starting]

Thank you everyone for your feedback it has been helpful. Peterg I'm relatively new to this and so don't understand what you mean by 'control' instead of 'own'. Your theory sounds interesting but can you give me an examplpe to help me understand what you mean?

Thanks

 

[peterg]

What I mean is very similar to a developer.Basically in a roundabout way control lets you make the weekly payments but pay the purchase price at a later date.(Dont confuse this with a delayed settlement)

 

[alexlee]

What I mean is very similar to a developer.Basically in a roundabout way control lets you make the weekly payments but pay the purchase price at a later date.(Dont confuse this with a delayed settlement)

Lease option, Peterg?