Alexandria or Randwick? New PPOR (+long-term hold for inv purposes)

[Rezix]

Hey guys,

I am going to start looking for a 2 bedroom, 1 carspace apartment as a PPOR for myself within the next few weeks.
The plan is to live in it for AT LEAST the first 6 months (to get my 6-year rule ticking), but then I'll probably hold it indefinitely beyond that and periodically borrow against any additional equity for further investment purposes - either by continuing to live in it, or by renting it out.

However... I really can't decide between Randwick and Alexandria.

My business is located in Eastgardens (Pagewood), so Randwick is a bit more convenient for work and seemingly less burdened by a potential over-supply problem in the future due to excess developments... but Alexandria is a bit closer to the city and the inner-west nightlife (Newtown, Glebe), and quite a bit cheaper, with higher current rental yields to boot.

Number crunch is as follows:
* Randwick = Median 2 bedroom unit price of $750k, gross rental yield of 4.02%
* Alexandria = Median 2 bedroom unit price of $680k, gross rental yield of 4.74%

My current property portfolio is all in Atlanta, so I am quite out of touch with the investment and lifestyle prospects of Sydney suburbs - would therefore appreciate any thoughts/insight from people who may know more about this than me!

Cheers.

 

[Ace in the Hole]

I'd go Randwick for sure.
Really don't think there's any comparison.

 

[beachgurl]

Definitely Randwick for me too.

 

[windyzz]

May I know what the reason why Randwick is better than Alexandria ?

Cheers

 

[Rezix]

May I know what the reason why Randwick is better than Alexandria ?

Cheers

I second this request! Lifestyle factors? Investment prospects? Combination?

 

[beachgurl]

Alexandria seems like the latest hot suburb. When I lived in the East a few years back, people would only buy there because they couldn't afford to buy anywhere else in the East. So I think a lot of the older crew wouldn't consider Alexandria over Randwick as a place to rent.

I think you would have a better cross section of tenant to choose from in Randwick. Lots of professionals like to live there as it's the last stop on the express bus line to the top end of the city (first bus stop is outside Chifley Tower) and it's very close to the beach. IMO Alexandria could fall foul of the cool factor whereas Randwick will always be a reliable stable location for a property.

 

[serendip]

Randwick - good transport, close to beach, village, more established so less huge apartment buildings, city / hospital workers as prospective tenants

Alexandria - too many apartments / over supply issues, how would yours be differentiated?, may be quality issues in years to come, no character, busy

Randwick hands down

 

[windyzz]

thank you

 

[Ace in the Hole]

Randwick:

Centennial Park.
Queens Park.
Randwick Racecourse.
Uni of NSW.
Prince of Wales hospital.
The Spot - restaurants and cinema.
Better mix of dwellings, lower density.
Bordering beachside and blue chip suburbs.

A higher quality suburb overall.

 

[Rezix]

Many thanks for all of your responses - I really appreciate the input!

Seems like there is a strong consensus of choosing Randwick over Alexandria (despite the lower prices and higher rental yields)... so I guess I'll just have to suck it up and pay the extra $70k to buy in Randwick!

 

[Ace in the Hole]

Forgot one, Randwick Rugby Club....