Any thought on Hurstville?

[chrono]

Has anyone done some research into this area?

From my research, I think Hurstville is under heavy development right now:
- I got this article about hurstville 10 years development project until 2014:
http://www.hurstville.nsw.gov.au/PageZone_AboutCouncil.asp?z=2&c=440&p=989
- There is also East Quarter that's under development (planned to be finished by April 2014):
http://www.brookfieldmultiplex.com/residential/projects/property-details/222/East-Quarter-Hurstville
- And many other developments going on.

I'm thinking of buying 1+ bedroom apartment off-plan with these considerations:
+ I will live there for the first 6 months and rent it out after. (Just want to get the benefits of FHOG boost and low interest rate)
+ However, there is also possibility that I'll stay there afterwards (depends on conditions at that time - eg. I still work on the same place, etc etc)
+ I can get $24,000 FHOG
+ Close to city, close to work (I work in Rockdale)
+ Good rental demand
+ Can be rented out at around $350 p/w
+ Possible high capital gain? (unsure)

However, I also have some concerns:
- Price for 1+ bedroom apartment is around $360,000 - $380,000 (considering $350 weekly rental, it's considered very expensive imho)
- Strata around $500 - $600 p/q (not sure about council and water rates) - high maintenance cost
- I'm only on $60,000 gross anual salary - which means a bit strain on my budget (I'm talking about monthly repayments) - I'll do second job to get more income for sure ... just want to count any worst scenario possible

Can anyone give me any thoughts or questions on both the suburb and my situation?
I know it's a bit of strain. However, I'm just thinking that this good chance is too good to be missed.

 

[Bon]

1+ bedroom apartment off the plan.... doesn't sound good. How many apartments all up? If there is a bunch of them, what's going to make someone want to buy yours when there's a heap of others just like it for sale? There's no scarcity there, so probably little to no CG.

 

[kissfan]

Hi chrono.

There are a lot of units around the Hurstville/Allawah area, so do your research.

Not saying there won't be growth there (I've never looked into this area), just do your DD.

Regards
Marty

 

[ziggy2214]

However, I also have some concerns:
- Price for 1+ bedroom apartment is around $360,000 - $380,000 (considering $350 weekly rental, it's considered very expensive imho)
.

I agree, and IMO you should look for 2 a bedroom unit because it will be easier to finance, there is a bigger rental market for it and when 1 day you have a family you can easily live there for a while

 

[RichDaddy]

Current i believe Hurstville has too much Strata Unit development happening. Unit Supplies will be at a all high at least for 3 - 4 years, during this time capital gain will be very little.

For investments i believe older units might provide a higher yield and better return than brand new ones.

 

[Propertunity]

Current i believe Hurstville has too much Strata Unit development happening. Unit Supplies will be at a all high at least for 3 - 4 years, during this time capital gain will be very little. For investments i believe older units might provide a higher yield and better return than brand new ones.

Yes, what RichDaddy said.

Additionally, units in Hurstville are showing a long term CG trend of around 5.4% (APM) - nothing to get too excited about

If you are still determined to buy OTP make sure you understand all the risks that go with it. See this thread: http://www.somersoft.com/forums/showthread.php?t=45102

Also if you can buy a 2brm do that rather than a 1brm.....but if you buy a 1 brm anyway make sure it has a floor area > 50m2 or you reduce the number of financiers who will loan on it and the amount of LVR you can get.