Advices needed, Gladesville and Hunters Hill

[ferdinandch]

Guys

I posted earlier this week a question about Northern Beaches, now I am considering as well Gladesville and Hunters Hill for 2 bedders unit. My budget is up to $650,000.

What you guys think about the area and what you guys think about the growth prospect of this area? Another question is, why rental price in this area is pretty low, and rent yield is pretty dismal. I am aware that when they say units, it covers those expensive units $1M+, which might distort the object of my observation.

Please advise.

 

[ferdinandch]

Another question is with offers over$xxx atm, and with current market, is 10% more acceptable? Or will I pay too much?

Less than 5% is definitely rejected.

 

[Propertunity]

Another question is with offers over$xxx atm, and with current market, is 10% more acceptable? Or will I pay too much?

Less than 5% is definitely rejected.

You can't adopt a strategy for "offers over" like that.

I just inspected one in Newcastle advertised as "offers over $320K" which has 2 x offers on it already for over $380K. In this case the agent is either incompetent or it is bait advertising.

Work out the real worth of the property and go from there.

 

[ferdinandch]

Work out the real worth of the property and go from there.

I think the property is at roughly 7-9% on the top offers over $xxx, but now has gone wild to around 14%.

 

[Rolf Latham]

Its a great area

I used to live locally

650 might be a struggle though

ta
rolf

 

[ferdinandch]

Its a great area

I used to live locally

650 might be a struggle though

ta
rolf

Thanks Rolf.

Could you comment on poor rental yield? I mean Northern Beaches can generate 4.5% to 5% rental yield.

 

[cadence]

0.5% isn't THAT much
how are you calculating the yield, is it all based on gross numbers? they are indicative only as other factors can impact on the true net yield?

the bottom line is Gladesville and HH are closer to the city than northern suburbs, Aussies love their beaches but city is where you will likely find jobs, so logically the demand for suburbs closer to the city should be higher than the northern beaches, whether this has reflected in the past numbers I do not know but the greater demand should translate into higher capital growth over the years and its not unusual for higher CG properties in the metro areas to have lower yield.

 

[see_change]

0.5% isn't THAT much
how are you calculating the yield, is it all based on gross numbers? they are indicative only as other factors can impact on the true net yield?

the bottom line is Gladesville and HH are closer to the city than northern suburbs, Aussies love their beaches but city is where you will likely find jobs, so logically the demand for suburbs closer to the city should be higher than the northern beaches, whether this has reflected in the past numbers I do not know but the greater demand should translate into higher capital growth over the years and its not unusual for higher CG properties in the metro areas to have lower yield.

While they might be closer geographically , I'd be curious o know what the commute time is in peak hours . Does it have fast bus lanes that work ?

We used to live inner west and concord years ago and the traffic was horrendous then.

I didn't realise the demand for the lower northern beaches area until I started working there six years ago and I would personally think places like manly / freshwater and now even dee why would have a greater appeal to more people than gladesville

Hunters hill is a recognised prestige suburb , but gladesville is not .

Cliff

 

[cadence]

commute from Gladesville is not the best, HH is a little better .... either option you're probably looking at 40min in peak hour (which is similar to say the Burns Bay side of Lane Cove)

i've never lived in northern beaches, i love that area, but based on what i hear from my colleagues, it seems like the commute from northern beaches is worse than above, during peak hours if they are lucky enough to get on the bus it usually takes at least 1 hour into the city

at my last job, a lady moved from dee why to wollongong, i dont know how much of it was exaggeration to make a point but she told people she was waking up the same time to catch the country link to get to work by 9am than waking up around 6am to try to make sure she got on a bus before 7am in dee why and ended up in the office a lot earlier than she needed to be ....

just passing on some hearsay .... i'm sure a lot of people don't mind the commute in exchange for the fantastic surf lifestyle

 

[see_change]

just passing on some hearsay ....

That what people do here about 98% of time

Cliff